Ms. Megan Hunter reports

CAPSTONE INFRASTRUCTURE CORPORATION PROVIDES NOTICE OF CONVERSION RIGHTS FOR CUMULATIVE 5-YEAR RATE RESET PREFERRED SHARES, SERIES A

Capstone Infrastructure Corp. does not intend to exercise its right under the terms of its cumulative five-year rate reset preferred shares, Series A, to redeem all or part of the currently outstanding three million Series A shares on July 31, 2026. As a result, subject to certain conditions, the holders of the Series A shares have the right to convert all or part of their Series A shares, on a one-for-one basis, into cumulative floating rate preferred shares, Series B, on July 31, 2026, in accordance with the terms of the Series A shares.

Holders of Series A shares who do not exercise their right to convert their Series A shares into Series B shares on the conversion date will retain their Series A shares, subject to the conditions set out below.

The dividend rate applicable to the Series A shares for the five-year period from July 31, 2026, to but excluding July 31, 2031, and the dividend rate applicable to the Series B shares for the three-month period from July 31, 2026, to Oct. 31, 2026, will be determined and announced by way of a news release on July 2, 2026.

Beneficial owners of Series A shares who wish to exercise their conversion right should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from July 2, 2026, until July 15, 2026, at 5 p.m. Toronto time.

The foregoing conversion rights are subject to the conditions, as set out in the terms of the Series A shares, that: (i) if Capstone determines that there would remain outstanding on the conversion date less than one million Series B shares, after having taken into account all Series A shares tendered for conversion into Series B shares, then holders of Series A shares will not be entitled to convert their shares into Series B shares and all holders will continue to hold Series A shares; and (ii) alternatively, if Capstone determines that there would remain outstanding on the conversion date less than one million Series A shares, after having taken into account all Series A shares tendered for conversion into Series B shares, then all remaining Series A shares will automatically be converted into Series B shares on a one-for-one basis on the conversion date and all holders will hold Series B shares. In either case, Capstone will give written notice to that effect to the registered holder of Series A shares no later than July 24, 2026.

About Capstone Infrastructure Corp.

Capstone is generating its low-carbon future, driving the energy transition forward through creative thinking, strong partnerships, and a commitment to quality and integrity in how we do business. A developer, owner and operator of clean and renewable energy projects across North America, Capstone's portfolio includes an approximately 1.1-gigawatt gross installed capacity across 36 facilities, including wind, solar, hydro, biomass and natural gas power plants.

We seek Safe Harbor.