Mr. Daniel Russell reports

SYNEX RENEWABLE ENERGY CORPORATION SECOND QUARTER OF FISCAL 2024

Synex Renewable Energy Corp. has released its financial and operational results for the three and six months ended Dec. 31, 2023.

Revenue for the three months ended Dec. 31, 2023 (Q2 2024), increased to $972,718 from $458,445 for the three months ended Dec. 31, 2022 (Q2 2023). Electricity sales in Q2 2024 were $958,446 compared with $430,167 in Q2 2023, an increase of $528,279 as a result of power generation from the Mears, Cypress and Barr plants generating at near-historical average production.

The net income attributable to shareholders of the company in Q2 2024 was $83,663 as compared with a net loss of $586,275 in Q2 2023. Synex has continued to streamline and reduce costs for its normal operations. The increase in income in Q2 2024 is a result of higher revenue from electricity production. The net income per share in Q2 2024 was two cents as compared with a net loss per share of 16 cents in Q2 2023.

The company collectively spent a total of $489,737 on the development of investigative wind licences at Sea Breeze Power Corp., since Sea Breeze's acquisition. 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 to support B.C. Hydro's Clean Power Call of generating at least 90 per cent of electricity from clean or renewable sources.

As of Dec. 31, 2023, the company had an unrestricted cash balance of $384,602 as compared with $318,663 on June 30, 2023. The increase in cash is mainly due to higher sales revenue from power generation as well as private placement that was completed on Nov. 22, 2023. The company had a restricted cash balance of $700,140 and a term deposit of $230,000 at Dec. 31, 2023.

The total loan principal outstanding to The Equitable Life Insurance Company of Canada and The Empire Life Insurance Company was $13,428,737 at Dec. 31, 2023, as compared with $13,715,388 on June 30, 2023. Loans payable on Dec. 31, 2023, included a current portion of $635,192 and a non-current portion of $12,793,545.

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 a company 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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