News Releases

CALGARY, ALBERTA - Nov. 7, 2012 /CNW/ - Newalta Corporation ("Newalta") (TSX:NAL) today reported solid financial results for the third quarter ended September 30, 2012.

FINANCIAL HIGHLIGHTS1

(1) Management's Discussion and Analysis and Newalta's Unaudited Condensed Consolidated Financial Statements and notes are attached. References to Generally Accepted Accounting Principles ("GAAP") are synonymous with IFRS and references to Unaudited Condensed Consolidated Financial Statements and notes are synonymous with Financial Statements.

(2) These financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-GAAP financial measures are identified and defined later in this document.

(3) Newalta has 54,213,679 shares outstanding as at November 7, 2012.

Management Commentary

"Results in the quarter reflect continued improvements in our key growth markets and increased demand for our services," said Al Cadotte, Newalta's President and CEO. "With many outstanding organic growth opportunities across all areas of our business, particularly our U.S. operations and heavy oil contract operations, we are expanding our capital investment plan to aggressively pursue high-return, low-risk opportunities that will provide excellent returns for our investors in 2013 and beyond."

Realigning for Growth

Newalta announced that effective January 1, 2013, we will realign our reporting structure into three divisions - New Markets, Oilfield and Industrial.

"This new structure best aligns our operations with our customers so that we can provide a seamless service package, and also focus our efforts on developing new and innovative solutions for our national and international customers. It also provides the optimum structure to allocate management to execute our growth plans," said Mr. Cadotte. "The reorganization will result in enhanced disclosure to our investors, particularly on our New Markets division."

The reorganization of the three new divisions will be as follows:

New Markets

• Heavy Oil Business Unit (includes heavy oil facilities and onsite)
• U.S. Business Unit (includes U.S. facilities, drill site and onsite)

Oilfield

• Includes oilfield facilities, oilfield onsite, environmental services and Canadian drill site

Industrial

• Western Business Unit (includes oil recycling, industrial facilities and industrial onsite in western Canada)
• Eastern Business Unit (includes VSC, SCL, industrial facilities and industrial onsite in eastern Canada)

Newalta will maintain the current reporting structure of Facilities and Onsite divisions for the remainder of fiscal 2012.

2013 Capital Expenditure Budget

Growth capital in 2012 is expected to be $125 million, or $10 million above budget, bringing our total capital spend to approximately $155 million. The increase is attributable to the significant expansion in scope of the mature fine tailings ("MFT") processing contract. Reflecting the strength of our pipeline of capital projects and organic growth opportunities, our 2013 capital budget is $190 million; a 23 percent increase over 2012 capital. Growth capital and maintenance expenditures are expected to be $155 million and $35 million, respectively. Growth expenditures will comprise of approximately $70 million for New Markets, $40 million for Oilfield and $30 million for Industrial. The remaining $15 million in growth capital expenditures are for Technical Development and corporate investments. The capital program will be funded through cash flow from operations and the proceeds from the equity offering that closed on October 26, 2012.

Consolidated Financial Overview

Third quarter revenue grew 4% year-over-year to $190.1 million. Gross profit rose 9% from Q3 2011 as a result of improved performance in Onsite driven by increased demand for our services. This was partially offset by reduced activity in Facilities. Adjusted EBITDA rose slightly to $42.5 million compared to Q3 2011. Higher gross profit was tempered by increased Adjusted selling, general and administrative ("Adjusted SG&A") expenses to support our continued growth in 2013. Net earnings rose 29% as a result of lower net finance charges and deferred income tax expense.

Year-to-date in 2012, Adjusted EBITDA of $108.8 million was relatively flat compared to the same period in 2011. Stronger demand for our services was offset by lower value received for our products of $8.3 million and higher Adjusted SG&A expenses.

Operational Overview

Revenue and gross profit from Facilities in the quarter were $101.7 million and $25.3 million, down 15% and 10%, respectively, from Q3 2011. Western Facilities experienced strong demand for our services despite decreased oilfield activity. Facilities results were impacted by lower activity levels at VSC and timing of volumes received at SCL. Year-to-date revenue and gross profit declined slightly from prior year to $323.3 million and $78.3 million, respectively, primarily driven by VSC.

In Onsite, Q3 revenue increased 42% and gross profit was 41% higher compared to Q3 2011. Strong demand in most areas was offset by Canadian drill site which was impacted by lower drilling activity. During the quarter, we began processing waste volumes under our MFT contract and we began processing slop oil emulsion volumes on a customer's site in the Bakken play under a multi-year arrangement. Year-to-date, revenue and gross profit rose 28% and 24%, respectively, from the prior year period. Increased contract and project activity offset the impact of lower drilling activity and commodity prices.

