Mr. Blain van Melle reports

TRANSALTA JOINS OTHER WATER LICENCE HOLDERS AND THE ALBERTA GOVERNMENT TO COLLABORATE ON FLOW MANAGEMENT ON THE BOW RIVER SYSTEM

TransAlta Corp. has signed onto a voluntary water-sharing memorandum of understanding (MOU) with over 30 other water licence holders in the Bow River basin.

Water-sharing MOUs have been initiated by the government of Alberta across Southern Alberta, to co-ordinate water needs in what is expected to be a lower-water year.

Due to its role managing water storage and water flows in the Bow River system for power generation, drought prevention and flood control, the company is collaborating with other downstream water licence holders to manage water flows.

TransAlta will contribute to this effort by maximizing storage of run-off in the spring and then use that water to manage river flows during the summer. The MOUs do not include TransAlta's facilities on the North Saskatchewan River system.

"TransAlta recognizes the unique role our Bow River system plays in managing water flows while also serving as a key component of Alberta's electricity grid. We look forward to working with the government and downstream licence holders to maximize water storage in the spring, and sustain water flow during the summer months to help mitigate drought conditions, should they occur," said Blain van Melle, executive vice-president, commercial and customer relations.

TransAlta expects these water management efforts during the spring and summer seasons to align with its electricity generation objectives and practices. The company does not expect this voluntary arrangement to have a material impact on the performance of TransAlta's hydro fleet and hydro operations are expected to perform consistent with the company's guidance range for 2024 based on current water forecasts. TransAlta continues to retain full capacity and capability to respond when these hydro facilities are needed by the electricity grid and will continue to meet environmental obligations.

About TransAlta Corp.

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of hydroelectric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where it operates and where its employees work and live. TransAlta aligns its corporate goals with the United Nations Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. TransAlta's reporting on climate change management has been guided by the international financial reporting standards (IFRS) S2 climate-related disclosures standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66-per-cent reduction in greenhouse gas emissions, or 21.3 million tonnes CO2e (carbon dioxide equivalent), since 2015 and received an upgraded MSCI ESG (environmental, social and governance) rating of AA.

We seek Safe Harbor.