Mr. Marc Murnaghan reports

POLARIS RENEWABLE ENERGY ANNOUNCES Q3 2023 RESULTS

Polaris Renewable Energy Inc. has released its financial and operating results for the three and nine months ended Sept. 30, 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 herein are denominated in United States dollars unless noted otherwise.

Highlights:

• Consolidated energy production increased by 33 per cent to 178,753 MWh (megawatts-hours) for the quarter ended Sept. 30, 2023, from 134,652 MWh in the same quarter of 2022. The increase resulted from higher production of 129,475 MWh contributed by the company's geothermal facility in Nicaragua (San Jacinto) and an aggregate of 23,078 MWh contributed by the company's hydroelectric facilities in Peru. Furthermore, the company's facilities acquired in 2022 contributed an additional 14,596 MWh in Dominican Republic (Canoa 1) and 6,902 MWh in Ecuador (San Jose de Minas or HSJM), while the recently constructed facilities in Panama (Vista Hermosa Solar Park I and II) contributed 4,702 MWh during this quarter.
• The company generated $18.8-million in revenue for the three months ended Sept. 30, 2023, compared with $14.5-million in the same period in 2022. The 30-per-cent increase was due to additional energy revenue sales from the increase in production mentioned above, coupled with the increased prices due to inflation adjustments in the power purchase agreements (PPA) from the company's Peruvian facilities.
• Net earnings attributable to owners were $1-million, or five cents per share, basic, for the three months ended Sept. 30, 2023, compared with a net loss of $1.49-million or negative seven cents per share, basic, in 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $13.7-million for the three months ended Sept. 30, 2023, compared with adjusted EBITDA of $10-million in the same period in 2022, principally as a result of revenue increases, as described above.
• For the three months ended Sept. 30, 2023, the company generated $13.5-million in net cash flow from operating activities, ending with a cash position of $45.6-million, including restricted cash.
• The company remains focused on maintaining a quarterly dividend. For the three months ended Sept. 30, 2023, the company has declared and will pay a quarterly dividend of 15 cents per outstanding common share on Nov. 24, 2023.
• The company concluded several optimization projects at its operating plants, including a battery project in Peru and well enhancements in Nicaragua.
• On Aug. 21, 2023, the company announced that the Toronto Stock Exchange accepted its notice of intention to proceed with a normal course issuer bid (NCIB), under which Polaris may purchase up to 2,048,273 of its common shares, providing the company with flexibility to manage its capital position.
• 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 Sept. 30, 2023, quarterly consolidated power production was 30 per cent higher than consolidated power production for the three months ended Sept. 30, 2022, due to higher production from the company's existing facilities in Nicaragua and Peru, coupled with additional production from the facilities in Dominican Republic and Ecuador, acquired in 2022, and Vista Hermosa solar park, which began operations in April, 2023.

For Nicaragua, the increase in production for the three months ended Sept. 30, 2023, is a combination of the additional production from the binary unit (as defined below) which started operating Dec. 31, 2022, and additionally, the lower than average production in July, 2022, as a result of the planned major maintenance at the plant.

Consolidated production in Peru for the three months ended Sept. 30, 2023, was higher than the comparative period in 2022 due to somewhat better hydrology, coupled with less down time and lower frequency of technical issues.

For Dominican Republic, the Canoa 1 facility, acquired on June 28, 2022, produced 14,596 MWh in the three months ended Sept. 30, 2023. This is marginally higher than the results for the same period in 2022, mainly due to better irradiance.

For Ecuador, the HSJM facility, acquired on Sept. 7, 2022, produced 6,902 MWh in the three months ended Sept. 30, 2023. This is in line with production from 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.

For Panama, the Vista Hermosa solar park produced 4,702 MWh in the three months ended Sept. 30, 2023. Vista Hermosa began operations on April 22, 2023, with this being the first full quarter of production reported, in line with budget and management expectations.

"The company remains on track with respect to expected operating results year-to-date and in the current quarter. As expected, the dry season impacted overall production in Peru and we had two small wells off line in Nicaragua as a result of the optimization project. Such items were somewhat offset by stronger spot prices in Panama. We are also quite happy with the fact that operating costs in all jurisdictions remain flat despite the inflation pressures worldwide," 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 Latin America. Polaris 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 (72 MW), four run-of-river hydroelectric plants (39 MW) and three solar (photovoltaic) projects in operation (35 MW).

We seek Safe Harbor.