Ms. Tracy Zheng reports

POWERBANK ANNOUNCES COMMERCIAL OPERATION OF FIRST BATTERY ENERGY STORAGE SYSTEM IN ONTARIO

Powerbank Corp.'s 4.99-megwatt battery energy storage system (BESS) project in Cramahe, Ont., also known as BESS SFF 06, has reached commercial operation and commenced revenue producing operations.

BESS SFF 06 has been constructed and is operating at the site of an existing ground-mount solar project. The existing solar project is a separate project which was awarded a contract in 2015 by the independent electricity system operator (IESO) under the Feed In Tariff program. In July, 2023, the project was awarded a contract by the IESO under the expedited long-term RFP (E-LT1 RFP). The contract, which has a term of 22 years, includes a fixed contract capacity payment of $1,221/megawatt per business day, significantly above the weighted-average price of $876/MW for all storage category projects under the E-LT1 RFP. This underscores the competitive positioning of these projects in the Ontario energy storage market. Now that the project is operational, it will have 4.74 MW of daily contract capacity available (at a capacity payment to ProjectCo of $1,221/MW per business day) for 251 business days in a year.

Furthermore, the project is eligible for the Clean Technology Investment Tax Credit introduced in 2024. This refundable tax credit provides up to 30-per-cent reimbursement of eligible capital costs for new clean technology, significantly enhancing the economic returns of the projects. This aligns with Powerbank's commitment to leveraging government incentives to accelerate the transition to renewable energy while optimizing financial performance.

"Reaching commercial operation on BESS SFF 06 is a deeply meaningful milestone for our team," said Dr. Richard Lu, chief executive officer of Powerbank. "Battery energy storage is a critical pillar of a resilient, renewable grid -- and this project proves that the technology, the contracts and the partnerships are in place to deliver. We look forward to bringing more of our pipeline on line as we continue building the clean energy infrastructure North America needs."

"BESS SFF 06 represents the engineering and operational excellence our team brings to every project," said Andrew van Doorn, PEng, president and chief operating officer of Powerbank. "With over 30 years of experience delivering renewable energy infrastructure, I know firsthand that moments like this -- a fully commissioned BESS project helping power the Ontario grid -- are the result of years of disciplined execution."

The BESS SFF 06 project is financed through a combined loan for two projects (BESS SFF 06 and BESS 903) in a principal amount of $28.1-million from Royal Bank of Canada as lender, administrative, and collateral agent and green loan structuring agent.

The project is owned by 1000234763 Ontario Inc. (ProjectCo). ProjectCo is the borrower under the terms of the loan. The project represents Powerbank's initial foray into battery energy storage, a market forecast by Fortune Business Insights to grow at a 16.3-per-cent compound annual growth rate from 2022 to reach $31.2-billion (U.S.) by 2029. Powerbank's interest in ProjectCo was acquired as part of the $45-million valued acquisition of Solar Flow-Through Funds Ltd. that closed in July, 2024.

The company has an indirect 50-per-cent interest in ProjectCo, with the remaining 50 per cent held by a partnership formed by first nations communities in Ontario.

Powerbank's proven expertise, with over 100 megawatts of completed projects and a development pipeline exceeding one gigawatt, underpins the project's execution. Strategic partnerships and institutional-grade development capabilities position Powerbank to deliver reliable, high-impact renewable energy solutions.

There are several risks associated with the operation of the project. The operation of any battery energy storage project is subject to maintaining compliance with required permits, the IESO E-LT1 contract, technical risks associated with the operation of equipment the degradation of battery storage capacity over time based on the number of discharge cycles.

About Powerbank Corp.

Powerbank is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the United States. The company develops solar and battery energy storage system (BESS) projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar and virtual net metering projects. The company has a potential development pipeline of over one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built.

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