Cielo Provides Operational Update and Production Forecast for Aldersyde and Fort Saskatchewan Facilities - Seite 2

Utilizing the findings from this comprehensive analysis, the engineering design work at the Aldersyde Facility has continued since August 2021, with the focus on reducing downtime to achieve steady-state production. Engineering modification and design are being undertaken on three elements of the existing process: (i) the process infeed mixing system, (ii) reactor modifications and improvements, and (iii) the biomass waste system management (together, the "Aldersyde Project"). The Company is pleased to announce that it is on schedule to execute the following planned work for the Aldersyde Project:

• Engineering design - commenced - August 2021
• Initiation of equipment procurement - to commence - December 2021
• Construction initiation - to commence - January 2022
• Commissioning and start-up - forecast - April 2022

Benefits of Aldersyde Facility Improvements

By completing the planned work for the Aldersyde Project, Cielo anticipates realizing the following benefits at the Aldersyde Facility:

• Improved Reliability - system constraints, process plugging issues and system deficiencies will be addressed.
• Steady-State Production - once current design modifications are implemented, commissioned and optimized, the Aldersyde Facility's maximum throughput level can be established, enabling Cielo to better assess the economics associated with anticipated increases in production rates.
• Potential Production Increases - as steady-state production is stabilized, Cielo can explore production improvements related to limitations of the Aldersyde Facility's physical area and any equipment upgrade requirements needed to support investing in an expansion of the Aldersyde Facility.
• Revenue Generation - as the Aldersyde Facility achieves steady-state production, Cielo will be able to produce both high sulphur content diesel and low sulphur content diesel from distillate and be in a position to generate revenue and report on product sales, volumes and revenue, along with clarity on operating costs plus revenue per litre.

Historical and Forecasted Production

Based upon the historic production level realized at the Aldersyde Facility and the expected outcomes from the Aldersyde Project, Cielo is in a position to predict the cumulative volumes of distillate production at the Aldersyde Facility during 2022 and 2023 with base, mid-case, and high-case scenarios.

The graph below illustrates the historical distillate production that Cielo produced into its storage tanks over the period from Q4 2020 to the date of this press release. The graph also illustrates the forecasted range of cumulative distillate production for 2022 and 2023 calendar years.