<SEC-DOCUMENT>0001279569-22-000052.txt : 20220118
<SEC-HEADER>0001279569-22-000052.hdr.sgml : 20220118
<ACCEPTANCE-DATETIME>20220118085754
ACCESSION NUMBER:		0001279569-22-000052
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20220118
FILED AS OF DATE:		20220118
DATE AS OF CHANGE:		20220118

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRANSALTA CORP
		CENTRAL INDEX KEY:			0001144800
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15214
		FILM NUMBER:		22533753

	BUSINESS ADDRESS:	
		STREET 1:		110 12TH AVE SW BOX 1900 STATION M
		STREET 2:		CALGARY ALBERTA T2P 2MI
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P2M1
		BUSINESS PHONE:		403-267-4724

	MAIL ADDRESS:	
		STREET 1:		110-12TH AVENUE SW
		CITY:			CALGARY ALBERTA CANADA
		STATE:			A0
		ZIP:			T2P2M1
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>transalta6k.htm
<DESCRIPTION>FORM 6-K
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<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 10pt 0 0; text-align: center">UNITED STATES</P>

<P STYLE="font: bold 16pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><FONT STYLE="font-size: 14pt">SECURITIES
AND EXCHANGE COMMISSION<BR>
</FONT><FONT STYLE="font-size: 12pt">WASHINGTON, D.C. 20549 </FONT></P>

<P STYLE="font: bold 18pt Times New Roman, Times, Serif; margin: 10pt 0 6pt; text-align: center">FORM 6-K</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center">REPORT OF FOREIGN PRIVATE ISSUER<BR>
PURSUANT TO RULE&nbsp;13a-16 OR 15d-16<BR>
UNDER THE SECURITIES EXCHANGE ACT OF 1934</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: center"><B>For the month of January, 2022<BR>
Commission File Number 001-15214</B></P>

<P STYLE="font: bold 16pt Times New Roman, Times, Serif; margin: 10pt 0 6pt; text-align: center"><FONT STYLE="font-size: 20pt">TRANSALTA
CORPORATION<BR>
</FONT><FONT STYLE="font-size: 10pt; font-weight: normal">(Translation of registrant's name into English)</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: center"><B>110-12th Avenue S.W., Box 1900, Station &ldquo;M&rdquo;,
Calgary, Alberta, Canada, T2P 2M1</B><BR>
(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center"><FONT STYLE="font-weight: normal">Form&nbsp;20-F&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Form&nbsp;40-F&nbsp;<FONT STYLE="font-family: Wingdings">&#254;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(1). _____</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(7). _____</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: left">Signatures</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 24pt 0pt 0pt 3.5in"><B>TRANSALTA CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 24pt 0 0 3in"><B>&nbsp;</B></P>

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  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%">By:</TD>
    <TD STYLE="width: 87%; border-bottom: Black 1pt solid">/s/ Todd Stack</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name: Todd Stack</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title: Chief Financial Officer</TD></TR>
  </TABLE><BR STYLE="clear: both">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0">Date: January 18, 2022</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: center">EXHIBIT INDEX</P>

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    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 81%; padding-right: 5.4pt; padding-left: 5.4pt">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 1pt solid"><B>Description of Document</B></P></TD></TR>
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><A HREF="ex991.htm">99.1</A></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt/12pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><A HREF="ex991.htm">&ldquo;TransAlta Announces Outlook and Continuing Strong Cash Flow for 2022&rdquo;</A></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TYPE>EX-99.1
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<FILENAME>ex991.htm
<DESCRIPTION>NEWS RELEASE DATED JANUARY 18, 2022
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<P STYLE="margin: 0; text-align: right"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt"><B>Exhibit 99.1</B></FONT></P>

