Mr. Myke Clark reports

SOLAR ALLIANCE PROVIDES UPDATE ON CANADIAN SOLAR ACQUISITION, EXTENDS EXCLUSIVITY PERIOD AS DUE DILIGENCE CONTINUES

Solar Alliance Energy Inc. has provided an update on the letter of intent (LOI) the company entered into on May 16, 2023, to acquire a growing, profitable Canadian solar company (the target) in a predominantly share-based transaction. The target is a Western Canadian leader in solar for commercial and utility customers, with more than 33 megawatts of commercial and utility solar projects installed.

The company is pleased to provide an update of the target's revenue and contracted project backlog. At the time of the signing of the LOI on May 16, 2023, the target reported year-to-date unaudited 2023 fiscal year (July 31, 2023, year-end) revenue of $5,801,023. The target's current year-to-date unaudited 2023 fiscal year (July 31, 2023, year-end) revenue is $6,977,528.

At the time of the LOI execution date, the target had a backlog of contracted projects totalling more than $5.6-million. The target's updated backlog of contracted projects is now $5.2-million.

The company and the target have entered into an amendment agreement dated July 19, 2023, to amend the LOI by extending the exclusivity period for an additional 30 days. The exclusivity period is now 120 days from the LOI execution date. In consideration of the increased unaudited revenue reported by the target, the amendment also adjusts the number of warrants issuable upon closing of the transaction. One common share purchase warrant will now be issued for each common share of the company issued. Each warrant will entitle the target to purchase one common share at an exercise price equal to the lesser of 20 cents or the exercise price of warrants of the company to be issued in any financing undertaken by Solar Alliance in connection with the transaction.

The total consideration of $6-million, represented by: (a) a cash payment of $500,000; (b) an unsecured convertible debenture of $700,000; and (c) the issuance of units of the company valued at $4.8-million, with each unit comprising one common share and one warrant, all remain unchanged except as described above. Further details on the LOI are described in the company's news release dated May 18, 2023.

"Extending the exclusivity period for this letter of intent is a reflection of the progress we are making as we continue due diligence," said chief executive officer Myke Clark. "The updated financial results from the target are encouraging and only strengthen our desire to enter into a binding definitive agreement. The amendment represents a reasonable adjustment to the total consideration while still providing for a highly accretive acquisition opportunity."

Closing of the transaction remains subject to a number of conditions, including satisfactory completion of due diligence, the execution of a binding definitive agreement, shareholder approval and the approval of the TSX Venture Exchange.

About Solar Alliance Energy Inc.

Solar Alliance is an energy solutions provider focused on the commercial, utility and community solar sectors. Its experienced team of solar professionals reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions. Solar Alliance's strategy is to build, own and operate its own solar assets while also generating stable revenue through the sale and installation of solar projects to commercial and utility customers. The company currently owns a 33-per-cent interest in two operating solar projects in New York and actively pursuing opportunities to grow its ownership pipeline. The technical and operational synergies from this combined business model support sustained growth across the solar project value chain from design, engineering, installation, ownership and operations/maintenance.

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