CALGARY, ALBERTA--(Marketwired - Nov 14, 2014) - Maxim Power Corp. (TSX:MXG) ("MAXIM" or the "Corporation") announced today the release of financial and operating results for the third quarter ended September 30, 2014. The unaudited condensed consolidated interim financial statements, accompanying notes and Management Discussion and Analysis will be available on SEDAR and on MAXIM's website on November 14, 2014. All figures reported herein are Canadian dollars unless otherwise stated.

FINANCIAL HIGHLIGHTS

Three Months Ended
September 30		Nine Months Ended
September 30
($ in thousands except per share amounts)2014201320142013
Revenue$24,208$45,046$112,478$136,933
Adjusted EBITDA (1)3,43014,82816,39943,232
Adjusted net income (loss) (1)(1,186)9,685(1,937)20,395
Per share - basic and diluted$(0.02)$0.18$(0.04)$0.38
Net income (loss) attributable to shareholders(1,415)7,640(2,253)18,672
Per share - basic and diluted$(0.03)$0.14$(0.04)$0.34
FFO (2)2,61113,99813,69041,133
Per share - basic and diluted$0.05$0.26$0.25$0.76
Electricity Deliveries (MWh)192,272340,144750,136834,029
Net Generation Capacity (MW) (3)777802777802
Average Alberta power price - market ($ per MWh)$64.34$83.62$55.80$90.84
Average Alberta power price - Milner realized ($ per MWh)$92.49$108.94$72.52$125.13
Average US power price - Northeast U.S. realized (US$ per MWh)$66.14$116.35$165.34$133.47
(1) Select financial information was derived from the unaudited condensed consolidated interim financial statements and is prepared in accordance with IFRS, except adjusted EBITDA and adjusted net income (loss). Adjusted EBITDA is provided to assist management and investors in determining the Corporation's approximate operating cash flows before interest, income taxes, and depreciation and amortization and certain other income and expenses. Adjusted net income (loss) is used to compare MAXIM's results among reporting periods without consideration of unrealized gains and losses and to evaluate MAXIM's performance. Adjusted EBITDA and adjusted net income (loss) do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
(2) Funds from operating activities before changes in working capital ("FFO") is an Additional GAAP measure provided to assist management and investors in determining the Corporation's cash flows generated by operations before the cash impact of working capital fluctuations.
(3) Generation capacity is manufacturer's nameplate capacity net of minority ownership interests of third parties.

OPERATING RESULTS

Revenue, adjusted EBITDA, adjusted net income (loss), net income (loss) attributable to shareholders and FFO decreased in the third quarter of 2014 when compared to the third quarter of 2013. The decrease in these financial measures is primarily due to lower realized power prices and generation in both Alberta and the Northeast U.S.

On a year to date basis, revenue, adjusted EBITDA, adjusted net income (loss), net income (loss) attributable to shareholders and FFO decreased in 2014 when compared to 2013. The decrease in these financial measures is primarily due to lower Alberta power prices throughout each quarter of 2014 in addition to lower realized power prices and generation in the Northeast U.S. in the third quarter.

ALBERTA UTILITIES COMMISSION ("AUC") LOSS FACTOR DECISION

As previously reported, the AUC has upheld the complaint made by the Corporation that the current ISO Line Loss Rules contravene the Transmission Regulation and are unjust, unreasonable, unduly preferential, arbitrarily or unjustly discriminatory and inconsistent with or in contravention of the 2003 Electric Utilities Act (AUC Decision 2014-110). The AUC is proceeding with the second phase of its consideration of Milner's complaint to determine the relief or remedy to be given and has issued a process letter which indicates the second phase will likely conclude in the second half of 2015.

FEDERAL ENERGY REGULATORY COMMISSION ("FERC") INQUIRY

FERC has continued its non-public inquiry related to MAXIM's supply of electricity to the ISO-NE market. As previously reported, FERC's Office of Enforcement communicated its preliminary findings, MAXIM and its external legal counsel strongly disagree with and have formally refuted the allegations made in the preliminary findings, and the Office of Enforcement issued a Notice of Alleged Violations ("Notice") to MAXIM. The preliminary findings and the Notice issued by the Office of Enforcement do not constitute findings or orders of the Commission. MAXIM continues to cooperate with the Office of Enforcement to resolve this matter.

SALE OF MAXIM POWER (B.C.) INC.

On July 17, 2014, MAXIM closed the sale of its wholly-owned subsidiary, Maxim Power (B.C.) Inc. ("Maxim BC") to Village Farms International, Inc. Maxim BC owns and operates the Vancouver Landfill Power Project, a 7.4 MW electrical and 9.1 MW thermal energy landfill gas cogeneration project in Delta, BC. Proceeds from the sale are $5.2 million and will be utilized for strategic corporate purposes. This transaction concludes the sale of MAXIM's investments in British Columbia, with the sale of MAXIM's other B.C. asset, the Hartland Generating Facility, in 2013. The sale of these two investments resulted in a net gain of $105 thousand.

