ARC Resources Ltd. announced it has entered into a long-term liquefaction tolling services agreement (the "Liquefaction Agreement") and other anillary agreements with Cedar LNG Partners LP ("Cedar LNG"), a partnership between the Haisla Nation and Pembina Pipeline Corporation ("Pembina") advancing the Cedar LNG Project (the "Project"). Under the Liquefaction Agreement, ARC will deliver approximately 200 MMcf per day of natural gas for liquefaction by the Project for a term of 20 years commencing with commercial operations, anticipated in the second half of 2028. The Liquefaction Agreement is subject to a positive Final Investment Decision and other customary conditions precedent with respect to the Project.

The Project is located in Kitimat, British Columbia, within the traditional territory of the Haisla Nation. As the first majority Indigenous-owned liquefied natural gas ("LNG") facility in Canada, the Project will provide economic and social benefits to the Haisla Nation in support of reconciliation, while providing opportunities for Canadians more broadly. In addition to the agreement with Cedar LNG, ARC has entered into a non-binding Heads of Agreement ("HOA") with an investment-grade rated company with extensive experience in the LNG value chain, for the associated LNG offtake ?

the equivalent of approximately 1.5 million tonnes per annum ("mtpa") of LNG. The HOA outlines the terms of an anticipated 20-year LNG sale and purchase agreement ("SPA") for the entirety of ARC's LNG delivered from the Project, and would commence with the start-up of the Project. The SPA is anticipated to be finalized by year-end 2024.

Combined with the Liquefaction Agreement, the SPA will provide ARC access to international LNG prices for natural gas sold at Cedar LNG.