Mr. Joe Lambert reports

NORTH AMERICAN CONSTRUCTION GROUP LTD. ANNOUNCES AWARD OF REGIONAL SERVICES CONTRACT

North American Construction Group Ltd.'s Mikisew North American Limited Partnership (MNALP) has been awarded a three-year regional service contract by a major producer in the Canadian oil sands region. The contract contemplates the provision of services across various mine sites operated by the producer.

The contract is effective immediately with an expiry date of Jan. 30, 2027. Initial committed earthworks volumes in the first year of the agreement provide North American Construction Group with $225-million in contractual backlog. Management expects further commitments, also within the first year and in the range of $25-million to $50-million, to be awarded prior to the end of February, 2024. Including these expected awards, the company's combined backlog which, on a pro forma basis, was $2.8-billion as at Sept. 30, 2023, is now projected to be over $3-billion.

"We are excited to report this award after a comprehensive process with both MNALP and our customer, and we look forward to executing on our commitments. I am confident that the safe, low-cost and sustainable model we operate every day was instrumental in MNALP being awarded this scope and will continue to provide competitive advantages and opportunities in the future," said Joe Lambert, president and chief executive officer of North American Construction Group. "This regional contract supports the guidance we recently disclosed for what we expect from our overall business in 2024."

"We are pleased to celebrate another significant award for Mikisew North American Limited Partnership," said Dan Gallagher, chief executive officer of Mikisew Group. "This award ensures the equipment investments we have made with NACG will continue to deliver returns for our shareholder, the Mikisew Cree First Nation, well into the future."

About Mikisew North American Limited Partnership (MNALP)

MNALP is a limited partnership in which North American Construction Group has a 49-per-cent interest, with the Mikisew Group of Companies holding the majority 51-per-cent interest.

About Mikisew Group

Mikisew Group is the independent economic development arm of the Mikisew Cree First Nation. Mikisew Group comprises two main operating entities and 10 joint venture partnerships, including MNALP. These entities service the Canadian oil sands in various capacities, including heavy equipment rental, fleet maintenance, transportation, emergency response, catering services and facility maintenance.

About North American Construction Group Ltd.

North American Construction Group is one of Canada and Australia's largest providers of heavy construction and mining services. For more than 70 years, North American Construction Group has provided services to the mining, resource and infrastructure construction markets.

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