Mr. Richard Keiser of Common Energy reports

UGE ACHIEVES NOTICE TO PROCEED MILESTONE FOR 2.7 MW COMMUNITY SOLAR PROJECT IN OAKLAND, MARYLAND

UGE International Ltd. has reached the notice to proceed (NTP) milestone for a second ground-mount solar project in Oakland, Md., the first of which was announced last month. The notice to proceed milestone indicates that financing for the project has closed, and all necessary permits and interconnection approvals for the project are in place.

The new 2.7-megawatt community solar project will be built adjacent to a family farm, on a piece of land unsuitable for farming due to its history as a limestone mine. By hosting the project, the family will earn long-term lease revenue on a piece of their property that would otherwise lay fallow. The project will generate enough clean energy to power more than 650 homes, while offsetting roughly 3,500 metric tonnes of carbon dioxide emissions each year.

Subscribers to the Oakland community solar project will save a minimum of 10 per cent on their electricity bills. As electricity rates continue to rise across the country, these savings become increasingly meaningful for Americans looking for ways to save money in today's inflationary environment.

The Oakland community solar project will join UGE's low-to-moderate income (LMI) program, meaning that at least 30 per cent of the energy generated by the project will be reserved for LMI households. Strengthening renewable energy equity is one of UGE's guiding goals; the company's stated target is for more than 25 per cent of the offtake from its operational portfolio to serve LMI households by 2026.

Subscription to the project will be managed by Common Energy. "We are proud to partner with UGE to enable more clean energy in Maryland," said Richard Keiser, Common Energy's founder and chief executive officer. "We are particularly pleased that these projects will create meaningful savings for low-income families in the community."

Anticipating the launch of Maryland's new community solar program, which was passed by the general assembly last week, UGE has more than 13 megawatts of projects under development in the state. The new program, a permanent replacement for the state's pilot community solar program, is designed to be less restrictive for developers and more accessible for all Marylanders, with a requirement that all projects dedicate 40 per cent of their solar generation to LMI subscribers.

Once operational, the project is estimated to produce an average of $460,000 in annual revenue, with a total program life of 20 years. The company currently expects average recurring revenue to carry gross margins at or around 85 per cent. With this project, UGE has reached NTP on 12.7 megawatts of projects and commercial operation on 1.4 megawatts of projects so far this year. Construction on the Oakland project is set to begin this spring.

Grant of performance share units to officers

On April 19, 2023, the company's board of directors granted a total of 441,000 performance share units (PSUs) to the officers of the company. These PSUs vest no earlier than April 19, 2024, and shares in the company are awarded on the basis of meeting certain performance metrics associated with fiscal years 2023, 2024 and 2025. Performance metrics have been established such that the number of shares awarded can range from zero to 661,500.

About UGE International Ltd.

UGE develops, owns and operates commercial and community solar projects in the United States and strategic markets abroad. Its distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500 megawatts of global experience, UGE works daily to power a more sustainable world.

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