Transeastern Power Trust Announces $18 Million Financing Led by Affiliates of Sprott; Proceeds to Be Used to Acquire Two Solar Power Production Plants

TORONTO, ONTARIO--(Marketwired - March 2, 2015) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Transeastern Power Trust ("Transeastern" or the "Trust") (TSX VENTURE:TEP.UN) is pleased to announce today that it has entered into two non-binding term sheets with certain affiliates of Sprott Inc. ("Sprott") for a minimum $18 million financing, comprised of a non-brokered private placement for a minimum of $13 million of subscription receipts (the "Equity Offering") to be led by Sprott and a $5 million secured debt facility to be provided by Sprott Resource Lending Partnership (the "Debt Facility", and together with the Equity Offering, the "Financing").

Proceeds from the Financing will be used for the acquisition of two photovoltaic solar power production plants in Romania (the "Power Assets") and for general working capital purposes. The plants are fully operational and have a total capacity of over 16 kWp. The plants have been in production for over two years and have performed consistently over that timeframe. The Trust is currently in the process of finalizing the purchase agreements for the Power Assets and further details will be announced in due course. The gross purchase price of the Power Assets is expected to be approximately $9,600,000, net of assumed bank debt. As partial payment for the Power Assets, it is expected that the vendors will subscribe for up to $5.8 million of units of the Trust at a purchase price of $1.00 per unit.

The Equity Offering will be comprised of the issuance of subscription receipts (the "Subscription Receipts") at a price of $1.00 per Subscription Receipt, each exercisable for one trust unit (a "Trust Unit") and one purchase warrant (a "Warrant"). Each Warrant shall entitle the holder to acquire one Trust Unit for a period of 36 months from the date of issuance at an exercise price of $1.00, subject to compliance with TSX Venture Exchange pricing policies. The Warrants will contain an acceleration provision providing that, if: (i) four months and one day have passed since the closing date, (ii) the Subscription Receipt escrow release conditions have been satisfied, and (iii) the closing price of the Trust Units on the TSX Venture Exchange is higher than $1.50 for 20 consecutive trading days, then on the 20th consecutive trading day (the "Acceleration Trigger Date") the expiry date of the Warrants will be accelerated to the date that is 10 business days after the Acceleration Trigger Date.