HispanicBusiness

In 2012, revenue was up 4% compared to 2011, primarily due to improved performance at the majority of our facilities. Growth at our oilfield facilities was driven by a shift to higher oil content waste derived from production related activities and increased recovered crude oil from the optimization of a facility commissioned in 2011. Growth in oil recycling was driven by market diversification initiatives which resulted in a shift to higher margin product lines. This was tempered by the impact of the lower value received for our products and the decrease in drilling activity.

                    Three months ended                  Year ended                          December 31,                December 31,                         2012     2011 % change      2012     2011 % change----------------------------------------------------------------------------Waste processing volumes ('000 m3)        126      159      (21)      487      545      (11)Recovered crude oil ('000 bbl)(1)             76       65       17       267      230       16Average crude oil price received (CDN$/bbl)             76.84    92.37      (17)    79.70    88.09      (10)Recovered crude oil sales ($ millions)       5.9      6.0       (2)     21.3     20.3        5Edmonton par price (CDN$/bbl)(2)          84.05    97.26      (14)    86.16    94.88       (9)----------------------------------------------------------------------------

(1) Represents the total crude oil recovered and sold for our account.

(2) Edmonton par is an industry benchmark for conventional crude oil.

Recovered Crude - Western Facilities (in '000 bbl): http://media3.marketwire.com/docs/213nal_graphs.pdf

Eastern Facilities

Eastern Facilities is comprised of facilities in Ontario, Quebec and Atlantic Canada, and includes an engineered non-hazardous solid waste landfill located in Stoney Creek, Ontario. Eastern revenue is primarily derived from:

--  the processing of industrial wastes, including collection, treatment and    disposal; and--  Stoney Creek Landfill ("SCL"), an engineered non-hazardous solid waste    landfill with an annual permitted capacity of 750,000 MT of waste per    year.

Eastern Facilities draws its revenue from the following industries in eastern Canada and the bordering U.S. states: automotive; construction; forestry; manufacturing; mining; oil and gas; petrochemical; pulp and paper; refining; steel; and transportation service. The broad customer and industry base helps to diversify risk; however, the state of the economy as a whole will affect these industries. In addition, Eastern Facilities is sensitive to changing environmental regulations regarding waste treatment and disposal. Management is not aware of any new environmental regulatory reviews underway that are expected to have a material effect on Newalta and, regardless, we tend to have a positive bias to change in environmental regulations.

In Q4 2012, volumes at SCL were up 11% from Q4 2011. Excluding SCL, Eastern Facilities revenue was relatively flat year-over-year.

Compared to 2011, Eastern Facilities revenue decreased 4% for the year. Excluding SCL, Eastern processing facilities improved 6% over prior year as a result of improved demand for our services. Volumes received at SCL in 2012 were at the maximum permitted capacity. In 2011, we received a one-time contingency to continue to receive materials beyond the annual permitted volume from the Ontario Ministry of the Environment.

                     Three months ended                 Year ended                           December 31,               December 31,                          2012     2011 % change     2012     2011 % change----------------------------------------------------------------------------SCL Volume Collected ('000 MT)               228.3    205.7       11    750.0    874.3      (14)----------------------------------------------------------------------------