Tidewater Renewables Ltd. announced that it has entered into a strategic renewable natural gas ("RNG") and feedstock partnership (the "Partnership") with Rimrock RNG Inc. ("Rimrock"), and Rimrock Cattle Company Ltd. ("RCC"). RCC and its affiliates are one of the largest cattle feeding operations in North America. The Partnership will secure feedstock supply for both Tidewater Renewables' RNG and Renewable Diesel business units, while also accelerating the diversification of the Corporation's low carbon intensity fuels product offering.

The Partnership will provide a material addition to Tidewater Renewables' RNG production capabilities and is expected to be secured by 10 to 20-year offtake agreements with investment grade counterparties. The Partnership creates alignment between Rimrock and Tidewater Renewables, secures feedstock supply for Tidewater Renewables and allows each party to focus on their core competencies to build and advance RNG projects. Tidewater Renewables will invest $30 million in exchange for a 50% ownership of RCC, including its associated cattle feeding operations ("Feedlot Infrastructure") and cattle inventory.

The $30 million investment will be paid for in four (4) equal quarterly instalments with the first instalment beginning in April 2022. Upon entering into the Partnership, Tidewater Renewables and Rimrock plan to build and evaluate a number of projects across North America through a separate partnership (the "RNG Facilities Partnership"). Tidewater Renewables and Rimrock plan to begin construction on their first Alberta-based RNG facility at High River (the "High River Facility").

The High River Facility is expected to have a gross capital cost of $65 million to $70 million and has received material government grant support. Tidewater Renewables' net equity investment is expected to be approximately $10 million, and the Corporation will retain a 51% ownership in the RNG Facilities Partnership. The High River Facility is expected to generate gross annual EBITDA of approximately $10 million (approximately $5 million net to Tidewater Renewables).

Tidewater Renewables and Rimrock are also evaluating three additional RNG facilities located in Alberta and Nebraska. Each project is expected to attract material government support which dramatically improves project economics. Tidewater Renewables is pursuing 10-20 year investment grade offtake agreements and has received multiple related term sheets.