Mr. Myke Clark reports

SOLAR ALLIANCE ACHIEVES FIRST PROFITABLE QUARTER IN COMPANY'S COMMERCIAL SOLAR HISTORY WITH $975,000 NET INCOME IN Q3

Solar Alliance Energy Inc. has filed its unaudited financial results for the three- and nine-month periods ended Sept. 30, 2023. The company's financial statements, and related management's discussion and analysis are available under the company's profile at SEDAR+.

"The third quarter of 2023 was transformative for Solar Alliance as we delivered net income of $975,000 through responsible growth in the U.S. commercial solar sector," said Myke Clark, chief executive officer. "Our strategic focus on larger, higher-margin commercial solar projects, combined with diligent cost control, has resulted in stronger gross margins and the first profitable quarter in the company's commercial solar history. Solar Alliance has been clear in our signal to the market that our key focus was targeting profitability, and we are pleased to have achieved this significant milestone in Q3.

"The combination of revenue to date, the contracted backlog of projects that is expected to be built before the end of the year and significant work-in-process support another strong year of growth. We have managed our contracted backlog, which is approximately $5.4-million, to a level that we feel allows rapid conversion to revenue while still maintaining our highest standards of execution. We remain committed to growing the company with an emphasis on profitability, and we believe our business plan and contracted backlog support this strategy," concluded Mr. Clark.

Financial highlights:

• Net income for the three months ended Sept. 30, 2023, of $975,712, compared with a net loss of $220,529 in the comparable prior-year period.
• Revenue for the three months ended Sept. 30, 2023, was $2,410,725 compared with $2,753,628 in the same period in 2022, reflecting the company's disciplined focus on larger, higher-margin projects in its construction pipeline.
• Cost of sales of $922,934 (Q3 2022: $2,185,366), resulting in a gross profit of $1,487,791 (Q3 2022: $568,262).
• Total expenses for the period were $600,316, a reduction from $1,240,250 in the comparable period in 2022, as the company continues to identify and implement overhead efficiencies.
• Cash balance of $400,923 as of Sept. 30, 2023.
• Contracted project backlog of approximately $5.4-million supports expected continued revenue growth into 2024.

Business highlights

Contracted project backlog of $5.4-million. The company continued to add to its backlog of contracted projects in Q3 2023. This solar project backlog provides a strong foundation for growth during the balance of 2023 and into 2024. The backlog has been driven by the transition to larger commercial solar system sales and is backed by several key projects:

• Construction commenced on a 565-kilowatt (kW) commercial solar project for a manufacturing client in Tennessee announced on May 31, 2023. The project is currently targeted for completion by the end of 2023.
• Construction commenced on an 872 kW solar project in Tennessee announced on Feb. 13, 2023, with a $1.8-million capital cost. Design and engineering on the project began in Q2 2023 with completion targeted by the end of 2023.
• Two projects, 250 kW and 299 kW, for a Tennessee client announced on July 10, 2023. The two projects, with a capital cost of $1.58-million, are scheduled to begin construction in Q4 2023 and are currently targeted for completion in Q1 2024.

Affiliate program launched: In support of the company's organic growth strategy in the southeastern United States, the company announced the launch of the Solar Alliance affiliate program on Sept. 12, 2023. The affiliate program provides independent sales organizations with access to branded marketing materials, design, engineering and installation management services. In return, the affiliates bring commercial solar opportunities to Solar Alliance. The affiliate program is initially focused on the southeastern U.S. market and has the potential to be expanded to additional regions in the U.S. Solar Alliance has signed the first affiliate agreement with Market Street Solar, a North Carolina-based company.

Large solar system sales: The company continues to target larger customers for third party solar system sales and installations, specifically for commercial and industrial customers. Solar Alliance's strategy is to design, engineer and install commercial solar systems ranging in size up to several megawatts.

Corporate growth opportunities: Solar Alliance continues to source and assess acquisition opportunities that meet the company's criteria of profitability, market opportunity and strong management teams. The company is also pursuing corporate opportunities to expand through partnerships, joint ventures or other initiatives.

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 two operating solar projects in New York and is 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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