Mr. Michael Belenkie reports

ENTROPY INC. PROVIDES CORPORATE UPDATE AND ANNOUNCES PASSING OF RICK BOWER

Entropy Inc., a subsidiary of Advantage Energy Ltd., has provided a corporate update, and Rick Bower, Entropy's chief technology officer, has passed away.

Corporate update

Entropy continues to expand its focus on the United States, with three projects advancing through engineering phase under commercial agreements. Preliminary front-end engineering and design have been completed on two American projects: a gas-fired steam generation facility in California and a gas-fired power generation project in Texas. Both projects are continuing to advance toward final investment decision, with the next major milestones being the receipt of Environmental Protection Agency Class 6 disposal permits and final commercial agreements. Engineering is now under way for a third American project, located in the U.S. Midwest, to capture postcombustion carbon dioxide at an ethanol facility from gas-fired boilers. In aggregate, these projects are intended to capture and store over 1.4 million tonnes per year.

Entropy has been awarded three additional pre-FEED contracts in Canada: a large industrial emitter in Ontario, a gas-fired boiler project in Alberta and a gas-fired steam generator in Saskatchewan. This design work is in addition to the pre-FEED work that has been completed on Glacier phase 2 and Athabasca Leismer. In aggregate, the first phases of these five projects are intended to capture and utilize or store over four million tpy.

Introducing iCCS standardized designs

Entropy is pleased to announce the evolution of its carbon capture technology into three standardized process designs, each integrating state-of-the-art advancements custom engineered for different styles of postcombustion emissions. Each of the three process designs is based on modular technology which is fabricated in controlled environments to deliver higher energy efficiency, lower total installed cost and predictable quality control. Scalability is a key benefit of Entropy's design, enabling rapid, low-cost deployment.

For boilers and steam generators, iCCS Thermal is designed to optimize carbon capture and storage, seamlessly integrating with boilers to curb emissions. For industrial engines, including compressors, iCCS Recip is based on innovative designs which have already been deployed and are currently operating at the Glacier gas plant in Alberta. Most significantly, Entropy has developed iCCS Turbine, which is a standardized, optimized design, to capture emissions from gas-fired turbines with low CO2 concentrations of around 4 per cent and can be applied worldwide at any power generation installation.

By standardizing these three applications, Entropy is now prepared to deliver CCS solutions with minimal new process engineering. Any gas-fired boiler, engine or turbine is a suitable target for iCCS, and all new installations of these industrial emitters can be fabricated with minimal additional cost to be iCCS ready.

Glacier CCS phase 1a, phase 1b and phase 2 update

Glacier phase 1a was commissioned in July, 2022, with industry-leading performance and reliability. The operational experience that Entropy is gathering by operating this commercial CCS plant continues to build its competitive advantage, demonstrating global leadership in this vital technology.

Construction of Glacier phase 1b remains on schedule to be commissioned in fourth quarter 2023, with all major equipment modules expected on site by mid-October. Phase 1b involves the capture and storage of an additional 16,000 tpy using iCCS Recip, at an expected total installed cost of approximately $14-million.

As previously disclosed, all major Canadian projects remain on pause pending advancement in Canadian carbon policy including clarity on the federal investment tax credit and carbon price certainty. It remains optimistic that, with the numerous emerging policies and supportive government-sponsored entities, positive FID will be reached on several projects.

Founding of the University of Regina Entropy research chair

Entropy is pleased to announce the founding of the Entropy research chair in carbon capture technology at the University of Regina. For decades, the university has been a global leader in carbon capture technology research and development and a source of great innovation. The research chair has been awarded to Dr. Raphael Idem, an internationally recognized leader in the space. Further, Entropy has established a fellowship in carbon capture technology, which has been awarded to Dr. Paitoon Tontiwachwuthikul. Entropy looks forward to continued collaboration and further innovation with these leading researchers.

The passing of Mr. Bower

The Entropy team is sad to announce the passing of Rick Bower, co-founder and chief technology officer of Entropy, as well as co-founder and principal of Allardyce Bower Consulting Inc. He was a key driver of innovation and technology behind Entropy's business, including the integration of state-of-the-art research derived from the Clean Energy Technologies Research Institute at the University of Regina. He developed a legendary reputation throughout industry for innovative modular designs that resulted in unmatched operational performance and cost structures.

Michael Belenkie, president and chief executive officer of Entropy, stated: "We want to extend our deepest condolences to Mr. Bower's family, and it is with great sadness that we say goodbye to such a tremendous friend. It was an incredible honour to work with Rick as a part of his illustrious five decades in the industry. Although Entropy's business will continue to thrive thanks to the legacy of Rick's vision and innovations and the talented individuals he mentored, Rick will be sorely missed by all."

We seek Safe Harbor.