Mr. Avik Dey reports

CALIFORNIA RESOURCES CORPORATION AND CAPITAL POWER TO EXPLORE DECARBONIZED POWER SOLUTIONS IN CALIFORNIA

California Resources Corp. (CRC) and its carbon management business, Carbon TerraVault (CTV), have signed a memorandum of understanding (MOU) (1) with Capital Power Corp. to provide carbon management services for Capital Power's La Paloma generation facility in Kern county, California.

Highlights:

• CTV and Capital Power plan to jointly evaluate and develop carbon capture and sequestration (CCS) solutions for the La Paloma facility -- a 1.1-gigawatt (GW) natural gas combined-cycle generation facility in Kern county.
• CTV intends to evaluate serving as the exclusive transportation and sequestration services provider for up to three million metric tons per annum (mmtpa) of captured carbon dioxide (CO2), supporting California's broader decarbonization goals.
• CTV and Capital Power plan to jointly evaluate potential data centre sites, power infrastructure needs, regulatory permitting and further integration opportunities.

"This MOU with Capital Power represents a promising opportunity to advance California's decarbonization goals and demonstrates the growing demand for reliable, scalable carbon management solutions," said Francisco Leon, CRC's president and chief executive officer. "By supplementing Capital Power's generation capabilities with CRC's strategically located storage infrastructure and technical expertise, we can help accelerate low-carbon power generation across the Golden State."

"Partnering with Carbon TerraVault highlights our commitment to practical, technology-driven solutions that accelerate the transition to a lower-carbon energy future," said Avik Dey, president and chief executive officer of Capital Power. "Together, we hope to drive innovation that makes sustainable energy more achievable."

(1) An MOU is a non-binding agreement. The projects and transactions described in an MOU are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties and receipt of EPA Class VI permits and other regulatory approvals.

About California Resources Corp.

CRC is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership and energy expertise for decarbonization by developing CCS and other emissions reducing projects.

About Carbon TerraVault

CTV, CRC's carbon management business, is developing services to capture, transport and permanently store CO2 for its customers. CTV is engaged in a series of proposed CCS projects to inject CO2 captured from industrial sources into depleted reservoirs deep underground for permanent sequestration.

About Capital Power Corp.

Capital Power is a growth-oriented power producer with approximately 12 GW of power generation at 32 facilities across North America. Capital Power prioritizes safely delivering reliable and affordable power communities can depend on, building lower-carbon power systems and creating balanced solutions for our energy future. Capital Power is Powering Change by Changing Power.

We seek Safe Harbor.