HALIFAX, NS, December 14, 2022 – Chorus Aviation Inc. ("Chorus") (TSX: CHR) today announced that it will redeem the remaining $115,000,000 principal amount of Chorus' 6.00% Senior Debentures due December 31, 2024 (the "Debentures"), representing all of the Debentures currently outstanding. The redemption is expected to close on or about December 30, 2022.

The Debentures will be redeemed at par (being $1,000 for each $1,000 principal amount of Debentures), plus accrued and unpaid interest until but excluding the redemption date. The Debentures are secured by certain Dash 8-100 and Dash 8-300 aircraft and real estate property owned by Chorus' subsidiaries (the "Collateral Security"). The Collateral Security will be released following the redemption of the Debentures.

In connection with the issuance of the Debentures, Chorus issued 24,242,424.242 warrants to affiliates of Fairfax Financial Holdings Limited ("Fairfax") entitling the holder thereof to acquire, on exercise of each warrant and subject to certain adjustments, one Class A Variable Voting Share or Class B Voting Share of Chorus at a price of $8.25 per share (the "Warrants"). The Warrants will automatically expire upon the redemption of the Debentures.

The redemption will be funded using the net proceeds from a recently-completed sale of two wholly-owned aircraft by its subsidiary, Falko Regional Aircraft ("Falko"), as well as Chorus' available cash resources. The sale of the two aircraft, which were previously on lease, generated net proceeds of approximately US $53.5 million. Joe Randell, President and Chief Executive Officer, Chorus stated "The sale of these aircraft demonstrates Falko's ability to generate cash flows from trading while enabling a reduction in Chorus' debt and associated leverage. We will continue to look for opportunistic aircraft sale transactions that advance our transition to an asset-light leasing business and enhance shareholder value."

The redemption of the Debentures and the aircraft sales referenced in this news release are not expected to materially change the financial forecast set out in the Outlook section of Chorus’ news release dated November 9, 2022.