<P STYLE="margin: 0; text-align: right"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="margin: 0; text-align: right"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 24pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">TransAlta Announces Outlook and Continuing Strong
Cash Flow for 2022</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">CALGARY, AB, Jan. 18, 2022 /CNW/ - TransAlta Corporation
(&quot;TransAlta&quot; or the &quot;Company&quot;) (TSX: TA) (NYSE: TAC) announced today its financial outlook for 2022.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>Highlights</B></P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Comparable EBITDA range of $1.065 billion to $1.185 billion</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Free Cash Flow (&quot;FCF&quot;) range of $455 million to $555
million or FCF per share range of $1.68 to $2.05</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Sustaining capital range of $150 million to $170 million</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Continued delivery of TransAlta's Clean Electricity Growth Plan
by reaching final investment decision on 400 to 500 MW of additional clean energy projects across Alberta, the United States and Australia
to deliver $50 million to $70 million of incremental EBITDA</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">&quot;We are pleased to announce that our annual outlook
highlights continuing strong cash flow expectations for 2022. Our fleet remains well positioned to capture the ongoing strength we see
in the Alberta merchant market. We also remain focused on growth that creates value for our shareholders as we work to deliver on our
2 GW renewables growth target by 2025. In 2021, our team secured 600 MW of new renewables projects demonstrating our competitiveness and
capability to deliver our growth strategy across all our geographies,&quot; said John Kousinioris, President and Chief Executive Officer
of TransAlta.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">&quot;2022 marks our transition off coal in Canada.
With the completion of all our coal-to-gas conversions, and with our renewables growth plan well underway, we have adopted a more ambitious
target of 75 per cent emissions reduction over 2015 levels by 2026. We are also proud to be the first publicly-traded electricity company
in Canada to commit to setting a science-based emissions reduction target. We are excited for another great year of execution and ESG
performance for TransAlta,&quot; added Mr. Kousinioris.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>2022 Strategic Priorities<BR>
</B>In addition to meeting the financial targets set out in the outlook, the Company is focused on the following key priorities for 2022:</P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Continue execution of the Clean Electricity Growth Plan for 2022
to 2025 by reaching final investment decision on 400 to 500 MW of additional clean energy projects across Canada, the United States and
Australia</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Achieve commercial operation of the Garden Plain wind project
and Northern Goldfields solar and storage project in 2022</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Progress the construction of the White Rock wind facilities for
commercial operation in 2023</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Expand our development pipeline</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Recontract the Sarnia, Pingston and Upper Mamquam facilities</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Progress the rehabilitation of Kent Hills targeting a safe return
of the wind facility to full operations by 2023</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Maintain an effective response to COVID-19 and a safe return to
office</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>ESG Targets<BR>
</B>The Company has a comprehensive and ambitious set of environment, social, and governance (&quot;ESG&quot;) targets which supports
the long-term success of our business and highlights our ESG value proposition. These targets include:</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B><I>Environment</I></B></P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Achieve a company-wide reduction of greenhouse gases emissions
(&quot;GHG&quot;) of 75 per cent over 2015 levels by 2026</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Discontinue coal generation in the United States by the end of
2025</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Develop new renewable projects and power offerings that support
customer sustainability goals by delivering low cost, reliable and clean energy solutions</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B><I>Social</I></B></P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Achieve at least 40 per cent female employment among all employees
by 2030</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Maintain equal pay for women in equivalent roles as men</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Support equal access to all levels of education for youth and
Indigenous peoples through financial support and employment opportunities</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Provide Indigenous cultural awareness training to all TransAlta
employees by the end of 2023</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B><I>Governance</I></B></P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Achieve 50 per cent female representation on the board of directors
of the Company by 2030</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Maintain our position as a leader in integrated ESG disclosure</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>2022 Financial Outlook<BR>
</B>Comparable EBITDA is estimated&nbsp;to be between $1.065 billion to $1.185 billion. The midpoint of the range&nbsp;represents continued
strong performance compared to historical levels.&nbsp;The Company expects comparable EBITDA for 2022 to be impacted by a number of factors,
including:</P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Continuing strong merchant pricing levels in Alberta and the Pacific
Northwest though at a lowered target price range than 2021 for both regions. Lower year-over-year pricing in Alberta is expected to be
driven by fewer planned outages and the expected additions of new wind and solar supply including TransAlta's new Windrise wind facility
and Garden Plain wind facility, expected to achieve commercial operation in late 2022. Lower year-over-year pricing in the Pacific Northwest
will be impacted by natural gas prices and hydro generation</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Continuing outage of Kent Hills 1 and 2 with remediation efforts
for foundations expected to commence during the second quarter of 2022 with the aim of fully returning the wind facility to service by
the end of 2023</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Adjusted performance expectations from the Energy Marketing segment
due to exceptional performance achieved in 2021</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Full year of EBITDA contributions from the Windrise and North
Carolina solar asset additions</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">The Company expects sustaining capital to be in the
range of $150 million to $170 million. The midpoint for the range represents a 25 per cent decrease from the midpoint of the 2021 outlook.
This is driven by fewer planned maintenance outages at the thermal fleet in Alberta due to completion of gas conversions that occurred
in 2021, partially offset by increased sustaining capital expenditures at Sarnia for a planned major maintenance, as well as increased
dam safety and major maintenance across our Hydro fleet. The Kent Hills foundation rehabilitation capital expenditure has been segregated
from our sustaining capital range due to the extraordinary and rare nature of this expenditure. The initial estimate range for the rehabilitation
at Kent Hills is between $75 million to $100 million with approximately $40 million to $60 million estimated to be incurred in 2022.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">FCF is expected to be between $455 million and $555
million and excludes impact of rehabilitation capital expenditures required at Kent Hills. The midpoint of the range represents a 5 per
cent decrease from the 2021 outlook midpoint largely driven by lower Alberta power pricing, a return to normal performance from Energy
Marketing, and a step-up in mine reclamation expenditures, partially offset by the contribution from new assets and lower expected sustaining
capital.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">The following table summarizes and provides additional
details pertaining to our 2022 outlook:</P>

