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POLARIS ANNOUNCES EXECUTION OF MIXED INVESTMENT AGREEMENT FOR THE THREE MEXICO PROJECTS

Further to Polaris Renewable Energy Inc.'s press release dated June 8, 2026, it has reached another important milestone in the development of its three renewable energy projects selected under Mexico's Comision Federal de Electricidad (CFE) mixed development program.

On July 3, 2026, Polaris, through its Mexican project structure, executed the mixed investment agreement (Contrato de Inversion Mixta or CIM) with the fiduciary trustee, Banca Mifel S.A., Institucion de Banca Multiple, Grupo Financiero Mifel, acting on behalf of CFE.

The CIM establishes the contractual 30-year framework governing the joint participation of Polaris and CFE in the development, financing, construction, ownership and operation of the three selected projects, including the applicable governance, economic and corporate arrangements. The CIM includes the key information and economic metrics used in the selection process by CFE for each of the projects. This information includes project location, nameplate generation capacity, battery capacity, estimated capital expenditures (capex) and return expectations.

The projects comprise approximately 250 MWdc (megawatts direct current) of solar generation capacity and 61.6 MW/192.0 MWh of battery energy storage, as summarized below:

Los Girasoles: A solar photovoltaic project with battery energy storage located in Quintana Roo, with 132.57 MWdc/110 MWac (megawatts alternating current) of generation capacity and 33 MW/101.5 MWh (megawatt-hours) of storage capacity. Annual generation is estimated at 249,239 MWh/year. commercial operation is targeted no later than Nov. 28, 2028, with an estimated capex of $120-million (U.S.).

Solar Energia Tres Hermanos: A solar photovoltaic project with battery energy storage located in Tlaxcala, with 91.06 MWdc/75 MWac of generation capacity and 22.5 MW/71.6 MWh of storage capacity. Annual generation is estimated at 198,485 MWh/year. Commercial operation is targeted no later than Dec. 1, 2028, with an estimated capex of $78-million (U.S.).

Don Humberto: A solar photovoltaic project with battery energy storage located in Sinaloa, with 25.3 MWdc/19.2 MWac of generation capacity and 6.1 MW/18.9 MWh of storage capacity. Annual generation is estimated at 47,173 MWh/year. Commercial operation is targeted no later than April 1, 2028, with an estimated capex of $19-million (U.S.).

Following execution of the Canadian Institute of Mining, the parties will continue working toward completion of the remaining definitive agreements required for the mixed program, including the power purchase agreements (PPAs), trust agreement, management services agreement, operation and maintenance agreement, and related project documentation. With respect to the PPAs, once the project budgets have been finalized and include estimates for inter-connection and system upgrade costs (which are not included in the capex numbers above) pricing for the energy and battery capacity components is expected to be updated and reflected in the final agreements.

Polaris will continue to provide further updates as the remaining agreements are finalized and the projects advance toward financial closing and construction.

The mixed program represents the largest renewable energy and energy storage procurement initiative undertaken in Mexico. The program was established to facilitate strategic partnerships between CFE and private sector developers for the development, financing, construction, operation, and maintenance of new electricity generation and storage facilities throughout the country. The initiative forms a central component of Mexico's national electricity system expansion strategy and seeks to accelerate the deployment of new generation capacity required to support growing industrial, commercial and residential electricity demand. The program was designed to procure approximately 6,500 MW of new renewable generation and energy storage capacity by 2029. A key feature of the mixed program is the long-term contractual framework between CFE and successful private sector participants. The proposed 25-year power purchase and tolling arrangements are intended to provide stable and predictable revenue streams that support project financing and facilitate participation by domestic and international lenders, infrastructure funds, institutional investors, export credit agencies, and strategic partners.

For Polaris, the successful advancement of all three projects represents an important milestone in the company's strategy to expand its renewable energy and energy storage platform in Mexico, and further establish itself as a long-term partner in the country's energy transition and infrastructure development objectives.

Chief executive officer Marc Murnaghan commented: "The execution of the mixed investment agreement marks another significant milestone in developing these three awarded projects into long-term contracted operating assets and reflects the strong collaboration between Polaris and CFE. As we continue advancing toward financial closing and construction, we are also actively progressing a growing pipeline of additional renewable energy and energy storage opportunities across the country. Mexico remains one of our highest-conviction growth markets, and we look forward to expanding our presence while supporting the country's energy transition."

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 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 MW), four run-of-river hydroelectric plants (approximately 39 MW), three solar (photovoltaic) projects (approximately 35 MW) and an onshore wind park (approximately 26 MW).

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