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 six months ended June 30, 2023. UGE reports all amounts in US dollars.

In Q2 2023, UGE continued to grow its business of developing, building, financing, and operating commercial and community solar facilities, achieving notice to proceed ("NTP") on 2.7MW of projects in the quarter, adding to the 10.1MW of projects that reached NTP in the first quarter, and moving a further 0.5MW into construction.

Key business highlights in Q2 2023 included:

• Achieved NTP on 2.7MW of projects, as the Company begins to consistently move projects from its backlog into construction.

• Grew the project backlog to 356 MW compared with 187 MW on June 30, 2022.

• Completed the sale of our remaining operational Philippines projects, with the last sale closing post-June 30, as we focus project development and ownership efforts on the robust U.S. market.

Key financial results for the six months ended June 30, 2023 included:

• Ended Q2 2023 with 3.8 MW of operating assets that contributed $183.6K and $290.9K of energy generation revenue with 93% and 91% gross margins for the three- and six-month periods ended June 30. This represents an increase of 126% and 132% respectively in recurring revenue over the prior year. UGE had also completed one 1 MW project and was waiting for the utility to connect the system at the end of the quarter. 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 $297.5K and $819.2K, representing declines of 49% and 13% for the three- and six- month periods, respectively, as compared to the same periods in 2022. This decline is associated with the run-off of the Company's legacy third party EPC and engineering contracts. Total gross margins were 84% and 57% compared with 45% and 43% in 2022, as higher margin recurring revenue becomes a bigger share of overall revenues.

• The net loss and adjusted net loss for the quarter was $4.0 MM, compared with $1.4 MM for the same quarter of 2022, as a result of continued investment in developing UGE's project portfolio. The increase was driven by increased headcount, development, and financing expenses as the Company develops its growing 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.

• Cash used in operations was $5.5 MM, cash provided by financing activities was $21.9 MM, and cash used in investing activities was $15.6 MM. The cash balance at June 30, 2023 was $3.0 MM.

"In Q2 2023, we focused on taking further strides towards our medium-term goal of 100 MW of operating assets," said UGE's CEO, Nick Blitterswyk. "We exceeded our backlog growth target for the second quarter and are nearly at our annual goal. More significantly, we now have 12.8 MW of projects that have moved into NTP this year, with the addition of 2.7 MW in the three months ended June 30, with more expected in the second half of the year. These projects are evidence of the Company's drive towards building and holding a portfolio of operational assets."

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

Online Webinar Details

UGE's CEO, Nick Blitterswyk, 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: Friday, August 25, 2023
Time: 11:00am EDT
https://meeting.zoho.com/meeting/register?sessionId=1049982274

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 www.ugei.com.

For more information, contact UGE at:
+1 917 720 5685
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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.