STS Renewables Ltd., Earth Drilling Co. Ltd., On Track Drilling Inc., STS Renewables Earth USA Acquisition Co. Ltd., Earth Drilling Co. Ltd., Harris Exploration Drilling & Associates, Inc., Subterra Capital Partners Inc., Subterra Development Ltd., and Subterra Capital Partners US Inc.

CCAA

^{Page last updated: May 30, 2025}

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.

Status of File as of May 23, 2025

On May 23, 2025, the Court issued:

1. The ARIO which, among other things:
   1. Extended the Stay Period up to and including August 8, 2025;
   2. Approved the increase in the Directors’ Charge from $1.1 mln to $1.7 mln;
   3. Approved the increase in the Administration Charge from $1 mln to $1.2 mln;
   4. Authorized the Applicants to borrow under a credit facility (the “DIP Facility”) from BNS (the “DIP Lender”) in order to finance the Companies’ working capital requirements, provided that the borrowings shall not exceed the principal amount of $2.9 mln, unless permitted otherwise by the Court;
   5. Granted a third ranking charge in favour of the DIP Lender over the Property of the Companies to a maximum amount of $2.9 mln, as security for the DIP Facility (the “DIP Lender’s Charge”).
   6. Approved the Key Employees Retention Program (the “KERP”); and
   7. Granted a fourth ranking charge over the Property of the Companies in favour of the KERP beneficiaries, to a maximum amount of $280,000, ranking behind the Directors’ Charge; and
2. The SISP Approval Order which, among other things approved a Sale Investment Solicitation Process (the “SISP’) and authorized the Applicants and the Monitor to implement the same.

Status of File as of May 15, 2025

On May 15, 2025 (the “Filing Date”), STS Renewables Ltd. (“STS”), Earth Drilling Co. Ltd., On Track Drilling Inc., STS Renewables Earth USA Acquisition Co. Ltd., Earth Drilling Co. Ltd., Harris Exploration Drilling & Associates, Inc., Subterra Capital Partners Inc., Subterra Development Ltd., and Subterra Capital Partners US Inc. (collectively, the “Applicants” or the “Companies”) applied for and received an order (the “Initial Order”) for protection pursuant to the Companies’ Creditors Arrangement Act, R.S.C.1985, c.C-36, as amended (“CCAA Proceedings”) from the Ontario Superior Court of Justice Commercial List (the “Court”).

The Initial Order, among other things:

1. Declared that Forum Subterra Limited Partnership, Forum Subterra General Partner Inc., Forum Subterra Limited Partnership 1, Forum Subterra GP1 Inc., Yorkland Geothermal Inc., Forum Subterra Limited Partnership 10, and FSLP GP Inc. (collectively the “Non-Applicant Stay Parties” and together with the Applicants, the “STS Entities”) shall enjoy the benefits of the protections and authorizations provided under the terms of the Initial Order;
2. Appointed PricewaterhouseCoopers Inc., LIT (“PwC”) as monitor of the Companies (the “Monitor”);
3. Approved a stay of proceedings up to and including May 25, 2025 (“Stay Period”), which applies against STS Entities, the Monitor, or any of their respective employees and representatives, any of the former, current or future directors or officers of any of STS Entities and their property or business;
4. Authorized the Applicants to continue utilizing the central cash management system (the “CMS”) currently in place as described in the affidavit of Matthew Tokarik, sworn on May 15, 2025 (the “Tokarik Affidavit”) or, with the consent of the Monitor and the Bank of Nova Scotia (“BNS”), replace it with another substantially similar CMS;
5. Granted a first ranking charge, in the amount of $1 mln (the “Administration Charge”), on the Property of the Companies, as security for the professional fees and disbursements of the Monitor, the Monitor’s counsel and the Companies’ counsel, which charge shall rank in priority to all other security interests, trusts, liens, charges and encumbrances, claims of secured creditors, statutory or otherwise;
6. Granted a second ranking charge, in the amount of $1.1mln (the “Directors’ Charge”), on the Property of the Companies, as security for the indemnity granted to the Companies’ directors and officers, which charge shall rank in priority to all other security interests, trusts, liens, charges and encumbrances, claims of secured creditors, statutory or otherwise; and
7. Authorized STS to act as the foreign representative (the “Foreign Representative”) in respect of the CCAA Proceedings for the purpose of having the CCAA Proceedings recognized and approved in a jurisdiction outside of Canada, including in the United Stated of America (“USA”).

On May 21, 2025, in accordance with section 23(1)(ii)(b) of the CCAA and the Initial Order, a notice was sent to all known creditors of the Companies who are owed $1,000 or more.

Within the 10 days of the Filing Date, the Companies intend to file their motion for an Amended and Restated Initial Order (the “ARIO”) and the SISP Approval Order.