Polaris Infrastructure Inc. ("Polaris" or the "Company"), announced that it has signed a Share Purchase Agreement (SPA) for an operational solar energy project in the Dominican Republic. Polaris signed the SPA with a Canadian-based renewable energy developer, Potentia Renewables Inc., to acquire a 32.0 MWdc(1) operational solar project named Canoa 1 (the "Project") located in the Barahona Province, Dominican Republic. The Project reached COD in March 2020 and has a 20-year power purchase agreement ("PPA") in place with Edesur Dominicana SA (EDESUR), a local Dominican distributor.

The key terms and attributes of the acquisition are as follows: Polaris agreed to purchase all of the issued and outstanding common shares of Emerald Solar Energy SRL which owns 100% of the Project and the licenses and permits, in exchange for $18.4 million in cash at closing; Such purchase price is subject to customary working capital changes from signing of the SPA until closing; Polaris will own 100% of the Project, which includes the Canoa 2 expansion as described below; Polaris will assume non-recourse debt at the project level of approximately $35.0 million; The Project has a PPA denominated in US dollars with an estimated price for 2022 of $128.10 per Mwhr. Such PPA has an inflator of 1.22% per annum until the price reaches $142.80 per Mwhr at which point the price remains fixed until the end of the PPA in 2040; The closing of the acquisition is subject to customary conditions including approval of the share transfer by appropriate local ministries and the project lender. Such closing is anticipated to take place within 90 days.

The Project has an extendable 30-year lease agreement with the original developer and is located on a portion of a land parcel totaling approximately 1.4 square kilometers. The Canoa 1 project represents approximately 30% of the total land parcel. The definitive concession allows for the capacity installed to be doubled from the current operating capacity of 32.6 MWdc(1) to approximately 65.0 MWdc(1).

A second PPA for Canoa 2 with the local distributor would be required and these discussions are underway. To the extent a PPA for Canoa 2 is reached, Polaris will look to commence construction shortly thereafter.