Mr. Robert McCurdy reports

PINNACLE RENEWABLE HOLDINGS ANNOUNCES NEW OFF-TAKE CONTRACTS IN SOUTH KOREA AND JAPAN

Pinnacle Renewable Holdings Inc. has entered into two new long-term, take-or-pay off-take contracts with customers in South Korea and Japan. The contract in South Korea is with CGN Daesan Power Co. Ltd., a subsidiary of CGN New Energy Holdings Co. Ltd., a diversified independent power producer in Asia. The contract in Japan is Pinnacle's second with Toyota Tsusho Corp., a trading and investing company and a group member of Toyota. As a result of these two new contracts, the weighted average remaining life of Pinnacle's portfolio of off-take contracts with customers has been extended from seven years as at March 30, 2018, to more than nine years.

Under the terms of the Daesan contract, Pinnacle will supply 315,000 metric tonnes per year of industrial wood pellets to Daesan beginning in 2021. The industrial wood pellets will be used in a biomass power generation plant in South Korea.

"Entering into this long-term relationship with Daesan is an important milestone for Pinnacle as it represents our first long-term contract in South Korea and our largest contract to date in Asia, thereby further establishing our strategic position in the Pacific Rim," said Robert McCurdy, chief executive officer of Pinnacle. "Being the first long-term industrial wood pellet contract to ever be signed in South Korea, this new agreement attests to the country's growing commitment to decarbonization."

In South Korea, the renewable portfolio standard policy aims to increase the share of energy generated from renewable sources to 10 per cent by 2023. According to Hawkins Wright, a leading provider of market intelligence and analytical services to the international pulp, paper and biomass industries, biomass demand growth has been the strongest in South Korea over the past five years, where industrial pellet consumption increased by a compound annual growth rate of more than 58 per cent between 2013 and 2017, reaching 2.5 million metric tonnes.

Under the terms of the Toyota Tsusho contract, Pinnacle will supply 170,000 metric tonnes per year of industrial wood pellets to Toyota Tsusho beginning in 2021. The industrial wood pellets will be used by Kanda Biomass Energy KK, which is established by Renova Inc., Sumitomo Forestry Co. Ltd., Veolia Japan KK and two other companies, in a biomass power generation plant in Kanda, Fukuoka prefecture, Japan.

"We are pleased to enter into our second long-term supply agreement with Toyota Tsusho and our fifth new contract over all in Japan this year," continued Mr. McCurdy, chief executive officer of Pinnacle. "Our growing contract backlog in Japan underlines both the increasing adoption of biomass and the strength of our competitive position in this market."

In line with the rapid growth in Pinnacle's contracted backlog, the company continues to evaluate and develop opportunities to add incremental production capacity.

About Pinnacle Renewable Holdings Inc.

Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third-largest producer in the world. The company produces renewable fuel for electricity generation in the form of industrial wood pellets, which are used by global utilities and large-scale power generators to produce renewable and reliable baseload power. The company operates seven industrial wood pellet production facilities in Western Canada and a port terminal in Prince Rupert, B.C., and it currently has a new production facility under construction in Smithers, B.C. Pinnacle has entered into long-term take-or-pay contracts with utilities in the United Kingdom, Europe and Asia that represent 109 per cent of its production capacity through 2021 and nearly 101 per cent of its production capacity through 2026.

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