News Release

Capstone Infrastructure Corporation Announces Appointment of David Eva as Chief Executive Officer and Director

TORONTO, ONTARIO--(Marketwired - Jan. 3, 2017) - Capstone Infrastructure Corporation ("Capstone" or the "Corporation") (TSX:CSE.PR.A) is pleased to announce the appointment of David Eva as Chief Executive Officer and as a member of the Board of Directors, effective January 1, 2017.

Mr. Eva brings over a decade of experience in the power industry and is well positioned to lead the business as Capstone re-focuses as a pure-play Independent Power Producer in Canada. Mr. Eva has held progressively senior roles in the industry, most recently as Senior Vice President of Development with Capstone and Chief Executive Officer of Capstone Power Corp., a subsidiary of the Corporation. Mr. Eva is a member in good standing with Professional Engineers Ontario and the CFA Institute.

Paul Malan, Senior Partner of iCON Infrastructure LLP, has stepped down as Executive Chair of Capstone. Mr. Malan will remain as Chair of the Board of Directors of the Corporation.

ABOUT CAPSTONE INFRASTRUCTURE CORPORATION

Capstone owns Capstone Power Corp. (100% ownership), which owns, operates and develops thermal and renewable power generation facilities in Canada with a total installed capacity of net 505 megawatts, and Capstone also has a shareholding in Värmevärden (33.3% ownership), a district heating business in Sweden. Please visit www.capstoneinfrastructure.com for more information.

NOTICE TO READERS

Certain of the statements contained within this document are forward-looking and reflect management's expectations regarding the future growth, results of operations, performance and business of the Corporation based on information currently available to the Corporation. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "intend", "estimate", "plan", "believe" or other similar words.

These statements are subject to known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results. The forward-looking statements within this document are based on information currently available and what the Corporation currently believes are reasonable assumptions. The forward-looking statements within this document reflect current expectations of the Corporation as at the date of this document and speak only as at the date of this document. Except as may be required by applicable law, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

This document is not an offer or invitation for the subscription or purchase of or a recommendation of securities. It does not take into account the investment objectives, financial situation and particular needs of any investors. Before making an investment in the Corporation, an investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment adviser if necessary.