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Subsequent Events
In January 2015, Northland announced the closing of a $157.5 million offering of Series C convertible unsecured subordinated debentures (including over-allotment).

In January 2015, Northland announced that its affiliate, Kirkland Lake Power Corp. (" Kirkland ") signed a new 20-year contract with the Ontario Power Authority ( OPA , now merged with the Independent Electricity System Operator, IESO ), for the 30 MW gas peaking portion of the facility. The existing peaking contract was due to expire in August 2015. The 42 MW Cochrane Power Corporation's (" Cochrane ") existing facility contract was extended to May 2015. However, negotiations for all non-utility generation facilities have been temporarily suspended due to a directive issued by the Ministry of Energy. Management is currently addressing this issue with the stakeholders.

In January 2015, Northland entered into an agreement with two First Nations groups which, once closed, will provide the First Nations with a combined 37.5% equity interest in the ground-mounted solar sites under construction. Closing of the sale is contingent on the achievement of certain conditions and receipt of third-party approvals.

In 2010, Northland was awarded 20-year power purchase agreements ( PPA s) for 13 individual 10 MW ground-mounted solar projects qualifying under the Green Energy Act 2009 (collectively, the " GMS Projects "). The 130 MW of GMS Projects were built or are being built in phases, and have all been financed. As of December 31, 2014, nine projects totaling 90 MW are completed and operating, and four projects totaling 40 MW remain under construction. These four projects, also known as the Ground-mounted Solar Phase III Projects, are all expected to be completed in 2015. The nine completed GMS Projects are all operating according to Northland's expectations.

In late December 2014, Northland terminated its engineering, procurement and construction ( EPC ) contract with H.B. White Canada Corp. (" White ") for default of White's obligations to construct the Ground-mounted Solar Phase III Projects. Northland subsequently retained Ganotec Inc., a subsidiary of Peter Kiewit Sons Co. Ltd., to assist with the completion of the projects. Northland previously used Peter Kiewit Sons Co. Ltd. to construct the Thorold and North Battleford facilities. Northland and Ganotec are in the process of estimating the costs to complete the projects. Northland does not expect the final GMS Project costs to exceed $775 million, which is approximately 12% higher than the $690 million originally estimated. This difference is largely attributable to potential increases in Ground-mounted Solar Phase III Projects from the $246 million previously disclosed, prior to cost recovery through legal claims against White and its U.S. parent, the potential benefit of force majeure claims in the related PPAs and prior to being able to fully explore cost mitigation strategies while completing the projects. The capital costs to complete the projects are expected to be funded through cash and credit resources on hand. Although the final returns for the Ground-mounted Solar Phase III Projects cannot be estimated at this time, the GMS Projects are expected to meet Northland's project return requirements.

In January 2015, Northland entered into an agreement to sell its 66.7% interest in the 24 MW advanced stage development wind project located in Frampton, Quebec. Completion of the sale is conditional on the achievement of certain conditions and receipt of third-party approvals.

Full Year 2014 Results - Summary
Sales and gross profit
Sales for 2014 at $760.1 million were $202.8 million higher than the previous year largely due to contributions from North Battleford, McLean's, the ground-mounted solar projects and Kirkland Lake and Cochrane. Sales and gross profit for 2014 were also favourably affected by natural gas resale margins in the first quarter.

Management and administration
Management and administration costs at $41.3 million were $8.2 million higher than the prior year largely due to the inclusion of Kirkland, Cochrane, CEEC, North Battleford, McLean's, the ground-mounted solar projects, Gemini and Nordsee, as well as higher corporate costs related to increased personnel and administrative costs.

Investment income
Investment income at $5.9 million was $5 million higher than 2013 primarily due a final dividend from Northland's Panda-Brandywine investment.

Finance costs, net
Net finance costs (primarily interest expense) at $122.1 million increased by $38.5 million from 2013 due to the inclusion of interest on North Battleford, McLean's and the ground-mounted solar projects debt; higher convertible debenture interest due to the issuance of the Series B convertible unsecured subordinated debentures (" 2019 Debentures ") in March 2014 and interest on the $250 million term facility.

Write-off of deferred development costs
The write-off of deferred development costs was $5.2 million higher than 2013 and associated with the Kabinakagami hydro project that no longer qualified for capitalization under Northland's deferred development policy.

