Mr. Mike Crawley reports

NORTHLAND POWER ANNOUNCES SIGNING OF CREDIT AGREEMENT FOR $5.2 BILLION PROJECT FINANCING AT BALTIC POWER OFFSHORE WIND PROJECT

Northland Power Inc.'s Baltic Power offshore wind project in Poland has signed a credit agreement to secure an equivalent of $5.2-billion of non-recourse green financing that adheres to Northland's green financing framework covering construction and a 20-year term.

The non-recourse project financing will be provided by 25 international and local commercial banks, and multiple export credit agencies and multilateral agencies. The project is expected to reach financial close in the coming days, upon satisfaction of all relevant conditions precedent to the financing being achieved.

"Today's announcement is a major achievement for Northland, our partners and the Baltic Power project," said Mike Crawley, president and chief executive officer of Northland. "This milestone demonstrates the support from the global financial community and reflects their confidence in Northland and our ability to develop, procure, construct and finance large and complex offshore wind projects. Despite the recent challenges for the offshore wind sector in some markets, Northland continues to find a way to advance large-scale offshore wind projects with attractive economics."

"This financing is Northland's first offshore wind project in Poland," said Pauline Alimchandani, Northland's chief financial officer. "We would like to thank all stakeholders for working together to achieve this significant milestone. Once operational, Baltic Power will be Northland's fourth offshore wind project in Europe and will provide significant high-quality, inflation-protected, long-term contracted adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] and free cash flow to our business and shareholders."

Northland has been co-developing Baltic Power with Orlen, since acquiring a 49-per-cent equity stake in the project in 2021. The project financing amount of $5.2-billion represents 80 per cent of Baltic Power's $6.5-billion projected total capital cost (inclusive of contingencies). The remaining capital will be contributed by the project partners at financial close and has already been secured. Northland's share of equity for the project was fully secured through the green hybrid bond issuance in June, 2023, and existing corporate liquidity. Northland's interest in Baltic Power is expected to generate a five-year average adjusted EBITDA (a non-IFRS (international financial reporting standards) measure) of approximately $300-million to $320-million and $95-million to $105-million of free cash flow (a non-IFRS measure) per year once operational, delivering significant long-term cash flow for the company's shareholders.

The project's 25-year CfD offtake agreement is euro-pegged and includes an inflation indexation feature commencing with a base year of 2021, providing offsetting benefits to the higher inflationary price pressures recently experienced. Further optimization opportunities will be pursued during and after the construction period, which include: future optimizations the long-tenor CfD offers, operating cost improvements and construction execution efficiencies. The project has secured a 15-year operations and maintenance agreement with the turbine supplier, with options to extend.

The project is located in the Baltic Sea, approximately 22 kilometres off the Polish coast near Plaza Wydmy Lubiatowskie, and has obtained all environmental approvals and major construction permits. Construction activities have commenced, with fabrication of certain key components under way. Full commercial operations are expected in the latter half of 2026. Once operational, Baltic Power will be amongst the largest offshore wind projects globally. It is expected to provide clean energy to over 1.5 million Polish households and will play an important role in helping Poland achieve its renewable energy targets where installed capacity of offshore wind energy is expected to reach up to 11 gigawatts by 2040.

Baltic Power has entered into interest rate hedges that cover the full loan amortization period and provide an effective all-in interest rate of approximately 5 per cent. In addition, Northland has entered into currency hedges to stabilize the Canadian-dollar equivalent for the majority of its projected distributions through 2038 and will enter into additional hedges on a continuing basis, in line with the company's risk management strategy. Baltic Power's major supply and construction contracts are denominated in euros to match the currency of financing, with 95 per cent under fixed-price contractual structures.

About Northland Power Inc.

Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and manages a diversified generation mix including onshore renewables, efficient natural gas energy as well as supplying energy through a regulated utility.

Headquartered in Toronto, Canada, with global offices in eight countries, Northland owns or has an economic interest in approximately 3.2 GW (net 2.7 GW) of operating capacity. The company also has a significant inventory of projects in construction and in various stages of development encompassing approximately 16 GW of potential capacity.

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