Maxim Power Corp. Announces 2013 Financial and Operating Results

Maxim Power Corp. (TSX:MXG) ("MAXIM" or the "Corporation") announced today the
release of its financial and operating results for the fourth quarter and year
ended December 31, 2013. The audited financial statements, accompanying notes
and Management Discussion and Analysis will be available on SEDAR and on MAXIM's
website on March 18, 2014. All figures reported herein are Canadian dollars
unless otherwise stated.


FINANCIAL HIGHLIGHTS



                                   Three Months Ended   Twelve Months Ended
($ in thousands except per                December 31,          December 31,
 share amounts and as noted)          2013       2012       2013       2012
Net revenue (1)                     36,807     51,155    173,740    156,609
Adjusted EBITDA (1)                 (3,633)     9,642     39,599     34,901
Adjusted net income (loss) (1)      (9,812)       566     10,583     10,513
  Per share - basic and diluted    $ (0.18)    $ 0.01     $ 0.20     $ 0.19
Net income (loss) attributable                                             
 to shareholders                    (9,082)     1,372      9,590      3,625
  Per share - basic and diluted    $ (0.17)    $ 0.03     $ 0.18     $ 0.07
Funds from operating activities                                            
 before changes in working                                                 
 capital ("FFO") (2)                (3,867)     8,304     37,266     33,970
  Per share - basic and diluted    $ (0.07)    $ 0.15     $ 0.69     $ 0.63
Electricity Deliveries (MWh)       257,025    321,530  1,091,053  1,156,522
Average Power Prices:                                                      
Alberta Pool ($ per MWh)           $ 48.60    $ 78.70    $ 80.19    $ 64.31
Milner Realized ($ per MWh)        $ 50.30    $ 98.21   $ 106.92    $ 90.78
Northeast U.S. Realized (US$                                               
 per MWh)                         $ 150.62   $ 162.72   $ 136.30    $ 91.76
                                                                           
(1) Select financial information was derived from the audited consolidated 
    financial statements and is prepared in accordance with IFRS, except   
    net revenue, adjusted EBITDA, and adjusted net income. 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 IFRS and may not be comparable to   
    similar measures presented by other companies.                         
(2) Funds from operating activities before changes in working capital      
    ("FFO") 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 net of        
    minority ownership interests of third parties.                         



OPERATING RESULTS

During the fourth quarter of 2013, net revenue decreased primarily due to a
decline in the Alberta pool price, which led to a corresponding decline in
generation at Milner. Adjusted EBITDA and FFO decreased by a similar amount as
fuel savings from lower generation were offset by higher operating costs,
primarily due to costs related to an inquiry by the Federal Energy Regulatory
Commission, as well as losses on MAXIM's financial power swaps. Net income
(loss) attributable to shareholders and adjusted net income (loss) decreased to
a lesser extent as a result of tax recoveries on lower taxable income.


On a year-to-date basis, net revenue improved in 2013 when compared to 2012. The
increase in this financial measure is primarily due to higher electricity prices
in Alberta and the Northeast U.S. in the first three quarters of the year.


On a year-to-date basis, adjusted EBITDA, FFO, adjusted net income and net
income attributable to shareholders all improved in 2013 when compared to 2012.
The increase in these financial measures is primarily due to the same factors
impacting net revenue and gains on MAXIM's financial power swaps, partially
offset by higher operating costs. Net income attributable to shareholders
further increased primarily due to recognizing a smaller unrealized loss on the
derivative coal contract in 2013 as opposed to 2012.


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. Several offers were received for
both of these investments that were not compelling. MAXIM will continue to
operate these businesses as usual, work to bring the previously reported FERC
Inquiry in the United States to resolution, and investigate further sales
opportunities as they arise.


GROWTH INITIATIVES

Summit Coal Limited Partnership ("SUMMIT")

SUMMIT is MAXIM's development initiative located north of Grande Cache, Alberta
that owns metallurgical coal leases for Mine 14 ("M14") and Mine 16S ("M16S").
This initiative is construction ready and is the most advanced metallurgical
coal mine development project in North America.


Current estimates for M14 are 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 on March 21, 2013. M16S is located 30 kilometers
northwest of M14 and represents 1,792 hectares or 29% of SUMMIT's total area of
coal leases. A NI 43-101 Technical Report has not been prepared for the Mine 16S
property. The coal quality of M14 has been tested by numerous potential buyers
and independent labs and is a very coveted mid to low volume coking coal with
other attributes which are best in class.


The Corporation considers the advancement of the M14 and M16S development
projects strategic for MAXIM primarily because of the value of metallurgical
coal and partially due to Milner's ability to utilize tailings and lower quality
fuels, which are by-products of the beneficiation of coal, to produce
electricity. All monetization options including: i) construction, own and
operate, ii) joint venture or iii) outright sale, have been preserved for SUMMIT
and the evaluation of these options is ongoing.


Deerland Peaking Station ("D1")

MAXIM is actively pursuing commercial arrangements that will allow for the
full-scale construction of the 190 MW D1 Station to commence during 2014. In
2012, MAXIM entered into an agreement to secure firm natural gas transportation
services for D1. MAXIM had previously received regulatory approvals to construct
and operate D1. The D1 site is located near Bruderheim in Alberta's Industrial
Heartland, and it 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. D1
is the only permitted peaking development project in the province of Alberta as
at the date of this press release. This project is attractive due to an
anticipated contraction of reliable base load supply in the Alberta power
market. The Corporation incurred costs in 2013 related to AESO studies,
engineering and legal work. Additional costs will be incurred in 2014 for
engineering and construction work in order to further develop the project. All
monetization options including: i) construction, own and operate, ii) joint
venture or iii) outright sale, have been preserved for D1 and the evaluation of
these options is ongoing.


Milner Expansion ("M2")

The Alberta Utilities Commission ("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. As a
result of the new greenhouse gas legislation, on November 15, 2013, MAXIM
submitted amendments for the existing M2 permit that would convert the M2 fuel
source from coal to natural gas. MAXIM expects approval of these submissions by
the second quarter of 2014. The Corporation incurred costs in 2013 related to
AESO studies and legal and consulting work associated with permit amendments. In
2014, MAXIM will incur further costs on the aforementioned permit amendments and
engineering consultation.


Buffalo Atlee ("B1")

MAXIM acquired the B1 Power Project, 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 six years and supports project
development based on expected new provincial greenhouse gas legislation and/or
higher power prices than currently forecasted. 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
expected new provincial greenhouse gas legislation.


CONFERENCE CALL FOR 2013 FOURTH QUARTER AND YEAR END RESULTS

MAXIM will host a conference call for analysts and investors on Thursday, March
20, 2014 at 11:00 am MDT. 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) 223-4471 or (647) 788-4922 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 20, 2014 to
March 27, 2014. To access the replay, dial (800) 585-8367 or (416) 621-4642. In
addition, the recording will be available commencing March 20, 2014 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 785 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


Maxim Power Corp.
Press Line: (403) 750-9305
www.maximpowercorp.com
Maxim Power (TSX:MXG)
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