Integrated Energy Development NORTHERN CROSS ENERGY LIMITED Showcase Ontario 2015 Prospects, People, Prosperity Integrated Energy Development 1

Integrated Energy Development Northern Cross in Ontario May 6, 2018 Integrated Energy Development

Integrated Energy Development Presentation Outline Huron County Gas Sales to Industrial Customer Gas Fired Cogen Development Gas Production Development and Pipeline Expansion, Pipeline Technology Wind Power Development Integration Utility Interconnect Solar and Hydrogen Development Future Transmission and Distribution Expansion Energy Storage May 6, 2018 Integrated Energy Development

Integrated Energy Development Northern Cross Energy Limited Northern Cross Energy Limited (“Northern Cross”) was formed as a private corporation in 1984 Northern Cross and its various affiliates described here have been active in Ontario since then Acquired the Ashfield gas pool in 1986 None of the gas discovered in the area North of Goderich had been developed due to lack of infrastructure and lack of production history Built 5 km of aluminum pipe to connect Ashfield to a local grain Dryer on propane Have been supplying them with locally produced gas for more than 25 years saving millions of dollars May 6, 2018 Integrated Energy Development

Integrated Energy Development Existing Northern Cross Pipeline System May 6, 2018 Integrated Energy Development

Integrated Energy Development Cogeneration Development Once the Ashfield gas pool material balance reserves matched estimates, production could be increased There was still only one outlet for sales and it was seasonal A cogeneration plant was built in 1992 to provide all the power requirements of the plant, conserve and use waste heat for heating and export surplus power to the grid This provided a year round sales opportunity May 6, 2018 Integrated Energy Development

Integrated Energy Development 700 kw Cogen using local gas production May 6, 2018 Integrated Energy Development

Integrated Energy Development 16 Cylinder Natural Gas Engine Type here May 6, 2018 Integrated Energy Development

Integrated Energy Development Waste Heat Recovery Unit Type here May 6, 2018 Integrated Energy Development

Integrated Energy Development Pipeline and Production Expansion With the success of the Ashfield pool development Northern Cross added almost 50km of new pipe to tie in 4 more pools and interconnect with the new Union Line to Wingham The new pipe was built to distribution standards in recognition of the many customers in the area requesting distribution service May 6, 2018 Integrated Energy Development

Integrated Energy Development Existing Northern Cross Pipeline System May 6, 2018 Integrated Energy Development

Integrated Energy Development Compressor and Gas Plant at Union Interconnect May 6, 2018 Integrated Energy Development

Integrated Energy Development Portable Field Gas Compressor May 6, 2018 Integrated Energy Development

Integrated Energy Development Pipeline Construction Type here May 6, 2018 Integrated Energy Development

Integrated Energy Development Renewed Gas Exploration Northern Cross renewed its exploration efforts when all existing discoveries had been put onstream The Company bought its own seismic acquisition equipment and shot more than 600 km of new 2D data It also flew airborne magnetics and used its own equipment to record thousands of new gravity measurements The Fordyce discovery was completed, and put onstream May 6, 2018 Integrated Energy Development

Integrated Energy Development Northern Cross Seismic Recording Crew May 6, 2018 Integrated Energy Development

Integrated Energy Development Exploratory Drilling Rig May 6, 2018 Integrated Energy Development

Integrated Energy Development Curious Neighbours Watching Drilling Rig Type here May 6, 2018 Integrated Energy Development

Integrated Energy Development Wind and Solar Project Development Northern Cross started doing wind resource assessment along the shore of Lake Huron in the mid 90’s With the help of Elexco we developed a new wind lease based on a P&NG lease used widely by the wind industry With the encouragement of the Ashfield gas pool landowner built the first commercially located wind turbine in Ontario right on top of the gas field The turbine was built “on spec” in 2001 before renewable contracts were available It has now been producing for 13 years May 6, 2018 Integrated Energy Development

Integrated Energy Development First Commercial Wind Turbine in Ontario May 6, 2018 Integrated Energy Development

Integrated Energy Development Northern Cross Solar, Wind and Gas Production May 6, 2018 Integrated Energy Development

Integrated Energy Development Pipeline Technology Northern Cross helped Affilliate, Smart Pipeline Technology test its Pig Pilot in the TransCanada Pipeline System May 6, 2018 Integrated Energy Development

Integrated Energy Development Pig Pilot In-Line inspection Tool Type here May 6, 2018 Integrated Energy Development

Integrated Energy Development Next Hydrogen Northern Cross afflliate Next Hydrogen, based in Mississauga, conducts research that has lead to the development and commercial delivery of industrial scale water electrolysers for production of green hydrogen This renewable Hydrogen can be used for onsite fuelling of fuel cell vehicles, grid energy storage and industrial hydrogen for fertilizer and refining processes May 6, 2018 Integrated Energy Development

Integrated Energy Development May 6, 2018 Integrated Energy Development

Integrated Energy Development Projects for the future Make Use of Existing Pipe and a Significant Expansion to serve the Kincardine Area with gas Reduce the Pipe Costs by converting existing pools to storage Make use of Storage to support peaking gas power generation at the new wind power 500kv grid interconnects Use Surplus Off Peak Renewable Energy in Elecrtrolysers to make carbon free Hydrogen Establish underground Hydrogen Storage to provide large scale Gris Energy Storage May 6, 2018 Integrated Energy Development

Integrated Energy Development Type here May 6, 2018 Integrated Energy Development

Integrated Energy Development Northern Cross has integrated the development of gas production with storage and distribution Use of Local Gas has saved industry millions of dollars while paying millions of dollars in locals taxes to Municipalities and royalties to landowners Gas Field Development has lead to high efficiency gas fired power generation and spawned the wind business in Huron County Ontario Gas production can reduce emissions, provide upstream gas for distribution, reduce pipeline costs, provide integration for renewable energy and capture significant value additions in the Province May 6, 2018 Integrated Energy Development

Integrated Energy Development NORTHERN CROSS ENERGY LIMITED Showcase Ontario 2015 Prospects, People, Prosperity Integrated Energy Development 30