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  <TR STYLE="vertical-align: top">
    <TD STYLE="border: black 1pt solid; padding-right: 6pt; padding-left: 6pt">
    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0"><B>Measure</B></P>
    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0"><I>(millions)</I></P></TD>
    <TD STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt">
    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>2022 Target</B></P>
    <P STYLE="font: 9.5pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt">
    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>2021 Target</B></P>
    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>(as at Q3 2021)</B></P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Comparable EBITDA<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$1,065 to $1,185</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$1,200 to $1,300</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">FCF&nbsp;<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$455 to $555</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$500 to $560</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I><U></U></I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I><U>Range of key power price assumptions</U></I>:</P>

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    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0"><B>Market</B></P>
    <P STYLE="font: 9.5pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P></TD>
    <TD STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt">
    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>2022 Power Prices</B></P>
    <P STYLE="font: 9.5pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt">
    <P STYLE="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>2021 Power Prices </B></P>
    <P STYLE="font: 9.5pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Alberta Spot ($/MWh)</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$80 to $90</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$95 to $105</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Mid-C Spot ($/MWh)</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">US$45 to US$55</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">US$50 to US$60</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">AECO Gas Price ($/GJ)</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$3.60</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$3.45</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Alberta spot price sensitivity: a +/- $1/MWh change
in spot price is expected to have a +/- $10 million annualized impact on Comparable EBITDA.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I><U>Other assumptions relevant to 2022 financial
outlook (millions):</U></I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="border-right-style: inset; border-bottom-style: inset; border-left-style: inset; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-top: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Sustaining capital<SUP>(2)(3)</SUP></FONT></TD>
    <TD STYLE="border-top: black 1pt solid; font: 7.5pt Arial, Helvetica, Sans-Serif; border-bottom-style: inset; border-bottom-width: 1pt; border-right-style: inset; border-right-width: 1pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$150 to $170</FONT></TD></TR>
  <TR>
    <TD STYLE="border-right-style: inset; border-bottom-style: inset; border-left-style: inset; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; font: 7.5pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Energy marketing gross margin</FONT></TD>
    <TD STYLE="border-bottom-style: inset; border-bottom-width: 1pt; border-right-style: inset; border-right-width: 1pt; font: 7.5pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$95 to $115</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I><U></U></I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I><U>Alberta Hedging &ndash; assumptions full year
2022:</U></I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 7.5pt Arial, Helvetica, Sans-Serif; border-collapse: collapse">
  <TR>
    <TD STYLE="border-right-style: inset; border-bottom-style: inset; border-left-style: inset; border-right-width: 1pt; border-bottom-width: 1pt; border-left-width: 1pt; border-top: black 1pt solid"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Hedged production (GWh) <SUP>(4)</SUP></FONT></TD>
    <TD STYLE="border-top: black 1pt solid; border-bottom-style: inset; border-bottom-width: 1pt; border-right-style: inset; border-right-width: 1pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">6,278</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Hedge price ($/MWh)</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$75</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Hedged gas volumes (GJ) <SUP>(5)</SUP></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">50 million</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Hedge gas price ($/GJ)</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">$2.75</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 7.5pt Arial, Helvetica, Sans-Serif">
  <TR>
