KALiNA Power Limited provided this monthly update on development of its Flagship 64MW Primary Site; the KALiNA Energy Centre ­ Saddle Hills, located in the County of Saddle Hills, Alberta, Canada. KPO's Canadian subsidiary, KALiNA Distributed Power Limited reports that is now nearing the final engineering, contracting and approvals process for its Saddle Hills project and continues to target FNTP during Q4-2021. Long-term gas to power tolling continues to represent opportunities for gas producers seeking diversification with a portion of their production. While gas prices continue to strengthen, power prices in Alberta have shown an even greater increase. Exposure to a power index through tolling represents an implied gas netback premium to gas producers relative to market prices of natural gas. KDP is in detailed discussions with producers and has made requests for expressions of interest for the volumes needed for the Saddle Hills Energy Centre, such that definitive tolling agreements can be finalized for FNTP. As reported, KDP is also taking steps to secure ownership of gas reserves for its portfolio of power projects to secure a reliable supply of gas at prices below market. A formal process is underway in identifying optimal reserves and selective negotiations have commenced. Contracting of definitive agreements with all major equipment vendors continues and is well advanced. A thorough review and analysis continues with Enerflex on its Class 2 FEED detailed estimating and engineering report: Schedule to achieve FNTP in Q-4 2021 remains on track but the schedule through the construction phase may be extended. Overall costs for equipment, construction, and installation may increase. KDP and Power Engineers have been provided most of the information needed to complete their review and continue their collaboration with Enerflex to identify areas of improvement for both costs and schedule. As previously reported, KDP filed its Alberta Utilities Commission Rule 007 regulatory application. KDP has subsequently responded to a first round of information requests from the AUC and are awaiting any further information requests the Commission may have. In support of the AUC application, KDP confirms that it has filed its Environmental Protection and Enhancement Act application with Alberta Environment and Parks and is in the process of responding to their initial information requests. Kalina is also in the process of securing crown lands for the natural gas supply line to the Saddle Hills facility and conducting First Nation and Metis Nation site visits throughout September. Environmental assessment work has also been completed for the natural gas supply line route. The pipeline will run parallel to existing rights of way. No significant environmental concerns have been identified. As previously reported, KDP is taking steps to properly manage the timing of contractual commitments and the overall coordination of schedules to FNTP. Accordingly, KDP has advised ATCO and AESO to temporarily put the process on hold while the balance of the other project deliverables for FNTP are completed. Continuing work for the 2.5 km gas pipeline connecting the project to the main line. The selected EPCM Engineering have completed preliminary design work. The permit application is in process. Continuing to engage with various Government funding agencies for engineering and modularization of various applications of the Kalina Cycle Technology and for project deployment. As previously reported, the AUC issued its decision to discontinue the Demand Transmission Service portion of the Distributed-Connected Generation credit mechanism and leave the Supply Transmission Service portion in place. Saddle Hills can operate without DTS revenues by employing economic dispatch to generate power only when power prices are adequate. While economic dispatch does not fully recover lost DTS Credit revenue, KDP intends to partially make up the shortfall from grid ancillary services revenue that would not be available were the project to operate at or near baseload capacity. As previously reported Kalina, and a consortium of other distributed power developers and generators has filed a Stage 1, Review and Variance application with the Alberta Utilities Commission seeking a review of the AUC's decision that eliminated the DTS Credits. A decision on whether or not the Commission will grant a review of its decision has not yet been determined. A decision regarding the Stage 1 application continues to be expected shortly. In addition, the Alberta Court of Appeals has scheduled 4 November 2021 to hear the "applications to appeal" of both the KDP consortium and that separately filed by WCSB Power.