Maxim Power Corp. Announces 2014 First Quarter Financial and Operating Results

Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG) announced today the
release of financial and operating results for the first quarter ended March 31,
2014. The unaudited condensed consolidated interim financial statements,
accompanying notes and Management Discussion and Analysis will be available on
SEDAR and on MAXIM's website on May 6, 2014. All figures reported herein are
Canadian dollars unless otherwise stated.


FINANCIAL HIGHLIGHTS



                                                        Three Months Ended  
                                                             March 31       
($ in thousands except per share amounts)                    2014       2013
                                                                            
Revenue                                                $   69,132 $   55,504
Adjusted EBITDA (1)                                        16,573     14,067
Adjusted net income (1)                                     3,815      4,990
 Per share - basic and diluted                         $     0.07 $     0.09
Net income attributable to shareholders                     3,487      4,586
 Per share - basic and diluted                         $     0.06 $     0.08
Funds from operations (2)                                  15,001     14,114
 Per share - basic and diluted                         $     0.28 $     0.26
                                                                            
Electricity Deliveries (MWh)                              338,221    302,202
Net Generation Capacity (MW) (3)                              785        804
Average Alberta power price - market ($ per MWh)       $    60.59 $    65.30
Average Alberta power price - Milner realized ($ per                        
 MWh)                                                  $    78.93 $    95.43
Average US power price - Northeast U.S. realized (US$                       
 per MWh)                                              $   282.28 $   240.38
                                                                            
(1) Select financial information was derived from the audited consolidated  
    financial statements and is prepared in accordance with IFRS, except    
    adjusted EBITDA and adjusted net income. Adjusted EBITDA is provided to 
    assist management and investors in determining the Corporation's        
    approximate operating cash flows before interest, income taxes, and     
    depreciation and amortization and certain other income and expenses.    
    Adjusted net income is used to compare MAXIM's results among reporting  
    periods without consideration of unrealized gains and losses and to     
    evaluate MAXIM's performance. Adjusted EBITDA and adjusted net income do
    not have any standardized meaning prescribed by IFRS and may not be     
    comparable to similar measures presented by other companies.            
(2) Funds from operating activities before changes in working capital       
    ("FFO") is an Additional GAAP measure provided to assist management and 
    investors in determining the Corporation's cash flows generated by      
    operations before the cash impact of working capital fluctuations.      
(3) Generation capacity is manufacturer's nameplate capacity net of minority
    ownership interests of third parties.                                   



OPERATING RESULTS

Revenue, adjusted EBITDA and funds from operations increased in the first
quarter of 2014 when compared to the first quarter of 2013. The increase in
these financial measures is primarily due to an increase in generation in the
Northeast U.S. at Pittsfield and CDECCA in conjunction with higher average
realized prices at those two facilities.


Adjusted net income and net income attributable to shareholders decreased in the
first quarter of 2014 when compared to the first quarter of 2013 on foreign
exchange losses of certain foreign currency denominated loans, which is fully
offset by an increase in Other Comprehensive Income. 


ALBERTA UTILITIES COMMISSION ("AUC") LOSS FACTOR DECISION 

On April 16, 2014, the AUC rendered its decision with respect to applications
made to review and vary its previous decision on a complaint made by the
Corporation on transmission loss factor rules and loss factor methodologies
adopted by the Alberta Electric System Operator ("AESO") and applied in the
Alberta wholesale electricity market for the period from 2006 to 2008. The AUC
has upheld the complaint made by the Corporation that the current ISO Line Loss
Rules contravene the Transmission Regulation and are unjust, unreasonable,
unduly preferential, arbitrarily or unjustly discriminatory and inconsistent
with or in contravention of the 2003 Electric Utilities Act. The AUC will
proceed with the second phase of its consideration of Milner's complaint to
determine the relief or remedy to be given. MAXIM anticipates that these
proceedings will establish compensation to MAXIM. As at the date of this Press
Release, an estimate of this amount and its timing cannot be made.


FEDERAL ENERGY REGULATORY COMMISSION ("FERC") INQUIRY 

FERC has continued its non-public confidential inquiry related to MAXIM's supply
of electricity to the ISO New England market. FERC's Office of Enforcement
("OE") communicated to MAXIM its preliminary findings on this matter. OE is
asserting that MAXIM received unjust gains of approximately $23 million for
which it should be required to repay amounts not already repaid (MAXIM repaid
approximately $3 million in 2010 through the ISO-NE mitigation program), and pay
a civil penalty calculated based on the amount of unjust gains. The preliminary
findings of the OE do not constitute a finding or order of FERC. MAXIM and its
external legal counsel strongly disagree with the preliminary findings of OE and
have made a submission to OE and FERC refuting these allegations. No provision
has been recorded in the first quarter financial statements related to this
matter as in the opinion of management after seeking external legal advice, as
of the date of this Press Release, it is not probable that a liability exists. 


GROWTH INITIATIVES 

Summit Coal Limited Partnership ("SUMMIT") 

SUMMIT is MAXIM's development initiative located north of Grande Cache, Alberta
that owns metallurgical coal leases for Mine 14 ("M14") and Mine 16S ("M16S").
This initiative is construction ready and is the most advanced metallurgical
coal mine development project in North America.


