1. POLARIS INFRASTRUCTURE INC. TSX : PIF
APRIL 2017

2. 1
IMPORTANT NOTICE
This Presentation includes general background information with respect Polaris Infrastructure Inc. (“Polaris”) and does not purport to be complete. It has been prepared solely for informational purposes and is not to be considered a solicitation or an offer to buy or sell any securities and should not be treated as investment advice.
The information contained in this Presentation is confidential and the property of Polaris. It is made available strictly for the purposes referred to above. This Presentation must not be disclosed, copied, published, reproduced or distributed in whole or in part at any time without the prior written consent of Polaris and, by accepting this Presentation, you agree not to do so. You also agree to return any written copy of this Presentation to Polaris at the request of Polaris.

3. Polaris infrastructure overview

4. 3
SNAPSHOT
Own and operate San Jacinto Geothermal power plant in Nicaragua
PPA with national grid – contractual price per MWh, with annual escalator, to 2029
Recapitalized in May 2015
“Fixed” balance sheet
New Management and Board
Cash flow positive; initiated dividend in Q2 2016

5. CAPITAL MARKETS SNAPSHOT4
CAPITAL MARKETS SNAPSHOT
Symbol: PIF
Price* (C$):
C$14.15
Shares Outstanding (FD):
15.7 mm
Market Cap. (C$):
222 mm
Market Cap (US$):
167 mm
Cash On Hand – Dec 31 (US$):
45.8 mm
Debt – Dec 31 (US$):
181.1 mm
Enterprise Value (US$):
302 mm
Run Rate EBITDA (US$):
~ 50 mm
EV/EBITDA:
~ 6.0x
Quarterly Dividend (US$):
$0.12
Only 15.7 million shares outstanding
Trading at approx. 6.5x EBITDA  IPP comps at 10-12x [confirm examples]
Every 1x of EBITDA valuation we “get credit for” adds C$4.20 to share price (assuming no change in EBITDA)
* as of March 31, 2017

6. DRILLING PROGRAM RESULTS5
DRILLING PROGRAM RESULTS

7. Improvement in financial metrics6
Improvement in financial metrics
Annualized “Run-rate” Results
2 new wells drilled
* 2016 reflects annualized results once 2 new wells brought online

8. 2016 operating rESULTS 7 USD million Q3 Per Share Q4 Revenue 14.3 15.7
EBITDA
12.0
13.3
Less:
Interest & Bank Fees
3.4
3.8
“Sustaining Capex”
1.3
Discretionary CF
7.3
US$0.46/ C$0.61
8.2
US$0.52/ C$0.71
Principal Repayment
2.1
Free Cash Flow*
5.2
US$0.33/ C$0.43
6.1
US$0.39/ C$0.53
*As defined by management, on a long term “average” basis.

9. 8
Dividend growth
Ability to raise dividend based on both growth in cash flow and/or payout ratio
Business operates and reports in USD
Pays dividend in USD
Initial dividend in Q – raised twice
Ability to grow dividend:
Increase in cash flow, and/or
Increase payout ratio
* Calculated using management's estimated sustaining capital expenditure

10. San JACINTO GEOTHERMAL PLANt

11. 10
PLANT OVERVIEW
72 MW capacity turbines – both online since January 2013
PPA in US$ for up to 72MW net, to 2029
US$118/MWh in 2016 with 3% per annum price escalator for 7 years; 1.5% per annum thereafter (to 2029)
10 production wells with productive capacity of approximately:
500 tph of steam
1,500-1,700 tph of hot brine
Production wells 500m to 2,500m in depth
Current steam can result in power capacity of approx MW (net of ~5 MW internal consumption)
6 Injection wells re-inject the hot brine into the reservoir to create a “closed loop” – renewable energy in literal sense
Plant re-certified for CO2 credits - ~250,000 tons per year available

12. Historical Key Parameters11
Historical Key Parameters
Year
Gross Hourly Production (1)
Net Hourly Production (1)
Average Steam Mass
Planned Downtime (%)
Turbine Availability
(%)
2012
35.7
33.2
276
2.6
99.3
2013
53.3
48.4
416
1.8
99.8
2014
54.1
49.1
434
5.9
2015
54.6
49.5
428
3.1
2016
57.5
52.4
456
2.0
99.1
Net of Planned / Unplanned Downtime

13. GROWING PLANT-LEVEL EBITDA12
GROWING PLANT-LEVEL EBITDA
* Plant-level EBITDA defined as Revenue less Direct Costs

14. 2015/2016 san jacinto drilling program

16. 15
2015/2016 Drilling program
Drilled 3 new wells – target 2 new production wells ($23.4MM)
SJ 6-3
SJ 9-4
SJ 14-1
Mechanical “workover” of 4 existing injection wells ($8.2MM)
Selected infrastructure investments ($6.4 million):
Roads
Drilling pads
New separation station
Well connection piping etc

17. Future growth options

18. Future growth options 17 San Jacinto geothermal project
Drilling further production and injection wells
Plant output optimization projects
Binary Unit
Develop Western Sector
Acquisitions / Project Development
Casita – San Cristobal Geothermal Field Feasibility and Development Project
Carbon Credits

19. Further production wells18
Further production wells
Drilling rig is on-site, available
Have 2-3 well sites identified
Will validate location(s) through planned geological studies in Q1-Q2 2017
Likely to drill shallow wells to target “steam cap”
Steam cap is a key development in the lifecycle of the San Jacinto resource
Estimate cost of approximately $7.5 million / well
Capital cost is funded by internal cash
Possible expansion into Western Sector of San Jacinto concession

20. 19
Binary unit
Separate generating unit – generates power from hot geothermal fluids (brine) before reinjecting
Viewed as a low risk means of generating additional power
No exploration risk
Low technical risk
Competitive nature of OEM market will result in attractive pricing
Additional generation will bring us close to 72MW (net) threshold under PPA
Will require amendments to PPA; currently under negotiation

21. 20
Binary unit economics
Project budget (preliminary) is $30 million, including drilling of a new injection well
Injection well is required to enable flexibility and reduce “reservoir risk”
Capital cost is funded by internal cash
Estimate additional 8 – 10 MW
Equates to approx. $6 – 8 million additional cash flow
Approx. 4-5 year payback

22. San jacinto target production21
San jacinto target production
Annualized “Run-rate” Results
Assuming Binary Unit
Assuming 1 new production well
* reflects annualized results once new production brought online

23. Acquisitions / Development22
Acquisitions / Development
Grid in Central America is small/fragmented and has a significant number of renewable projects
Numerous – MW projects in the region
Large power companies and infrastructure funds not active
Owners are small companies and / or HNW individuals
Implication is that:
Good targets for acquisitions without significant competition
Much higher IRR projects available to develop (i.e % IRR vs % in North America)

24. NICARAGUA OVERVIEW 23 Daniel Ortega President – elected in 2007
Ortega won national election in November 2016 – 5 more years of stability
Highest growth rate and safest country in central America
“Left Leaning” politically but open economically
Polaris project is a showcase project for the country
One of the largest foreign investments in country to date
Renewable energy
World bank and other global development banks as lenders

25. RESEARCH ANALYST COVERAGE24
RESEARCH ANALYST COVERAGE
* as of March 31, 2017

26. 25
SAN JACINTO PHOTOS