Cvw Cleantech Announces Receipt Of Non Binding Indicative Terms For Technology Performance Insurance

CALGARY, Jan. 17, 2024 - CVW CleanTech Inc. (the "Company" or "CVW CleanTech") (TSXV: CVW) is pleased to announce that it has received a letter of intent ("LOI") from a global insurance company containing non-binding indicative terms to potentially underwrite the development of a Creating Value from Waste^TM ("CVW^TM") EcoBase project. This potential Technology Performance Insurance ("TPI") includes policy limits of $50.0 million for startup repair coverage and $66.7 million of long-term output coverage, advancing a critical pillar of the de-risking activities for commercialization of the CVW^TM technology. This non-binding indication is subject to due diligence, legal, and documentation review that is satisfactory to all parties. Due diligence is expected to commence once CVW CleanTech has entered into an agreement to deploy the CVW^TM technology at an oil sands mining site.

CVW CleanTech's CEO, Akshay Dubey, said: "Receipt of non-binding indicative terms for technology performance insurance is a significant step towards de-risking the development of a first CVW^TM project. The interest by a leading global insurance partner evidences the robust engineering process utilized in developing the CVW^TM technology, and the significant environmental benefits which would be achieved by the oil sands industry through a CVW^TM EcoBase project implementation."

The potential TPI would provide a bespoke, long-term, and non-cancellable risk management solution for a potential first of its kind CVW^TM EcoBase implementation at a host oil sands mining site. The potential policy could include both startup repair and long-term (operating) coverage:

• Startup repair coverage: The startup repair policy would provide up to $50.0 million of additional funding to support an EcoBase project, after its commissioning period, in reaching name plate capacity and starting commercial operations.
• Long-term (operating) output coverage: The long-term output policy would provide up to $66.7 million over 5 years should recovery of bitumen and solvent from wastewater, as well as GHG abatement credits, fall below an agreed threshold. This coverage could finance debt service and other critical costs while corrective action is implemented to reduce potential output underperformance.

Mr. Dubey continued "The startup repair coverage is in addition to the $47.0 million contingency already included within the $390.0 million total expected capital cost of a potential EcoBase project. We would like to extend our sincere thanks to our insurance partners who responded to our requests for interest. Technology performance insurance could provide the Company and its partners with additional comfort should total capital costs of an EcoBase project exceed the $390.0 million forecasted as a result of an insurable event. Additionally, the long-term output coverage provides financial comfort should a baseline level of bitumen, solvent, and/or GHG abatement credits not be recovered. A potential TPI policy would only respond up to the policy limits.

CVW CleanTech's management team will continue to work with the insurance markets and our broker partners to secure additive insurance coverage and commercial commitments. While the LOI is not a binding offer of insurance, it establishes the foundation to continue discussions and potentially deliver an insurance solution with long-term benefits to CVW CleanTech and its project partners."

CVW CleanTech Inc. is a clean technology innovator working to develop sustainable technology solutions. The Company has developed a suite of proprietary technologies called Creating Value from Waste™ that recover bitumen, solvents, critical minerals, and water from oil sands froth treatment tailings while significantly reducing tailings pond emissions and enhancing tailings management.

On an annual basis, the implementation of CVW^TM's EcoBase development option could be expected to:

• Recover 2.2 million barrels of hydrocarbons (1.9 million barrels of bitumen and 0.3 million barrels of solvent);
• Abate between 380 to 850 thousand tonnes of CO₂ equivalents, primarily methane;
• Eliminate up to 5,000 tonnes of volatile organic compounds (VOCs);
• Potentially eliminate tailings pond growth due to froth treatment operations, and
• Generate annual revenues of $248 million within the province of Alberta.

Diverting the froth treatment tailings stream to a CVW^TM EcoBase operation could recover up to 90% of bitumen and solvent that are currently lost into tailings ponds, and avoid the associated fugitive methane emissions. This patented and ready-to-deploy process would produce "Ready-to-Reclaim" tailings to meet the Alberta Energy Regulator's Directive 85 standards which would provide a step change in tailings management and allow for progressive remediation.

CVW CleanTech has invested over $100 million and over 15 years to advance the CVW^TM technology to ready-to-deploy status. This technology has been supported by large scale integrated piloting and progressive commercial engineering studies resulting in 20 active patents. The development of the Company's technology has been supported by the Government of Alberta and the Federal Government along with oil sands industry partners. Additional information on CVW CleanTech and its proprietary technology can be found within the Company's Process and Technology Overview which is accessible using the link below:

https://cvwcleantech.com/technology/process-and-technology-overview/

This news release contains forward-looking statements and information within the meaning of applicable Canadian securities laws (collectively, "forward-looking information") that reflect the current expectations of management about the future results, performance, achievements, prospects, or opportunities for CVW CleanTech.

Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. The forward-looking statements may include statements regarding the results of deployment of CVW^TM technologies and its business plan, potential diversification opportunities and other future opportunities, statements regarding the benefits and implications of the implementation of our technologies or other statements that are not statements of fact. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company may differ materially from those reflected in forward-looking statements due to a variety of risks, uncertainties and other factors. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include: uncertainties in the timing and receipt of regulatory and exchange approvals; uncertainties involved in disputes and litigation; fluctuations in interest rates, commodity prices, currency exchange rates, and other financial conditions, and the resultant effect on viability of investments; changes in the availability, and cost, of technical labour required for our business; price escalation and/ or inflationary pressures affecting the cost of equipment and material required to commercialize our projects; the uncertainty of estimates of capital and operating costs; the need to obtain additional financing and uncertainty as to the availability and terms of future financing; the impact on the Company of increasing inflation; and other risks and uncertainties disclosed in other information released by the Company from time to time and filed with the appropriate regulatory agencies.

All forward looking statements are based on the Company's beliefs and assumptions which are based on information available at the time these assumptions are made. The Company has made the following assumptions in relation to the forward-looking statements in this press release: the expected environmental and economic benefits to be achieved from CVW™ technologies; the ability of the Company to successfully access various government funding programs; the details of government funding programs and that such programs will be implemented (and not change) as expected; that the Company will continue to be able to protect its intellectual property; assumptions as to various market and commercial opportunities for the Company and its technologies; and the ability of the Company to continue to develop and commercialize its technologies. The forward-looking statements contained herein are as of the date set out above and are subject to change after this date, and the Company assumes no obligation to publicly update or revise the statements to reflect new events or circumstances, except as may be required pursuant to applicable laws.

Although management believes that the expectations represented by such forward-looking information or statements are reasonable, there is significant risk that the forward-looking information or statements may not be achieved, and the underlying assumptions thereto will not prove to be accurate. Actual results or events could differ materially from the plans, intentions and expectations expressed or implied in any forward-looking information or statements, including the underlying assumptions thereto, as a result of numerous risks, uncertainties and factors including: failure to obtain regulatory approvals; the possibility that opportunities will arise that require more cash than the Company has or can reasonably obtain; dependence on key personnel; dependence on corporate collaborations; potential delays; uncertainties related to early stage of technology and product development; uncertainties as to fluctuation of the stock market; uncertainties as to future expense levels and the possibility of unanticipated costs or expenses or cost overruns; and other risks and uncertainties which may not be described herein.

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SOURCE CVW CleanTech Inc.