Mr. Marc Murnaghan reports

POLARIS RENEWABLE ENERGY ANNOUNCES Q1 2023 RESULTS

Polaris Renewable Energy Inc. has released its financial and operating results for the three months ended March 31, 2023. This earnings release should be read in conjunction with the company's condensed consolidated interim financial statements and management's discussion and analysis, which are available on the company's website and have been posted on SEDAR. The dollar figures below are denominated in U.S. dollars unless noted otherwise.

Highlights:

• Consolidated energy production was 217,613 megawatt-hours (net) for the quarter ended March 31, 2023, of which 125,930 MWh (net) was contributed by the company's geothermal facility in Nicaragua (San Jacinto) and an aggregate of 66,334 MWh (net) was contributed by the company's hydroelectric facilities in Peru. A total of 15,235 MWh (net) was contributed by the company's solar facility in Dominican Republic (Canoa 1) and 10,114 MWh (net) was contributed by the company's hydroelectric facility in Ecuador (San Jose de Minas or HSJM).
• The company generated $20.1-million in revenue for the three months ended March 31, 2023, compared with $16.1-million in the same period in 2022. The increase was the net result of additional energy revenue sales from the binary unit located in Nicaragua, the two new facilities located in Dominican Republic and Ecuador, acquired during 2022, and from the company's Peruvian facilities, which had increased production, coupled with the increased prices due to inflation adjustments in the power purchase agreements (PPA).
• Net earnings attributable to owners was $4.7-million or 22 cents per share (basic) for the quarter ended March 31, 2023, compared with net earnings of $2.5-million or 13 cents per share (basic) in 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $15.3-million for the three months ended March 31, 2023, compared with adjusted EBITDA of $12.1-million in the same period in 2022, principally as a result of revenue increases, as described above.
• For the quarter ended March 31, 2023, the company generated $10.1-million in net cash flow from operating activities, ending with a cash position of $40.6-million, including restricted cash.
• On March 15, 2023, the company signed an agreement with Export Development Canada (EDC) for a $10-million floating rate term loan facility, with the purpose of providing capital to finance early-stage development expenses required to take projects to the point of being construction ready.
• On March 31, 2023, the company completed the construction of Vista Hermosa Solar Park, located in Panama. The plant was connected to the electrical grid on April 22, 2023.
• In April, 2023, the company began the construction of the Perlabi project, which consists of a conduction channel from the adjacent Perlabi river that will increase the load factor of the existing power plant in San Jose de Minas, Ecuador. The budget for the Perlabi project is approximately $3.4-million and construction is expected to be completed in the second quarter of 2024.
• The company remains focused on maintaining a quarterly dividend. For the quarter ended March 31, 2023, the company has declared and will pay the quarterly dividend of 15 cents per outstanding common share on May 26, 2023.
• The company continued to advance its environmental, social and governance (ESG) initiatives as part of its core strategy while continuing to maintain an excellent health and safety record. For additional details, readers are encouraged to refer to the company's annual sustainability report, which is available on the company's website.

During the three months ended March 31, 2023, quarterly consolidated power production was 217,613 MWh (net) higher than the 177,765 MWh (net) consolidated power production for the three months ended March 31, 2022, due to additional production from the binary unit in Nicaragua, which began operating on Dec. 30, 2022, as well as the Dominican Republic and Ecuador facilities acquired in the 2022, coupled with improved production in Peru.

For Nicaragua, the increase in production is the result of additional production from the binary unit, partly offset by expected declines in production from the steamfield. Total combined production came in within the company's expected range for the quarter.

Consolidated production in Peru for the three months ended March 31, 2023, was 66,334 MWh, which was higher than the comparative period in 2022 due to somewhat better hydrology across Peru for the quarter.

For Dominican Republic, the Canoa 1 facility, acquired on June 28, 2022, produced 15,235 MWh in the three months ended March 31, 2023. This is in line with production from the first quarter of 2022, historical results and management expectations.

For Ecuador, the HSJM facility, acquired on Sept. 7, 2022, produced 10,114 MWh in the three months ended March 31, 2023. This is in line with production from the first quarter of 2022, historical results and management expectations. Over all, and similar to Peru, production in Ecuador is driven by the dry and wet season, with the rainy season generally starting in November and running until May to June.

"The first quarter results represent the culmination of several years of work by the company which includes the construction of the binary unit in Nicaragua as well as the acquisitions in the Dominican Republic and Ecuador. The integration of the acquisitions has gone well from an operational perspective and the new geographies will provide the company with further growth opportunities. We are also very excited to have the new solar project in Panama on-line and producing," noted Marc Murnaghan, chief executive officer of Polaris Renewable Energy.

About Polaris Renewable Energy Inc.

Polaris Renewable Energy (formerly Polaris Infrastructure Inc.) is a Canadian publicly traded company engaged in the acquisition, development and operation of renewable energy projects in the Americas. The company is a high-performing and financially sound contributor in the energy transition.

The company's operations are in five Latin American countries and include a geothermal plant (approximately 72 MW), four run-of-river hydroelectric plants (39 MW) and three solar (photovoltaic) projects in operation (35 MW).

We seek Safe Harbor.