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NORTH AMERICAN CONSTRUCTION GROUP News Release North American Construction Group Ltd. Announces Results for the Second Quarter Ended June 30 , 2021 ACHESON , Alberta , July 28 , 2021 - North American Construction Group Ltd. ( " NACG " ) ( TSX : NOA / NYSE : NOA ) today announced results for the second quarter ended June 30 , 2021. Unless otherwise indicated , financial figures are expressed in Canadian dollars , and comparisons are to the prior period ended June 30 , 2020 . Second Quarter 2021 Highlights : • • • • • • Adjusted EBITDA of $ 42.4 million was 33 % higher than prior year adjusted EBITDA of $ 31.9 million reflecting improved operating conditions from the prior year , consistently increasing demand for our heavy equipment fleet and a step change in scope being completed by the Nuna Group of Companies ( " Nuna " ) . Gross profit margin of 10.9 % primarily reflected the impacts of COVID - 19 in the Fort McMurray region in early Q2 and equipment maintenance backlog completed in the quarter following a particularly busy winter season . Free cash flow ( " FCF " ) in the quarter of $ 6.1 million was generated from strong adjusted EBITDA but was temporarily impacted by the timing related to a variety of non - cash and joint venture balances . Senior debt was $ 264.4 million as at June 30 , 2021 , a decrease of $ 88.9 million from the December 31 , 2020 balance as proceeds from newly issued debentures were used to reduce senior debt . On June 1 , 2021 we closed an offering of 5.50 % convertible debentures for aggregate gross proceeds of $ 74.8 million . The issuance offers stability as it provides additional liquidity for our strong bid pipeline . On June 9 , 2021 we announced the acquisition of DGI Trading Pty Ltd. , an Australian component supplier for an estimated purchase price of $ 23.5 million and the transaction closed on July 1 , 2021. The acquisition acts as a low risk , accretive purchase and provides vertical integration to our capital maintenance program . On June 21 , 2021 , along with our partners Acciona and Shikun & Binui , we announced the award of Fargo- Moorhead flood diversion project in the United States . NACG's share of the project revenue will be approximately $ 650 million over the life of contract . This award marks the largest infrastructure project in our history and underlines the significant earth works and construction expertise that we brought to the bid process . During the quarter , we established a project team and hired external engineering and technical experts to commence feasibility studies for the blending of hydrogen and diesel fuels in high horsepower combustion engines . Among other objectives , the team will work to establish support through hydrogen producers , equipment suppliers and Alberta industry groups for evaluating hydrogen supply and distribution . NACG President and CEO , Joseph Lambert , commented : " Q2 2021 was an eventful quarter and I'm extremely proud of our operating team's performance particularly in light of a difficult third wave of COVID - 19 in the Fort McMurray region . Being the successful proponent of the Fargo - Moorhead project was a major highlight of the quarter and I congratulate the entire team that was involved . The successful ramp - up at the Ontario gold mine as well as the acquisition of DGI Trading are significant advances in our strategy to diversify our business . That said , the resumption of work at Fort Hills and the contract amendment recently secured with oil sands producers illustrates the strength of this region and we remain totally committed to serving these customers . These recent achievements over the past few months will primarily impact 2022 and therefore our outlook for the remainder of 2021 remains generally consistent with what was disclosed in April . We have tightened the ranges while still allowing for inherent risks of schedule changes and weather . "