    <TD STYLE="vertical-align: top; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">(1)</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">These items are not defined under IFRS. Presenting these items provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods' results. Refer to the Free Cash Flow, Discussion of Segmented Comparable Results, and Earnings and Other Measures on a Comparable Basis sections of TransAlta's 2021 third quarter management discussion and analysis for additional information.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">(2)</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Excludes payments associated with finance leases.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">(3)</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Excludes Kent Hills rehabilitation capital.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">(4)</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Represents approximately 75 per cent of expected Alberta thermal production.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; padding-right: 6pt; padding-left: 6pt; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">(5)</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt">Represents approximately 55 per cent of expected Alberta thermal fuel requirements.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>Segmented Financial Reporting<BR>
</B>During the fourth quarter of 2021, the Company changed its segmented reporting disclosures to align with the Company's Clean Electricity
Growth Plan. The segment reporting changes reflect a corresponding change in how management and the Chief Executive Officer assess the
performance of the Company. The Company's revised segmentation will take effect with its year-end annual report as follows:</P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Elimination of the Alberta Thermal and Centralia segments</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">Reorganization of the North American Gas and Australia Gas segment
into a new &quot;Gas&quot; segment</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">The Alberta Thermal facilities that have been converted to gas
will be included in the redefined &quot;Gas&quot; segment. This will include the off-coal agreement with the Province of Alberta</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">The legacy coal assets (not converted to gas) previously included
in Alberta Thermal, the Centralia facility, Centralia mine and the Highvale mine will be included in a new &quot;Energy Transition&quot;
segment</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">No changes will be made to the Hydro, Wind and Solar or Energy
Marketing segments.</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">The new segments to be reported in our year-end financial
report are summarized as follows: Hydro, Wind and Solar, Gas, Energy Transition, Energy Marketing, and Corporate.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">The full details of the approved ESG targets are now
available at www.transalta.com/sustainability<U>.</U>&nbsp;More information in regard to ESG targets and the Company's ESG performance
will be included in the Company's integrated annual report for the year-ended December 31, 2021.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B><I>About TransAlta Corporation: </I></B></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I>TransAlta owns, operates and develops a diverse
fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta
provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy-efficient and reliable
power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of hydroelectric power. For
over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns
its corporate goals with the <U>UN Sustainable Development Goals</U>.</I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I>For more information about TransAlta, visit our
web site at <U>transalta.com</U>.</I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B><I>Cautionary Statement Regarding Forward-looking
Information<BR>
</I></B><I>This news release contains &quot;forward-looking information&quot;, within the meaning of applicable Canadian securities laws,
and &quot;forward-looking statements&quot;, within the meaning of applicable United States securities laws, including the United States
Private Securities Litigation Reform Act of 1995 (collectively referred to herein as &quot;forward-looking statements&quot;). In some
cases, forward-looking statements can be identified by terminology such as &quot;plan&quot;, &quot;expected&quot;, &quot;estimated&quot;,
&quot;will&quot;, &quot;continue&quot;, &quot;goal&quot;, &quot;target&quot; and similar expressions suggesting future events or future
performance. In particular, this news release contains, without limitation, statements pertaining to: the Company's financial outlooks
for 2022, including Comparable EBITDA, free cash flow, energy marketing gross margin, and sustaining capital; the sensitivity of Comparable
EBITDA to Alberta spot prices; &nbsp;TransAlta's Clean Electricity Growth Plan, and associated incremental EBITDA; extent of emission
reductions and ability to achieve other ESG targets in 2022 and beyond; achieving final investment decisions on 400 to 500 MW of additional
development projects across Canada, the United States and Australia; achieving commercial operation of the Garden Plain wind project and
Northern Goldfields solar and storage project in 2022; achieving commercial operation for the White Rock wind facilities in 2023; expand
the development pipeline; recontracting &nbsp;each of Sarnia, Pingston and Upper Mamquam; and progressing the rehabilitation of Kent Hills
to safely return the wind facility back to full operation by 2023, and the cost thereof.&nbsp; The forward-looking statements contained
in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Company's experience
