Maxim Power Corp. Provides Update on Milner 2 Return to Service and Insurance Information

Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX: MXG) provides an update on the return to service date of Milner 2 (“M2”) and insurance information.

M2 RETURN TO SERVICE UPDATE

MAXIM has completed construction of the new air inlet filter house and is underway with completing internal cleaning and installation of filters to facilitate start-up of M2. Due to certain supply-chain delivery challenges, now mitigated, the M2 restart schedule has been extended from late July 2023 to the middle of August 2023. Accordingly, MAXIM does not expect to be generating electricity from the HR Milner site until the middle of August 2023, at which point MAXIM anticipates commencing hot commissioning activities for the Combined Cycle Gas Turbine (“CCGT”) expansion of M2. Hot commissioning activities are anticipated to occur over an approximate three-month period, during which there will be periodic outages of the facility resulting in intermittent generation of electricity. The CCGT expansion of M2 will increase total generation capacity of M2 from 204 MW to 300 MW and lower operations and maintenance costs per MWh as a result of operation efficiencies.

INSURANCE INFORMATION UPDATE

MAXIM continues to collect insurance proceeds in relation to the non-injury fire event at M2 with cumulative payments received to date of $45 million under its Property Insurance (“PI”) policy. The Corporation will continue to receive business interruption coverage under the PI policy until M2 has returned to its pre-fire operational status, subject to the caps and limitations in such policy. Further details on insurance will be provided in conjunction with the release of MAXIM’s 2023 second quarter reporting.

About MAXIM

Based in Calgary, Alberta, MAXIM is one of Canada’s largest truly independent power producers. MAXIM is now focused entirely on power projects in Alberta. Its core asset – the 204 MW H.R. Milner Plant, M2, in Grande Cache, AB – is a state-of-the-art natural gas-fired power plant that commissioned in Q2, 2020. MAXIM is currently increasing the capacity of M2 to approximately 300 MW and concurrently will realize an improvement in the efficiency of the plant by investing in heat recovery combined cycle technology. In addition, MAXIM continues to explore additional development options in Alberta including its currently permitted gas-fired generation projects and the permitting of its wind power generation project. MAXIM trades on the TSX under the symbol “MXG”. For more information about MAXIM, visit our website at www.maximpowercorp.com. For further information please contact:

Bob Emmott, President and COO, [phone]

Kyle Mitton, CFO and Vice President, Corporate Development, [phone]

Forward-looking statements

This press release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws relating to MAXIM's plans and other aspects of MAXIM's anticipated future operations, management focus, objectives, strategies, financial, operating and production results. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend", "may", "would", "could" or "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement. Specifically, this press release contains forward-looking information concerning, among other things, MAXIM's timing of the return to service of M2, commissioning of the CCGT expansion of M2 and insurance claim related to the same.

Forward-looking information is based on certain assumptions and analysis made by MAXIM in light of our experience and MAXIM’s perception of historical trends, current conditions, expected future developments and other factors MAXIM believes appropriate under the circumstances. These include, among other things, assumptions regarding insurance coverage and the receipt of equipment needed to complete the repairs.

MAXIM's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that MAXIM will derive there from. Risk factors include MAXIM’s the timing of the return to service of M2, commissioning of the CCGT expansion of M2 and coverage for damages and business interruption. Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect MAXIM’s business, operations or financial results are included in the reports on file with applicable securities regulatory authorities, including but not limited to MAXIM’s Annual Information Form for the year ended December 31, 2022, which may be accessed on MAXIM’s SEDAR profile at www.sedar.com. These forward-looking statements are made as of the date of this press release and MAXIM disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.