Mr. Marc Murnaghan reports

POLARIS RENEWABLE ENERGY ANNOUNCES Q1 2024 RESULTS

Polaris Renewable Energy Inc. has released its financial and operating results for the three months ended March 31, 2024. 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 decreased by 2 per cent to 213,434 MWh (megawatt-hours) for the period ended March 31, 2024, when compared with the period ended March 31, 2023. This was mainly driven by lower production by the company's geothermal facility in Nicaragua, combined with lower production of the hydroelectric facilities in Peru. The decrease was partly offset by the production of the solar plant in Panama, which started operations in April, 2023, and did not contribute to energy production during the comparative quarter of 2023.
• The company generated $20.6-million in revenue from energy sales for the period ended March 31, 2024, compared with $20.1-million in the same period in 2023. The comparative revenue increase, despite lower production, is the result of increased prices with respect to the inflation adjustments in the power purchase agreements (PPAs) for the Peruvian facilities, coupled with the high spot prices received in the Panamanian spot market.
• Despite current inflationary pressures, direct costs remained flat during the first quarter of 2024, when compared with the same period in 2023 and while considering the addition of operating costs from the Vista Hermosa solar park in Panama.
• Net earnings attributable to owners was $4.3-million, or 21 cents per share, basic, for the period ended March 31, 2024, compared with net earnings of $4.7-million, or 22 cents per share, basic, in 2023.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $15.7-million for the quarter ended March 31, 2024, compared with adjusted EBITDA of $15.3-million in the same period in 2023, principally as a result of revenue increases, as described above.
• For the period ended March 31, 2024, the company generated $8.9-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 period ended March 31, 2024, the company has declared and will pay a quarterly dividend of 15 cents per outstanding common share on May 24, 2024.
• 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, 2024, quarterly consolidated power production was lower than the same period in 2023. This was mainly driven by a decrease in production from the geothermal facility in Nicaragua due to higher instability in cycling wells, which was caused by the stabilization period of the Binary unit's brine reinjection scheme. The instability also negatively impacted the generation from the Binary unit, which received less brine generated from cycling wells.

Consolidated production in Peru for the three months ended March 31, 2024, was lower than the comparative period in 2023 due to a temporary shutdown of Canchayllo hydroelectric production since March 10, 2024. A minor landslide resulted in rocks and mud blocking the intake tunnel and impacting one of the chamber walls. Although no injuries or significant damage to equipment occurred, the clean-up work performed was extensive and had to be concluded before the repairs and other maintenance could be executed. Production resumed on April 30, 2024.

The Canoa 1 facility in the Dominican Republic produced 14,530 MWh in the three months ended March 31, 2024. This is 5 per cent lower than the first quarter of 2023 due to lower irradiance in the first quarter of 2024.

In the first quarter of 2024, Ecuador's HSJM average production of 10,223 MWh was comparable with the production of the same period in 2023.

The Vista Hermosa solar park in Panama was connected to the electrical grid in April, 2023, upon construction completion in March, 2023. For the three months ended March 31, 2024, the solar facility produced 6,130 MWh, which was above the company's expectations for the period.

"I am pleased that we have started the year with a strong quarter in line with our expectations on a consolidated basis," said Marc Murnaghan, chief executive officer of Polaris Renewable Energy, "... continued cost control is also worth highlighting in this macroeconomic environment."

About Polaris Renewable Energy Inc.

Polaris Renewable Energy is a Canadian publicly traded company engaged in the acquisition, development and operation of renewable energy projects in Latin America. 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 (82 megawatts), four run-of-river hydroelectric plants (39 MW) and three solar (photovoltaic) projects in operation (35 MW).

We seek Safe Harbor.