Northstar Clean Technologies (ROOF) Status update summary

Strategic and Operational Update

• Calgary facility is operational, producing high-quality asphalt that exceeds expectations, with throughput ramping up to 100–150 tons/day and initial bottlenecks addressed; interim production targets profitability in Q2.

• Engineering and procurement for a major processing upgrade are underway, aiming for improved asphalt recoveries and long-term performance, with the upgrade planned for fall 2026.

• Full-scale commercial production for new facilities in Baltimore and Hamilton is delayed to 2028 to integrate Calgary learnings, with minimal expenditures expected in 2026 and construction targeted for 2027.

• Bottlenecks identified were related to material transfer and water processing, not core technology.

Financial Update and Capital Structure

• Announced a $10 million convertible debenture (8% interest, five-year term, CAD 0.275–0.2755 conversion price, no warrant), with strong global investor participation and market-aligned fees.

• Financing provides runway for operations, Calgary upgrade (approx. CAD 3 million CapEx), and flexibility for future projects.

• Interim production expected to reach cash flow breakeven in Q2, with full profitability after the upgrade.

• Capital allocation minimized for Baltimore and Hamilton until engineering is finalized; long lead items may be ordered in Q4.

• Private placement closing is expected in the final week of March 2026, subject to approvals.

Organizational Changes and Future Growth

• Lynda Paananen appointed CFO, replacing Greg Phaneuf; Mark Bishop named VP of Projects and Engineering to lead upgrades and new facility rollouts across North America.

• Emphasis on right-sizing and efficiency to support growth and cost-effectiveness.

• Lessons from Calgary will be integrated into future facilities to reduce risk and improve efficiency.

• Targeting nine operating facilities by 2030, with potential for CAD 19 million EBITDA.