Northstar Clean Technologies (ROOF) investor relations material

Strategic vision and market opportunity

• Focus on sustainable recovery and reprocessing of asphalt shingles, targeting a North American market where 16.5 million tons of shingles go to landfill annually, representing over 20 million barrels of oil in resource value.

• Commercial facility in Calgary is operational and ramping up, with plans to roll out similar facilities across North America, aiming for a CAD 1 billion enterprise value.

• Industry drivers include regulatory goals to reduce shingle landfill waste by 50% by 2035 and further by 2050.

• Revenue model combines tipping fees (35%) and product sales (65%), with asphalt accounting for 95% of product value and closely tied to oil prices.

• Negative feedstock cost due to tipping fees, with economics further supported by rising landfill prices and oil price correlation.

Facility economics and operational progress

• Calgary facility can process 40,000 tons/year on day shift or 80,000 tons/year 24/7, generating CAD 10–20 million in revenue and CAD 5–10 million in EBITDA depending on throughput.

• Five-year contract with the City of Calgary to collect all municipal waste shingles, providing stable feedstock and revenue.

• Strategic partnerships with industry players for feedstock and offtake, including Ecco Recycling, McAsphalt, and TAMKO.

• Recent $10 million, 8% convertible note financing with sophisticated, long-term investors, featuring minimal dilution and flexible terms.

• Facility ramp-up is underway, with interim production expected to reach cash flow break-even before a full upgrade in the fall.

Growth strategy and financial outlook

• Lessons from Calgary’s commercial scale-up will be integrated into future facilities in Baltimore, Hamilton, and potential retrofits in Vancouver.

• Targeting construction of two additional facilities in 2025, aiming for seven plants by 2028, each expected to add CAD 100 million in enterprise value.

• MOU with TAMKO guarantees offtake for the first four U.S. plants.

• Debt financing support from EDC and BDC, with plans to leverage at least 50% debt per plant as operational performance is demonstrated.

• Self-funding expected after three to four facilities, reducing the need for further equity raises.