Maxim Power Corp. Announces 2013 Third Quarter Financial and Operating Results

Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG) announced today the
release of financial and operating results for its third quarter ended September
30, 2013. The unaudited condensed consolidated financial statements,
accompanying notes and Management Discussion and Analysis ("MD&A") will be
available on SEDAR and on MAXIM's website on November 7, 2013. All figures
reported herein are Canadian dollars unless otherwise stated.


The Financial Highlights below includes the results from Maxim Power (USA), Inc.
("MUSA") to September 30, 2013, which are recorded as discontinued operations in
MAXIM's financial statements. Refer to MAXIM's unaudited condensed consolidated
financial statements and MD&A for further details. 


FINANCIAL HIGHLIGHTS



                                   Three Months Ended    Nine Months Ended  
                                     September 30,         September 30,    
($ in thousands except per share                                            
 amounts)                              2013       2012       2013       2012
Net revenue (1)                  $   45,046 $   41,620 $  136,933 $  105,454
Adjusted EBITDA (1)                  14,828     16,612     43,232     25,259
Adjusted net income (1)               9,685      9,765     20,395      9,946
Net income attributable to                                                  
 shareholders                         7,640      8,343     18,672      2,253
  Per share - basic and diluted  $     0.14 $     0.15 $     0.34 $     0.04
Funds from operations (2)            13,632     16,700     41,133     25,666
  Per share - basic and diluted  $     0.25 $     0.31 $     0.76 $     0.47
Electricity Deliveries (MWh)        340,144    354,976    834,029    834,992
Net Generation Capacity (MW) (3)        802        788        802        788
Average Alberta Power Prices ($                                             
 per MWh)                        $    83.62 $    78.09 $    90.84 $    59.48
Average Milner Realized                                                     
 Electricity Price ($ per MWh)   $   108.94 $   134.70 $   125.13 $    87.48

1.  Select financial information was derived from the unaudited condensed
    consolidated financial statements and is prepared in accordance with
    Part 1 of the Canadian Institute of Chartered Accountants Handbook
    ("GAAP"), except net revenue, adjusted EBITDA, and adjusted net income. 
    Net revenue, adjusted EBTIDA and adjusted net income are calculated
    based on the total of continuing and discontinued operations.  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. Adjusted net income
    is used to compare MAXIM's results among reporting periods without
    consideration of unrealized gains and losses and to evaluate MAXIM's
    performance. Net revenue, adjusted EBITDA, and adjusted net income do
    not have any standardized meaning prescribed by GAAP and may not be
    comparable to similar measures presented by other companies.  
2.  Funds from operations is an Additional GAAP measure provided to assist
    management and investors in determining the Corporation's cash flows
    generated by operations before the cash impact of working capital
    fluctuations. 
3.  Generation capacity is manufacturer's nameplate capacity and includes
    discontinued operations, net of minority ownership interests of third
    parties.                     



OPERATING RESULTS

Net revenue increased in the third quarter of 2013 compared to the third quarter
of 2012, primarily due to a higher realized price in the Northeast U.S. This was
partially offset by lower generation in the Northeast U.S., reduced production
due to Milner turnaround carrying into the third quarter and a lower realized
price at the Milner facility. Adjusted EBITDA, adjusted net income, net income
attributable to shareholders and funds from operations decreased during this
same period. The decrease in these financial measures is primarily due to higher
operating costs incurred, in part as a result of the Milner turnaround carrying
into the third quarter.


On a year-to-date basis, net revenue, adjusted EBITDA, adjusted net income, net
income attributable to shareholders and funds from operations have increased
from the prior year. The increase in these financial measures is primarily due
to an increase in Alberta power prices, which positively impacted Milner
results, as well as improved results in the Northeast U.S.


STRATEGIC REVIEW

During the fourth quarter of 2012, MAXIM appointed financial advisors to review
the Corporation's investments in the United States and France in order to
identify options to maximize shareholder value. Credit Suisse Securities (USA)
LLC was engaged as financial advisor with respect to MAXIM's investments in the
United States and HSBC Bank plc was engaged as financial advisor with respect to
MAXIM's investments in France. 