Impairments and Write-downs
Impairments and write-downs at $40.1 million were $37.3 million higher than 2013 and relate to Northland's property, plant and equipment, contracts and other intangible assets, goodwill and Panda-Brandywine equity investment. It is generally anticipated that there will be annual goodwill impairments as future cash flows are realized.

Non-cash fair value losses
Non-cash fair value losses of $296 million (compared to a $133.7 million gain in 2013) comprised a $296.6 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, combined with a $0.6 million unrealized foreign exchange gain. 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. A significant portion ($248.7 million) of the 2014 non-cash fair value loss represents the consolidated marked-to-market adjustment on interest rate swaps entered into by Gemini. Northland's policy is to economically hedge interest rate and foreign exchange exposures where material.

Net income
The factors described above, combined with a $7.9 million provision for current taxes and a $63.4 million recovery of deferred taxes, resulted in a net loss for the year of $177.5 million, compared to a net income of $167 million in the previous year.

Adjusted EBITDA
Northland's 2014 consolidated adjusted EBITDA of $363.5 million was $100.2 million or 38% higher than the prior year and reflects a full year of contributions from North Battleford and the operations of McLean's and the ground-mounted solar projects, overall favourable results from Northland's other operating facilities, largely due to natural gas resales, higher investment income, interest on the subordinated loan to Project Gemini and performance incentive fees earned from Cochrane and Kirkland Lake. These favourable results were partially offset by increased corporate management and administration costs and the write-off of deferred development costs in the first quarter of 2014.

Free Cash Flow, Payout Ratio and Dividends to Shareholders
Free cash flow of $164.9 million was $34.7 million higher (27%) than in 2013; significant factors increasing and decreasing free cash flow in 2014 are described below.

Factors increasing free cash flow were:

• $84.9 million higher adjusted EBITDA from Northland's operating facilities, as previously discussed;

• $12.5 million increase in management fees from Kirkland Lake and Cochrane substantially due to achieving certain conditions which entitles Northland to share in Cochrane cash flows after all operating and financing expenses;

• $5.8 million release of funds previously set aside for future major maintenance that were either no longer required for Thorold or the steam turbine inspection and overhaul at Iroquois Falls; and

• $5.3 million increase in adjusted EBITDA generated from the final Panda dividend and interest earned on the loan to the equity partner at McLean's.

Factors decreasing free cash flow were:

• $34.9 million net interest expense increase related to the inclusion of North Battleford (operational in June 2013), McLean's (not operational in 2013) and Ground-mounted Solar Phase I and II debt (six Ground-mounted solar projects operational in 2013) and funds raised related to Northland's Project Gemini investment (Northland's term facility and the March 5, 2014 issuance of convertible unsecured subordinated debentures);

• $21.7 million increase in scheduled debt repayments as a result of including North Battleford and Ground-mounted Solar Phase I and II projects (no scheduled payments until December 2013);

• $5.8 million increase in corporate general and administration costs;

• $5.2 million write-off of deferred development costs;

• $2.6 million of fees related to the renewal and expansion of Northland's corporate credit facility;

• $1.3 million variance associated with milestone payments related to Kingston's gas turbine maintenance contract;

• $1.4 million (Northland's share) of overhead costs incurred at the Gemini and Nordsee projects; and

• $0.9 million increase in operations-related capital expenditures largely related to a steam turbine inspection/overhaul at Iroquois Falls. Funds were drawn from the reserve account to cover this expenditure.

For 2014, Northland's dividend payout ratio was 70% of free cash flow (95% excluding the effect of dividends reinvested through the DRIP) compared to 76% and 101%, respectively in 2013.

Fourth Quarter Results - Summary
Thermal facilities
Electricity production during the fourth quarter of 2014 was approximately 5% lower than the prior year due to fewer economic production periods and a 17-day planned outage at Thorold. Revenue and gross profit were consistent with the prior year as increases at North Battleford from higher production and improved gas turbine performance was offset by Thorold's lower results as discussed above. Operating expenses were higher than 2013 due to Thorold's 2014 maintenance outage and increased GE maintenance contract costs at North Battleford, which are tied to the facility's availability. As a result of the above factors, operating income and adjusted EBITDA were both $1.3 million lower than the prior year.

