Northstar Clean Technologies (ROOF) Status update summary

Strategic and Operational Progress

• Operational bottlenecks at the Calgary facility have been addressed, enabling near-term operation at 100–150 tons/day and exceeding asphalt quality expectations, validating the core technology.

• Interim production is set to reach profitability in Q2, with a major processing upgrade planned for fall 2026 to improve asphalt recoveries and surpass original yield targets.

• Revenue generation is expected to stabilize in April, with full profitability after the upgrade; growth plans have been adjusted for realistic timelines.

Financial Update and Capital Structure

• Entered a $10 million convertible debenture agreement (8% interest, five-year term, conversion price above market, no warrant), with closing expected in March 2026, subject to approvals.

• Financing is secured from long-term, globally recognized investors, structured to limit dilution and provide strategic support.

• Proceeds will support corporate operations, fund the Calgary upgrade (approx. CAD 3 million), and provide flexibility for future projects.

• CapEx for Baltimore and Hamilton minimized until engineering is complete; new capital allows for ordering long-lead items and operational runway.

Organizational Changes and Facility Rollout

• Lynda Paananen appointed CFO, replacing Greg Phaneuf; Mark Bishop named VP of Projects and Engineering to lead upgrades and new facility development across North America.

• Emphasis on integrating operational learnings from Calgary into future facilities for efficiency and reduced risk.

• Calgary remains the 2026 priority, with Baltimore and Hamilton commercial production delayed to 2028; construction for new sites begins in 2027.

• Targeting nine operating facilities by 2030, with potential EBITDA of CAD 19 million.