Tidewater Renewables Ltd. is pleased to announce a multi-year agreement today with an investment-grade company to sell Federal Clean Fuel Regulation (CFR) credits that it will receive through the production and sale of fuel produced at the Renewable Diesel & Renewable Hydrogen Complex at Prince George, British Columbia, adding previously unrecognized value and an incremental revenue stream to the Corporation.

As part of the transaction, Tidewater Renewables has agreed to sell a total of 45,000 CFR credits at $95 per credit. This multi-year agreement, which extends to June 30, 2025, adds previously unrecognized value for CFR credits and Tidewater Renewables will receive total proceeds of over $4 million over the term of this agreement. The Corporation's current run-rate EBITDA estimates for the Complex of $90 – 100 million exclude the impact of the outlined forward sale and any value for the ongoing sale of CFR credits once the program is implemented.

"This is Tidewater Renewables' inaugural CFR credit sale, which we believe is the first of its kind in Canada. This credit sale is significant for Tidewater Renewables as it validates our previous thesis that CFR credits will represent an incremental revenue stream for our suite of clean fuel projects. Furthermore, at similar CFR credit values, Tidewater Renewables' HDRD Complex has the potential of generating an incremental $30 million of run-rate EBITDA assuming feedstock prices, diesel prices and BC LCFS credit prices remain constant," said Joel MacLeod, Executive Chairman and CEO.

The Corporation continues to work on other potential multi-year agreements to monetize further CFR credits that it will receive from operation of the Complex, from its Canola Co-Processing Facility, and from other projects.