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• Quarterly adjusted EBITDA increased by $182.7 million to $277.1 million in the fourth quarter of 2016 primarily driven by the one-time retroactive payments received from the OEFC pursuant to the Global Adjustment Decision, pre-completion revenues from Gemini, including the results from the completion of the Cochrane Solar facilities and from Grand Bend;

• Quarterly free cash flow per share was $0.69 in the fourth quarter of 2016 versus $0.20 in the fourth quarter of 2015, largely due to higher adjusted EBITDA partially offset an increase in finance costs and debt repayments; and

• Net income was $290.7 million for the fourth quarter compared to $9 million in the fourth quarter of 2015. The increase was primarily due to the one-time retroactive payments received from the OEFC pursuant to the Global Adjustment Decision combined with pre-completion revenues from Gemini.

Construction

• Gemini - 600 MW offshore wind farm, North Sea - All 150 wind turbines are producing full power and have earned pre-completion revenues of EUR181.5 million (CAD $266.1 million) at the prescribed contract rate and price for 2016. Full commercial operations are expected by mid-2017. The project remains on schedule and within budget.

• Nordsee One - 332 MW offshore wind farm, North Sea - Nordsee One continues to progress on schedule and within budget. During 2016, all 54 foundation monopiles and transition pieces, along with the offshore substation and in-field cables, were successfully installed. Wind turbine production is ongoing, with installation expected to commence in early 2017. Full commercial operations are expected by the end of 2017.

Other

• Court Decision Regarding Appeal of Global Adjustment Decision - On January 19, 2017, Northland announced that the Supreme Court of Canada did not grant the OEFC leave to appeal the Ontario Court of Appeal Decision concerning the interpretation of the price escalator for power sold under power purchase agreements related to Northland's wholly-owned subsidiary, Iroquois Falls Power Corp. and Northland's managed facilities, Cochrane Power Corporation and Kirkland Lake Power Corporation (collectively the "Northland Applicants") and other industry participant applicants. This final decision confirms that the Northland Applicants will retain all payments received to date from the OEFC and will continue to earn revenues in accordance with the Northland Applicants' interpretation of the contracts.

• 2017 Financial Guidance - In 2017, management expects adjusted EBITDA to be $660 to $710 million, an increase of approximately 9% over 2016 and free cash flow per share to be in the range of $1.10 to $1.25 per share compared to $1.40 per share in 2016. See more details in the "Outlook" section below.

The following comments are made with reference to the attached unaudited consolidated financial statements of Northland.

"2016 was an outstanding year for Northland," said John Brace, Chief Executive Officer. "Our investments in offshore wind in Europe and other initiatives that contribute to long-term growth are now bearing fruit. Our operating facilities performed effectively, safely and better than expectations. We achieved a 55.9% increase in adjusted EBITDA and a 28.5% increase in free cash flow over 2015. We successfully delivered our Grand Bend wind farm into operation under budget and ahead of schedule, with Gemini soon to follow. As we continue to evolve as a company and realize on our existing development pipeline, we remain well-positioned to manage future growth, while upholding our commitment to create lasting value for shareholders."

Full Year 2016 Results - Summary

Sales and cost of sales
Sales increased by 51% or $370.9 million and gross profit increased by 80.3% or $403.3 million, respectively over 2015 primarily due to the one-time retroactive payments received from the OEFC pursuant to the Global Adjustment Decision, the pre-completion revenues earned from Gemini, the additional contributions from the Grand Bend wind farm which reached commercial operations in April 2016, the completion of the Cochrane Solar facilities and additional paid curtailment opportunities which reduces sales and improves gross profit;

Plant Operating Costs
Plant operating costs of $111.9 million for 2016 were $34.5 million higher than 2015 primarily due to the inclusion of costs from the Gemini wind farm now that the turbines are in operation, Grand Bend and the Cochrane Solar facilities, partially offset by costs avoided due to the shutdown of the Cochrane thermal facility.