COMAX FRANCE S.A.S. ("COMAX") CAPITAL PROGRAM

COMAX has secured debt financing of $6.4 million (4.5 million Euro) for three of its five 2014 renovation projects. The terms of the loans are favorable with leverage ranging from 80% to 89% of the project investment and fixed interest rates ranging from 3.0% to 4.5%. MAXIM anticipates securing the debt financing for the remaining projects in the fourth quarter. Total 2014 capital expenditures related to the renovation program in COMAX are anticipated to be $13.7 million (9.7 million Euro) of which $11.7 million (8.3 million Euro) will be financed with debt. COMAX has deferred two additional renovation projects, originally included in the 2014 renovation program scope, to early 2015.

GROWTH INITIATIVES

Summit Coal Limited Partnership ("SUMMIT")

SUMMIT is MAXIM's development initiative located north of Grande Cache, Alberta that owns metallurgical coal leases for Mine 14 ("M14") and Mine 16S ("M16S"). This initiative is construction ready and is the most advanced metallurgical coal mine development project in North America.

Current estimates for M14 are 18.9 million tonnes of low-mid volatile metallurgical coal reserves with a mine life of 17 years based on the NI 43-101 Technical Report filed on SEDAR on March 21, 2013. M16S is located 30 kilometers northwest of M14 and represents 1,792 hectares or 29% of SUMMIT's total area of coal leases. A NI 43-101 Technical Report has not been prepared for the Mine 16S property. The coal quality of M14 has been tested by numerous potential buyers and independent labs and is a very coveted mid to low volatility coking coal with other attributes which are best-in-class.

The Corporation considers the advancement of the M14 and M16S development projects strategic for MAXIM primarily because of the value of metallurgical coal and partially due to Milner's ability to utilize lower quality fuels to produce electricity. The Corporation expects that the long-run average price forecast for metallurgical coal will allow for the economically viable development of SUMMIT.

Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the full-scale construction of the 190 MW D1 Station. MAXIM had previously received regulatory approvals to construct and operate D1 and has entered into an agreement to secure firm natural gas transportation services. The D1 site is located near Bruderheim in Alberta's Industrial Heartland, and it is in close proximity to the entry point of the proposed Gateway pipeline and adjacent to the existing Deerland high voltage substation.

Milner Expansion ("M2")

On June 4, 2014, the AUC approved MAXIM's application to convert the fuel source for the M2 project from coal to natural gas and to increase the generating capacity of the proposed expansion from 500 MW to 520 MW. The M2 facility would be adjacent to the existing 150 MW Milner generating facility. The existing infrastructure at the Milner site allows MAXIM to leverage benefits including electrical connection, fuel delivery, water licenses and a skilled operations team.

Buffalo Atlee ("B1")

MAXIM acquired the B1 Power Project, situated near Brooks, Alberta, through an amalgamation with EarthFirst Canada Inc. B1 holds an exploratory Crown land permit with a term of five years, expiring on January 1, 2016. This project has the potential for development of over 200 MW of wind generation capacity. Wind data has been collected on the site for approximately six years and supports project development based on expected new provincial greenhouse gas legislation and/or higher power prices than currently forecasted. As at the date of this press release, MAXIM has entered into lease agreements with private landowners for five sections of land and has also commenced collecting wind data on this site. These new leases would allow MAXIM to construct a 100 MW project at this site. The addition of wind generation to MAXIM's existing portfolio of assets will diversify MAXIM's generation fuel types and provide the potential to offset the impact of expected new provincial greenhouse gas legislation.

Forked River

MAXIM is assessing the feasibility of developing projects on its existing Forked River, NJ site, and its property adjacent to this site, for participation in upcoming PJM capacity auctions.

CONFERENCE CALL FOR Q3 2014 RESULTS

MAXIM will host a conference call for analysts and investors on Monday, November 17, 2014 at 2:00 pm MST. The call will be hosted by John Bobenic, MAXIM's President and Chief Executive Officer, and by Mike Mayder, Senior Vice President, Finance and Chief Financial Officer. To participate in this conference call please dial (877) 223-4471 or (647) 788-4922 in the Toronto area and refer to Maxim Power Corp.'s Q3 Results Call, ID #35542549. It is recommended that participants call at least ten minutes prior to start time.

A recording of the conference call will be available from November 17, 2014 to November 24, 2014. To access the replay, dial (800) 585-8378 or (416) 621-4642 followed by the conference ID 35542549. In addition, the recording will be available commencing November 17, 2014 in the Investor Relations section of MAXIM's website at www.maximpowercorp.com.

About MAXIM

Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power and power related projects. MAXIM currently owns and operates 39 power plants in Alberta, the United States and France, having 777 MW of electric generating capacity. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.