Mr. Ryan Jackson reports

CIELO ANNOUNCES FISCAL Q1 2024 FINANCIAL RESULTS

Cielo Waste Solutions Corp. has released its financial results for the three months ended July 31, 2023, and 2022. Copies of the unaudited interim financial statements and related management's discussion and analysis can be found on the company's issuer profile at SEDAR+.

First quarter fiscal 2024 highlights

During, and subsequent to the quarter, Cielo achieved the following goals:

• Obtained a $5-million mortgage loan facility to support continuing operations (initially drawing down $2-million);
• Executed agreements to terminate memorandums of understanding with Renewable U Energy Inc., allowing for repayment of fees in whole or in part by issuing securities of Cielo or a future project entity;
• Executed an agreement to purchase land in Dunmore, Alta., for a $5.2-million purchase price;
• Executed an agreement to acquire complementary assets, including an exclusive licence agreement, anticipated to accelerate the company's path to commercialization and revenues, as well as improve its proprietary technology;
• Completed the sale of the company's Fort Saskatchewan property.

• Net loss for the three months ended July 31, 2023, was $4.8-million, $23-million less than the period ended July 31, 2022, primarily due to the 2023 rental revenue of approximately $200,000 and gain on settlement of debt of $200,000, plus recognition of an impairment loss on the FS property of $2.7-million (due to a condition of sale) compared with the impairment recognition related to property, plant and equipment of $25.4-million in 2022.
• During the quarter ended July 31, 2023, Cielo had negative operating cash flow of $1.4-million, consistent with prior periods and as expected in a prerevenue business. Cielo expects cash flow from operations to be negative during the product development stages of the company.
• Financing costs decreased approximately $100,000 for the three-month period primarily due to the lessened interest expense as debt decreased from the comparative period.
• General and administrative costs approximated costs incurred in the comparative period. Professional fees increased approximately $200,000 due to increased corporate development activities while personnel decreased approximately $300,000 as Cielo continues to minimize its personnel costs. Property tax variance of $60,000 is due to adjustments in the comparative period. Office and administration cost increases include costs associated with the exit of former Calgary office in the amount of approximately $180,000.

Outlook

During, and subsequent to, the quarter ending Oct. 31, 2023, Cielo anticipates the following:

• Subject to the approval of the TSX Venture Exchange, the completion of the proposed asset purchase transaction with Expander Energy Inc., as disclosed in a news release dated Sept. 20, 2023, and the resulting plans for the company's first commercial facilities utilizing the technologies to be exclusively licensed from Expander;
• The closing of a minimum of $45-million in connection with, and as a condition to, closing of the proposed transaction;
• Subject to the terms and conditions previously disclosed, including the approval of the TSX-V, the acquisition of land in Dunmore, Alta., from Renewable U to be used for the construction and operation of a commercial facility;
• The holding of the company's annual general and special meeting of its shareholders on Oct. 26, 2023, at which the shareholders of the company will be asked to approve, among other things, an up to one-for-15 security consolidation, which will be subject to the approval of the TSX-V (and potentially the completion of the proposed security consolidation).

About Cielo Waste Solutions Corp.

Cielo was incorporated under the Business Corporations Act (British Columbia) on Feb. 2, 2011. Cielo is a publicly traded company with its shares listed to trade on the TSX Venture Exchange under the symbol CMC and on the Frankfurt Stock Exchange (DAX) under the symbol C36, as well as on the OTC Venture Market (OTCQB) under the symbol CWSFF. The company's strategic intent is to become a leading waste-to-fuel company using economically sustainable technology while minimizing environmental impact. Cielo has a patented process that can convert waste feedstocks, including organic material and wood derivative waste, to fuel. Having demonstrated its ability to produce diesel and naphtha from waste, Cielo has a business model to construct additional processing facilities. Cielo's objective is to generate value by converting waste to fuel while fuelling the sustainable energy transition.

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