Tidewater Renewables Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS) is pleased to announce an agreement to sell Federal Clean Fuel Regulation ("CFR") credits (the "CFR Sale") that it will receive through the production and sale of fuel produced at the Renewable Diesel & Renewable Hydrogen Complex at Prince George, BC (the "Complex") and the appointment of Ray Kwan as the Corporation's new CFO.

CFR Sale

As part of the CFR Sale, Tidewater Renewables has agreed to sell a total of 25,000 CFR credits at $100 per credit. This agreement adds previously unrecognized value for CFR credits and Tidewater Renewables will receive total proceeds of $2.5 million over the term of this agreement. The Corporation's current Run Rate EBITDA (1) estimates for the Complex of $90 – 100 million exclude the impact of the outlined forward sale and any value for the ongoing sale of CFR credits once the program is implemented.

"This is Tidewater Renewables' second CFR credit sale with the first being in June of 2022. These credit sales are significant for Tidewater Renewables as they continue to validate our previous view that CFR credits will represent an incremental revenue stream for our clean fuel projects. Furthermore, at similar CFR credit values, Tidewater Renewables' HDRD Complex has the potential of generating more than $30 million of incremental Run Rate EBITDA (1) assuming feedstock prices, diesel prices and BC LCFS credit prices remain constant," said Joel MacLeod, Executive Chairman and CEO.

The Corporation continues to work on other agreements to monetize further CFR credits that it will receive from the operation of the Complex, from its Canola Co-Processing Facility, and from other projects.

(1) Run Rate EBITDA used throughout this press release is a non-GAAP financial measure. See the "Non-GAAP Measures" section of this press release and the Corporation's most recent MD&A for information on each non-GAAP financial measure.

Appointment of New CFO

The Corporation's Board of Directors today appointed Ray Kwan, as the Chief Financial Officer of the Corporation. To help ensure a smooth transition, Mr. Kwan will work closely with the Corporation's current President and Chief Financial Officer, Joel Vorra, who will remain with the Corporation in an advisory capacity for the remainder of 2022. Mr. Kwan comes to Tidewater Renewables with significant senior financial management experience, most notably in the capital markets sector. Prior to joining Tidewater Renewables, Ray worked primarily in banking with a focus on institutional equity research, most recently as a Managing Director at BMO Capital Markets. Mr. Kwan holds a BSc in Chemical Engineering from the University of Alberta and holds a Chartered Financial Analyst designation.

"It is very exciting to join a company that is at the forefront of the energy transformation. I feel honored to join a strong leadership team and look forward to working with the Corporation's Board, shareholders, and stakeholders," said Mr. Kwan.

"Tidewater Renewables is a growth company with a dynamic leadership team, and we are excited for Ray Kwan to help drive the business on the road to the Corporation's previously disclosed expected 2023 Run Rate EBITDA of approximately $150 million," said Joel Macleod, Executive Chairman and CEO. "We are ecstatic to have Ray join the Tidewater Renewables team. I have known Ray for over 10 years and have watched him become one of the most respected energy minds in North America. Ray is highly regarded by institutional investors with his 15 + years of experience and multiple TopGun awards. Ray's success and experience with public companies and capital markets in not only Calgary, but all of Canada and North America, his financial expertise, and his leadership qualities, will be an invaluable addition to the team. Mr. Vorra was a founder at Tidewater Midstream and Infrastructure Ltd. and his skills and leadership were fundamental in the creation of Tidewater Renewables in 2021. We are thankful for his time at both companies, and we are grateful that he has agreed to serve as an advisor to mentor Ray and the entire leadership team."

The Government of Canada Clean Fuel Regulations

The Government of Canada Clean Fuel Regulations ("CFR") increase incentives for the development and adoption of clean fuels, technologies, and processes to significantly reduce pollution by making fuels cleaner over time. They require liquid fossil fuel (gasoline and diesel) suppliers (referred to as "primary suppliers") to gradually reduce the carbon intensity from the fuels they produce and sell for use in Canada over time, leading to a decrease of approximately 15% (below 2016 levels) in the carbon intensity of gasoline and diesel used in Canada by 2030. The Government of Canada is supporting the development of a clean fuels sector through a series of investments and initiatives that complement the CFR.

While primary suppliers are the only entities required to reduce the lifecycle emissions of their fuels, the CFR create compliance categories which allow primary suppliers as well as "voluntary credit creators", such as Tidewater Renewables, to create credits to ultimately be sold to primary suppliers to meet their gasoline or diesel carbon intensity requirement.

Forward-Looking Information

This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") that relate to the Corporation current expectations and views of future events. These forward-looking statements relate to future events or the Corporation's future performance. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumption or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward -looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this new release should not be unduly relied upon. These statements speak only as of the date of this new release. In particular and without limitation, this news release contains forward-looking statements pertaining to Tidewater Renewables' business as described under the heading "About Tidewater Renewables" below; and the potential addition of run rate EBITDA derived from the sale of CFR credits produced at the HDRD Complex. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Corporation's supplemented PREP prospectus dated August 12, 2021, filed on SEDAR. Tidewater Renewables' does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable laws.

Non-GAAP Measures

Run Rate EBITDA

"Run rate EBITDA" is defined as the expected EBITDA to be generated by a specific asset or specific growth project corresponding to a full year of operations at full capacity. Run rate EBITDA excludes non-cash items including depreciation and share-based compensation. The calculation of run rate EBITDA is based in certain estimates and assumptions and should not be regarded as a representation by the Corporation or any other person that the Corporation will achieve such operating results. Prospective investors should not place undue reliance on the Corporation's run rate EBITDA and should make their own independent assessment of the Corporation's future results or operations, cash flows and financial condition.

Run rate EBITDA guidance related to the HDRD Complex includes various assumptions including a renewable refinery margin of $90/bbl. The renewables refinery margin is derived from vegetable oil strip pricing for the Corporation's feedstocks, which are 50% and 30% hedged through 2023 and 2024 respectively, current diesel strip pricing and average BC LCFS sale prices over the past 12 months. The renewable refinery margin currently excludes any incremental value from CFR credits.

Run Rate EBITDA guidance for CFR Credits, which is excluded from other guidance, assumes that CFR Credits can be sold at an average price of $95 - $100/ credit, based on the Corporation's announced sales.

ABOUT TIDEWATER RENEWABLES

Tidewater Renewables is traded on the TSX under the symbol "LCFS". Tidewater Renewables is a multi-faceted, energy transition company. The Corporation is focused on the production of low carbon fuels, including renewable diesel, renewable hydrogen, and renewable natural gas, as well as carbon capture through future initiatives. The Corporation was created in response to the growing demand for renewable fuels in North America and to capitalize on its potential to efficiently turn a wide variety of renewable feedstocks (such as tallow, used cooking oil, distillers corn oil, soybean oil, canola oil and other biomasses) into low carbon fuels. Tidewater Renewables' objective is to become one of the leading Canadian renewable fuel producers.

The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, utilizing existing proven technologies.

Organically, Tidewater Renewables will seek to leverage the existing infrastructure owned by Tidewater Midstream and Infrastructure Ltd. and in-house operational and engineering expertise, regarding the development of the Corporation's portfolio of greenfield and brownfield capital projects as well as the expansion of the Corporation's product offerings.

Additional information relating to Tidewater Renewables is available on SEDAR at www.sedar.com and at www.tidewater-renewables.com.

For further information: Joel MacLeod, Executive Chairman and CEO, Tidewater Renewables Ltd., Phone: 587.475.0210, Email: jmacleod@tidewatermidstream.com