Mr. Daniel Russell reports

SYNEX RENEWABLE ENERGY CORPORATION FOURTH QUARTER OF FISCAL 2023

Synex Renewable Energy Corp. has released its financial and operational results for the three months ended June 30, 2023 (Q4 2023).

Revenue for the three months ended June 30, 2023 (Q4 2023), decreased to $713,648, from $992,282 in Q4 2022. Electricity sales in Q4 2023 were $731,697, compared with $998,970 in Q4 2022, a decrease of $267,273, as a result of lower power generation from the Mears, Cypress and Barr plants. By the end of June, the average snowpack on Vancouver Island was 50 per cent of normal and temperatures were lower than average for the period, resulting in less melt and therefore less generation.

The net loss attributable to shareholders of the company in Q4 2023 was $209,980, as compared with a net loss of $205,862 in Q4 2022. Synex has continued to streamline and reduce costs for its normal operations. The Q4 2023 loss is a result of increased wind development costs at Sea Breeze Power Corp., a wholly owned subsidiary of the company, the cost of the previously announced normal course issuer bid program and the total retirement costs of the former chief financial officer of $94,600 that were expensed in fiscal year (FY) 2023. The net loss per share in Q4 2023 was five cents, as compared with a net loss per share of five cents in Q4 2022.

Expenditures in respect of the development of run-of-river hydro projects in British Columbia for Q4 2023 were nil, as compared with $6,728 for Q4 2022. The company spent a total of $207,824 on the development of investigative wind licences at Sea Breeze Power Corp. in FY 2023. This includes expenses for third party consultants for reviewing technical aspects of the sites and labour costs. The company intends to continue investing resources in developing these investigative wind licences.

As of June 30, 2023, the company had an unrestricted cash balance of $318,663, as compared with $625,888 on June 30, 2022. The decrease in cash is mainly due to fixed assets upgrades and the replacement at the Kyuquot site and Barr Creek sites, as well as maintenance work at the Cypress and Mears Creek sites in FY 2023. The company had a restricted cash balance of $983,340 and a term deposit of $230,000 at June 30, 2023.

The total loan principal outstanding to The Equitable Life Insurance Company of Canada and The Empire Life Insurance Company was at $13,715,388 June 30, 2023, as compared with the $14,612,407 on June 30, 2022. Loans payable on June 30, 2023, included a current portion of $635,192 and a non-current portion of $13,080,196.

Sea Breeze, a subsidiary of the company, applied to expand the boundary of its wind energy investigative licence to include more lands in the immediate vicinity of Kitimat. The application is currently subject to regulatory review. Management estimates that a wind farm in this area could deliver over 150 megawatts of clean electricity.

About Synex Renewable Energy Corp.

Based in Vancouver, B.C., Synex is engaged in the development, acquisition, ownership and operation of renewable energy projects in Canada. It has ownership interests in 12 megawatts of operating hydro projects in British Columbia and owns a Vancouver Island grid connection and utility carrying on business as Kyuquot Power Ltd. The company also has 9.4 megawatts of construction ready run-of-river projects, applications and land tenures on another 24 potential hydroelectric sites totalling over 150 megawatts of capacity, and approximately 17 wind development sites that could provide up to 4,850 megawatts of clean power in British Columbia.

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