Cielo Provides Operational Update and Production Forecast for Aldersyde and Fort Saskatchewan Facilities - Seite 3

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2020 and 2021 Actual and Forecast - The 2020 production was realized while operating the facility in a batch mode. Modifications to the Aldersyde Facility were made in early Q1 2021 where continuous production was attained but not sustained due to operational bottlenecks and plugging issues. Currently the facility continues to operate at a reduced rate as the Company addresses the System Issues.

2022 Forecast - The Q1 2021 production forecast reflects the Aldersyde Facility downtime associated with the construction activities for the Aldersyde Project. Upon completion and successful commissioning of the Aldersyde Project, a range of forecasted cumulative distillate production volumes are presented for the balance of 2022 as the Aldersyde Facility is anticipated to perform in a steady-state mode with significantly reduced downtime.

2023 Forecast - The 2023 full year forecast reflects a range of cumulative distillate production with increased volumes compared to 2022, as a result of the anticipated continuous operational and systems improvements.

Further Aldersyde Facility Enhancements

Following completion of the Aldersyde Project, Cielo will undertake a third phase of enhancements at the Aldersyde Facility, targeting upgrades to existing instrumentation, measurement and process system controls that are needed to improve production run time, reduce operating costs and optimize process management.

Cielo also anticipates completing engineering feasibility reviews for the following:

• Design of a distillate fractionation system to improve the quality and value of the diesel and naphtha produced at the Aldersyde Facility and enable the production of kerosene in commercial volumes.
• Design of UMO pre-treating and pre-conditioning to drive a more consistent carrier fluid for utilization in the conversion of wood waste into distillate, as well as potentially generating an additional revenue stream by flashing off the light ends of the UMO which could be captured as diesel.

Following commissioning and start-up of the Aldersyde Facility, the Company's strategy is to generate revenue streams that can assist in funding future projects and apply the operational experience and philosophy from the Aldersyde Facility to larger full-scale facilities.