Mr. Marc Murnaghan reports

POLARIS RENEWABLE ENERGY ANNOUNCES APPROVAL OF SO1 AGREEMENT BY PREPA

At a meeting held on Feb. 19, 2026, the governing board of the Puerto Rico Electric Power Authority (PREPA) approved the battery energy storage system standard offer agreement (SO1 agreement) and Polaris Renewable Energy Inc. received formal written notice of approval on Feb. 27, 2026.

The execution of the SO1 agreement between PREPA and Polaris Power U.S. Inc. (PPUS), a wholly owned subsidiary of Polaris, remains subject to the approval of the Financial Oversight & Management Board (FOMB) of Puerto Rico, which constitutes the next required step in the process. The company remains optimistic that the FOMB review and authorization will progress in a timely manner relative to prior regulatory milestones achieved for this project.

The SO1 agreement forms part of the Puerto Rico accelerated storage addition program (ASAP), a strategic initiative aimed at strengthening grid reliability across the island through the deployment of utility-scale battery energy storage systems (BESS) co-located with existing generation facilities.

Under this framework, PPUS will act as the resource provider responsible for the installation and operation of the BESS, while Punta Lima Wind Farm LLC (PLWF), another subsidiary of Polaris, will continue to serve as the generation facility owner for the Punta Lima site, where the storage system will be located.

Once the BESS project is constructed and fully operational, the resource provider will be entitled to receive monthly fixed and performance-based payments from PREPA in exchange for providing energy storage services, including capacity and grid support. The SO1 agreement has a BESS capacity of 71.4 megawatts (35.7 megawatts times two). The commercial operation date is forecast to begin 12 months after execution of the final SO1 agreement, running for a 20-year term from the commercial operation date.

Marc Murnaghan, chief executive officer of Polaris, commented:

"The PREPA governing board's authorization of the SO1 agreement marks an important step forward in the development of our battery energy storage initiatives in Puerto Rico. This project further reinforces our commitment to enhancing grid reliability on the island while building on the strategic value of our existing Punta Lima asset."

Polaris remains committed to delivering long-term, sustainable energy solutions across Latin America and the Caribbean, and looks forward to working with all stakeholders throughout the approval and implementation process.

About Polaris Renewable Energy Inc.

Polaris Renewable Energy is a Canadian publicly traded company engaged in the acquisition, development and operation of renewable energy projects in Latin America and the Caribbean. The company is a high performing and financially sound contributor to the energy transition.

The company's portfolio includes a geothermal plant (approximately 82 megawatts), four run-of river hydroelectric plants (approximately 39 megawatts), three solar (photovoltaic) projects (approximately 35 megawatts) and an onshore wind park (approximately 26 megawatts).

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