Transeastern Power Trust Announces Proposed Acquisitions of Hydro Renewable Energy Projects

TORONTO, ONTARIO--(Marketwired - Feb. 10, 2016) - Transeastern Power Trust ("Transeastern" or the "Trust") (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) is pleased to announce that it has entered into a letter of intent for the proposed acquisition of three operational hydro projects totaling 3.65 MW (the "Hydro Projects"). Each of the Hydro Projects is located in Romania. The operational Hydro Projects have over 20 years of operating history, were refurbished in 2012 and 2014, have an off-take agreement in place and generate approximately 10,000 MWh of electricity annually.

The purchase price of the Hydro Projects is EUR5,000,000 (Cdn.$7,500,000), calculated on a debt free basis. The purchase price shall be payable (i) as to 50% in cash; and (ii) as to 50% in units of the Trust at a deemed issuance price of Cdn.$1.00 per Unit, calculated in Euros in accordance with the applicable exchange rate on the day immediately prior to the closing date. The Trust anticipates completing a private placement of units for the cash component of the purchase price.

The acquisitions are subject to the satisfactory completion by the Trust of technical and legal due diligence, the execution of binding acquisition agreements and the satisfaction of applicable conditions precedent. The proposed acquisitions are expected to close by April 29^th, 2016. The Trust shall provide further details upon the closing of the applicable transactions.

J. Colter Eadie, Chief Executive Officer of Transeastern commented "The proposed acquisitions of the Hydro Projects represent another critical milestone in the evolution of our company. Together with the recently announced proposed acquisition of the 17 MW wind project, these acquisitions upon completion will over double the power generation capacity of the Trust. Exiting 2014, Transeastern had 5.1 MW of installed capacity, all from small-hydro operations. The Trust then acquired 17.6 MW of solar projects in 2015. Pro forma these acquisitions, we will have approximately 43 MW of operating renewable power generation installations. Moreover, our production will be diversified across hydro, wind and solar generation resulting in reduced volatility to our production profile, and increased stability and sustainability in our cash-flows. We are also particularly pleased that we are able to continue to grow our business by creatively structuring and financing our acquisitions in the face of challenging capital markets and expect to continue to deliver such opportunities on behalf of Transeastern unitholders as we have many operational targets in our pipeline."