Northstar Announces 2022 Financial Results

Q4 2022 Business Highlights

• Announced the execution of a binding term sheet for a 5-year off-take agreement with McAsphalt Industries, a subsidiary of Colas Canada, for 100% of liquid asphalt production from the Empower Calgary Facility
• Issued the Company's first patent by the United States Patent and Trademark Office for Northstar's proprietary front-end technology for reprocessing asphalt shingles
• Signed a letter of intent with a major industrial customer for the exclusive right to purchase recycled asphalt from one or more of Northstar's future facilities in the United States

VANCOUVER, BC, April 20, 2023 /PRNewswire/ - Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce that it has filed its audited annual financial statements and management's discussion and analysis ("MD&A") on SEDAR for the year ended December 31, 2022. 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 a business update to the investment community today Thursday, April 20, 2023 at 2:00 pm PDT / 5:00 pm EDT. Details are provided below. Financial references are in Canadian dollars unless otherwise specified.

Mr. Aidan Mills, President & CEO and Director of Northstar, commented, "2022 was a strong year for Northstar, as we made significant steps to de-risk our proprietary front-end patented technology. The Company initiated production at its existing pilot facility in Delta, BC (the "Empower Pilot Facility"), which delivered significant results in several key areas:

• The production fully proved the Company's proprietary Bitumen Extraction & Separation Technology ("BEST") with shingle feedstock processed into aggregate, fiber and asphalt (the "Products").
• The process enabled the supply of Products to potential customers for detailed testing, research & development. This testing helped to secure the long-term off-take agreement for the Calgary facility (the "Empower Calgary Facility") with McAsphalt Industries ("McAsphalt"),and allowed subsequent successful testing with a number of shingle and flat roof manufacturers. Importantly, the testing results supported the Company's view that the asphalt produced by the BEST technology is suitable for all three target markets: (i) paving, (ii) shingle manufacturing and (iii) flat roof manufacturing.
• The production of Products generated valuable feedback for the design of the Empower Calgary Facility from customers, vendors and from the production process itself. The feedback has been incorporated into the detailed design process for the Empower Calgary Facility by the Company's vendors and as part of the integrated facility design led by BBA Engineering Ltd. In the Company's view, the feedback, derived from steady state operations at the Empower Pilot Facility, significantly de-risks the Empower Calgary Facility design."

"We built on this progress by achieving major milestones in Q4 2022 and Q1 2023, including the definitive off-take agreement with McAsphalt, the $7.1 million government grant award from Emissions Reduction Alberta, the issuance of our first patent from the United States Patent and Trademark Office ("USPTO"), letter of intent for our first US facility and Calgary site selection and permitting," continued Mr. Mills.

"We are continuing to focus our time, efforts and financial resources on our Empower Calgary Facility. We believe that our updated project economics and internal capital estimate demonstrate the compelling payback and return from this first-of-its-kind project. 2023 will be the most critical year in the Company's history, as we focus on building, constructing and financing the Empower Calgary Facility. We are currently in advanced negotiations on a non-dilutive funding structure to supplement the ERA government grant award and expect to provide an update to the market in Q2 2023," concluded Mr. Mills.

Q4 2022 Highlights

• October 2022 – Announced the execution of a binding term sheet for a 5-year off-take agreement with McAsphalt, a subsidiary of Colas Canada, for 100% of liquid asphalt production from the Company's scale-up facility in Calgary, Alberta.
• November 2022 – The USPTO issued the Company's first-ever patent for the front-end technology for reprocessing asphalt shingles.
• November 2022 – Received the first truckload of previously landfill bound asphalt shingles at the Company's Empower Pilot Facility.
• November 2022 – Signed a letter of intent with a major industrial customer for the exclusive right to purchase recycled asphalt from one or more of Northstar's future facilities in the United States.

Subsequent to Q4 2022

• 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 Emissions Reduction Alberta 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.
• 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.

Virtual Investor Webcast Call Details

Title: Northstar Clean Technologies Fourth Quarter 2022 Financial Results

Date: Thursday, April 20th, 2023

Time: 2:00 pm PDT / 5:00 pm EDT

Registration Link: https://us06web.zoom.us/webinar/register/5716814086394/WN_Ftsjd1eOR7mTW5tHNEyrgg 

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 updated project economics and internal capital estimate and any intended, believed or perceived benefits therefrom, financial or otherwise; (ii) Northstar's ability to advance negotiations and enter into an agreement to fund the Company through a non-dilutive funding structure to supplement government grant awards; and (iii) 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 the inability by Northstar to close the Private Placement in whole or in part, other 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. The ongoing dispute between the sovereign state of Ukraine and Russia also poses risks that are currently indescribable and immeasurable. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company does not undertake any obligation to update such forward–looking information whether because of new information, future events or otherwise, except as expressly required by applicable law.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and do not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.

SOURCE Northstar Clean Technologies Inc.