Mr. Bob Emmott reports

MAXIM POWER CORP. ANNOUNCES PARTIAL SETTLEMENT OF CLAIM FOR COMPENSATION RESULTING IN $6.5 MILLION OF PROCEEDS

Maxim Power Corp. has settled a portion of its previously disclosed claim for compensation against third parties in relation to the non-injury fire on Sept. 30, 2022, which caused damage to Milner 2's air inlet filter house. The claim was filed in 2024 against multiple third parties, and this settlement is with one of those parties. Maxim's portion of the settlement, net of fees, is approximately $6.5-million. The amount represents the maximum net amount available from the insurance policy of the third party which has agreed to settle. Maxim anticipates receipt of the settlement proceeds in the fourth quarter of 2025.

In addition, Maxim continues to pursue its claim against the remaining third parties. The corporation understands that the collective amount of the insurance policies, for the remaining third parties involved in the claim, is equivalent to the amount paid out as part of the settlement announced today. As of the date hereof, the precise amount and timing of any further compensation related to the claim, if any, cannot be determined.

About Maxim Power Corp.

Based in Calgary, Alta., Maxim is one of Canada's largest truly independent power producers. Maxim 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 continues to explore additional development options in Alberta including its currently permitted gas-fired generation project and the permitting of its wind power generation project. Maxim trades on the Toronto Stock Exchange under the symbol MXG.

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