and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating
to: the Company's 2022 Alberta hedge price for volume and production of gas and power, respectively; the Alberta and Mid-C spot price;
the AECO gas price; that pricing in Alberta will be driven by fewer planned outages and the expected additions of new wind and solar supply;
the regulatory environment; and the extent of regulations pertaining to COVID-19 not becoming significantly more onerous and current conditions
and expected future developments.&nbsp; These statements are subject to a number of risks and uncertainties that may cause actual results
to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences
include: operational risks involving our facilities; construction risks, including as it pertains to the supply of equipment and labour
availability; changes in market prices where we operate; unplanned outages at generating facilities and the capital investments required;
equipment failure and our ability to carry out repairs in a cost effective and timely manner; the effects of weather, catastrophes and
public health crises; disruptions in the source of thermal fuels, water, solar or wind required to operate our facilities, including the
necessary natural gas supply to support the conversion of the coal units; energy trading risks; failure to obtain necessary regulatory
approvals in a timely fashion, or at all; negative impact to our credit ratings; legislative or regulatory developments and their impacts;
increasingly stringent environmental requirements and their impacts; increased competition; global capital markets activity (including
our ability to access financing at a reasonable cost); changes in prevailing interest rates; currency exchange rates; inflation levels
and commodity prices; general economic conditions in the geographic areas where TransAlta operates; disputes or claims involving TransAlta
or TransAlta Renewables; and other risks and uncertainties discussed in the Company's materials filed with the securities regulatory authorities
from time to time and as also set forth in the Company's MD&amp;A and Annual Information Form for the year ended&nbsp;December 31, 2020.&nbsp;
Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta's expectations only as
of the date of this news release. The purpose of the financial outlooks contained in this news release are to give the reader information
about management's current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes
and is given as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking
statements, whether as a result of new information, future events or otherwise, except as required by law.</I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B><I>Non-IFRS Measures<BR>
</I></B><I>This news release contains references to financial measures that are calculated and presented using methodologies other than
in accordance with International Financial Reporting Standards (&quot;IFRS&quot;), as issued by the International Accounting Standards
Board, including EBITDA, and such measures may not be comparable to similar measures presented by other entities. These non-IFRS measures
should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Certain additional disclosures
for these non-IFRS financial measures have been incorporated by reference and can be found under the &quot;Additional IFRS Measures and
Non-IFRS Measures&quot; and under the &quot;Reconciliation of Non-IFRS Measures&quot; sections of TransAlta's Management's Discussion
and Analysis for the nine months ended September 30, 2021, available on SEDAR at www.sedar.com, on the U.S. Securities and Exchange Commission
website at www.sec.gov, and on TransAlta's website under the Investor Centre section. TransAlta utilizes these measures in managing the
business, including for performance measurement, capital allocation and valuation purposes and believes that providing these performance
measures on a supplemental basis to its IFRS results is helpful to investors in assessing the overall performance of TransAlta's businesses.
TransAlta cautions readers that these non-IFRS financial measures or other financial metrics may differ from the calculations disclosed
by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.</I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Note: All financial figures are in Canadian dollars
unless otherwise indicated.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">View original content:https://www.prnewswire.com/news-releases/transalta-announces-outlook-and-continuing-strong-cash-flow-for-2022-301462637.html</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">SOURCE TransAlta Corporation</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">View original content: http://www.newswire.ca/en/releases/archive/January2022/18/c6177.html</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">%CIK: 0001144800</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0"><B>For further information: </B>Investor Inquiries: Phone: 1-800-387-3598
in Canada and U.S, Email: investor_relations@transalta.com; Media Inquiries, Phone: 1-855-255-9184, Email: ta_media_relations@transalta.com</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">CO: TransAlta Corporation</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">CNW 07:00e 18-JAN-22</P>
<P STYLE="margin: 0; text-align: right"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 24pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"></P>

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