Technical Development began the demonstration of new technology at a Western Facility during the quarter, consistent with its plan. We expect this process to be in commercial production before the end of 2012.

Other Highlights

Capital expenditures for the three and nine months ended September 30, 2012 were $32.3 million and $114.9 million respectively, focused primarily on growth capital projects in Onsite.

In July 2012, we entered into an amended and restated extendible revolving Credit Facility ("Credit Facility"). Key changes to the Credit Facility include an increase in the borrowing amount from $200 million to $225 million, improved covenant ratio thresholds and better pricing.

On October 26th, Newalta completed an equity financing with the issuance of 5.5 million common shares for gross proceeds of $77 million (net proceeds of approximately $73.5 million).

On a pro-forma basis as at September 30, 2012, the impact of the equity financing reduces Newalta's Total debt from $411.5 million to $338.0 million and improves our Total debt to EBITDA ratio from 2.88 to 2.36. We anticipate ending the year with Total Debt to Adjusted EBITDA significantly better than our leverage ratio at December 31, 2011.

On October 17, 2012, DBRS upgraded our issuer rating to BB from BB (Low) and revised the trend to Stable from Positive. The rating change is attributable to our execution of the business plan, and our growing contract business that is more stable with multi-year terms, strengthening our financial profile. DBRS has also upgraded the Senior Unsecured Debentures to BB from BB (low) with the trend being Stable.

Newalta announced today it has implemented a Dividend Reinvestment Plan ("DRIP"). The DRIP provides eligible Newalta shareholders with the opportunity to reinvest their quarterly cash dividend to acquire additional shares at a purchase price equal to 95% of the average market price (defined as the volume weighted average trading price of the shares for the five trading days immediately preceding the distribution payment date). The first dividend eligible to be reinvested under the DRIP is the dividend payable to shareholders of record on December 31, 2012. The full text of the DRIP and an Enrollment Form are available from Valiant Trust at www.valianttrust.com or on Newalta's website atwww.newalta.com.

Newalta's Board of Directors declared a third quarter dividend of $0.10 per share ($0.40 per share annualized) paid October 15, 2012 to shareholders of record September 28, 2012. This higher dividend rate established earlier this year reflects our strong financial position and positive outlook.

Outlook

In Q4 2012, we anticipate year-over-year improvement in performance driven by continued growth in Onsite, higher SCL volumes, increased production at VSC and strong demand for our services in western Canada.

In Onsite, we expect year-over-year improvement in the fourth quarter to be driven by increased Heavy Oil and U.S. contract and project work, including gains from the contract to process mature fine tailings ("MFT"). We continue to focus on growing our portfolio of longer term contracts, strengthening our foundation of stable cash flow, and maximizing cash flow from our existing assets.

We are confident we will continue to deliver attractive returns to our shareholders in the quarters ahead and expect ongoing improvement towards our historical corporate Return on capital average of 18%.

With significant growth from our Onsite contracts, contributions from the 2012 capital program and strong market demand, we are well positioned for growth in 2013 and beyond.

Quarterly Conference Call

Management will hold a conference call on Thursday, November 8, 2012 at 11:00 a.m. (ET) to discuss Newalta's performance for the third quarter ended September 30, 2012. To participate in the teleconference, please call 1-800-736-4594. To access the simultaneous webcast, please visit www.newalta.com. For those unable to listen to the live call, a taped broadcast will be available at www.newalta.com and, until midnight on Thursday, November 15, 2012 by dialing 1-800-558-5253 and using the pass code 21608731 followed by the pound sign. The unaudited interim Condensed Consolidated Financial Statements and MD&A, which contain additional notes and disclosures, are available on SEDAR at www.sedar.com and on our website at www.newalta.com under Investor Relations/Financial Reports.

About Newalta

Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 facilities in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,200 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.

SELECTED FINANCIAL INFORMATION

(1) "Assets employed" is provided to assist management and investors in determining the effectiveness of the use of the assets at a divisional level. Assets employed is the sum of capital assets, intangible assets and goodwill allocated to each division.

Condensed Consolidated Balance Sheets

(Unaudited - Expressed in thousands of Canadian Dollars)

Condensed Consolidated Statements of Operations

(Unaudited - Expressed in thousands of Canadian Dollars)

(Except per share data)

Condensed Consolidated Statements of Comprehensive Income

(Unaudited - Expressed in thousands of Canadian Dollars)

(1) Net of tax of nil for the three and nine months ended September 30, 2012 ($0.2 million and $0.3 million for the three and nine months ended September 30, 2011).

