Polaris Renewable Energy Closes Third Acquisition in 2022 - Ecuador

TORONTO, ON / ACCESSWIRE / September 7, 2022 / Polaris Renewable Energy Inc. (TSX:PIF) ("Polaris" or the "Company"), is pleased to announce that it has closed the previously announced acquisition of an operational hydro project in Ecuador, its third successfully concluded acquisition in 2022.

Acquistion Summary

Polaris has acquired 83.16% of the issued and outstanding shares of Hidroelectric San Jose de Minas S.A. ("San Jose de Minas"), in exchange for $16.3 million in cash, including closing adjustments. Polaris intends to seek to purchase the remaining shares outstanding in the next 12 months. San Jose de Minas is an operating run-of-the-river hydro project with a capacity of 6.0 MWs, located along the Cubi River in San Jose de Minas, Ecuador (the "Project"). San Jose de Minas has debt outstanding of $6.1 million with a local bank.

The key attributes of the Project include:

• The Project has 7 years remaining on a 15-year power purchase agreement ("PPA") with a wholly-owned Ecuadorian government entity, for the sale of all power production;
• Current pricing of the PPA is $78.10 per MWh;
• The Company will look to sign a subsequent PPA at the end of the term of the current PPA;
• The Project has one expansion opportunity consisting of the introduction of a conduction channel from the adjacent Perlabi river that would increase the load factor of the existing plant from approximately 65% to approximately 85%. Such expansion does not require any amendments to the current PPA and is expected to take approximately 10 months to complete;
• In addition, the Project has capacity to add a turbine which would enable increased production during the rainy season. With the additional turbine the Hydro Project is expected to increase its power capacity to 10 MWs. Such an expansion would require an amendment to the current PPA or a separate PPA. The Company will work to define this in the fourth quarter of this year.

In addition to the acquisition of the operational project, Polaris Renewable Energy has formalized a development framework agreement with the selling shareholder to jointly pursue further hydro projects in the Ecuadorian market. The initial target of the partnership will be the upcoming renewably energy tender for 500 MWs by the Ecuadorian government in the fourth quarter of 2022.

Polaris Renewable Energy's CEO, Marc Murnaghan, commented on the acquisition, "We are very pleased to have closed this transaction as anticipated. Combined with the recently closed acquisitions in Panama and the Dominican Republic, we are now in 5 countries in the region. These acquisitions place us on the path of building a regional platform focused on renewable energy and set the stage for the next phase of our growth."

About Polaris Renewable Energy Inc.

Polaris Renewable Energy Inc. (formerly, Polaris Infrastructure Inc.) is a Canadian publicly traded company engaged in the acquisition, development, and operation of renewable energy projects in the Americas. We are a high-performing and financially sound contributor in the energy transition.

The Company's operations are in 5 Latin American countries and include a geothermal plant (~72 MW), 4 run-of-river hydroelectric plants (~39 MW), 1 solar (photovoltaic) project in operation (32.6 MWdc) and 2 solar projects with an expected total capacity of approximately 13 MWdc, currently under construction.

For more information, contact :

Investor Relations
Polaris Renewable Energy Inc.

Phone: +1 647-245-7199
Email: info@PolarisREI.com

This press release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance and management's expectations. These forward-looking statements relate to Polaris' ability to increase capacity at the Hydro Project to 10 MW, the expansion opportunity adjacent to the Perlabi river, the ability to add a turbine at the Hydro Project and to obtain a required permit from the local authority, future projects to be pursued pursuant to a recently signed framework agreement, and the Company's ability to continue growth in the next phase of its growth. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, the inability of the Company to add a turbine or obtain the permit as required or to find future projects, all of which may be affected by such factors as general business, economic, competitive, political and social uncertainties; the actual results of current geothermal, solar and hydro energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal and hydro power industries; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; the ability of the Company to continue as a going concern and general economic conditions, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this press release should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this press release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this press release, including such forward-looking information, is made as of the date of this press release and, other than as required by applicable securities laws, Polaris assumes no obligation to update or revise such information to reflect new events or circumstances.

SOURCE: Polaris Renewable Energy Inc.