A.C.L. Construction Ltd. Announces Rationalization of Underutilized Equipment and Debt Reduction

A.C.L. Construction Ltd. (TSXV: ACL; OTCQB: AACLF; FSE: A3LO) (the " Company " or " A.C.L. "), a leading provider of civil construction services, project management, general construction and underground utilities in the Peace Region of British Columbia, is pleased to announce the completion of an equipment rationalization initiative through a recently held auction (the “ Auction ”) of underutilized heavy equipment. The Auction forms part of the Company’s ongoing management of its equipment fleet in support of its existing civil construction and infrastructure services business, and does not represent any change in the Company’s business, operations or strategic direction. The Auction generated gross proceeds of approximately $3.5 million. Of the gross proceeds, approximately $2.6 million was applied to repay secured indebtedness attributable to the equipment sold, and approximately $0.4 million was applied to Auction-related transaction costs. The balance of approximately $0.5 million will be retained by the Company for general working capital purposes in support of its ongoing civil construction operations. “The Auction reflects our disciplined approach to managing the Company’s equipment fleet,” said John McPherson, CEO of A.C.L. “By monetizing equipment that is not required for our current project pipeline, we have been able to meaningfully reduce secured debt, strengthen our balance sheet and free up working capital to support the delivery of ongoing civil construction, underground utilities and project management services to our customers. Our core business and strategic direction remain unchanged.” Separately, the Company confirms that it previously advanced an unsecured, non-interest-bearing short-term loan in the principal amount of C$500,000 (the " Loan ") to Karbon-X Corp. (the " Borrower ") pursuant to a written loan agreement between the Company and the Borrower. The Loan does not bear interest, is unsecured, and matures, and is repayable in full by the Borrower, six months after the date of advance, subject to the Borrower's right to prepay all or any portion of the Loan at any time without notice, bonus, premium or penalty. About A.C.L. Construction Ltd. A.C.L. Construction is a civil construction company headquartered in Northeastern British Columbia. The company specializes in the infrastructure services that keep Western Canada and the Territories resource sector operational. The Company delivers large-scale earthworks, underground utility installations and tie-ins, oilfield road construction and maintenance, project management, and remediation and reclamation services across some of the region’s most demanding and remote environments. The Company is listed on the TSX Venture Exchange (TSXV: ACL), the OTCQB (OTCQB: AACLF) and the Frankfurt Stock Exchange (FSE: A3LO). For more information, visit http://aclconstructionltd.com For further information please contact: A.C.L. Construction Ltd. John McPherson Telephone: 250-263-1205 Email: [email protected] Website: www.aclconstructionltd.com Cautionary Statement Regarding Forward-Looking Information This news release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this news release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this news release include, without limitation, statements regardin...