Management and administration
Management and administration costs at $67.2 million were $25.3 million higher than the prior year primarily due to early-stage development activities and personnel, office, and other costs related to Gemini now that wind turbines have been commissioned.

Investment income
Investment income at $2.3 million was in line with 2015. Investment income includes interest earned on the loan receivables from the equity partners at McLean's and Grand Bend.

Finance costs, net
Net finance costs (primarily interest expense), at $227.0 million increased by $89.2 million from 2015 due to the inclusion of interest from Gemini, Grand Bend and Cochrane Solar facilities' debt.

Amortization of contracts and other intangible assets
Amortization of contracts and other intangible assets at $13.5 million was $5.1 million lower than the prior year due to the shutdown of the Cochrane thermal facility in 2015.

Impairments
Northland recorded an impairment charge of $23.1 million, $2.2 million higher than 2015 and related to impairments taken on property, plant and equipment largely a result of changes in cash flow forecasts at the Kingston facility due to the inability to agree with the power purchaser on the pricing terms for the 5 year contract extension beyond January 2017. As a result management's expectation for the future operations of the facility were updated. The 2015 impairment was largely associated with changes in cash flow forecasts and the shutdown of the Cochrane thermal facility, offset by reversals of impairments related to the amendment of the baseload PPA and new peaking contract at Kirkland Lake.

Non-cash fair value losses
Non-cash fair value losses of $25.8 million (compared to an $82.8 million loss in 2015) is comprised of a $27.8 million loss in the fair value of Northland's financial derivative contracts that include interest rate swaps on the facilities' non-recourse project debt, the long-term financial hedge related to future natural gas prices at Iroquois Falls and foreign exchange contracts primarily associated with Gemini and Nordsee One, combined with a $2.0 million unrealized foreign exchange gain. A non-cash fair value loss of $94.2 million represents the marked-to-market adjustment on interest rate swaps entered into by Gemini and Nordsee One. Northland's policy is to economically hedge material interest rate and foreign exchange exposures where feasible. Changes in market rates give rise to non-cash marked-to-market adjustments each quarter as a result of Northland's accounting election to forego the application of hedge accounting. These fair value adjustments are non-cash items that will reverse over time and have no impact on the cash obligations of Northland or its projects.

Net income
The factors described above, combined with $10.7 million and $18.0 million, respectively of current and deferred taxes, resulted in net income for the year of $190.6 million, compared to net income of $27.5 million in the previous year.

Adjusted EBITDA
Northland's 2016 consolidated adjusted EBITDA was $224.8 million higher than the prior year. Significant factors increasing adjusted EBITDA from 2015 are described below:

• $124.1 million increase in operating results from the recognition of Gemini's pre-completion revenues following the retroactive commencement of its two power contracts effective March 1, 2016 and July 1, 2016;

• $49.1 million in operating results from the Iroquois Falls facility primarily due to the one-time retroactive payment received from the OEFC pursuant to the Global Adjustment Decision;

• $28 million in management fees earned from Kirkland Lake and Cochrane facilities, also related to the one-time retroactive payment from the OEFC pursuant to the Global Adjustment Decision;

• $24.1 million in operating results from generation from Northland's new renewable facilities; and

• $17.9 million higher investment income earned on Northland's portion of the Gemini subordinated debt and the loan receivable from Grand Bend's equity partner.

These favourable results were partially offset by:

• $18.1 million increase in corporate costs primarily related to early stage development projects, increased head count and special projects.

Free Cash Flow, Payout Ratio and Dividends to Shareholders
Free cash flow of $242.3 million was $60.2 million higher than in 2015; significant factors increasing and decreasing free cash flow in 2016 are described below.

Primary factors increasing free cash flow were:

• $73.3 million increase in adjusted EBITDA from Northland's operating facilities primarily due to the one-time retroactive payments received at Iroquois Falls from the OEFC pursuant to the Global Adjustment Decision, as previously discussed, and the additional contributions from completed construction projects;

• $28 million increase in management fees from Kirkland Lake and Cochrane due to the one-time retroactive payments received from the OEFC pursuant to the Global Adjustment Decision; and

• $4.2 million decrease in funds set aside for future maintenance.

