Enerkem officially opens Edmonton facility

June 4, 2014, Edmonton, Alta. – Enerkem officially
inaugurated its first full-scale municipal waste-to-biofuels and chemicals facility
in Edmonton, Alberta. This announcement was shared by Enerkem's CEO, Vincent
Chornet, Mayor Don Iveson from the City of Edmonton, and the Honourable Robin
Campbell, Minister of Environment and Sustainable Resource Development for
Alberta.

"Our breakthrough technology uses garbage instead of
fossil sources for the production of chemicals and liquid transportation fuels.
We are proud of the inauguration of our first full-scale biorefinery facility
as it is the culmination of more than 10 years of disciplined efforts to scale
up our technology from pilot and demonstration, to commercial scale,” said
Vincent Chornet, president and CEO of Enerkem. “The completion of this
game-changing facility is by far one of the most significant development the
waste and biorefinery sectors have seen yet. We are thrilled that it is
becoming a model for many communities and industries around the world."

This facility, operated by Enerkem Alberta Biofuels, is
among the world's first commercial facilities to be built for the production of
renewable chemicals and advanced biofuels. During its construction, more than
600 direct and indirect jobs were created for the modular manufacturing of the
facility's systems and their on-site assembly.

"The City of Edmonton is a world leader in sustainable
waste management and the opening of the waste-to-biofuels and chemicals
facility demonstrates our commitment to finding innovative solutions to harness
the value in waste,” said Mayor Don Iveson. “This type of leading edge
innovation demands a team approach and we're proud of our partnership with
Enerkem and Alberta Innovates – Energy and Environment Solutions."

"This game-changing facility provides clear
environmental benefits as it converts waste into value-added products,” said
Honourable Robin Campbell, Minister of Environment and Sustainable Resource
Development, and Government House Leader for the Government of Alberta. “This
is another great example of Alberta innovation at work, helping to diversify
our economy through new, leading-edge technology."

This industry breakthrough is a collaboration between
Enerkem, the City of Edmonton and Alberta Innovates – Energy and Environment
Solutions. The pioneering facility will have a production capacity of up to 38
million litres per year, will help the City of Edmonton increase its
residential waste diversion rate to 90%, and is expected to generate net
economic spending in the local area of nearly C$ 65 million annually.

The start-up of the biorefinery follows a rigorous
commissioning plan, which is nearing completion. Biomethanol production will
begin progressively during the start-up. A module converting the biomethanol
into advanced ethanol will be added by the end of 2015.