CALGARY, ALBERTA--(Marketwire - Nov. 14, 2011) - Maxim Power Corp. (TSX:MXG) ("MAXIM" or "the Corporation") announced today the release of financial and operating results for its third quarter ended September 30, 2011. The unaudited financial statements, accompanying notes and Management Discussion and Analysis will be available on SEDAR on November 15, 2011 and on MAXIM's website. All figures reported herein are Canadian dollars unless otherwise stated.

1. Select financial information was derived from the unaudited condensed consolidated interim financial statements and is prepared in accordance with 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, 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

Third quarter 2011 revenue, net of a realized loss on commodity price swaps ("net revenue"), adjusted EBITDA, funds from operations, and net income increased $6.5 million, $7.0 million, $7.5 million, and $17.7 million, respectively, in comparison to the same period of 2010. The improvement in these performance measures reflects higher Alberta power prices during the quarter and the impact of reselling coal that was surplus to Milner requirements. Net income has increased by a greater amount than the other noted key performance indicators due to unrealized gains on coal remarketing and coal purchase agreements.

On a year to date basis, net revenue and adjusted EBITDA have decreased $4.1 million and $2.7 million, respectively, when compared to the same period of 2010. The negative movements in these performance measures reflect the impact of low second quarter power prices and generation volumes, which was partially offset by higher Alberta power prices in the first and third quarters and by higher earnings from MAXIM's US Northeast facilities in the first quarter of the year.

Funds from operations for the nine months ended September 30, 2011 increased $2.7 million in comparison to the same period of the prior year, when funds from operations was reduced by an unfavourable non-recurring $4.2 million arbitration settlement reached in May 2010. The remaining change in funds from operations is a decrease of $1.5 million, which is due to the unfavourable items noted above, partially offset by a decrease in taxes paid during the period.

Net income of $16.9 million for the nine months ended September 30, 2011 represents an $8.0 million decrease in comparison to the same period of 2010. The decrease is primarily due to a one-time $22.6 million gain recognized in the first nine months of 2010 as a result of MAXIM's amalgamation with EarthFirst Canada Inc. offset by the $4.2 million arbitration settlement noted above. The remaining change in net income is an increase of $10.4 million, which is due to a gain on derivative coal contracts in the third quarter of 2011, offset by the unfavourable factors noted above in respect to net revenue and adjusted EBITDA variances, and by a non-cash mark-to-market unrealized loss on floating for fixed commodity swaps.

GROWTH INITIATIVES

Mine 14 ("M14")

MAXIM has extracted and tested unoxidized coal and prepared detailed metallurgical specifications of the low volatile resource to finalize the wash plant design. Construction activities are now targeted to commence in early 2012 and MAXIM anticipates that M14 will be fully commissioned and producing coal in 2013. Various options to finance M14 are still under evaluation.

Milner Expansion ("M2")

On August 10, 2011, the Alberta Utilities Commission ("AUC") issued a final decision on MAXIM's application to construct and operate a 500 MW Milner expansion project ("M2") adjacent to the existing 150 MW Milner facility ("M1").

M2 has been under development by MAXIM since May 2005. A lengthy public consultation and regulatory approval process culminated in the project's approval by the AUC. M2 will utilize supercritical, pulverized coal technology, making it one of the cleanest and most fuel-efficient coal-fired power plants in Canada that can meet Alberta's growing electric energy needs and allow for the orderly retirement of a less efficient, less reliable and aging conventional coal-fired fleet.

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. M2 is a reliable and low- cost generation supply solution for Albertans that is entirely consistent with federal and provincial goals for emissions reductions.

Deerland Peaking Station ("D1")

MAXIM has received all required regulatory approvals to construct and operate the Deerland Peaking Station ("D1"), a 190 MW natural gas-fired peaking facility that will be located in Bruderheim, Alberta, immediately adjacent to the existing Deerland high voltage substation in Alberta's industrial heartland. This area is expected to experience significant growth in electrical demand.

Subject to the conclusion of satisfactory commercial arrangements necessary to support the investment, MAXIM will initiate construction of this shovel-ready project.

Buffalo Atlee

The Buffalo Atlee Power Project, situated near Brooks, Alberta, has the potential for over 200 MW of wind generation capacity. Wind data has been collected on the 22,000 acre project site for the last 5 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 would diversify MAXIM's generation fuel types.

France

COMAX France S.A.S. will be investing development capital of $2.2 million dollars to repower certain cogeneration facilities and add to its peaking fleet commencing in Q4 2011. The renovation will result in the renewal of a 12 year Power Purchase Agreement ("PPA") with Electricity de France ("EdF") at the cogeneration site. Comax will be adding 7MW to its growing portfolio of peaking service assets, that operate under eight year PPA's. Financing for 80% of the cost of these investments has been committed by various banks in France. COMAX continues to pursue growth opportunities through acquisitions and renovations of existing assets.

GUIDANCE

In preparing its guidance, management uses Alberta forward electricity prices as a proxy for actual future Alberta spot electricity prices. The market for forward contracts is relatively illiquid and forward prices may not be a good predictor of settled prices as they may not factor in events such as unplanned outages, which can cause a significant increase in settled power prices. Notwithstanding, MAXIM prepares its guidance using forward electricity prices from independent sources.

MAXIM is updating guidance issued on March 25, 2011 as follows:

MAXIM is revising 2011 Guidance primarily due to an increase in forecast net income from $6.4 million to $17.2 million. The $10.8 million increase is largely attributable to unrealized financial derivative gains on MAXIM's long-term coal purchase contract and coal remarketing agreements.

Forecast funds from operations has increased from $34.9 million to $37.9 million. The increase relates primarily to the transition from Canadian GAAP to IFRS during 2011. The cash flow statement prepared as part of the March 25, 2011 Guidance classified finance costs as an operating activity, whereas Updated Guidance has moved such costs into investing activities in accordance with IFRS presentation requirements. The financial derivative gains noted above are non-cash items and do not impact funds from operations.

Forecast adjusted EBITDA has fluctuated only $0.8 million from 2011 Guidance provided on March 25, 2011.

These projections are based on MAXIM's existing portfolio of assets, do not include the impact of possible acquisitions or the commercialization of development initiatives, and are based on the following assumptions:

1. The updated forecast average 2011 Alberta power price is based upon January to September settled prices and forward wholesale prices.

The decrease in Milner generation from 1,016,791 MWh per March 25, 2011 Guidance to 776,461 MWh per Updated Guidance is a result of reduced generation during periods of lower power prices during the second quarter. The decrease in forecast generation at other MAXIM facilities is attributable to reduced production from US Northeast power plants, primarily due to less favourable weather conditions than originally forecast.

Forecast capital expenditures have been decreased to reflect the rescheduling of certain plant renovations in France, offset by increased Mine 14 development activity and higher capital spending during Milner's annual turnaround.

CONFERENCE CALL FOR Q3 2011 RESULTS

MAXIM will host a conference call for analysts and investors on November 16, 2011 at 1:30 pm MT (3:30 pm ET). 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) 240-9772 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 from 3:30 pm MT (5:30 pm ET) on November 15, 2011 until November 30, 2011 at 9:59 pm MDT (11:59 pm ET). To access this replay, please dial (800) 408-3053 or (416) 694-9451 followed by the passcode 5535068. In addition, the call will be available commencing November 16, 2011 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 projects. MAXIM currently owns and operates 44 power plants in western Canada, the United States and France, having 809 MW of electric and 117 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.