Primary factors decreasing free cash flow were:

• $26.3 million net interest expense increase, related to the inclusion of Grand Bend and Cochrane Solar facilities debt; and

• $17.6 million increase in scheduled debt repayments as a result of additional ground-mounted solar facilities.

For 2016, Northland's dividend payout ratio was 58% excluding the effect of dividends reinvested through the DRIP compared to 76% in 2015.

Fourth Quarter Results - Summary

Thermal facilities
Electricity production during the fourth quarter of 2016 was approximately 3% higher than the prior year, primarily due to additional economic production periods at the Thorold facility. These results were partially offset by lower production at the Kingston and Iroquois Falls facilities. Sales were $46 million higher than the prior year, primarily due to the one-time retroactive payments received from the OEFC pursuant to the Global Adjustment Decision at the Iroquois Falls facility ($41.6 million). Gross profit was $39.3 million higher than the prior year, also as a result of the one-time retroactive payments earned at the Iroquois Falls facility, offset by $5.5 million for fixed transportation costs at the Kingston facility. Plant operating costs were in line with the prior year. As a result of the above factors, adjusted EBITDA and operating income were $41.3 million and $43.8 million, respectively, higher than the prior year.

Renewable facilities
Electricity production was approximately 31% higher than the previous year due to the incremental contribution from the Grand Bend facility, which declared commercial operations on April 19, 2016. These results were partially offset by a net decrease in production at the other wind facilities caused by lower wind resources. Ground-mounted solar electricity production was in line with the previous year as a result of the positive impact of all thirteen sites being fully operational for the full quarter, offset by lower electricity production due to cloud and snow cover. Sales and plant operating costs during the fourth quarter of 2016 were $14.3 million and $1.9 million, respectively, higher than the prior year, largely due to the incremental contribution from the Grand Bend facility. Higher revenue, partially offset by increased operating expenses, resulted in adjusted EBITDA and operating income both exceeding the prior quarter by $4.8 million and $7.3 million, respectively.

Managed Facilities
Sales and gross profit increased by $65.5 million and $65.3 million, respectively, over the fourth quarter of 2015 primarily due to the one-time retroactive payments received from the OEFC pursuant to the Global Adjustment Decision.

Management and administration costs
Corporate management and administration costs were $9.0 million higher than the same period in 2015, largely due to higher early-stage development activities across a range of geographic locations, as well as costs associated with the strategic review, increased headcount and other personnel costs, and one-time improvement initiatives. Facility management and administration costs were higher than the prior year, primarily as a result of an increase in personnel, office, and other costs at Gemini due to the fact that costs which were previously capitalized are now being expensed.

Finance costs, net
Net finance costs (primarily interest expense), increased by $36.9 million from 2015, primarily due to the inclusion of interest from Gemini, Grand Bend and Cochrane Solar facilities debt.

Impairments
Northland recorded a $23.1 million impairment charge in 2016, which was $14.8 million higher than in 2015 and related to impairments taken on property, plant and equipment largely as a result of changes in cash flow forecasts at the Kingston facility as described previously.

Non-cash fair value gains
Non-cash fair value gain of $177.5 million (compared to a $1.4 million loss in 2015) primarily consisted of a $173.1 million gain in the fair value of Northland's financial derivative contracts that include interest rate swaps on the facilities' non-recourse project debt, the long-term financial hedge related to future natural gas prices at Iroquois Falls and foreign exchange contracts primarily associated with Gemini and Nordsee One, combined with a $4.4 million unrealized foreign exchange gain.

The factors described above combined with $6.9 million and $60.5 million, respectively, of current and deferred taxes resulted in net income for the quarter of $290.7 million and adjusted EBITDA of $277.1 million.