Renewable facilities
Electricity production and revenue during the fourth quarter of 2014 was higher than the prior year, largely due to the inclusion of McLean's ($6.9 million) and three additional ground-mounted solar facilities ($2.3 million), which offset lower production and revenue at Mont Louis and the German wind farms. Operating expenses were approximately $2 million higher than the prior year due to the inclusion of McLean's and the receipt of insurance proceeds by Mont Louis during 2013. Higher revenue, partially offset by increased operating expenses resulted in operating income and adjusted EBITDA during the quarter both exceeding the prior year by $1 million.

Management and administration costs
Management and administration costs were $2.9 million higher than the same period in 2013 largely due to the inclusion of McLean's, the ground-mounted solar projects, Gemini and Nordsee, as well as increased personnel related costs and increased development prospecting costs.

Finance costs , net
Net finance costs (primarily interest expense) increased by $6.7 million from 2013 due to the inclusion of interest on McLean's and the Ground-mounted Solar Phase I and II project debt, higher convertible debenture interest due to the issuance of the 2019 Debentures and interest on the $250 million term facility utilized for the Gemini Project.

Impairments
Non-cash impairments consisted of a $37 million impairment loss that relates to Northland's goodwill, property, plant and equipment and contracts.

Non-cash fair value losses
Non-cash fair value losses of $99.3 million (compared to a $0.2 million gain in 2013) consisted of a $98.7 million loss in the fair value of Northland's financial derivative contracts and $0.6 million in unrealized foreign exchange losses. The fair value loss of $81.5 million on the financial derivative contracts is associated with the interest rate swap contracts at Gemini.

The factors described above combined with a provision for $1.6 million of current taxes and a recovery of $43.9 million of deferred taxes resulted in net loss for the quarter of $70.4 million and adjusted EBITDA of $93.2 million. Adjusted EBITDA in the fourth quarter was also positively impacted by higher management and performance fees from Kirkland Lake and Cochrane and investment income earned on the subordinate loan to Project Gemini. Both of these items are eliminated upon consolidation, but are however included in adjusted EBITDA.

Free Cash Flow, Payout Ratio and Dividends to Shareholders
Fourth-quarter free cash flow at $41.1 million was $3.1 million higher than the same period last year. The factors affecting the quarter were: (i) the $10.2 million increase in adjusted EBITDA reduced by the $5.3 million of investment income from Gemini which will be included in free cash flow as received, (ii) $5.1 million reduction in funds previously set aside for future major maintenance; and (iii) $0.7 million of miscellaneous items including lower non-expansionary capital expenditures and funds set aside / scheduled debt repayments. Partially offsetting these favourable variances were; (i) a $5.4 million net interest expense increase, related to the inclusion of McLean's and Ground-mounted Solar Phase II projects (McLean's was not operational in 2013, while only Ground-mounted Solar Phase I entities were operational in 2013) and funds raised related to Northland's Project Gemini investment (Northland's term facility and the March 5, 2014 issuance of convertible unsecured debentures); and (ii) a $2.2 million unfavourable change in other liabilities associated with a milestone payment on North Battleford's GE service agreement.

For the three-month period ending December 31, 2014, common share and Class A Share dividends declared for the quarter totalled $0.27 per share. This is equivalent to a payout ratio of 71% compared to 72% in the same quarter last year (98% excluding the effect of dividends reinvested through the DRIP versus 94% in the fourth quarter of 2013).

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

In 2015, management continues to expect adjusted EBITDA of approximately $380 to $400 million based on the current completion schedules for Northland's projects with power contracts. Adjusted EBITDA was $363.5 million in 2014. The 2015 adjusted EBITDA expectation reflects the following changes over 2014:

• $14 to $18 million in additional adjusted EBITDA from a full year of McLean's and the Ground-mounted Solar Phase II projects because they were operational for only part of 2014;

• $3 to $11 million lower adjusted EBITDA from Northland's operating facilities primarily due to strong performance in 2014 at the thermal facilities from high natural gas prices in the first quarter of 2014 which is not expected for 2015 and better performance at the North Battleford facility;

• $8 to $10 million higher adjusted EBITDA from a full year of investment income on the Gemini junior debt facility which existed for only part of 2014;

• $5 to $9 million in additional adjusted EBITDA from the remaining four Ground-mounted Solar Phase III facilities once they reach commercial operations in 2015;

• $6 million lower adjusted EBITDA due to a one-time payment from Panda-Brandywine in 2014;

• $5 million higher adjusted EBITDA from a write-off of deferred development costs in 2014; and

• $2 to $4 million increase of adjusted EBITDA due to lower expected corporate management and administration costs.

