Mr. Krisztina Alves reports

URBAN INFRASTRUCTURE GROUP INC. ANNOUNCES EXERCISE OF WARRANTS AND FILING OF EARLY WARNING REPORT BY DIRECTOR

Urban Infrastructure Group Inc. director Steve Kaszas exercised 10 million common share purchase warrants of the issuer on Sept. 2, 2026. UIG is issuing this news release on its own behalf to announce the exercise of the warrants and on behalf of the acquiror to satisfy the acquiror's early warning news release requirements. The issuer's head office is located at 106 East Dr., 2nd Floor, Brampton, Ont., L6T 1C1. The acquiror's head office is located at 1 First Canadian Place 39th Floor, Toronto, Ont., M5X 1H3.

The acquiror acquired beneficial ownership of, and control or direction over, 10 million common shares of the issuer upon exercise of the warrants at an exercise price of five cents per share, for aggregate consideration of $500,000. The warrants were issued in connection with the issuer's related-party loan transactions announced on Sept. 3, 2025, and March 27, 2026. The shares were issued from treasury and not through the facilities of any marketplace.

Immediately before the acquisition, the acquiror beneficially owned and controlled, directly or indirectly, 4,105,833 shares, 10 million warrants and 410,000 stock options, representing approximately 3.9 per cent of the issued and outstanding shares on a non-diluted basis and 12.6 per cent on a partially diluted basis, assuming exercise of the warrants. Immediately after the acquisition, the acquiror beneficially owned and controlled, directly or indirectly, 14,105,833 shares and 410,000 stock options, representing approximately 12.3 per cent of the issued and outstanding shares on a non-diluted basis and 12.6 per cent on a partially diluted basis, assuming exercise of the stock options. The acquisition resulted in an increase in the acquiror's security holding percentage from approximately 3.9 per cent to 12.3 per cent on a non-diluted basis, an increase of approximately 8.4 percentage points, with no change on a partially diluted basis.

The shares were acquired for investment purposes. Depending on market and other conditions, the acquiror may from time to time acquire additional securities of the issuer, dispose of securities of the issuer or continue to hold securities of the issuer. Other than as described above, the acquiror has no current plans or future intentions relating to any of the other matters enumerated in Item 5 of Form 62-103F1. The acquiror did not rely on an exemption from the formal takeover bid requirements in connection with the acquisition.

An early warning report relating to the acquisition will be filed by the acquiror under the issuer's profile on SEDAR+. A copy of the early warning report may be obtained by contacting Krisztina Alves at 905-866-2483.

About Urban Infrastructure Group Inc.

UIG is a 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 and works with partners and customers involved in residential development projects in Ontario.