Mr. Gary Alves reports

URBAN INFRASTRUCTURE GROUP INC. ANNOUNCES WORKING CAPITAL FUNDING, INCREASED PRODUCTION ACTIVITY AND CONSTRUCTION LIEN LITIGATION UPDATE

Urban Infrastructure Group Inc. has entered into a loan arrangement with a related party whereby the lender advanced to the corporation an aggregate of $500,000. Urban Infrastructure will use the loan for working capital and general corporate purposes.

The loan bears interest at a rate of 12 per cent per annum and is evidenced by a promissory note in favour of the lender. The loan is repayable on Sept. 9, 2026. The loan is secured in favour of the lender in the form of a first ranking charge against any litigation proceeds of all present and future litigation matters involving the corporation. The loan is also subject to the personal guarantee of the corporation's chief executive officer.

The corporation also intends to issue to the lender, subject to approval of the TSX Venture Exchange, as a loan bonus, an aggregate of five million common share purchase warrants of the corporation. Each bonus warrant entitles the lender to acquire one common share in the capital of the corporation at an exercise price of five cents per share for a period of one year from the date of the promissory notes.

The lender is a related party (as defined in Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) of the corporation, and, therefore, the loan is a related-party transaction (as defined in MI 61-101). Urban Infrastructure is exempt from the formal valuation requirement and the minority approval requirement under MI 61-101 in respect of the loan since, at the time of the loan, the fair market value of the consideration for the loan did not exceed 25 per cent of Urban Infrastructure's market capitalization.

In connection with the loan, the corporation will be paying a finder's fee of $25,000 to an arm's-length third party.

Uptick in business activity

Urban Infrastructure has its skilled crews operating currently on three sites in the Greater Toronto Area-West in Oakville, Kitchener and Milton. Additionally, Urban Infrastructure has been informed that April 13 will be the start date of the first phase of a 220-home project in Caledon, Ont.

"Housing shortage in Canada is a systemic issue and one that is not going to be solved overnight. While markets take time to work out imbalances, economic conditions and consumer sentiment, the need for more Canadian housing remains a constant. Urban and its dedicated crews of skilled construction professionals are proud to play a role in addressing this national issue on behalf of our customers, shareholders and Canadian homeowners," said Gary Alves, chief executive officer, Urban Infrastructure.

Update on previously disclosed construction lien litigation

As previously disclosed, Urban is a party to five construction lien actions commenced in Ontario under the Construction Act (Ontario). The actions relate to disputes arising from Urban's provision of certain construction services and materials to various residential development projects. Urban has asserted claims in the actions for, among other things, amounts it alleges are owing for services and materials supplied and, in certain actions, additional damages claimed in connection with alleged wrongful termination. The defendants have delivered defences and counterclaims in the actions, and have alleged, among other things, deficiencies and delay, all of which allegations Urban disputes.

Procedural update

The corporation confirms the following procedural status updates regarding the actions, based on information received from counsel and management:

1. Discoveries were completed in the summer of 2024.
2. Trial records have been filed for all five actions.
3. All actions have been set down for trial in their respective jurisdictions.
4. A pretrial conference for one of the actions took place on Dec. 11, 2025.
5. Pretrial conferences for two of the actions are scheduled for April 14, 2026.
6. A pretrial conference for one of the actions is scheduled for July 22, 2026.
7. A motion to have the actions tried together has been filed by both the defendants and Urban; however, no motion date has been set yet.

Urban continues to maintain that it supplied services and materials in accordance with its contractual arrangements, and denies the allegations advanced in the counterclaims. As with all litigation, the actions remain subject to court processes, including potential procedural steps and scheduling changes, and there can be no assurance regarding the ultimate outcome. The corporation will provide further updates regarding the actions as appropriate in accordance with applicable disclosure obligations.

About Urban Infrastructure Group Inc.

Urban Infrastructure is a leading concrete and drainage infrastructure construction group engaged in the earliest stage of the construction process -- known as Stage One. Urban Infrastructure Group specializes in large-scale, master-planned residential communities, with partners and customers behind some of Ontario's most significant residential development projects.

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