Current estimates for M14 are 18.9 million tonnes of low-mid volatile
metallurgical coal reserves with a mine life of 17 years based on the NI 43-101
Technical Report filed on SEDAR on March 21, 2013. M16S is located 30 kilometers
northwest of M14 and represents 1,792 hectares or 29% of SUMMIT's total area of
coal leases. A NI 43-101 Technical Report has not been prepared for the Mine 16S
property. The coal quality of M14 has been tested by numerous potential buyers
and independent labs and is a very coveted mid to low volume coking coal with
other attributes which are best in class. 


The Corporation considers the advancement of the M14 and M16S development
projects strategic for MAXIM primarily because of the value of metallurgical
coal and partially due to Milner's ability to utilize tailings and lower quality
fuels, which are by-products of the beneficiation of coal, to produce
electricity. All monetization options including: i) construction, own and
operate, ii) joint venture or iii) outright sale, have been preserved for SUMMIT
and the evaluation of these options is ongoing.


Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the
full-scale construction of the 190 MW D1 Station to commence during 2014. In
2012, MAXIM entered into an agreement to secure firm natural gas transportation
services for D1. MAXIM had previously received regulatory approvals to construct
and operate D1. The D1 site is located near Bruderheim in Alberta's Industrial
Heartland, and it is in close proximity to the entry point of the proposed
Gateway pipeline and adjacent to the existing Deerland high voltage substation.
This area is expected to experience significant growth in electrical demand. 


D1 is the only permitted peaking development project in the province of Alberta
as at the date of this press release. This project is attractive due to an
anticipated contraction of reliable base load supply in the Alberta power
market. The Corporation incurred costs in 2014 related to engineering and
design, determining the natural gas pipeline selection route, and consultations
with landowners. Additional costs will be incurred in 2014 to secure the right
of way for the gas pipeline and to advance the electrical interconnection and
engineering work.


Milner Expansion ("M2") 

The AUC has granted MAXIM approval to develop a 500 MW generating facility
adjacent to the existing 150 MW generating facility ("M1"). A lengthy public
consultation and regulatory process culminated in the project's final approval
by the AUC on August 10, 2011. On September 12, 2012 the Government of Canada
enacted new greenhouse gas legislation that limits the amount of carbon dioxide
emitted by coal-fired generation facilities. As a result of the new greenhouse
gas legislation, on November 15, 2013, MAXIM submitted amendments for the
existing M2 permit that would convert the M2 fuel source from coal to natural
gas. MAXIM expects approval of these submissions by the third quarter of 2014.
The corporation incurred costs in 2014 related to engineering and consulting
work for permit amendments and will incur further costs in 2014 on engineering
consultation. 


Buffalo Atlee ("B1") 

MAXIM acquired the B1 Power Project, situated near Brooks, Alberta, through an
amalgamation with EarthFirst Canada Inc. This project has the potential for
development of over 200 MW of wind generation capacity. Wind data has been
collected on the site for approximately six years and supports project
development based on expected new provincial greenhouse gas legislation and/or
higher power prices than currently forecasted. MAXIM holds an exploratory Crown
land permit with a term of five years, expiring on January 1, 2016. The addition
of wind generation to MAXIM's existing portfolio of assets will diversify
MAXIM's generation fuel types and provide the potential to offset the impact of
expected new provincial greenhouse gas legislation. 


CONFERENCE CALL FOR Q1 2014 RESULTS 

MAXIM will host a conference call for analysts and investors on Wednesday, May
7, 2014 at 11:00 am MDT. The call will be hosted by John Bobenic, MAXIM's
President and Chief Executive Officer, and by Mike Mayder, Vice President,
Finance and Chief Financial Officer. To participate in this conference call
please dial [phone] or [phone] in the Toronto area. It is
recommended that participants call at least ten minutes prior to start time.


A recording of the conference call will be available from May 8, 2014 to May 15,
2014. To access the replay, dial [phone] or [phone] followed by
the passcode 34595173. In addition, the recording will be available commencing
May 8, 2014 in the Investor Relations section of MAXIM's website at
www.maximpowercorp.com. 


About MAXIM 

Based in Calgary, Alberta, MAXIM is an independent power producer, which
acquires or develops, owns and operates innovative and environmentally
responsible power and power related projects. MAXIM currently owns and operates
40 power plants in western Canada, the United States and France, having 785 MW
of electric generating capacity. MAXIM trades on the TSX under the symbol "MXG".
For more information about MAXIM, visit our website at www.maximpowercorp.com.


Statements in this release which describe MAXIM's intentions, expectations or
predictions, or which relate to matters that are not historical facts are
forward-looking statements. These forward-looking statements involve known and
unknown risks and uncertainties which may cause the actual results, performances
or achievements of MAXIM to be materially different from any future results,
performances or achievements expressed in or implied by such forward-looking
statements. MAXIM may update or revise any forward-looking statements, whether
as a result of new information, future events or changing market and business
conditions and will update such forward-looking statements as required pursuant
to applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Maxim Power Corp.
John R. Bobenic
President and CEO
[phone]


Maxim Power Corp.
Michael R. Mayder
Vice President, Finance and CFO
[phone]