Kalina Power : Alberta Utility Commission Grants Key Permit 2021/10/17

ASX ANNOUNCEMENT 19 October 2021

Alberta Utility Commission Grants Key Permit for KALiNA's

64MW Saddle Hills Project

Waste Heat to Power ("WHP") technology leader, KALiNA Power Limited ("KALiNA" or the "Company") (ASX: KPO) is pleased to confirm that the Alberta Utilities Commission ("AUC") has issued its decision granting approval for the KALiNA Energy Centre - Saddle Hills project ("Saddle Hills").

KPO's Canadian subsidiary, KALiNA Distributed Power Limited (KDP) received approval from the Alberta Utilities Commission on 7 October 2021, further to its Rule 007 Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations, Hydro Developments and Gas Utility Pipelines. The approval grants KDP permission to construct and operate the Saddle Hills project; a 64 MW gas-fired combined cycle facility utilizing the KALiNA Cycle® technology. Electricity from the facility will be sold into the Alberta electricity market and interconnected on ATCO Electric Ltd's distribution system.

KDP reports that the AUC has confirmed that the application met all the requirements of the application process, that there are no outstanding questions from the public and that the AUC does not require any further information from KDP. The AUC has granted its Rule 007 approval in a final form without further comment or qualification. The AUC Rule 007 approval is regarded as the major approval required to construct and operate the Saddle Hills facility.

KDP continues to target FNTP during Q4-2021 and is finalizing the EPC engineering, contracting and approvals for the Saddle Hills project. The Company intends to provide a fulsome progress report in its forthcoming regular monthly update.

Comment:

Managing Director Ross MacLachlan said: "The AUC's Rule 007 approval is a major milestone and a key de-risking event. To secure this all-important permit has required the achievement of several important milestones over the past year and it represents the culmination of months of hard work from our Alberta team who are to be commended for their efforts. With an AUC permit now in hand we are in a position to formally advance our negotiations with key lenders."

About KALiNA Energy Centre - Saddle Hills

Saddle Hills is KDP's Primary Site. The location is in an area of high electrical demand and favourable grid interconnection capacity along with gas supply and infrastructure suitable for KDP's initial 64MW combined cycle project. The site has sufficient infrastructure in place to accommodate two, 32MW combined cycle power plants; each configured with a 22MW natural gas turbine and a KALiNA Cycle® module that will generate 10MW of zero-emissions power from the gas turbine's waste heat.

As previously reported, KDP is assembling a portfolio of sites to deploy its distributed generation program in select areas in Alberta. KDP is developing projects, which if all brought online, would represent over 300 MW of generation.

About KALiNA Power Limited

KALiNA Power Limited is a clean-tech company in the Industrial Waste Heat to Power ("WHP") sector, producing zero-emissions power from heat produced by energy-intensive industrial processes that may otherwise be wasted, as well as from the heat available in geothermal resources. The technology has been commercially deployed across a range of industrial settings and applications at 16 plants around the world. KPO owns the worldwide patents relating to the KALiNA Cycle®Technology and has one of the most substantial intellectual property portfolios in the sector.

For further information please contact:

Kalina Power Limited Tim Horgan Executive [e-mail][phone] [phone]

Ben Jarvis, Six Degrees Investor Relations: 0413 150 448

This announcement was approved and authorised for issue by the Board of Kalina Power Limited

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