Cielo Announces Fiscal Q3 2024 Financial Results and Provides Update on its Progress to Fuel Renewable Change

CALGARY, Alberta, March 28, 2024 (GLOBE NEWSWIRE) -- Cielo Waste Solutions Corp. (TSXV:CMC; OTC:CWSFF) (“Cielo” or the “Company”), a renewable fuel company leveraging market ready licensed technology to produce low-carbon fuel from wood by-products, today announced its financial results for the three and nine months ended January 31, 2024, along with an update on the Company’s progress as Cielo fuels renewable change. Copies of the unaudited interim financial statements and related management’s discussion and analysis can be found on the Financial Reports section of the Company’s website at https://cielows.com and under Cielo’s issuer profile at www.sedarplus.ca. All financial information in this news release is reported in Canadian dollars, unless otherwise indicated.

"We believe the closing of the asset purchase transaction with Expander Energy during Q3 2024 represents a pivotal moment on our journey, positioning Cielo with an economically sustainable and market-ready solution. Cielo has a clear line of sight to produce our net-zero carbon intensity Bio-SynDiesel,” said Ryan Jackson, CEO of Cielo. “As a result of the Company’s achievements in Q3 2024, we are able to focus on accelerating construction of our first commercial facility at Carseland, Alberta, as well as a full-scale facility in Dunmore, Alberta, both of which will transform wood by-products, including railway ties, to low-carbon liquid fuels that are critical for the world’s energy transition.”

Jasdeep K. Dhaliwal, CFO of the Company, added, “I am proud of our team’s success both through the third quarter and to date in Q4 2024, as we have made great progress against key milestones. Over and above finalizing the Expander transaction, our five-year plan is to construct six facilities across North America. We are committed to generating a compelling return on investment for all stakeholders and having a positive impact on the planet.”

Q3 2024 HIGHLIGHTS

During the quarter ended January 31, 2024, Cielo achieved the following milestones:

• Closed the asset purchase transaction with Expander Energy Inc. (“Expander”) on November 9, 2023, gaining an exclusive license in Canada for all feedstock and in the U.S. for treated wood waste to deploy Expander’s innovative Enhanced Biomass to Liquids (EBTL) and Biomass Gas to Liquids (BGTL) technologies (the “Licensed Technologies”), which management believes will allow Cielo to accelerate its timeline to revenue.
• As a result of the transaction with Expander, secured several key agreements and approvals designed to accelerate the Company’s path to commercialization of Bio-SynDieselat the Carseland facility (the “Carseland Project”):
  • Secured a long-term contract that provides Cielo with a cost-effective and continuous supply of the requisite biomass feedstock for the Carseland Project from an established local biomass supply company, ECCO Recycling & Energy Corporation;
  • Signed a long-term syngas processing agreement with Rocky Mountain Clean Fuels Inc. (“RMCFI”) that will see Bio-Syngas produced at the Carseland Project converted into 8.2 million litres per year of renewable Bio-SynDiesel fuel at the existing, operational and adjacent synthetic fuel facility; and
  • Received approval for a long-term lease on a parcel of land totaling 25 acres, situated immediately adjacent to the existing and operational RMCFI facility at Carseland, which enables Cielo to leverage existing infrastructure and operational capabilities to accelerate commercial production of Bio-SynDiesel fuel.
• Completed a share consolidation on the basis of 15:1, reducing outstanding shares to 113,302,703 from 1,699,540,548 effective January 29, 2024;
• Raised $670,000 through a non-brokered private placement of flow-through shares in December 2023, with proceeds directed to advance the Carseland Project;
• Took critical steps to further progress the Carseland Project and the proposed project in Dunmore, Alberta (the “Dunmore Project”, together with the Carseland Project, collectively the “Projects”) by allocating approximately $762,000 in capital expenditures to the Projects; and
• Repaid a $60,000 Canadian Emergency Business Account (CEBA) loan.