Etrion Releases First Quarter 2016 Results

May 12, 2016, Geneva, Switzerland – Etrion Corporation (“Etrion” or the
“Company”) (TSX: ETX) (OMX: ETX), a solar independent power producer, today
released its condensed consolidated interim financial statements and related
management’s discussion and analysis (“MD&A”) for the three months ended March
31, 2016.

Operational Highlights

  · Development: Advanced the backlog of three projects in Japan for a total
capacity of 76 megawatts (“MW”). Management expects to reach financial close for
these backlog projects within the second half of 2016. The Company is advancing
the development of additional projects in Japan for a combined capacity of 190
MW. Finally, the Company continues to maintain its shovel-ready 99 MW in Chile
which are targeted to be built once Power Purchase Agreements (“PPAs”) are
secured.

  · Construction: The Company is progressing on the construction of the 25 MW
Shizukuishi project in northern Japan. The project is on budget and on schedule,
with estimated connection to the electricity grid by September 2016.

  · Production: Produced approximately 65.1 million kilowatt-hours (“kWh”) of
electricity during the three months ended March 31, 2016, (2015: 64.4 million
kWh), from the Company’s 139 MW portfolio comprising 23 solar power plants
(2015: 130 MW comprising 18 solar plants) in Italy, Chile and Japan. When broken
down by country, the Company produced 16.4 million kWh (2015: 17.0 million kWh)
in Italy, 46.0 million kWh (2015: 47.5 million kWh) in Chile and 2.8 million kWh
(2015: nil) in Japan, representing an overall production increase of 1% quarter
-over-quarter.

Financial Highlights

  · Revenue: Generated revenues of US$9.9 million (2015: US$10.4 million) during
the three months ended March 31, 2016, from the Company’s 139 MW portfolio
comprising 23 solar power plants in Italy, Chile and Japan.

  · EBITDA: Recognized earnings before interest, taxes, depreciation and
amortization (“EBITDA”) of US$4.4 million (2015: US$5.5 million) during the
three months ended March 31, 2016.

  · Cash and Working Capital: Closed the three months ended March 31, 2016 with
a cash balance of US$54.5 million, of which US$14.1 million is unrestricted
(December 2015: US$52.5 million and US$17.6 million, respectively) and positive
working capital of US$21.7 million (December 2015: US$1.5 million).

Management Comments

Marco A. Northland, the Company’s Chief Executive Officer, commented, “I am very
excited about 2016; Japan continues to be a terrific market for Etrion. Our
target is to exit 2016 with over 100 MW of projects connected or under
construction and a larger pipeline for realization in subsequent years. Project
economics continue to be very attractive and the partnership with Hitachi High
-Tech remains very strong. Italy continues to deliver strong cash flows, which
were significantly improved through a series of initiatives, including a
comprehensive refinancing, introduction of several cost cutting measures and
successful commercial activities. Italy remains with two potential material
upsides, including a potential positive outcome of the Italian Constitutional
Court hearing in December 2016 to determine whether the original feed-in-tariff
(“FiT”) should be reinstated and the reimbursement of certain investment tax
credits. We will communicate this as it is determined.

In Chile, the team has done a great job by securing a PPA for 70 gigawatt-hours
for Project Salvador, starting in January 2016. The team continues to work
around the clock to secure additional PPAs for the remaining capacity of Project
Salvador and our pipeline as well. Spot market electricity prices for Project
Salvador continued to be low during the first quarter of 2016, due to network
bottlenecks and are likely to remain low for the rest of 2016 and a portion of
2017 until network expansion is completed.

On the operational side, we continue to make significant savings due to the
reduction of operating and maintenance costs, headcount and other cost reduction
initiatives.”

Results

During the three months ended March 31, 2016, the Company reported a gross
profit of US$0.2 million (2015: US$2.4 million) and generated adjusted operating
cash flow of US$4.5 million (2015: US$5.6 million). These results were primarily
attributable to lower production and spot electricity prices in Chile and Italy.
In addition, the substantially lower foreign exchange gain recognized during the
quarter of $0.4 million (2015: $6.3 million) contributed to Etrion reporting a
net loss of US$8.5 million (loss per share of US$0.02) compared to a net loss of
US$2.5 million (loss per share NM) during the comparable period in 2015.



