Mr. Frederic Dugre reports

H2O INNOVATION ANNOUNCES ELECTION OF BOARD OF DIRECTORS, APPROVAL OF INSIDER LOANS AND CREATION OF AN OPERATION AND MAINTENANCE COMMITTEE

H2O Innovation Inc. held on Tuesday, Nov. 15, 2016, its annual and special meeting of shareholders at its headquarters in Quebec City, Canada.

Shareholders re-elected the following directors to the corporation's board of directors: Philippe Gervais, chairman of the board, Frederic Dugre, president and chief executive officer, Pierre Cote, Peter K. Dorrins, Laurence E. Gamst, Lisa Henthorne, Richard Hoel, Elaine C. Phenix, and Jean-Real Poirier. Among these nine directors, eight are external directors and independent.

During the meeting, shareholders appointed Deloitte LLP as auditor of the corporation for the fiscal year ending June 30, 2017. Furthermore, the insider loans for an aggregate amount of $1.25-million in favour of Mr. Dugre, Marc Blanchet and Guillaume Clairet, as described in the management proxy circular dated Sept. 26, 2016, have been approved by a majority of the disinterested shareholders in accordance with the policies of the TSX Venture Exchange.

Creation of a new committee

During its last meeting, the board of directors has created the operation and maintenance committee, a new committee of the board of directors consisting of three members, one of which could be an independent individual having technical expertise, extensive experience and deep knowledge in the field of operation and maintenance services (O&M) for water and waste water treatment plants.

The main purpose of the O&M committee is to assist the board of directors and the management in organic and external growth initiatives of the O&M business pillar. Therefore, the O&M committee will review the objectives of the strategic orientation, develop a business acquisition plan and assess any potential opportunities in the O&M area of activity.

Furthermore, to properly support the corporation, the O&M committee will work in close collaboration with the management to evaluate, assess and review the scope of work, the compliance requirements and the risks associated with new O&M contracts. It will also play an important role in the determination of the renewal strategy of O&M contracts at maturity.