NORTHERN CROSS ENERGY LIMITED Showcase Ontario 2015 Prospects, People, Prosperity

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

2. Northern Cross in Ontario Integrated Energy Development

3. 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 Integrated Energy Development

4. 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 Integrated Energy Development

5. Existing Northern Cross Pipeline System Integrated Energy Development

6. 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 Integrated Energy Development

7. 700 kw Cogen using local gas production Integrated Energy Development

8. 16 Cylinder Natural Gas Engine Type here Integrated Energy Development

9. Waste Heat Recovery Unit Type here Integrated Energy Development

10. 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 Integrated Energy Development

11. Existing Northern Cross Pipeline System Integrated Energy Development

12. Compressor and Gas Plant at Union Interconnect Integrated Energy Development

13. Portable Field Gas Compressor Integrated Energy Development

14. Pipeline Construction Type here Integrated Energy Development

15. 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 Integrated Energy Development

16. Northern Cross Seismic Recording Crew Integrated Energy Development

17. Exploratory Drilling Rig Integrated Energy Development

18. Curious Neighbours Watching Drilling Rig Type here Integrated Energy Development

19. 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 Integrated Energy Development

20. First Commercial Wind Turbine in Ontario Integrated Energy Development

21. Northern Cross Solar, Wind and Gas Production Integrated Energy Development

22. Pipeline Technology Northern Cross helped Affilliate, Smart Pipeline Technology test its Pig Pilot in the TransCanada Pipeline System Integrated Energy Development

23. Pig Pilot In-Line inspection Tool Type here Integrated Energy Development

24. 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 Integrated Energy Development

25. Integrated Energy Development

27. 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 Integrated Energy Development

28. Type here Integrated Energy Development

29. 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 Integrated Energy Development

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