Northstar Reports First Quarter 2023 Financial Results

News provided by

May 30, 2023, 16:05 ET

Q1 2023 Business Highlights

Selected for an award of up to $7.1 million in non-repayable project-level government grants from Emissions Reduction Alberta for the Empower Calgary Facility.
Executed a definitive take-or-pay offtake agreement with McAsphalt for the exclusive sale of 100% of liquid asphalt production from the Empower Calgary Facility for a minimum term of 5 years.
Signed a long-term lease agreement for 3.98 acres located in Rocky View County for the Empower Calgary Facility.

VANCOUVER, BC, May 30, 2023 /PRNewswire/ - Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce that it has filed its first quarter 2023 unaudited financial statements and management's discussion and analysis on SEDAR for the three months ended March 31, 2023. These documents are also available on the Company's website at www.northstarcleantech.com. The Company would like to remind its stakeholders that it has scheduled a virtual investor webcast to discuss these results and to provide an update to the investment community tomorrow Wednesday, May 31, 2023, at 14:00 PDT / 17:00 EDT. Details are provided below. Financial references are in Canadian dollars unless otherwise specified.

Mr. Aidan Mills, President & CEO and Director of Northstar, commented, "We've continued the momentum from the last year with strong progress in Q1 2023. I'm incredibly proud of the Northstar team for helping provide the Company the opportunity to secure up to $7.1 million in non-repayable project-level government grants from Emissions Reduction Alberta ("ERA"). This award has provided strong validation that our work to divert asphalt shingles from landfills back into the circular economy has not gone unnoticed and that governments value the work we're doing and are willing to invest."

"Progress on the Empower Calgary Facility also advanced on several fronts, including signing a long-term lease for the future site of the facility, a short distance from the City of Calgary's East Landfill and our landlord receiving conditional development permits. Work by the landlord has already begun on site and is moving along well."

"Lastly, but perhaps most importantly, we successfully completed liquid asphalt R&D testing with major manufacturers, and we are now in the midst of product manufacturing and quality testing with this same group of major manufacturers."

"Our focus continues to be on progressing the Empower Calgary Facility while conserving capital. On April 19, 2023, we closed an upsized non-brokered private placement of $2.73 million which provides significant runway for us to continue to focus on securing a non-dilutive funding structure to supplement the ERA government grant," concluded Mr. Mills.

Q1 2023 Highlights

January 2023 – The Mook Group of Companies (the "Landlord") for Northstar's site for its Empower Calgary Facility received its conditional development permit from Rocky View County, a municipal district in Alberta adjacent to the City of Calgary.
February 2023 – Selected for an award of up to $7.1 million in non-repayable project-level government grants from ERA for the Empower Calgary Facility.
February 2023 – Received notice from the Canadian Patent Office that its patent application was approved for fast track due to the Company's green technology.
February 2023 – Signed a long-term 15-year lease agreement (with two renewal options of 5 years each) with the Landlord for an industrial-zoned property of 3.98 acres located in Rocky View County, as the site for the Company's Empower Calgary Facility.
March 2023 – Announced the execution of a definitive take-or-pay offtake agreement with McAsphalt for the exclusive sale of 100% of liquid asphalt production from the Empower Calgary Facility for a minimum term of 5 years. The commercial terms were unchanged from the binding term sheet.
March 2023 – Successfully completed liquid asphalt R&D testing with major manufacturers and progressed to product manufacturing and quality testing.
March 2023 – Received an Environmental Awareness Award from the Waste Management Association of British Columbia.

Subsequent to Q1 2023

April 2023 – Announced a non-brokered private placement of up to $2.0 million.
April 2023 – Announced the upsizing of the non-brokered private placement to up to $2.3 million.
April 2023 – Closed an upsized non-brokered private placement of $2.73 million.
April 2023 – Announced updated preliminary project economics and internal capital estimate for the Empower Calgary Facility.
May 2023 – Provided update on site development work at the Empower Calgary Facility.
May 2023 – Announced completion of milestones required to commence detailed engineering of the Empower Calgary Facility.

Virtual Investor Webcast Details

Topic: Northstar Clean Technologies First Quarter Financial Results Webcast
Date: May 31, 2023
Time: 14:00 PDT / 17:00 EDT
Webcast URL: https://us06web.zoom.us/webinar/register/8916845129112/WN_VaIt952eSISUsa2fZZAO-Q

Approximately two hours after the Q&A session has ended, an archived version of the webcast will be available via the webcast URL above.

About Northstar

Northstar Clean Technologies Inc. is a Canadian-based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar has developed a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracting the liquid asphalt for use in new hot mix asphalt, shingle manufacturing and asphalt flat roof systems, and aggregate and fiber for use in construction products and other industrial applications. Focused on the circular economy, Northstar plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale at both its Empower Pilot Facility in Delta, British Columbia and its first commercial scale up facility in Calgary, Alberta. As an emerging innovator in sustainable processing, Northstar's mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America, extracting the recovered components from asphalt shingles that would otherwise be sent to landfill.

For further information about Northstar, please visit www.northstarcleantech.com.

On Behalf of the Board of Directors,
Aidan Mills
President & CEO, Director

Cautionary Statement on Forward-Looking Information

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. The TSXV has neither approved nor disapproved the contents of this press release.

This press release may contain forward–looking information within the meaning of applicable securities legislation, which forward–looking information reflects the Company's current expectations regarding future events. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements concerning: (i) Northstar's ability to finalize and secure the ERA grant award; and (ii) Northstar's ability to become a leader in the recovery and reprocessing of asphalt shingles in North America. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of the Company as well as those risks and uncertainties which are more fully described under the heading "Risk Factors" in the final prospectus of the Company dated June 18, 2021 and in the Company's annual and quarterly management's discussion and analysis and other filings with the Canadian securities regulatory authorities under the Company's profile on SEDAR. Further, the ongoing labour shortages, high energy costs, inflationary pressures, rising interest rates, the global financial climate and the conflict in Ukraine and surrounding regions are some additional factors that are affecting current economic conditions and increasing economic uncertainty, which may impact the Company's operating performance, financial position, and future prospects. Collectively, the potential impacts of this economic environment pose risks that are currently indescribable and immeasurable. Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. These forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update these forward-looking statements.

SOURCE Northstar Clean Technologies Inc.