Mr. Steve Dalton reports

REVOLVE RECEIVES US$3.4 MILLION BOUSE SOLAR AND STORAGE PROJECT MILESTONE PAYMENT

Revolve Renewable Power Corp. has completed the interconnection milestone related to the 1,000-megawatt Bouse solar and storage project, which was sold in January, 2023, to Engie IR Holdings LLC, a wholly owned subsidiary of Engie SA, a global leader in the energy sector.

The terms of the sale, which also included the sale of the 250 MW Parker solar and storage project, are set out in the news release dated Jan. 11, 2023, and are also summarized below.

The transaction

The total consideration payable by Engie is within the range of guidance previously provided by the company for the sale of utility-scale development assets, which for reference is outlined in page 17 the company's corporate presentation.

The company received an upfront payment of $2-million (U.S.) (inclusive of the reimbursement of development costs) on completion of the transaction in January, 2023. Of this sum, $800,000 (U.S.) was recognized as revenue in the company's third quarter fiscal year 2023 financial accounts with the remaining $1.2-million (U.S.) accounted for as deferred revenue. The balance of this deferred revenue as at March 31, 2024, was $960,000 (U.S.).

Milestone payments

The remaining consideration is linked to each of the Parker project and Bouse project successfully completing the following development milestones:

• Completion of further interconnection studies;
• Issuance by Engie of a notice to proceed (an NTP) construction works to the applicable engineering and procurement contractor (EPC);
• On the commercial operations date (the COD), with such date being the date that a project has been synchronized to the grid and is capable of delivering all of its installed capacity to the grid.

The company previously guided that it expected the completion of the interconnection studies milestones for the Bouse project to be achieved prior to the end of H1 2024 when further interconnection studies are issued. The company is now pleased to confirm that the completion of further interconnection studies milestone has been met for the Bouse project.

Put option

As part of the transaction the parties entered into a put option agreement allowing Engie to sell the Bouse project back to the company for a limited period following receipt of the results of the next interconnection studies due for each project.

Engie has chosen not to exercise the put option and it has therefore expired for the Bouse project.

The next milestone payment related to the Bouse project totalling $3.4-million (U.S.) has now been paid to the company. There were no additional development costs incurred by the company in relation to this milestone. The deferred revenue of $960,000 (U.S.) is now expected to be recognized as revenue in the company's Q4 FY 2024 financial statements.

The interconnection milestone for the Parker project was completed in July, 2023, see news release for further details.

Steve Dalton, chief executive officer of Revolve, commented: "We are delighted to reach a key milestone for the Bouse project and the overall transaction with Engie. The Bouse project is one of the largest solar and battery storage projects being developed for the Californian market and we look forward to further progress being made towards notice to proceed in the coming years."

The Bouse project

The Bouse project is a 1,000 MW solar and battery storage project, located on approximately 6,155 acres of land wholly managed by the Bureau of Land Management in La Paz county 27 miles east of Quartzsite, Ariz. The entire project site is located in a solar variance area as identified in BLM's solar programmatic environmental impact statement and record of decision (ROD) (BLM/DOE 2012, BLM 2012a). The Bouse project has the capacity to provide electricity to an equivalent of approximately 1.2 million homes. The company commenced the greenfield development of the Bouse project in early 2021.

About Revolve Renewable Power Corp.

Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the United States, Canada and Mexico. The company has a second division, Revolve Renewable Business Solutions, which installs and operates sub-20 MW behind-the-meter distributed generation (or DG) assets.

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