Maxim Power Corp. Announces 2013 Second Quarter Financial and Operating Results

Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG) announced today the release of financial and operating results for its second quarter ended June 30, 2013. The unaudited condensed consolidated financial statements, accompanying notes and Management Discussion and Analysis ("MD&A") will be available on SEDAR and on MAXIM's website on August 8, 2013. All figures reported herein are Canadian dollars unless otherwise stated.

During the second quarter of 2013, it became highly probable that the Corporation would sell its interest in Maxim Power (USA), Inc. ("MUSA"), the holding company that owns MAXIM's investments in the United States. The Financial Highlights includes the results from MUSA to June 30, 2013, unless otherwise noted. Refer to MAXIM's unaudited condensed consolidated financial statements and MD&A for further details.

FINANCIAL HIGHLIGHTS                                                        
                                                                            
                                 Three Months Ended         Six Months Ended
                                            June 30,                June 30,
($ in thousands except per                                                  
 share amounts)                     2013        2012        2013        2012
                                                                            
Net revenue (1)              $    36,383 $    17,961 $    91,887 $    63,834
Adjusted EBITDA (1)               14,337     (1,313)      28,404       8,647
Adjusted net income (loss)                                                  
 (1)                               5,720     (3,658)      10,710         181
Net income (loss)                                                           
 attributable to                                                            
 shareholders                      6,446     (8,991)      11,032     (6,090)
Per share - basic and                                                       
 diluted                     $      0.12 $    (0.17) $      0.20 $    (0.11)
Funds from operations (2)         11,485     (5,390)      21,072       1,245
Per share - basic and                                                       
 diluted                     $      0.21 $    (0.10) $      0.39 $      0.02
Electricity Deliveries (MWh)     159,444      98,388     437,366     407,387
Net Generation Capacity (MW)                                                
 (3)                                 804         788         804         788
Average Alberta Power Prices                                                
 ($ per MWh)                 $    123.41 $     40.03 $     94.52 $     50.07
Average Milner Realized                                                     
 Electricity Price ($ per                                                   
 MWh)                        $    178.59 $     66.60 $    134.87 $     60.37
                                                                            
(1) Select financial information was derived from the unaudited condensed   
consolidated financial statements and is prepared in accordance with Part 1 
of the Canadian Institute of Chartered Accountants Handbook ("GAAP"), except
net revenue, adjusted EBITDA, and adjusted net income. Net revenue, adjusted
EBTIDA and adjusted net income are calculated based on the total of         
continuing and discontinued operations. Net revenue is provided to highlight
revenue net of any gains or losses realized on commodity swaps. 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. Net revenue, adjusted EBITDA, and adjusted 
net income do not have any standardized meaning prescribed by GAAP and may  
not be comparable to similar measures presented by other companies.         
                                                                            
(2) Funds from operations 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. Funds from operations is calculated based on continuing       
operations.                                                                 
                                                                            
(3)Generation capacity is manufacturer's nameplate capacity and includes    
discontinued operations, net of minority ownership interests of third       
parties.                                                                    

OPERATING RESULTS

Net revenue, adjusted EBITDA, adjusted net income, net income attributable to shareholders and funds from operations increased in the second quarter of 2013 when compared to the second quarter of 2012. The increase in these financial measures is primarily due to a significant increase in Alberta power prices which positively impacted Milner results.

On a year to date basis, net revenue, adjusted EBITDA, adjusted net income, net income attributable to shareholders and funds from operations have increased from the prior year. The increase in these financial measures is once again primarily due to a significant increase in Alberta power prices which positively impacted Milner results.

STRATEGIC REVIEW

During the fourth quarter of 2012, MAXIM appointed financial advisors to review the Corporation's investments in the United States and France in order to identify options to maximize shareholder value. Credit Suisse Securities (USA) LLC has been engaged as financial advisor with respect to MAXIM's investments in the United States and HSBC Bank plc has been engaged as financial advisor with respect to MAXIM's investments in France.

As previously reported, the Corporation announced that it had entered into an agreement to sell 100% of its ownership interest in MUSA to Patriot Power Holdings, LLC ("Patriot"), an affiliate of Rockland Capital for US$112 million including the assumption of US$22 million of debt resulting in sales proceeds of US$90 million. The evaluation of the France initiative is ongoing with no expectation of outcome at this time.

GROWTH INITIATIVES

Summit Coal Limited Partnership ("SUMMIT") Mine 14 Project

SUMMIT's Mine 14 project, which is located north of Grande Cache, Alberta has current estimates of 18.9 million tonnes of low-mid volatile metallurgical coal reserves with a mine life of 17 years based on the updated NI 43-101 Technical Report filed on SEDAR on March 21, 2013. SUMMIT's Mine 16S project is located 30 kilometers northwest of the Mine 14 leases and represents 1,792 hectares or 29% of SUMMIT's total area of leases. An NI 43-101 Technical Report has not been prepared for the Mine 16S property.

In the second quarter of 2013, SUMMIT received regulatory approvals to construct and operate a coal beneficiation plant. Early in the third quarter of 2013, SUMMIT also received a mine license amendment to increase coal production 2.7 times, from 480,000 tonnes to 1,300,000 tonnes per year. These advancements provide SUMMIT with all of the requisite government and regulatory approvals to construct and operate M14.

The Corporation considers the advancement of the M14 and M16S development projects strategic for MAXIM in part because of the value of metallurgical coal and in part due to Milner's ability to utilize tailings and lower quality fuels, which are by-products of the beneficiation of coal, to produce electricity.

Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the construction of the 190 MW D1 Station to commence during 2013. The D1 site is located near Bruderheim in Alberta's Industrial Heartland adjacent to the existing Deerland high voltage substation. D1 has received all regulatory approvals and MAXIM has entered into an agreement to secure firm natural gas transportation services. D1 is the only permitted peaking development project in the province of Alberta as at the date of this press release.

D1 is an attractive project as Alberta is experiencing tighter supply demand fundamentals and increasingly volatile electricity prices. Demand for electricity is increasing, base load supply is expected to contract through retirement of coal-fired units and wind power is intermittent. MAXIM expects that peaking requirements across Alberta will continue to grow as a result of these market drivers.

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. MAXIM is examining ways to meet the new standards including a natural-gas fired facility. All aspects are presently being studied to determine the most attractive option for shareholders.

Buffalo Atlee ("B1")

MAXIM's B1 Power Project, situated near Brooks, Alberta, has the potential for development of over 200 MW of wind generation capacity. Wind data has been collected on the site for approximately five years. 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 any new greenhouse gas legislation.

CONFERENCE CALL FOR Q2 2013 RESULTS

MAXIM will host a conference call for analysts and investors on Friday, August 9, 2013 at 10:30 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 August 12, 2013 to August 16, 2013. To access the replay, dial [phone] or [phone] followed by the passcode 3711756. In addition, the recording will be available commencing August 12, 2013 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 41 power plants in western Canada, the United States and France, having 804 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.

Contacts: Maxim Power Corp. John R. Bobenic President and CEO [phone] Maxim Power Corp. Michael R. Mayder Vice President, Finance and CFO [phone] www.maximpowercorp.com