Mr. Rohit Bhardwaj reports

CHEMTRADE LOGISTICS INCOME FUND ISSUES 2024 GUIDANCE AND RAISES MONTHLY DISTRIBUTION

Chemtrade Logistics Income Fund has issued its 2024 guidance and increased the level of monthly distributions to unitholders.

Chemtrade expects its 2024 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to range between $395-million and $435-million. Based on the midpoint of the guidance, including the anticipated spending on organic growth and the changes in capital allocation, Chemtrade expects to end 2024 with a net debt to adjusted EBITDA ratio of less than 2.0.

Chemtrade's latest guidance for 2023 was that it expected 2023 adjusted EBITDA to be above $490-million. This will be a new record level of annual adjusted EBITDA achieved by Chemtrade. Chemtrade's adjusted EBITDA in 2024 is expected to be below the record high 2023 level, but still in the range of Chemtrade's second-highest adjusted EBITDA, achieved in 2022. Further, Chemtrade considers the midpoint of 2024's anticipated adjusted EBITDA of $415-million to represent a sustainable level going forward.

Chemtrade's guidance is based on numerous assumptions. Certain key assumptions that underpin the guidance are as follows:

• There will be no significant lockdowns or stay-at-home orders issued in North America due to a pandemic outbreak during 2024;
• None of the principal manufacturing facilities (as set out in Chemtrade's AIF (annual information form)) incur significant unplanned downtime;
• No labour disruptions occur at any of Chemtrade's principal manufacturing facilities (as set out in Chemtrade's AIF).

The lower expected adjusted EBITDA for 2024 compared with 2023 is attributed to the following key factors:

• Lower average selling prices for caustic due to lower northeast Asia index prices;
• Turnaround at North Vancouver chlor-alkali plant;
• Lower sales volumes of sodium chlorate;
• Higher cost of raw materials for water treatment chemicals;
• Stronger Canadian dollar relative to the United States dollar.

Chemtrade remains focused on its long-term objective of delivering sustained earnings growth and generating value for investors. To achieve this, Chemtrade has identified various organic growth initiatives. In 2024, Chemtrade plans to invest between $60-million and $90-million in growth capital expenditures. This includes approximately $40-million for Chemtrade's ultrapure sulphuric acid business, principally at the Cairo, Ohio, facility, with the remainder for water treatment chemicals and other organic growth projects.

Capital allocation update -- increase in monthly distribution and suspension of dividend reinvestment plan

Chemtrade's management and board of trustees periodically assess Chemtrade's capital structure and capital allocation to ensure that it is positioned to deliver maximum long-term value to unitholders. The current distribution level was established at the onset of the COVID pandemic in March, 2020. During the pandemic, Chemtrade also initiated a dividend reinvestment plan (DRIP).

Chemtrade's balance sheet has significantly improved over the past few quarters and leverage has decreased, with a net debt to adjusted EBITDA ratio of 1.7 times at Sept. 30, 2023. Chemtrade's business has also strengthened, as evidenced by two consecutive record years in terms of adjusted EBITDA generated. While 2023 is unlikely to represent the new adjusted EBITDA run rate, Chemtrade believes that its business has undergone a step-change improvement from the pre-COVID levels. In light of the improved sustainable long-term outlook for Chemtrade's cash flow, Chemtrade is increasing its monthly distribution of five cents per month by 10 per cent to 5.5 cents per month, effective with the distribution that will be declared during the month of January, 2024. This distribution represents a payout ratio of 45 per cent based on the midpoint of Chemtrade's guidance for 2024.

In addition, as part of its updated capital structure and capital allocation strategy, Chemtrade is suspending its DRIP, effective with the distribution declared in January, 2024, and payable in February, 2024, at which time all distributions of the fund will be paid only in cash.

The increase in the level of cash distributions is expected to have minimal impact on Chemtrade's leverage and is not expected to impede Chemtrade's ability to execute growth initiatives while maintaining a healthy balance sheet.

About Chemtrade Logistics Income Fund

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest producers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also the largest producer of high-purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products and zinc oxide. Additionally, Chemtrade provides industrial services such as processing byproducts and waste streams.

We seek Safe Harbor.