Mr. Colin Copp reports

CHORUS AVIATION ANNOUNCES AGREEMENT TO ACQUIRE SKYCARE AIR AMBULANCE

Chorus Aviation Inc. has entered into an agreement to acquire SkyCare Air Ambulance, the largest private fixed-wing air ambulance operator in Northern Ontario. The acquisition is expected to close in the fourth quarter of 2026.

Founded in 2006 by president and chief executive officer Frank Behrendt, SkyCare is a privately held aviation and medical services company headquartered in Sioux Lookout, Ont. In 2025, SkyCare generated approximately $48-million in revenue. The company employs approximately 220 people across bases in Sioux Lookout; Thunder Bay and Kitchener, Ont.; and St. Andrews, Man.; including aviation operations personnel and acute and primary care medical professionals. SkyCare operates a fleet of 22 aircraft, including turboprops and business jets configured to support air ambulance and other specialized missions.

SkyCare provides 24/seven medevac, repatriation, organ transport, and charter services across Canada and the United States. Through its long-standing relationship with Ornge, SkyCare plays an important role in supporting regional medical transportation across Ontario. Its diverse fleet and specialized capabilities enable the company to support a range of complex medical missions.

"The acquisition of SkyCare is a strong strategic fit for Chorus, adding a complementary operation with long-standing customer relationships and specialized aviation capabilities as we continue to build out our aviation, aerospace and defence platform," said Colin Copp, president and chief executive officer of Chorus. "SkyCare has built a strong reputation based on its specialized capabilities, professionalism and commitment to its customers. We see meaningful opportunities to support the company's continued growth as part of Chorus, and I am pleased to welcome Frank and the entire SkyCare team."

"Joining Chorus marks an exciting next chapter for SkyCare," said Frank Behrendt, president and chief executive officer of SkyCare. "Over the past 20 years, our aviation and medical professionals have built SkyCare into the company it is today. Becoming part of Chorus provides a strong platform for our continued growth while allowing us to build on the relationships, expertise and culture that have been central to our success."

Acquisition details

Today, Chorus entered into an agreement to acquire SkyCare for total consideration of approximately $40-million, subject to customary adjustments inclusive of contingent consideration. The purchase price will be financed by $32-million in cash with the remainder of the purchase price payable on or before March 31, 2029, subject to meeting certain performance targets. This acquisition is subject to customary closing conditions and is expected to close during the fourth quarter of 2026.

This acquisition aligns with Chorus's disciplined approach to capital allocation, focusing on mid-teens return opportunities while reinforcing stable cash flows and delivering sustainable shareholder value. The acquisition is expected to be immediately accretive to Chorus's earnings and free cash flow from the date of closing.

From 2026 to 2029, Chorus expects to generate approximately $500-million to $550-million of free cash flow and aircraft sale net proceeds, supporting investment in growth opportunities targeting mid-teens unlevered returns, as well as dividends and share repurchases.

About Chorus Aviation Inc.

Chorus is a holding company which owns the following principal operating subsidiaries: Jazz Aviation, primary provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; KADEX Aero Supply, an original equipment manufacturer (OEM) aircraft parts distributor and provider of repair and overhaul services; Cygnet Aviation Academy, an accredited training academy preparing pilots for direct entry into airlines; and Elisen & Associates, a provider of aerospace engineering and certification services. Together, Chorus's subsidiaries provide services that encompass every stage of an aircraft's life cycle, including: aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; aircraft acquisition and leasing; and pilot training.

Chorus Class A variable voting shares and Class B voting shares trade on the Toronto Stock Exchange under the trading symbol CHR. Chorus's 5.75-per-cent senior unsecured debentures due June 30, 2027, trade on the Toronto Stock Exchange under the trading symbol CHR.DB.C.

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