Northland's 2015 dividend payments, on a total dividend basis, are expected to exceed free cash flow due largely to the level of spending on growth initiatives and payments of dividends and interest on capital raised for construction projects for which corresponding cash flows will not be received until the projects for which the capital is raised are completed. For 2015, management expects the cash dividends to be 75-85% of free cash flow, including the impact of reinvested dividends through the DRIP, and 100-115% of free cash flow excluding the impact of reinvested dividends through the DRIP (compared with 70% and 95%, respectively, in 2014). Free cash flow for 2015, includes $35.8 million of proceeds from the sale of 37.5% of four ground-mounted solar projects and the Frampton wind project which are expected to occur in 2015 upon meeting certain sale conditions. Prior to its expected capital raise for its investments in Nordsee and Grand Bend, management expected the dividend payout ratio to continue to be below 100% on a total dividend basis, based on the successful conclusion of a period of significant growth and capital expenditures for Northland. Due to the significant capital costs for Northland's investment in Nordsee and Grand Bend, additional corporate capital will be required in 2015 to fund the project, and as a result the payout ratio may exceed 100% until Gemini and Nordsee are completed in 2017. Northland has sufficient liquidity to bridge the payout of the current dividend in excess of free cash flow during this period. Management expects the payout ratio during Gemini's and Nordsee's construction to be significantly lower than during the growth period experienced by Northland from 2009 to 2014.

The 2015 payout ratio reflects the higher forecasted adjusted EBITDA as described previously, along with the following expected changes in free cash flows and dividend payments:

• $36 million in additional free cash flow expected from the sale of 37.5% equity interest in the remaining four Ground-mounted Phase III projects and the Frampton wind project;

• $20 to $30 million lower free cash flow from the current operating facilities due to lower adjusted EBITDA as described previously, combined with higher reserve funding and capital expenditures;

• $2 to $5 million in additional free cash flow from the McLean's and Ground-mounted Solar Phase II projects because they were operational for only part of 2014 as described previously;

• $6 million lower free cash flow from a one-time payment from Panda-Brandywine in 2014 as described previously;

• $5 million higher free cash flow from a write-off of deferred development costs in 2014 as described previously;

• $7 to $11 million lower free cash flow from other items, primarily higher corporate interest costs on recently issued convertible debentures and the Gemini term loan facility which was drawn for only part of 2014; and

• An increase in cash and share dividends as a result of the additional equity investment for Nordsee and Grand Bend.

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 on the payout ratio 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 19 at 1:00 pm EST to discuss its 2014 annual financial results. John Brace, Northland's Chief Executive Officer, Sean Durfy, Northland's President and Chief Development Officer and Paul Bradley, Northland's Chief Financial Officer 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: Thursday, February 19, 2015
Start Time : 1:00 p.m. eastern standard time
Phone Number : Toll free within North America: 1-800-920-4316 or Local: 416-981-9015

For those unable to attend the live call, an audio recording will be available on Northland's website at ( www.northlandpower.ca ) from the morning of February 20 until March 13, 2015.

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 1,345 MW of operating generating capacity; 640 MW (400 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore wind project in the North Sea near the Netherlands; and 456 MW (348 MW net to Northland) of projects with awarded power contracts under advanced development, including an 85% equity stake in Nordsee One. Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.

Northland's common shares, Series 1 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.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 the use of proceeds of the Offering and Private Placement, 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, 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 2014 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 18, 2015. 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.

Non-controlling interests (22,739 ) 8,111 (70,884 ) 15,885 Common shareholders (47,656 ) 13,897 (106,571 ) 151,134 (70,395 ) 22,008 (177,455 ) 167,019 Weighted average number of shares outstanding - basic 149,517 132,979 146,764 126,719 Weighted average number of shares outstanding - diluted 149,517 132,979 146,764 133,478 Net income (loss) per share - basic $(0.34 ) $0.08 $(0.82 ) $1.08 Net income (loss) per share - diluted $(0.34 ) $0.08 $(0.82 ) $1.03