As previously reported, the Corporation announced that it had entered into an
agreement to sell 100% of its ownership interest in MUSA to Patriot Power
Holdings, LLC ("Patriot"), an affiliate of Rockland Capital for US$112 million
including the assumption of US$22 million of debt resulting in sales proceeds of
US$90 million. The Corporation is responding to a regulatory inquiry related to
its offers to supply electricity to the ISO New England market, which may give
rise to a claim. The evaluation of the France initiative is ongoing with no
expectation of outcome at this time. 


GROWTH INITIATIVES

Summit Coal Limited Partnership ("SUMMIT") Mine 14 Project 

SUMMIT's Mine 14 project, which is located north of Grande Cache, Alberta, has
current estimates of 18.9 million tonnes of low-mid volatile metallurgical coal
reserves with a mine life of 17 years based on the NI 43-101 Technical Report
filed on SEDAR. SUMMIT's Mine 16S project is located 30 kilometers northwest of
the Mine 14 leases and represents 1,792 hectares or 29% of SUMMIT's total area
of leases. An NI 43-101 Technical Report has not been prepared for the Mine 16S
property.


In 2013, MAXIM received regulatory approvals to construct and operate a coal
beneficiation plant. Early in the third quarter of 2013, SUMMIT's mine license
was amended to increase coal production 2.7 times, from 480,000 tonnes to
1,300,000 tonnes per year. These advancements provide SUMMIT with all of the
requisite government and regulatory approvals to construct and operate M14. 


The Corporation considers the advancement of the M14 and M16S development
projects strategic for MAXIM in part because of the value of metallurgical coal
and in part due to Milner's ability to utilize tailings and lower quality fuels,
which are by-products of the beneficiation of coal, to produce electricity. 


Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the
construction of the 190 MW D1 Station. The D1 site is located near Bruderheim in
Alberta's Industrial Heartland adjacent to the existing Deerland high voltage
substation. D1 has received all regulatory approvals and MAXIM has entered into
an agreement to secure firm natural gas transportation services. D1 is the only
permitted peaking development project in the province of Alberta as at the date
of this press release.


D1 is an attractive project as Alberta is experiencing tighter supply demand
fundamentals and increasingly volatile electricity prices. Demand for
electricity is increasing, base load supply is expected to contract through
retirement of coal-fired units and wind power is intermittent. MAXIM expects
that peaking requirements across Alberta will continue to grow as a result of
these market drivers. 


Milner Expansion ("M2")

The AUC has granted MAXIM approval to develop a 500 MW generating facility
adjacent to the existing 150 MW generating facility ("M1"). A lengthy public
consultation and regulatory process culminated in the project's final approval
by the AUC on August 10, 2011. On September 12, 2012, the Government of Canada
enacted new greenhouse gas legislation that limits the amount of carbon dioxide
emitted by coal-fired generation facilities. MAXIM is examining ways to meet the
new standards including the development of a natural-gas fired facility. All
aspects are presently being studied to determine the most attractive option for
shareholders. 


Buffalo Atlee ("B1")

MAXIM's B1 Power Project, situated near Brooks, Alberta, has the potential for
development of over 200 MW of wind generation capacity. Wind data has been
collected on the site for approximately five years. 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 provide the potential to offset the
impact of any new greenhouse gas legislation. 


CONFERENCE CALL FOR Q3 2013 RESULTS

MAXIM will host a conference call for analysts and investors on Tuesday,
November 12, 2013 at 11:30 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 (800) 766-6630 or (416) 340-8527 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 until November 19, 2013. To
access the replay, dial (800) 408-3053 or (905) 694-9451 followed by the
passcode 1750251. In addition, the recording will be available commencing
November 12, 2013 in the Investor Relations section of MAXIM's website at
www.maximpowercorp.com. 


About MAXIM

Based in Calgary, Alberta, MAXIM is an independent power producer, which
acquires or develops, owns and operates innovative and environmentally
responsible power and power related projects. MAXIM currently owns and operates
40 power plants in western Canada, the United States and France, having 802 MW
of electric 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Maxim Power Corp.
John R. Bobenic
President and CEO
(403) 750-9300


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