Etrion Releases 2011 Results

Etrion Releases 2011 Results

2011 Revenue of US$51.9 million, up 347% from prior year

2011 Adjusted Renewable EBITDA of US$47.6 million, up 467% from prior year

March 29, 2012, Geneva, Switzerland – Etrion Corporation (“Etrion” or the
“Company”) (TSX: ETX) (OMX: ETX), an independent solar power producer, today
released its annual consolidated financial statements, related management’s
discussion and analysis (“MD&A”) and annual information form (“AIF”) for the
year ended December 31, 2011.

2011 Highlights

  · Production: Produced 88.3 million (2010: 20.9 million) kilowatt-hours of
solar electricity from seven solar power projects during the year.
  · Revenue: Generated solar electricity revenues of US$51.9 million (2010:
US$11.6 million) during the year.
    · EBITDA: Recognized adjusted earnings before interest, tax, depreciation
and amortization (“EBITDA”) for the renewable energy segment of US$47.6 million
(2010: US$8.4 million) during the year.

  · Construction: Completed construction of the 10 megawatt (“MW”) Helios ITA-3
and 2.6 MW Nettuno solar power projects, both connected to the electricity grid
in August 2011.
  · Corporate Financing: Issued, in April 2011, US$77.4 million (€60 million) of
corporate bonds in the Norwegian bond market at 9% annual interest with a 4-year
maturity.
  · Debt Repayment: Repaid, in May 2011, the outstanding principal and interest
associated with the US$77.4 million (€60 million) credit facility provided by a
subsidiary of Lundin Petroleum AB.

Repaid, in November 2011, the US$36.1 million (€28 million) bridge loan from
investment companies associated with the Lundin family.

  · Project Financing: Completed, in the fourth quarter of 2011, the drawdown of
US$51 million (€39.5 million) from the non-recourse loan facility with Natixis,
WestLB and Mediocreval in connection with the Helios ITA-3 and Nettuno solar
power projects.
    · Working Capital: Closed 2011 with a cash balance of US$39.7 million (2010:
US$45 million) and positive working capital of US$20.1 million (2010: negative
US$73.3 million).

Management Comments

Marco A. Northland, the Company’s Chief Executive Officer, commented, “Etrion
made significant progress in 2011 by completing almost 13 MW of additional solar
capacity. Etrion now has a fully-funded solar portfolio of 60 MW with
substantial revenues and cash flows from operations. Our solar parks produced
approximately 10% above expectations in 2011, and we look forward to expanding
our installed capacity in 2012.”

Mr. Northland continued, “2012 will be an exciting year as we pursue our plans
to diversify into new markets, particularly in the Americas. We are focused on
increasing free cash flow to prepare for potential future dividend
distributions. I believe Etrion is well positioned to expand, diversify and
achieve sustainable growth based on market-driven energy contracts with
industrial clients.”

Results

For the year ended December 31, 2011, the Company reported a net loss of US$26.3
million (loss per share of US$0.14) compared to a net loss of US$18.1 million
(loss per share of US$0.11) for the comparable period in 2010.

The net results for the year ended December 31, 2011, were adversely affected by
non-recurring, non-cash items of US$14 million, which included impairment losses
totaling US$9.7 million related to the Group’s legacy oil and gas investments
and development pipeline of solar power projects in Italy, an equity-based
financing fee of US$3.2 million and non-cash compensation of US$1.1 million.
Before these non-recurring, non-cash items, the Company’s net loss for the year
ended December 31, 2011, would have been US$12.3 million (loss per share of
US$0.07).

Management Change

Effective April 1, 2012, the Company has appointed Cheryl Eversden as interim
Chief Financial Officer. Mrs. Eversden replaces Garrett Soden, who is resigning
to pursue other opportunities with the Lundin family. Mr. Soden has been CFO of
Etrion and its predecessor company since December 2006 and will remain available
to ensure a smooth transition of responsibilities.

Mrs. Eversden has been Etrion’s Director of Finance and Accounting since January
2011 and was previously Group Financial Controller for ShaMaran Petroleum Corp.
and Cadogan Petroleum plc. She is a Canadian chartered accountant and previously
worked within the Assurance and Advisory Group at Deloitte in Calgary and
London.

Etrion’s CEO, Marco A. Northland, commented, “Garrett has created a culture of
strong controls, continual process improvements and high standards for the
finance and accounting team. I thank him for his leadership and contribution
during a period of tremendous growth at Etrion. I am pleased to appoint Cheryl
as interim CFO. She will play an instrumental role in the company’s next growth
phase.”

About Etrion

Etrion Corporation is an independent power producer that owns and operates
renewable assets. Etrion currently owns approximately 60 MW of operational,
ground-based solar photovoltaic power plants in Italy. The Company is listed on
the Toronto Stock Exchange and the NASDAQ OMX Stockholm exchange (ticker symbol
“ETX”). Etrion’s largest shareholder is the Lundin family, which owns
approximately 25% of the Company’s shares through various trusts.

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

Robert Eriksson – Investor Relations

Telephone: +46 (701) 11 26 15

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

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 relating to
solar electricity revenue which is subject to confirmation of both the
applicable feed-in-tariff (“FiT”) to which the Company is entitled by the
state-owned company Gestore Servizi Energetici and the applicable spot market
price by the local utilities for electricity sales to the national grid and
statements relating to the Company’s growth plans) 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.
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 by the designated entities and the risk that the Company may
not be able to identify and/or acquire additional renewable energy projects on
economic terms.

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.