Toronto, Ontario--(Newsfile Corp. - April 30, 2024) - UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in commercial and community solar, reported its financial results for the year ended December 31, 2023. UGE reports all amounts in US dollars. At the same time, within the Company's audited consolidated financial statements, the Company restated the comparative information as at and for the year ended December 31, 2022 as there had been an omission of leases that were not reported as either right-of-use assets or lease liabilities at December 31, 2022, as well as a computation error in calculating tax equity financing debt where carrying values were overstated at December 31, 2022. Refer to Note 23 of the audited consolidated financial statements for details of the restatement and its impact on previously issued financial statements as at and for the year ended December 31, 2022.

2023 was a high-growth year for UGE, as it doubled the size of its operational portfolio and achieved Notice to Proceed ("NTP") on 18.2MW of projects, a record for the Company.

Key financial results in Q4 2023 and for the year ended December 31, 2023 included:

• Ended the year with 4.8MW of operating assets that contributed $34.2K and $435.7K of energy generation revenue in the three and 12 months ended December 31, 2023. While the annual figure reflects an increase of 24% over the prior year, the quarterly figure declined 59% primarily because one system was offline due to ongoing repairs.

• While energy generation revenue increased, the Company realized total revenue of $143.4K and $1,210.2K, representing declines of 87% and 68% for the three- and 12-month periods, respectively, as compared to the same periods in 2022. This decline is associated with the run-off of the Company's legacy third party EPC contracts and its shift away from providing external engineering services.

• The net loss and adjusted net loss for the quarter was $4.1 MM, compared with $2.3 MM net loss and adjusted net loss for the same quarter of 2022, as a result of continued investment in developing UGE's project portfolio. The increase was driven by increased headcount, development, and financing expenses as the Company develops its growing portfolio.

• Cash used in operations for 2023 was $17.9MM versus $6.5M in 2022, and the cash balance at December 31, 2023 was $2.4 MM.

Key business highlights in Q4 2023 and for the year ended December 31, 2023:

• Throughout 2023 the Company reached commercial operation on 2.5MW of projects, including a 1.0MW project in Norway, Maine within the fourth quarter, which more than doubled the Company's operational portfolio from 2.3MW to 4.8MW.

• Within 2023 the Company reached NTP on 18.2MW of projects, a new record for the Company, and compared with 1.0MW of projects in 2022.

• Project backlog (Stages 3.1 - 5) was 324MW on December 31, 2023, compared to 343MW on September 30, 2023 and 260MW on December 31, 2022. The Company went through an extensive re-mapping exercise of its projects in late 2023, which allowed the Company to firm up project timelines and likelihoods which is represented in an updated Supplemental Disclosure file available on the Company's website.

"In 2023, UGE began to realize its vision as a develop-to-own IPP," said UGE's CEO, Nick Blitterswyk. "Crossing the chasm from our EPC past to our IPP future has not been easy, but with third-party revenue almost completely behind us, and our operational and in-construction portfolios growing quickly, we are heads-down on scaling our platform going forward."

Full financial results and Management's Discussion and Analysis are posted to SEDAR () as well as on the Company's website.

Online Webinar Details

UGE's CEO, Nick Blitterswyk, and CFO, Stephanie Bird, will be hosting a webinar to provide further analysis of the financial results and to answer your questions following the presentation. You can register for the webinar, below:

Date: April 30, 2024
Time: 11:00am EDT

UGE's Environmental, Social and Governance Report

UGE is also pleased to share that it has released its second Environmental, Social, and Governance (ESG) Report, covering calendar year 2023. The report was prepared using the Sustainability Accounting Standards Board (SASB) Solar Technology & Project Developers Sustainability Accounting Standard and was additionally informed by the Global Reporting Initiative (GRI) G4 and Task Force on Climate-related Financial Disclosures (TCFD) reporting frameworks. You can review UGE's 2023 ESG report here.

About UGE

UGE develops, owns, and operates commercial and community solar projects in the US and strategic markets abroad. Our distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500MW of global experience, we work daily to power a more sustainable world. Visit us at .

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

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 TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.