Free Cash Flow, Payout Ratio and Dividends to Shareholders
Fourth-quarter free cash flow at $119.0 million was $84.7 million higher than the same period last year. Favourable variances from the same period for 2015 included:

• $45.6 million increase in adjusted EBITDA, as previously discussed;

• $47.8 million increase in management fees from Kirkland Lake and Cochrane related to the one-time retroactive payments received from the OEFC pursuant to the Global Adjustment Decision; and

• $1.7 million decrease in funds set aside for future major maintenance.

Offsetting these favourable variances were:

• $14.4 million net interest increase, related to Grand Bend and additional ground-mounted solar facilities debt;

• $9 million increase in corporate and administration costs; and

• $1.8 million increase in non-expansionary capital expenditures.

For the three-month period ending December 31, 2016, Share and Class A Share dividends declared for the quarter totalled $0.27 per share. This is equivalent to a payout ratio of 39% if all dividends were paid out in cash (i.e., excluding the effect of dividends reinvested through Northland's DRIP).

Outlook
Northland actively pursues new power development opportunities that encompass a range of clean technologies, including natural gas, wind, solar and hydro.

In 2017, management expects adjusted EBITDA to be $660 to $710 million, an increase of approximately 9% over 2016. This adjusted EBITDA guidance includes Northland's share of i) net pre-completion revenue and operating income once Gemini reaches full operations which is expected in mid-2017 (EUR175 to EUR195 million) and ii) net pre-completion revenue from Nordsee One (EUR50 to EUR60 million), both projects at an assumed average exchange rate of CA$1.40/euro.

The 2017 adjusted EBITDA is expected to increase from $626.9 million in 2016 primarily due to the following factors:

• EUR76 to EUR95 million in additional adjusted EBITDA from Northland's share of net pre-completion and operating revenue based on a full year of generation at Gemini that commenced midway through 2016 (at an assumed average exchange rate of CA$1.40/euro);

• EUR50 to EUR60 million in additional adjusted EBITDA from Northland's share of net pre-completion revenue from Nordsee One (at an assumed average exchange rate of CA$1.40/euro); and

• $11 to $15 million in higher adjusted EBITDA from Northland's operating facilities, primarily a full year of Grand Bend operations that commenced partway through 2016 and higher PPA price increase at Iroquois Falls.

The increases are expected to be offset by the following factors:

• $92 million in lower adjusted EBITDA due to the one-time lump-sum retroactive Global Adjustment Decision payments received from the OEFC in 2016;

• $46 to $47 million in lower adjusted EBITDA due to lower projected revenue following expiry of the PPA contract at the Kingston facility in January 2017; and

• $12 to $15 million in lower adjusted EBITDA due to potentially higher corporate and development expenditures related to the expanded scope of Northland's international development activities.

In 2018, once the construction of both offshore wind projects are completed and fully operational, excluding investment income from the subordinated debt, management expects Gemini and Nordsee One to generate adjusted EBITDA of EUR175 to EUR195 million and EUR160 to EUR180 million, respectively, reflecting Northland's equity interest of 60% and 85%, respectively.

In 2017, management expects the free cash flow per share to be in the range of $1.10 to $1.25 per share. This free cash flow per share guidance includes Northland's share of Gemini net pre-completion revenue in excess of the amount required by the project lenders to fund construction costs and operating income once the project reaches full operations which is expected in mid-2017 (EUR57 to EUR67 million at an assumed average exchange rate of CA$1.40/euro). It excludes the expected proceeds from the sale of 37.5% of Cochrane Solar projects that is subject to meeting certain conditions in 2017.

The 2017 free cash flow per share guidance is expected to be lower than the $1.40 per share in 2016 primarily due to the following factors:

• $95 million in lower free cash flow due to the one-time retroactive payments received from the OEFC in 2016 pursuant to the Global Adjustment Decision, as described previously;

• $46 to $47 million in lower free cash flow due to lower projected revenue following expiry of the PPA contract at the Kingston facility in January 2017 as described previously;

• $12 to $15 million in lower free cash flow due to potentially higher corporate and development expenditures related to the expanded scope of Northland's international development activities as described previously; and

• $1 to $2 million in lower free cash flow due to a one-time corporate credit amendment and refinancing fees and higher interest.

