Toronto, Ontario--(Newsfile Corp. - November 29, 2023) - UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in commercial and community solar, reported its financial results for the three and nine months ended September 30, 2023. UGE reports all amounts in US dollars.

In Q3 2023, UGE continued to grow its full lifecycle development business, achieving notice to proceed ("NTP") on 1.5MW of projects in the quarter, adding to the 12.8MW of projects that reached NTP in the first half of the year, while continuing to refine the platform for additional growth.

To summarize, key business highlights in Q3 2023 included:

• Achieved NTP on 1.5MW of projects, as the Company begins to consistently move projects from its backlog into construction.

• Project backlog was 343 MW as compared to 229 MW on September 30, 2022, as the overall market continues to be robust, but down slightly from 356 MW on June 30, 2023 as the Company has been completing a full review of its backlog to firm up its project completion process and timelines.

• Closed $5.9 million green bond offering on August 24, 2023.

• Completed the sale of the last Philippines project as we focus project development and ownership efforts on the robust U.S. market.

Key financial results in Q3 2023 included:

• Ended Q3 2023 with 3.8 MW of operating assets that contributed $110.7K and $401.5K of energy generation revenue with 90% and 91% gross margins, respectively, for the three and nine month periods ended September 30. This represents an increase of 50% year to date in recurring revenue over the prior year while Q3 comparatives to 2022 declined 22% due in part to an outage associated with one of the larger facilities and also in part to a true up of accruals after one utility began regularly settling its account. UGE is in the early stages of scaling its operational portfolio, which over time will see recurring revenue become the Company's dominant source of revenue.

• Realized total revenue of $247.6K and $1,066.8K, representing declines of 86% and 61% for the three and nine month periods, respectively, as compared to the same periods in 2022. This decline is associated with both the run-off of the Company's legacy third party EPC contracts and its shift away from providing external engineering services. Total gross margins were 79.4% and 62.0% compared with 35.3% and 42.5% in 2022.

• The net loss and adjusted net loss for the quarter was $3.3 MM, compared with $1.5 MM for the same quarter of 2022, as a result of continued investment in developing UGE's project portfolio. UGE is currently developing a significant volume of projects and expects that losses will continue until a greater share of the Company's portfolio has reached commercial operation. The increase was driven by increased headcount, development, and financing expenses as the Company develops its growing portfolio.

• Cash used in operations in the first nine months of the year was $12.3 MM, and the cash balance at September 30, 2023 was $3.5 MM.

"In Q3 2023, we increased our focus on operational improvements to 'build the flywheel' that will see us reach and exceed our medium-term goal of 100 MW of operating assets," said UGE's CEO, Nick Blitterswyk. "Our industry continues to be robust and full of opportunity, and while 2023 is already a record year for UGE in terms of projects reaching NTP and COD, we are even more excited about the work we are doing to bring our pipeline and future opportunities to fruition in the coming years."

Full financial results and Management's Discussion and Analysis are posted to SEDAR () as well as on the Company's website.

Online Webinar Details

UGE's CEO, Nick Blitterswyk, COO, Brandon McNeil and CFO, Stephanie Bird, will be hosting a webinar to provide further analysis of the financial results and to answer your questions following the presentation. You can register for the webinar, below:

Date: Thursday November 30, 2023
Time: 11:00am EDT

About UGE

UGE develops, owns, and operates commercial and community solar projects in the US and strategic markets abroad. Our distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500MW of global experience, we work daily to power a more sustainable world. Visit us at .

For more information, contact UGE at:
+1 917 720 5685
investors@ugei.com

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, including project backlog, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The forward-looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such assumptions, risks and uncertainties include, without limitation, those associated with loss of markets, expected sales, future revenue recognition, the ability to secure appropriate sites, the effect of global and regional economic conditions, equipment supply and pricing, changes in electricity prices, delays and over runs in construction, delays in or inability to obtain permits, changes in laws and regulations and changes in how they are interpreted and enforced, changes in tax policies and incentive programs, the lack of qualified personnel or management, fluctuations in foreign exchange or interest rates, demand for the Company's services, and availability of capital and funding. The forward-looking information is made as of the date of this news release and the Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law.

Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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