Mr. Jason Veenstra reports

NORTH AMERICAN CONSTRUCTION GROUP LTD. ANNOUNCES FIVE-YEAR CONTRACT IN QUEENSLAND, AUSTRALIA

North American Construction Group Ltd. (NACG) subsidiary, the MacKellar Group, has been awarded a five-year contract by an existing client, a leading metallurgical coal producer in the state of Queensland, Australia. The contract leverages an existing agreement to transition hired fleet currently under contract as dry rental to a fully maintained fleet.

The five-year contract has an expiry date of Sept. 30, 2029, and qualifies as contractual backlog given minimum hour commitments in the agreement. Scopes awarded for fully maintained equipment and related services are estimated to result in a total value of approximately $375-million. Contract scopes are expected to be fully ramped up by mid-2025. To achieve the increased scope, the agreement requires an on-site maintenance facility and 20 additional units, for total growth capital of between $50-million and $55-million, which will be purchased and constructed by MacKellar primarily in the fourth quarter of 2024.

"We thank this long-term client for their trust and confidence in us and are committed to being their preferred, safe, low-cost contractor for decades to come," stated Joe Lambert, president and chief executive officer of NACG. "Approximately one-third of the incremental fleet will be provided from Canada and I'm proud of our teams working together to provide solutions for our customer. This is now the second significant award of a long-term mining contract in 2024 in Australia which demonstrates high equipment demand in the region, MacKellar's strong client relationships and the value proposition that our Australian team and fleet offer. This long-term agreement brings our total contractual backlog well above $3.0-billion and provides the consistency needed by operations personnel to function efficiently."

About the MacKellar Group

Operating since 1966, and as a wholly owned subsidiary of NACG since 2023, MacKellar has an enviable reputation in Australia for performance and reliability. MacKellar specializes in heavy earth-moving equipment solutions and has a proud history of working on major mining and civil earthwork projects.

About North American Construction Group Ltd.

NACG is one of Canada and Australia's largest providers of heavy construction and mining services. For over 70 years, NACG has provided services to mining, resource and infrastructure construction markets.

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