Maxim Power Corp. Announces 2011 Financial and Operating Results and Appointment of Director

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CALGARY, ALBERTA--(Marketwire - March 22, 2012) - Maxim Power Corp. (TSX:MXG.TO - News) ("MAXIM" or the "Corporation") announced today the release of financial and operating results for its fourth quarter and year ended December 31, 2011. The audited financial statements, accompanying notes, Management Discussion and Analysis, and Annual Information Form will be available on SEDAR and on MAXIM's website on March 23, 2012. All figures reported herein are Canadian dollars unless otherwise stated.

FINANCIAL HIGHLIGHTS





                               Three Months Ended      Twelve Months Ended  

                                  December 31              December 31      

($ in thousands except per                                                  

 share amounts)                    2011        2010         2011        2010

                                                                            

Net revenue (1)                $ 44,816    $ 36,694    $ 155,290   $ 151,249

Adjusted EBITDA (1)              11,304       5,769       38,827      36,135

Net income (loss)                (1,555)       (633)      15,316      24,249

 Per share - basic and                                                      

  diluted                       $ (0.03)    $ (0.01)      $ 0.28      $ 0.45

Funds from operations (1)        11,489       5,538       38,802      30,107

 Per share - basic and                                                      

  diluted                        $ 0.21      $ 0.10       $ 0.72      $ 0.55

                                                                            

Electricity Deliveries (MWh)    295,420     323,551    1,203,227   1,322,037

Net Generation Capacity (MW)                                                

 (2)                                815         809          815         809

Average Alberta Power Prices                                                

 ($ per MWh)                    $ 76.07     $ 45.94      $ 76.21     $ 50.88

Average Milner Realized                                                     

 Electricity Price ($ per                                                   

 MWh)                           $ 89.12     $ 49.35      $ 80.12     $ 57.52

                                                                            



(1) Select financial information was derived from the audited consolidated financial statements and is prepared in accordance with International Financial Reporting Standards ("IFRS"), except net revenue, adjusted EBITDA and funds from operations ("FFO"). Net revenue is provided to highlight revenue net of any gains or losses realized on commodity swaps. Adjusted EBITDA is provided to assist management and investors in determining the Corporation's approximate operating cash flows before interest, income taxes, and depreciation and amortization and certain other income and expenses and FFO is provided to assist management and investors in determining the Corporation's cash flows generated by operations before the cash impact of working capital fluctuations. Net revenue, adjusted EBITDA and FFO do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Refer to 'Non-IFRS measures' for reconciliations between non-IFRS financial measures and comparable measures calculated in accordance with IFRS.

(2) Generation capacity is manufacturer's nameplate capacity net of minority ownership interests of third parties.

OPERATING RESULTS

Net revenue, adjusted EBITDA, and funds from operations increased in 2011 when compared to 2010. These increases are primarily due to improving Alberta power prices and their positive impact on Milner results.

Net income decreased over 2010 due to the impact of one-time events that occurred in 2010. Net income in 2011 benefited from a gain on derivative contracts and an increase in Alberta power prices, net of realized losses on power price swaps entered throughout the year. This increase was offset by a one-time $22.6 million tax gain recognized in 2010 as a result of MAXIM's amalgamation with EarthFirst Canada Inc. net of a $4.2 million arbitration settlement occurring in that year.

During the fourth quarter of 2011, MAXIM earned net revenue of $44.8 million compared to $36.7 million for 2010 and adjusted EBITDA was $11.3 million compared to $5.8 million in 2010 primarily due to higher Alberta power prices. Fourth quarter 2011 production decreased 28,131 MWh or 9% to 295,420 MWh compared to 323,551 MWh during the same quarter of 2010. The decrease is primarily due to a 56% or 37,793 MWh decrease at the northeast United States facilities as a result of milder weather. This was offset by smaller increases in production at Milner and in France.

GROWTH INITIATIVES

Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the construction of the 190 MW Deerland peaking station ("D1") to commence in 2012. MAXIM received regulatory approvals in 2008 to construct and operate D1. The D1 site is located near Buderheim in Alberta's industrial heartland, which is in close proximity to the entry point of the proposed Gateway pipeline and adjacent to the existing Deerland high voltage substation. This area is expected to experience significant growth in electrical demand. MAXIM further expects peaking requirements across Alberta to continue to grow to meet overall demand growth and to provide firm backup for additional intermittent wind resources.

Summit Coal Mine 14 ("M14")

MAXIM has advanced the development of its Mine 14 ("M14") metallurgical coal resource during 2011 and is currently assessing the potential to expand the coal resources within its three coal leases.

