Mr. Marc Murnaghan reports

POLARIS RENEWABLE ENERGY ANNOUNCES SUBMISSION OF THE SO1 AGREEMENT TO PUERTO RICO ENERGY BUREAU

On Aug. 8, 2025, LUMA Energy ServCo LLC, acting as the authorized representative of the Puerto Rico Electric Power Authority (PREPA), completed the submission of the battery energy storage system standard offer agreement (SO1 agreement) to the Puerto Rico Energy Bureau (PREB) as part of the formal approval process. Final approval is expected within 30 to 90 days following submission to PREB.

The SO1 agreement is intended to be executed between PREPA and Polaris Power U.S. Inc. (PPUS), a wholly owned subsidiary of Polaris Renewable Energy Inc.

The submission of the SO1 agreement forms part of the Puerto Rico Accelerated Storage Addition Program (ASAP), a strategic initiative aimed at strengthening grid reliability across the island through the deployment of utility-scale battery energy storage systems (BESS) co-located with existing generation facilities.

Under this framework, PPUS will act as the resource provider responsible for the installation and operation of the BESS, while Punta Lima Wind Farm LLC (PLWF), another subsidiary of Polaris, will continue to serve as the "generation facility owner" for the Punta Lima site where the storage system will be located.

Upon execution of the SO1 agreement and once the BESS project is constructed and fully operational, the resource provider will be entitled to receive monthly fixed and performance-based payments from PREPA in exchange for providing energy storage services, including capacity and grid support. The SO1 agreement has been submitted with a BESS capacity of 71.4 MW (35.7 MW by two). Polaris is actively exploring the technical feasibility of expanding the capacity to 80 MW (40 MW by two), in parallel with the regulatory process. The commercial operation date is forecast to begin on Q3 2026 with the SO1 agreement running for a 20-year term from the commercial operation date.

Marc Murnaghan, chief executive officer of Polaris, commented:

"The submission of the SO1 agreement represents a significant milestone in advancing our energy storage strategy in Puerto Rico. We are proud to support the island's energy resilience goals while leveraging our existing infrastructure at Punta Lima."

Polaris remains committed to delivering long-term, sustainable energy solutions across Latin America and the Caribbean, and looks forward to working with all stakeholders throughout the approval and implementation process.

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 and the Caribbean. The compan is a high performing and financially sound contributor to the energy transition.

The company's portfolio includes a geothermal plant (approximately 82 MW), four run-of river hydroelectric plants (approximately 39 MW), three solar (photovoltaic) projects (approximately 35 MW) and an onshore wind park (approximately 26 MW).

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