Mr. Chase Edgelow reports

EVERGEN INFRASTRUCTURE REPORTS Q2 2023 RESULTS

Evergen Infrastructure Corp. has released its financial results as at and for Q2 2023. All amounts are in Canadian dollars unless otherwise stated and have been prepared in accordance with IFRS (international financial reporting standards).

Financial highlights for Q2 2023:

• Cash and cash equivalents of $9.5-million as at June 30, 2023, compared with $8.9-million as at Dec. 31, 2022, increased from the $9.5-million drawdown of the senior term loan facility, partially offset by $6.6-million of investments made into expansion and development projects. The remaining cash and cash equivalents, combined with the undrawn balance under the $31-million term loan, expected grant proceeds and expected future operating cash flows, fully finance Evergen's core RNG (renewable natural gas) expansion projects.
• Revenues of $2.2-million decreased 9 per cent from $2.4-million in Q2 2022, primarily due to lower RNG production at Fraser Valley Biogas during the construction period of the core RNG expansion project.
• Net loss of $900,000 for Q2 2023 increased from $500,000 in Q2 2022, mainly due to the recognition of $800,000 of insurance proceeds in Q2 2022, partially offset by a decrease in direct operating costs and general and administrative expenses.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $400,000 for Q2 2023 was consistent with Q2 2022.

"Our recent achievements underpin Evergen's successful transition into the execution phase of our core expansion projects," said Chase Edgelow, chief executive officer of Evergen. "This, coupled with the substantial funding support we recently received for the Pacific Coast RNG project, validates our leadership and commitment to our stakeholders while furthering Canada's energy transition goals."

Financial and operational summary

The attached table presents Evergen's consolidated financial and operating summary.

For further information on the results, please see the company's consolidated financial statements and management's discussion and analysis, filed on SEDAR+ and on Evergen's website.

Evergen will hold a results and corporate update conference call at 10 a.m. Eastern Time on Thursday, Aug. 24, 2023, hosted by Mr. Edgelow.

The conference call details are as follows.

Date:  Thursday, Aug. 24, 2023

Time:  10 a.m. ET

The call will be accessible via Zoom.

Find the latest corporate presentation in the investor centre of the company's website.

About Evergen Infrastructure Corp.

Evergen, Canada's renewable natural gas infrastructure platform, is combatting climate change and helping communities contribute to a sustainable future. Headquartered on the West Coast of Canada, Evergen is an established independent renewable energy producer that acquires, develops, builds, owns and operates a portfolio of renewable natural gas, waste-to-energy and related infrastructure projects. Evergen is focused on Canada, with continued growth expected across other regions in North America and beyond.

Non-GAAP (generally accepted accounting principles) measures

Evergen uses certain financial measures referred to in this news release to quantify its results that are not prescribed by IFRS (international financial reporting standards). The terms EBITDA, adjusted EBITDA and working capital are not recognized measures under IFRS and may not be comparable with the measures reported by other companies. Evergen believes that, in addition to measures prepared in accordance with IFRS, the non-IFRS measurements provide useful information to evaluate the company's performance and ability to generate cash, profitability and meet financial commitments. These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for other measures of performance prepared in accordance with IFRS. EBITDA is defined as net income (loss) before interest, tax, and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for share-based payment expenses, unusual or non-recurring items, contingent consideration gains and losses, and non-controlling interests in adjusted EBITDA. Working capital is calculated as current assets less current liabilities.

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