CALGARY, January 22, 2021 – ARENCO ENERGY USA LTD. (“Elbow River” or “the Company”) announced that effective January 22, 2021, it has entered into a definitive agreement ("the Agreement") with Plains LPG Services, L.P. (“Plains”) relating to the acquisition of propane terminals (“the Terminals”) in Hankinson, North Dakota and Owen, Wisconsin. The Agreement includes all assets and inventory at both locations including over 1 million gallons of above-ground storage, 105 million gallons of annual throughput capacity as well as rail offloading and truck loading infrastructure at each facility. Elbow River will take over operatorship of the Terminals upon closing of the Agreement.

“This LPG acquisition begins a new era of asset ownership for our company” said Craig Clark, President of Elbow River. “The company will use these assets, as well as our other marketing locations in Barron, WI, Keenan, MN and Cordova, IL, as an opportunity to safely and cost-effectively bring reliable propane supply to the United States Midwest. We look forward to enhancing the supply opportunities for all Elbow River customers now and for the foreseeable future”.

Elbow River will exclusively supply and market propane at the Terminals utilizing its existing railcar fleet and expansive market knowledge.

All inquiries regarding this or other Elbow River operations should be directed by email to info@elbowriver.com or by phone at 403-232-6868

CN has announced that a tentative agreement has been reached with the union representing 3,200 CN conductors and yard crews, who have been on strike since November 19, 2019. The agreement allows for the affected employees to return to work later today and for rail yard assignments to start at 6:00 AM on Wednesday, November 27, 2019.

CN has informed us that, despite an agreement being reached with the union, service delays will persist until the surge of backlogged traffic works its way through the rail network.

During these service delays, ARENCO ENERGY will attempt to minimize any supply disruptions. We truly regret any inconvenience the CN strike has caused and look forward to returning to normal operations in the near future.

Should you have any questions, please contact your ARENCO ENERGY representative at your earliest convenience.

Sincerely,

ARENCO ENERGY Ltd.

As of 12:01 AM on November 19, the Teamsters Canadian Rail Conference (TCRC), which represents approximately 3,200 CN employees working as train conductors and railyard coordinators in Canada, initiated a strike action. As a result of this action, CN has informed us that they are unable continue normal rail operations at this time.

While we are hopeful that CN and the TCRC will come to a prompt settlement we must all prepare for the possibility of a protracted disruption of service. While in effect, this strike action may significantly disrupt ARENCO ENERGY’s ability to deliver products to all destinations along our network. Some product allocation is likely until such time as CN rail operations return to normal.

We are truly appreciative for your business and are continuing to look for alternatives to serve you better during this disruption of service. Should you have any questions, please contact your ARENCO ENERGY representative at your earliest convenience.

Thank you for your patience and understanding as we work towards a rapid return to normal operations.

Sincerely,

ARENCO ENERGY Ltd.

"We are excited to expand our existing LPG presence in the United States Midwest" said Craig Clark, President of Elbow River. "The company will continue to lever its existing relationships to safely and cost-effectively bring reliable propane supply to the region. We look forward to enhancing the supply opportunities of all Elbow River customers both old and new alike for many years to come."