Transeastern Power Trust Announces $18 Million Financing Led by Affiliates of Sprott; Proceeds to Be Used to Acquire Two Solar Power Production Plants - Seite 2

The issuance of the Subscription Receipts will be subject to satisfaction of due diligence, receipt of a minimum of $13,000,000 in gross proceeds from the Equity Offering (which may include the dollar amount issued to vendors of the acquired Power Assets) and receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The Subscription Receipts shall convert into Trust Units and Warrants and funds shall be released from escrow upon the fulfilment of certain release conditions including all conditions precedent for the purchase of the Power Assets (other than the release of escrow funds) being satisfied or waived, receipt of funds from the Debt Facility, and other customary conditions for a subscription receipt offering.

A finder's fee will be payable to Sprott on proceeds realized from sales to investors introduced by Sprott equal to 5% cash (or units at Sprott's election), 5% Warrants and 3% Subscription Receipts. The securities issued in the Equity Offering will be subject to a four month and one day hold period. The closing of the Financing and the acquisition of the Power Assets are expected to occur by the end of March, 2015.

The Debt Facility will be in the amount of $5 million accruing interest at a rate of 10% per annum, compounded monthly. It will have a two year term and be repayable at the Trust's option without penalty provided six months' interest has been paid. The Debt Facility will be guaranteed by the Trust's subsidiaries and will be secured against the Power Assets and each of the Trust's current assets. In connection with the Debt Facility, the Trust shall undertake to meet certain minimum working capital requirements and use of funds. The Trust will also make certain required payments in conjunction with the Debt Facility, including a $300,000 bonus payment and an annual payment of 2% of the Debt Facility, each payable in Trust Units at a 10% discount to the market price of the Trust Units. The Debt Facility is subject to TSX Venture Exchange Approval.

Mr. J. Colter Eadie, Chief Executive Officer of Transeastern, commented: "The acquisition of these two projects is a transformative transaction for the Trust. Upon completion, we will be more than doubling our installed power production capacity and doing so on a basis that we expect to be immediate and highly accretive to the Trust as well as dramatically lowering our payout ratio. With these acquisitions, we anticipate that approximately half of our power generation will come from solar and half from hydro. This diversification reduces our hydrology risk and dramatically increases our revenue. The vendors are agreeable to taking approximately 58% of the total consideration for the acquisition in Trust Units, a major endorsement of our strategy and evidence of confidence in the quality of the assets being acquired, our existing portfolio, and the opportunities in front of us.