Mr. Bob Emmott reports

MAXIM POWER CORP. PROVIDES UPDATE ON MILNER 2 RETURN TO SERVICE AND INSURANCE INFORMATION

Maxim Power Corp. has provided an update on the return to service date of Milner 2 and insurance information.

M2 return to service update

Maxim Power has completed construction of the new air inlet filter house and is under way with completing internal cleaning and installation of filters to facilitate start-up of M2. Due to certain supply chain delivery challenges, now mitigated, the M2 restart schedule has been extended from late July, 2023, to the middle of August, 2023. Accordingly, Maxim Power does not expect to be generating electricity from the HR Milner site until the middle of August, 2023, at which point Maxim Power anticipates commencing hot commissioning activities for the combined cycle gas turbine (CCGT) expansion of M2. Hot commissioning activities are anticipated to occur over an approximate three-month period, during which there will be periodic outages of the facility resulting in intermittent generation of electricity. The CCGT expansion of M2 will increase total generation capacity of M2 from 204 megawatts to 300 megawatts and lower operations and maintenance costs per megawatt-hour as a result of operation efficiencies.

Insurance information update

Maxim Power continues to collect insurance proceeds in relation to the non-injury fire event at M2 with cumulative payments received to date of $45-million under its property insurance (PI) policy. The corporation will continue to receive business interruption coverage under the PI policy until M2 has returned to its prefire operational status, subject to the caps and limitations in such policy. Further details on insurance will be provided in conjunction with the release of Maxim Power's second quarter 2023 reporting.

About Maxim Power Corp.

Based in Calgary, Alta., Maxim Power is one of Canada's largest truly independent power producers. Maxim Power is focused entirely on power projects in Alberta. Its core asset -- the 204-megawatt H.R. Milner plant, M2, in Grande Cache, Alta. -- is a state-of-the-art natural-gas-fired power plant that commissioned in second quarter 2020. Maxim Power is currently increasing the capacity of M2 to approximately 300 megawatts and concurrently will realize an improvement in the efficiency of the plant by investing in heat recovery combined cycle technology. In addition, Maxim Power continues to explore additional development options in Alberta, including its currently permitted gas-fired generation projects and the permitting of its wind power generation project. Maxim Power trades on the Toronto Stock Exchange under the symbol MXG.

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