Mr. Akshay Dubey reports

CVW CLEANTECH ANNOUNCES RECEIPT OF NON BINDING INDICATIVE TERMS FOR TECHNOLOGY PERFORMANCE INSURANCE

CVW Cleantech Inc. has received a letter of intent (LOI) from a global insurance company containing non-binding indicative terms to potentially underwrite the development of a Creating Value from Waste (CVWTM) EcoBase project. This potential technology performance insurance (TPI) includes policy limits of $50-million for start-up repair coverage and $66.7-million of long-term output coverage, advancing a critical pillar of the derisking activities for commercialization of the CVWTM technology. This non-binding indication is subject to due diligence, legal and documentation review that is satisfactory to all parties. Due diligence is expected to commence once CVW Cleantech has entered into an agreement to deploy the CVWTM technology at an oil sands mining site.

Akshay Dubey, CVW Cleantech's chief executive officer, said: "Receipt of non-binding indicative terms for technology performance insurance is a significant step towards derisking the development of a first CVWTM project. The interest by a leading global insurance partner evidences the robust engineering process utilized in developing the CVWTM technology, and the significant environmental benefits which would be achieved by the oil sands industry through a CVWTM EcoBase project implementation."

The potential TPI would provide a bespoke, long-term and non-cancellable risk management solution for a potential first-of-its-kind CVWTM EcoBase implementation at a host oil sands mining site. The potential policy could include both start-up repair and long-term (operating) coverage:

• Startup repair coverage: The start-up repair policy would provide up to $50-million of additional financing to support an EcoBase project, after its commissioning period, in reaching name plate capacity and starting commercial operations.
• Long-term (operating) output coverage: The long-term output policy would provide up to $66.7-million over five years should recovery of bitumen and solvent from waste water, as well as GHG (greenhouse gas) abatement credits, fall below an agreed threshold. This coverage could finance debt service and other critical costs while corrective action is implemented to reduce potential output underperformance.

Mr. Dubey continued: "The start-up repair coverage is in addition to the $47-million contingency already included within the $390-million total expected capital cost of a potential EcoBase project. We would like to extend our sincere thanks to our insurance partners who responded to our requests for interest. Technology performance insurance could provide the company and its partners with additional comfort should total capital costs of an EcoBase project exceed the $390-million forecasted as a result of an insurable event. Additionally, the long-term output coverage provides financial comfort should a baseline level of bitumen, solvent and/or GHG abatement credits not be recovered. A potential TPI policy would only respond up to the policy limits.

"CVW Cleantech's management team will continue to work with the insurance markets and our broker partners to secure additive insurance coverage and commercial commitments. While the LOI is not a binding offer of insurance, it establishes the foundation to continue discussions, and potentially deliver an insurance solution with long-term benefits to CVW Cleantech and its project partners."

About CVW Cleantech Inc.

CVW Cleantech is a clean technology innovator working to develop sustainable technology solutions. The company has developed a suite of proprietary technologies called Creating Value from Waste that recover bitumen, solvents, critical minerals and water from oil sands froth treatment tailings, while significantly reducing tailings pond emissions and enhancing tailings management.

On an annual basis, the implementation of CVWTM's EcoBase development option could be expected to:

• Recover 2.2 million barrels of hydrocarbons (1.9 million barrels of bitumen and 300,000 barrels of solvent);
• Abate between 380,000 and 850,000 tonnes of CO2 (carbon dioxide) equivalents, primarily methane;
• Eliminate up to 5,000 tonnes of volatile organic compounds (VOCs);
• Potentially eliminate tailings pond growth due to froth treatment operations;
• Generate annual revenues of $248-million within the province of Alberta.

Diverting the froth treatment tailings stream to a CVWTM EcoBase operation could recover up to 90 per cent of bitumen and solvent that are currently lost into tailings ponds, and avoid the associated fugitive methane emissions. This patented and ready-to-deploy process would produce ready-to-reclaim tailings to meet the Alberta Energy Regulator's Directive 85 standards, which would provide a step change in tailings management and allow for progressive remediation.

CVW Cleantech has invested over $100-million and over 15 years to advance the CVW technology to ready-to-deploy status. This technology has been supported by large-scale integrated piloting and progressive commercial engineering studies resulting in 20 active patents. The development of the company's technology has been supported by the government of Alberta and the federal government, along with oil sands industry partners.

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