Hidroelectric San Jose de Minas S.A. “San Jose de Minas”, is Polaris Renewable Energy Inc.’s newest subsidiary recently acquired in September 2022. San Jose de Minas is an operating run-of-the-river hydro project with a capacity of 6 MWs, located along the Cubi River in San Jose de Minas, Ecuador.

San Jose de Minas has 7 years remaining on a 15-year power purchase agreement with a wholly-owned Ecuadorian government entity, for the sale of all power production. It has one expansion opportunity consisting of the introduction of a conduction channel from the adjacent Perlabi river that would increase the load factor of the existing plant from approximately 65% to approximately 85%. Such expansion does not require any amendments to the current PPA and is expected to take approximately 10 months to complete. In addition, the Project has capacity to add a turbine which would enable increased production during the rainy season. With the additional, turbine San Jose de Minas is expected to increase its power capacity to 10 MWs.