Mr. Bob Emmott reports

MAXIM POWER CORP. SUCCESSFULLY COMPLETES COMMISSIONING OF THE CCGT EXPANSION OF M2

Maxim Power Corp. has commissioned the combined cycle gas turbine (CCGT) expansion of its natural-gas-fired power plant (M2) located near Grande Cache, Alta.

Construction of the heat recovery technology required to expand M2 into a CCGT facility commenced in 2021, and the project was originally expected to commission in the fourth quarter of 2022. Commissioning was delayed due to the non-injury fire on Sept. 30, 2022, which caused damage to M2's air inlet filter house. Repairs commenced shortly after and were completed in August of 2023 to allow for the recommencement of commissioning activities. M2 began generating intermittent electricity to the grid on Aug. 14, 2023, and achieved CCGT commercial operations on Oct. 24, 2023.

The CCGT expansion of M2 is expected to increase the maximum generation capacity of the HR Milner site to 300 megawatts, and has been designed to lower operations and maintenance costs per megawatt-hour. The CCGT expansion of M2 captures waste heat that would otherwise exhaust into the atmosphere and converts it into useful low-carbon dispatchable electricity for the Alberta power grid. The estimated final project cost of the CCGT expansion of M2 is currently $164-million, excluding borrowing costs and the net effect of $20-million of grant proceeds.

This significant milestone completes the coal to gas energy transformation and repowering project at the Milner site, which saw over $300-million of investment and converted the legacy 150-megawatt coal-fired facility into a 300-megawatt CCGT facility. The CCGT expansion of M2 is expected to reduce the intensity of carbon emissions by more than 60 per cent compared with the legacy coal-fired Milner facility.

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 300-megawatt H.R. Milner plant, M2, in Grande Cache, Alta. -- is a state-of-the-art combined-cycle gas-fired power plant that commissioned in fourth quarter 2023. 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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