Mr. Aidan Mills reports

NORTHSTAR ANNOUNCES EXECUTION OF TERM SHEET FOR $8.75 MILLION IN DEBT WITH BUSINESS DEVELOPMENT BANK OF CANADA (BDC)

Northstar Clean Technologies Inc. has entered into a term sheet with the Business Development Bank of Canada (BDC) for project financing of up to $8.75-million in non-revolving senior secured debt. Proceeds from the BDC financing will be used for the development and construction of the company's planned asphalt shingle reprocessing facility in Calgary, Alta. (the Empower Calgary facility).

The following is a summary of the material terms of the term sheet:

• BDC will provide a secured loan of up to $8.75-million;
• 15-year repayment period, with the potential for a two-year interest-only payment period;
• Fixed five-year interest rate of 8 per cent, payable monthly, with the possibility of rate reduction after one year of successful plant operation;
• The company shall be required to repay all or a portion of the debt, as applicable, upon the occurrence of certain future prepayment events.

The terms noted above are subject to change at the time of authorization.

The term sheet is non-binding with no guarantee that closing will occur. The progression of the term sheet to binding loan documentation is subject to due diligence, satisfaction of customary loan conditions, and is progressing in line with Northstar and BDC's agreed timeline. The BDC financing is subject to a one-time fee of $43,750 and an annual fee of $1,000.

Aidan Mills, president, chief executive officer and director of Northstar, stated: "We continue to execute on our strategy for the funding of the Empower Calgary facility, with the objective of minimizing shareholder dilution. Combined with the emissions reduction Alberta government grant award of $7.1-million, the BDC financing of $8.75-million would bring nearly $16-million in non-dilutive funding for the Empower Calgary facility. We are excited to have entered this term sheet with BDC, a leading, reputable and potential long-term strategic partner for Northstar and its Empower Calgary facility. This represents a further significant step in the company's quest to deliver a facility capable of diverting 40,000 tonnes of asphalt shingles per year away from Calgary landfills and into the circular economy."

About Northstar Clean Technologies Inc.

Northstar Clean Technologies is a Canadian-based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar Clean has developed a proprietary design process for taking discarded asphalt shingles, otherwise destined for already overcrowded landfills, and extracting the liquid asphalt for use in new hot mix asphalt, shingle manufacturing and asphalt flat roof systems, and aggregate and fibre for use in construction products and other industrial applications. Focused on the circular economy, Northstar Clean plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale at its first commercial scale-up facility in Calgary, Alta. As an emerging innovator in sustainable processing, Northstar's mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America, extracting the recovered components from asphalt shingles that would otherwise be sent to landfill.

We seek Safe Harbor.