The decreases were partially offset by the following factors:

• EUR57 to EUR67 million in higher free cash flow from Northland's share of Gemini net pre-completion revenue in excess of the amount required by the project lenders to fund construction costs and Gemini operating income once the project reaches full operations which is expected in mid-2017 (at an assumed average exchange rate of CA$1.40/euro);

• $16 to $19 million in higher free cash flow from Northland's operating facilities due to higher adjusted EBITDA as described previously, combined with lower reserve funding, debt service and capital expenditures;

• $11 to $12 million in higher free cash flow from Northland's share of the first investment income receivable on the subordinated debt at Gemini following full operations; and

• An increase in the weighted average number of shares outstanding as a result of the additional shares issued through DRIP.

Nordsee One's net pre-completion revenue is excluded from the free cash flow calculation because the expected cash generated is primarily used to fund construction costs pursuant to the credit agreement.

Northland's Board and management are committed to maintaining the current monthly dividend of $0.09 per share ($1.08 per share on an annual basis). Northland's management and Board have anticipated the impact of growth and are confident that Northland has adequate access to funds to meet its dividend commitment, including operating cash flows, cash and cash equivalents on hand and, if necessary, use of its line of credit or external financing. Management expects to continue its DRIP to provide an additional source of liquidity.

Non-IFRS Measures
This press release includes references to Northland's free cash flow and adjusted EBITDA which are not measures prescribed by International Financial Reporting Standards (IFRS). Free cash flow and adjusted EBITDA, do not have any standardized meaning under IFRS and as presented, may not be comparable to similar measures presented by other companies. These measures should not be considered alternatives to net income, cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Northland's results of operations from management's perspective. Management believes that free cash flow and adjusted EBITDA are widely accepted financial indicators used by investors to assess the performance of a company and its ability to generate cash through operations.

Earnings Conference Call
Northland will hold an earnings conference call on February 24 at 10:00 am EST to discuss its 2016 annual financial results. John Brace, Northland's Chief Executive Officer, Paul Bradley, Northland's Chief Financial Officer and Mike Crawley, Northland's Executive Vice President, Business Development and will discuss the financial results and company developments before opening the call to questions from analysts and members of the media.

Conference call details are as follows:
Date: Friday, February 24, 2017
Start Time: 10:00 a.m. eastern standard time
Phone Number: Toll free within North America: 1-844-284-3434

For those unable to attend the live call, an audio recording will be available on Northland's website at (www.northlandpower.ca) from the afternoon of February 24 until March 18, 2017.

ABOUT NORTHLAND

Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce 'clean' (natural gas) and 'green' (wind, solar, and hydro) energy, providing sustainable long-term value to shareholders, stakeholders, and host communities.

The Company owns or has a net economic interest in 1,394 MW of operating generating capacity and 932 MW (642 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW offshore wind project, and an 85% equity stake in Nordsee One, a 332 MW offshore wind project, both located in the North Sea

Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.

Northland's common shares, Series 1, Series 2 and Series 3 preferred shares and Series B and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements which are provided for the purpose of presenting information about management's current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects," "anticipates," "plans," "believes," "estimates," "intends," "targets," "projects," "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would" and "could." These statements may include, without limitation, statements regarding future adjusted EBITDA, free cash flows, dividend payment and dividend payout ratios, the construction, completion, attainment of commercial operations, cost and output of development projects, the resolution of the arbitration or litigation claims, plans for raising capital, and the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of Northland and its subsidiaries. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management's current plans, its perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, construction risks, counterparty risks, operational risks, foreign exchange rates, regulatory risks, maritime risks for construction and operation, and the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the "Risks and Uncertainties" section of Northland's 2015 Annual Report and Annual Information Form, both of which can be found at www.sedar.com under Northland's profile and on Northland's website www.northlandpower.ca. Northland's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.

The forward-looking statements contained in this release are based on assumptions that were considered reasonable on February 23, 2017. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

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