An anonymous director reports

TRANSALTA RENEWS NORMAL COURSE ISSUER BID

The Toronto Stock Exchange has accepted the notice filed by TransAlta Corp. to implement a normal course issuer bid (NCIB) for a portion of its common shares.

Pursuant to the NCIB, TransAlta may repurchase up to a maximum of 14 million common shares, representing approximately 4.7 per cent of the 296,449,829 common shares issued and outstanding as at May 20, 2025. Purchases under the NCIB may be made through open market transactions on the TSX and any alternative Canadian trading systems on which the common shares are traded, based on the prevailing market price. Any common shares purchased under the NCIB will be cancelled.

Transactions under the NCIB will depend on future market conditions. TransAlta will initially retain discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable TSX and other regulatory requirements. The period during which TransAlta is authorized to make purchases under the NCIB commences on May 31, 2025, and ends on May 30, 2026, or such earlier date on which the maximum number of common shares are purchased under the NCIB or the NCIB is terminated at the company's election.

Under TSX rules, not more than 481,658 common shares (being 25 per cent of the average daily trading volume on the TSX of 1,926,633 common shares for the six months ended April 30, 2025) can be purchased on the TSX on any single trading day under the NCIB, with the exception that one block purchase in excess of the daily maximum is permitted per calendar week.

TransAlta repurchased and cancelled 7,963,000 common shares on the open market through the facilities of the TSX and/or alternative Canadian trading systems at an average price of $12 per share under its prior NCIB approved by the TSX on May 27, 2024, for the 12-month period commencing May 31, 2024.

The NCIB provides the company with a capital allocation alternative with a view to providing long-term shareholder value. TransAlta's board of directors and management believe that, from time to time, the market price of the common shares does not reflect their underlying value and purchases of common shares for cancellation under the NCIB may provide an opportunity to enhance shareholder value.

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-sized and large industries, businesses, and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of thermal generation and hydroelectric power. For over 114 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. Its 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 70-per-cent reduction in GHG (greenhouse gas) emissions or 22.7 million tonnes CO2e (carbon dioxide equivalent) since 2015, and received an upgraded MSCI ESG (environmental, social and governance) rating of AA.

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