UGE Achieves Notice to Proceed Milestone for Second 1.4MW Solar Project in Smithville, Texas

Published

U.S. Department of Agriculture to Provide Grant of USD$1 Million for the Project

Toronto, Ontario--(Newsfile Corp. - February 28, 2024) - UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in commercial and community solar, announces that it has reached the 'Notice to Proceed' (NTP) milestone for a 1.4MW ground-mount solar project in Smithville, Texas. The NTP milestone indicates that financing for the project has closed and all necessary permits and interconnection approvals for the project are in place.

This is UGE's second solar project in the town of Smithville, Texas; the first ("Smithville 1"), which also totals 1.4MW, reached commercial operation in January of 2023. Both projects were part of an acquisition made by UGE that also includes a 5MW battery energy storage system ("BESS") which is currently under development.

As with the Smithville 1 project, energy produced by the Smithville 2 project will be sold to the City of Smithville under a Power Purchase Agreement ("PPA"), providing the town with cheaper, cleaner electricity.

"The new Smithville solar farm will reduce energy costs for our City while simultaneously lowering our carbon emissions," said Robert Tamble, Smithville City Manager. "We look forward to partnering with UGE in the future to bring additional renewable energy to our community."

Although there is not yet a community solar program in Texas, the market for clean energy in the state is robust, with municipalities and commercial customers routinely procuring large amounts of renewable energy. Additionally, ERCOT, the Independent System Operator (ISO) that controls approximately 75% of the grid in Texas, has well-developed rules for interconnection, making project development faster and easier in Texas than in many other states. UGE will continue to pursue more projects in Texas in 2024 and beyond.

Together UGE's two Smithville solar projects will generate over 5 million kilowatt hours of electricity each year, enough to power over 700 homes. Annually they will offset over 3,500 metric tons of CO2 emissions, the equivalent generated by burning about 415,000 gallons of gasoline.

UGE had the project appraised by an independent third party for a fair market value of USD$3.1 million or USD$2.22/Watt. UGE will receive a grant through the U.S. Department of Agriculture's Rural Energy for America Program ("REAP"), which supports energy efficiency and renewable energy in rural and agricultural areas of the United States. UGE's grant will total USD$1 million.

Having reached NTP, the Smithville 2 project will now enter deployment and construction - the final phase before reaching commercial operation. UGE has 8 projects totaling 17.3MW in this final development phase. Once complete, these projects will join UGE's operating portfolio, which currently stands at 5.6MW.

About UGE

UGE develops, owns, and operates community and commercial solar & battery storage projects. Our distributed energy solutions provide cheaper, cleaner energy to businesses and households throughout the United States. With over 500 megawatts of project experience, we're working daily to make renewable energy accessible and affordable for all. Visit us at www.ugei.com.

For more information, contact UGE at: investors@ugei.com or +1 (917) 720-5685.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, including project backlog, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The forward-looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such assumptions, risks and uncertainties include, without limitation, those associated with loss of markets, expected sales, future revenue recognition, the ability to secure appropriate sites, the effect of global and regional economic conditions, equipment supply and pricing, changes in electricity prices, delays and over runs in construction, delays in or inability to obtain permits, changes in laws and regulations and changes in how they are interpreted and enforced, changes in tax policies and incentive programs, the lack of qualified personnel or management, fluctuations in foreign exchange or interest rates, demand for the Company's services, and availability of capital and funding. The forward-looking information is made as of the date of this news release and the Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/199540

SOURCE UGE International Ltd.

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