Peace River Power Project Overview

MAY 2016

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Kineticor Resource Corp is anIndependent Power Producer withdeep management experience inon-site gas to power generationfacilities throughout Canada.

Kineticor was founded by a provenmanagement team with diversifiedindustry veterans on the board ofdirectors.

Kineticor Introduction

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100 MW power project :

• Utilization of produced gas from oil production operations

• Long term employment for skilled technicians

• Over 200 construction jobs

Project Overview

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• Injection of revenue into the community

• Improvement of local air quality

• Construction jobs during 2017/2018

• New long term jobs

Project Benefits

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• Applied to be connected to transmission grid in 2015

• Applications and permits applied for with the Alberta Utilities Commission and Alberta Environment and Parks in 2016

• Construction to start at the of beginning 2017

• Plant start-up and commissioning expected in the last half of 2017

Project Schedule

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Project Location

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Proposed Plant Layout

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The Peace River Power Project will utilize associated gas in the Peace River area resulting in several environmental benefits

• Utilization of produced gas to create useful energy

• Improvement in local air quality

• Reduction in greenhouse gas emissions, particulates and Volatile Organic Compounds

Displaces grid electricity, reducing generation from emissions intensive coal-fired power plants

Increased combustion efficiency due to use of gas turbine vs flare

Reduced fugitive emissions from processing and transport of gas

Project Environmental Benefits

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Enables Peace River area to comply with Alberta Energy Regulator requirements for emissions and odours

• Directive 060: Upstream Petroleum Industry Flaring, Incinerating, and Venting

• Draft Directive [XXX]: Requirements for Hydrocarbon Emission Controls and Gas Conservation in the Peace River Area

Project Environmental Benefits

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Supports Government of Alberta’s Climate Leadership strategy to:

• Reduce combustion and process emissions from the oil and gas sector

• Reduce fugitive emissions from the oil and gas sector

• Increase electricity generation from natural gas-fired plants

Project Environmental Benefits

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• Including the reduction of flared gas and displacement of grid electricity, this project has the potential to reduce greenhouse gas emissions by over 550,000 tonnesCO2e per year

Project Emissions Benefit

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Approved ProtocolMethodology

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Peace River Power Project Annual Emission Reductions

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Considering the 20-year timeframe of the project, generation of power versus flaring of associated gas can reduce greenhouse gas emissions by over 12,000,000 tonnesCO2e

Project Environmental Benefits