Cielo Announces Operational and Corporate Update - Seite 2

• the desulphurization unit was operated at a constant pressure of 1,000 kilopascal (145 psi) and processed a total of 25,000 liters (6,604 gallons) of diesel;
• the diesel processing flow rate ranged from 500 liters (132 gallons) per hour ("lph" and "gph") to 1,500 lph (396 gph), with an average inlet sulfur content of 800 ppm;
• the diesel produced after the desulphurization process contained a sulfur content of less than 15 ppm; and
• preliminary operational data indicated that the expected operating cost of the desulphurization process which ranged from approximately $0.08/litre ($0.31/gallon) to $0.13/litre ($0.50/gallon), was within the Company's anticipated design parameters.

Further system testing and tuning will be performed as the Company continues to streamline its overall processes at the Aldersyde Facility. In addition, Cielo remains committed to advancing the priorities that were outlined in the September 27, 2021 press release and the subsequent conference call held on September 29, 2021. These priorities are designed to accelerate the drive toward commercialization and revenue.

In order to achieve continuous production on a commercial scale, the next steps include undertaking engineered process modifications to the inlet feed system, the reactor, and biomass waste management system at the Aldersyde Facility. In parallel, Cielo has initiated, and is well into, the design phase of the scaled-down version (60 lph/16 gph) of a full-scale 4,000 lph (1,057 gph) facility in Fort Saskatchewan, Alberta (the "R&D Facility"). Cielo anticipates that the fabrication and construction phase of this R&D Facility will commence by the end of Q1 2022.

The utilization of the Company's desulphurization unit is anticipated to enable Cielo to generate higher revenue from its waste-to-fuel products. Diesel with a sulphur content that complies with road diesel requirements in North America, can be sold at a higher price, compared to diesel with higher sulphur content.

All amounts in this news release are in Canadian dollars unless otherwise indicated.

Corporate Update

In addition to the operational advancements, Cielo continues to streamline and enhance the strength of the corporate structure, optimize costs, and establish clear and transparent processes. As a result of these efforts, Cielo's Board of Directors expanded the responsibilities of Mr. Chris Sabat, who is now Chief Legal Officer and Corporate Secretary. Mr. Sabat will oversee and manage all matters related to corporate services, including Health, Safety & Environment, Human Resources, Vendor Management, Information Technologies, and Joint Arrangements. Previously, Mr. Sabat held the title of Corporate Secretary and General Counsel.