Mr. Nick Blitterswyk reports

UGE ACHIEVES NOTICE TO PROCEED MILESTONE FOR 548-KILOWATT ROOFTOP COMMUNITY SOLAR PROJECT ON STATEN ISLAND

UGE International Ltd. has reached the notice to proceed (NTP) milestone for a 548-kilowatt (kW) rooftop solar project on Staten Island, New York. 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.

UGE's latest community solar project will be built atop Expressway Plaza, a shopping centre on Staten Island. At just over half a megawatt (MW), the project will offset roughly 700 metric tons of CO2 (carbon dioxide) emissions each year and will produce enough electricity to power approximately 140 homes.

Subscribers to the Expressway Plaza 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 Expressway Plaza 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.

Expressway Plaza, where the project will be built, is owned by Feldco, an East Coast-focused real estate developer.

"Feldco is a family owned and operated business committed to sustainable construction and forging long-term relationships with the communities in which we operate," said Greg Feldman, partner and vice-president at Feldco. "By becoming a community solar host with UGE, we are advancing those commitments by providing energy cost savings and a source of clean energy to the community surrounding Expressway Plaza."

Feldco will receive long-term lease payments in exchange for hosting the project. In addition, UGE covered the cost of a needed roof replacement on Expressway Plaza, ensuring the building remains structurally sound for the solar project's lifetime of at least 22 years.

Ampion is handling subscriber acquisition and continuing billing and revenue management for the project.

"Ampion is proud to provide community solar subscriptions and savings from the Expressway Plaza project to New York City residents that need them most," said Nate Owen, Ampion chief executive officer. "Ampion will be ensuring that subscribers are serviced properly throughout the life cycle of the project. The Ampion team has a breadth of experience bringing community solar to underserved communities, and we're incredibly excited to be partnering with UGE to expand community solar in New York City."

The project at Expressway Plaza will be the third rooftop community solar project UGE owns and operates on Staten Island, with the first two having reached commercial operation in July, 2022. UGE is proud to have contributed to New York's recent milestone of 500 MW of solar deployed, with Staten Island having the second-most solar of the five boroughs.

With this project, UGE has reached NTP on 13.2 MW of projects and commercial operation on 1.4 MW of projects so far this year. Construction on the Expressway Plaza project is set to begin this spring.

Once operational, the project is estimated to produce an average of $89,000 (U.S.) in annual revenue, with a total project life of at least 22 years. The company currently expects average recurring revenue to carry gross margins at or around 85 per cent. In addition, UGE will receive a grant through New York State Energy Research and Development Authority (NYSERDA)'s Clean Energy Communities program, which is designed to help incentivize, among other clean energy priorities, the development of community solar programs and specifically those which serve LMI communities. UGE's grant is expected to total approximately $750,000 (U.S.).

About UGE International Ltd.

UGE develops, owns, and operates commercial and community solar and battery storage projects. Its distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500 MW of global experience, the company works daily to power a more sustainable world.

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