Condensed Consolidated Statement of Changes in Equity

(Unaudited - Expressed in thousands of Canadian Dollars)

Condensed Consolidated Statements of Cash Flows

(Unaudited - Expressed in thousands of Canadian Dollars)

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute "forward-looking statements". When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, as they relate to Newalta Corporation and the subsidiaries of Newalta Corporation, or their management, are intended to identify forward-looking statements. In particular, forward-looking statements included or incorporated by reference in this document include statements with respect to:

• future operating and financial results;
• anticipated industry activity levels;
• expected demand for our services;
• business prospects and strategy;
• capital expenditure programs and other expenditures;
• the amount of dividends declared or payable in the future;
• realization of anticipated benefits of growth capital investments, acquisitions and our technical development initiatives;
• our projected cost structure; and
• expectations and implications of changes in legislation.

Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation:

• general market conditions of the industries we service;
• strength of the oil and gas industry, including drilling activity;
• fluctuations in commodity prices for oil and lead;
• fluctuations in interest rates and exchange rates;
• supply of waste lead acid batteries as feedstock to support direct lead sales;
• demand for our finished lead products by the battery manufacturing industry;
• our ability to secure future capital to support and develop our business, including the issuance of additional common shares;
• the highly regulated nature of the environmental services and waste management business in which we operate;
• dependence on our senior management team and other operations management personnel with waste industry experience;
• the competitive environment of our industry in Canada and the U.S.;
• success of our growth, acquisition and technical development strategies including integration of businesses and processes into our operations and potential liabilities from acquisitions;
• potential operational and safety risks and hazards and obtaining insurance for such risks and hazards on reasonable financial terms;
• the seasonal nature of our operations;
• costs associated with operating our landfills and reliance on third party waste volumes;
• risk of pending and future legal proceedings;
• our ability to attract and retain skilled employees and maintain positive labour union relationships;
• open access for new industry entrants and the general unprotected nature of technology used in the waste industry;
• possible volatility of the price of, and the market for, our common shares, and potential dilution for shareholders in the event of a sale of additional shares;
• financial covenants in our debt agreements that may restrict our ability to engage in transactions or to obtain additional financing; and
• such other risks or factors described from time to time in reports we file with securities regulatory authorities.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and are expressly qualified by this cautionary statement. Unless otherwise required by law, we do not intend, or assume any obligation, to update these forward-looking statements.

The information contained on our website does not form part of this press release.

RECONCILIATION OF NON-GAAP MEASURES

This Press Release contains references to certain financial measures, including some that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or "GAAP") and may not be comparable to similar measures presented by other corporations or entities. These financial measures are identified and defined below:

"EBITDA", "EBITDA per share", "Adjusted EBITDA", and "Adjusted EBITDA per share" are measures of our operating profitability. EBITDA provides an indication of the results generated by our principal business activities prior to how these activities are financed, assets are amortized or how the results are taxed in various jurisdictions. In addition, Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our common shares. As such, Adjusted EBITDA provides improved continuity with respect to the comparison of our operating results over a period of time. EBITDA and Adjusted EBITDA are derived from the consolidated statements of operations, comprehensive income and retained earnings. EBITDA per share and Adjusted EBITDA per share are derived by dividing EBITDA and Adjusted EBITDA by the basic weighted average number of shares.

They are calculated as follows:

"Adjusted net earnings" and "Adjusted net earnings per share" are measures of our profitability. Adjusted net earnings provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation expense and the gain or loss on embedded derivatives. Stock-based compensation expense, a component of employee remuneration, can vary significantly with changes in the price of our common shares. The gain on the embedded derivative is a result of the change in the trading price of the debentures and the volatility of the applicable bond market. As such, Adjusted net earnings provides improved continuity with respect to the comparison of our results over a period of time. Adjusted net earnings per share is derived by dividing Adjusted net earnings by the basic weighted average number of shares.

"Book value per share" is used to assist management and investors in evaluating the book value compared to the market value.

"Funds from operations" is used to assist management and investors in analyzing cash flow and leverage. Funds from operations as presented is not intended to represent operating funds from operations or operating profits for the period, nor should it be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. Funds from operations is derived from the consolidated statements of cash flows and is calculated as follows:

"Return on capital" is used to assist management and investors in measuring the returns realized from capital employed.

References to EBITDA, EBITDA per share, Adjusted EBITDA, Adjusted EBITDA per share, Adjusted net earnings, Adjusted net earnings per share, Funds from operations, Funds from operations per share and Return on capital throughout this document have the meanings set out above.