Earnings Call

A conference call/webcast to present the Company’s first quarter results will be
held on Thursday, May 12, 2016, at 10:00 a.m. Eastern Daylight Time (EDT) / 4:00
p.m. Central European Summer Time (CEST).

Dial-in details:

North America: +1-647-788-4919 / Toll Free: +1-877-291-4570 / Sweden Toll Free:
02-079-4343

Webcast:

A webcast will be available at
http://www.investorcalendar.com/IC/CEPage.asp?ID=174542

In addition, the earnings call presentation, along with the Company’s condensed
consolidated interim financial statements for the three months ended March 31,
2016, and related management’s discussion and analysis will be available on the
Company’s website (www.etrion.com).

A replay of the telephone conference will be available until June 12, 2016.

Replay dial-in details:

North America: +1-416-621-4642 / Toll Free: +1-800-585-8367

Pass code for replay: 83627584

About Etrion

Etrion Corporation is an independent power producer that develops, builds, owns
and operates utility-scale solar power generation plants. The Company owns 139
MW of installed solar capacity in Italy, Chile and Japan. Etrion has a 25 MW
solar project under construction in Japan and is also actively developing solar
power projects in Japan and Chile. The Company is listed on the Toronto Stock
Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden under ticker
symbol “ETX”. Etrion’s largest shareholder is the Lundin family, which owns
approximately 24% of the Company’s shares directly and through various trusts.

For additional information, please visit the Company’s website at www.etrion.com
or contact:

Paul Rapisarda – Chief Financial Officer

Telephone: +41 (22) 715 20 90



Note: The capacity of power plants in this release is described in approximate
megawatts on a direct current basis, also referred to as megawatt-peak.

Etrion discloses the information provided herein pursuant to the Swedish
Securities Market Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication in Sweden at 08:05 Central European
Time on May 12, 2016.

Non-IFRS Measures:

This press release includes non-IFRS measures not defined under IFRS,
specifically EBITDA and adjusted operating cash flow. Non-IFRS measures have no
standardized meaning prescribed under IFRS and therefore such measures may not
be comparable with those used by other companies.

EBITDA is a useful metric to quantify the Company’s ability to generate cash
before extraordinary and non-cash accounting transactions recognized in the
financial statements. In addition, EBITDA is useful to analyze and compare
profitability between companies and industries because it eliminates the effects
of financing and accounting policy decisions. In addition, adjusted operating
cash flow is used by investors to compare cash flows from operating activities
without the effects of certain volatile items that can positively or negatively
affect changes in working capital such as value added taxes paid during
construction of the Company’s solar power plants as they are viewed as not
directly related to a company’s operating performance. Refer to Etrion’s MD&A
for the three months ended March 31, 2016, for a reconciliation of EBITDA and
adjusted operating cash flow reported during the period.

Forward-Looking Information:

This press release contains certain “forward-looking information”. All
statements, other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements and estimates
relating to the advancement and development of the Company’s projects in Japan
and elsewhere, statements relating the viability of, and the outlook for, the
Company’s markets and statements relating to future electricity pricing
applicable to the Company’s projects) constitute forward-looking information.
This forward-looking information reflects the current expectations or beliefs of
the Company based on information currently available to the Company as well as
certain assumptions including, without limitation, confirmation of the
applicable FiT and spot market price for electricity sales in in the markets in
which the Company operates and the ability of the Company to execute on its
development pipeline. Forward-looking information is subject to a number of
significant risks and uncertainties and other factors that may cause the actual
results of the Company to differ materially from those discussed in the forward
-looking information, and even if such actual results are realized or
substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on the Company. Factors that could cause
actual results or events to differ materially from current expectations include,
but are not limited to, the lack of confirmation or reduction of the applicable
FiT and the spot market price for electricity sales in the relevant markets, the
risk that the Company may not be able to obtain all applicable permits for the
development of projects in markets in which it operates and the associated
project financing on economic terms for the development of such projects, the
risk of unforeseen delays in the development and construction of such projects
and the risk that the Company’s operational projects may not produce electricity
or generate revenues and earnings in the amounts anticipated.

Any forward-looking information speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the forward
-looking information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.