On December 2, 2009, the ERCB granted Milner Power Inc. a permit to develop the underground coal mine referred to by the Corporation as M14. On April 20, 2011, the ERCB granted Milner Power Inc. the license to commence underground mining of the M14 coal reserve. M14 will be located north of Grande Cache, Alberta and is estimated to contain 13 million recoverable tonnes of high quality metallurgical coal reserves. The resource is considered valuable both as a potential fuel source to Milner and for the potential sale of coal to metallurgical coal markets.

On August 8, 2011, MAXIM incorporated Summit Coal Inc., which entered into a partnership with Milner Power Limited Partnership ("MPLP") to form Summit Coal Limited Partnership ("Summit"). Pursuant to a contribution agreement between MPLP and Summit dated October 3, 2011, MPLP agreed to contribute all of its interests in M14, including its interest in the coal leases, to Summit in exchange for limited partnership units. All further development of M14 is now carried on through Summit and Summit Coal Inc.

During the third quarter of 2011, an adit was completed to recover un-oxidized coal for the purpose of conducting metallurgical quality testing. Results of this testing confirmed that M14 coal is a low-mid volatile metallurgical grade coal.

On December 15, 2011, Summit entered into a ten year terminal services agreement with Ridley Terminals Inc., commencing January 1, 2015. This agreement provides Summit with firm terminal capacity and terminal processing services to enable the majority of Summit's proposed coal production to access the valuable seaborne coking coal market. Signing this agreement reduces the development risk of M14 as Summit advances to the construction phase of its M14 project.

Summit has secured firm 2013 delivery dates for critical mining equipment, including two continuous miners and three shuttle cars.

Milner Expansion ("M2")

On August 10, 2011, MAXIM received approval from the Alberta Utilities Commission for its new 500 MW M2 project. MAXIM is planning to construct and operate this new 500 MW generating station on the site of and adjacent to the existing 150 MW Milner generating station. The M2 design incorporates emission control equipment capable of achieving 60 to 80 percent reductions in sulphur dioxide, nitrogen oxides and mercury compared to the conventional coal fired power plants still operating in Alberta. The highly efficient M2 design will also reduce carbon dioxide emissions by 20% compared to these existing plants.

Buffalo Atlee ("B1")

MAXIM acquired the Buffalo Atlee Power Project ("B1"), situated near Brooks, Alberta, through an amalgamation with EarthFirst Canada Inc. This project has the potential for development of over 200 MW of wind generation capacity. Wind data has been collected on the site for approximately four years and supports project development based on higher power prices than those realized during recent months. MAXIM holds an exploratory Crown land permit with a term of five years, expiring on January 1, 2016. The addition of wind generation to MAXIM's existing portfolio of assets will diversify MAXIM's generation fuel types and provides the potential to offset the impact of proposed carbon legislation. MAXIM plans to advance the development of this project once greater clarity on carbon policy is available in 2012.

CONFERENCE CALL FOR 2011 RESULTS

MAXIM will host a conference call for analysts and investors on Tuesday, March 27, 2012 at 11:00 am MT. The call will be hosted by John Bobenic, MAXIM's President and Chief Executive Officer, and by Mike Mayder, Vice President, Finance and Chief Financial Officer. To participate in this conference call, please dial (877) 440-9795 or (416) 340-8530 in the Toronto area. It is recommended that participants call at least ten minutes prior to start time.

A recording of the conference call will be available from March 27, 2012 to April 10, 2012. To access the replay, dial (800) 408-3053 or (905) 694-9451 followed by the passcode 7623210. In addition, the webcast will be available commencing March 28, 2012 in the Investor Relations section of MAXIM's website at www.maximpowercorp.com.

APPOINTMENT OF MR. JOEL LUSMAN AS DIRECTOR

Mr. Joel Lusman has been appointed to the Board of Directors of MAXIM. Mr. Lusman is the founder and portfolio manager of Lusman Capital Management. Prior thereto, Mr. Lusman spent over five years as portfolio manager for Korsant Partners. Mr. Lusman also gained significant industry experience as an analyst working for Kingdon Capital and Davidson Kempner.

About MAXIM

Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. MAXIM currently owns and operates 40 power plants in western Canada, United States and France, having 788 MW of electric and 111 MW of thermal net generating capacity. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.

Contact:
John R. Bobenic
Maxim Power Corp.
President and CEO
(403) 750-9300

Michael R. Mayder
Maxim Power Corp.
Vice President, Finance and CFO
(403) 750-9311
www.maximpowercorp.com

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