Mr. Jason Veenstra reports

NORTH AMERICAN CONSTRUCTION GROUP LTD. ANNOUNCES SIGNIFICANT FIVE-YEAR CONTRACT EXTENSION IN AUSTRALIA

North American Construction Group Ltd.'s MacKellar Group has been awarded a five-year contract extension by a major metallurgical coal producer in relation to a mine in the state of Queensland, Australia. The contract contemplates the provision of fully maintained equipment and related services at the site operated by the producer.

The award extends the expiry date from June 6, 2025, to June 30, 2030, and qualifies as contractual backlog given minimum hour commitments in the agreement. Rental scopes are estimated at $100-million per year resulting in a total value from this extension of $500-million. The contract requires the addition of two loading units and one service truck, for between $20-million and $25-million, which will be purchased in 2024 Q4 and bring the total dedicated fleet at this site to approximately seventy heavy equipment units.

"We are excited about this extension and look forward to continuing the relationship we have with our customer at this site," said Joe Lambert, president and chief executive officer of North American Construction. "This is the first material contract we have signed in Australia since the acquisition of MacKellar and are very proud of how well the first five months have gone. MacKellar has provided an excellent platform to grow our business in Australia as we leverage our operational and maintenance expertise in the region. We believe this 'locking in' of fleet is indicative of the strong demand for heavy equipment in the Australian mining sector. In light of this demand, and bolstered by long-term contracts, we have begun to take steps towards prudently increasing fleet size in Australia, including potentially transferring underutilized Canadian fleet into that market with the goal of maximizing overall utilization."

About North American Construction Group Ltd.

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

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