Urban Infrastructure Group Inc. reports financial results for the three and nine months ended June 30, 2024

Brampton, Ontario–(Newsfile Corp. – August 28, 2024) – Urban Infrastructure Group Inc. (TSXV: UIG), a leading concrete and drainage infrastructure construction group specializing in large-scale new residential construction projects, announces its financial results for the three and nine months ended June 30^th2024. All financial information is provided in Canadian dollars unless otherwise stated.

Ungad Chadda, CEO of UIG, said: “As we announced at the end of May, the widely publicised standstill in the low-rise residential construction market continued as of June 30.^th2024. “According to Global News reporting on CMHC numbers, housing starts in the first half of 2024 lagged year-on-year, with June seeing a 44 percent year-on-year decline.” As a direct result of this industry-wide slowdown, Urban's third-quarter results accordingly reflect this inability of Ontario developers to break ground during the quarter.”

On a much more optimistic note, the leading indicators of a return to work at Urban are very clear. Specifically, Urban's unaudited revenue in July is practically as high as its entire third quarter revenue. In addition, the current tender pipeline is over $17 million and the contracted pipeline is $6 million. Urban defines the tender pipeline as all requests for proposals or RFPs that Urban has been invited to and for which the company has submitted a bid. The contracted pipeline is defined as the subset of the tender pipeline that has been confirmed by the client as being awarded to Urban.

Urban is weathering the storm and, with its skilled workforce, commitment to excellence and impeccable track record and brand, is well positioned to benefit from the recovery that already appears to be underway. An expected 3^rd The interest rate cut in September will act as a further catalyst for the recovery phase in this cycle.

Management commentary on the first nine months of the 2024 financial year:

The Company reported a net loss of $2,213,949 ($0.06 per share) for the nine months ended June 30, 2024 compared to net income of $1,353,606 ($6,768 per share) for the nine months ended June 30, 2023. The decrease in net income is the result of lower revenues in the three quarters of 2024. Selling expenses for the nine months ended June 30, 2024 were $3,201,889 compared to $7,142,155 for the nine months ended June 30, 2023. The decrease in revenue was the result of an industry-wide, well-documented slowdown in the home construction market. Key expense items are listed below:

Listing fees $1,552,153 (nine months 2023 – $nil)This expense reflects the non-cash costs of the RTO transaction with DP which enabled the Company to list on the TSX-V in March 2024.

Fees $489,870 (nine months 2023 – $131,475)Fees in 2024 increased significantly compared to 2023, also reflecting the costs of the RTO transaction with DP, which enabled the Company to list on the TSX-V in March 2024.

Based on the recently awarded contracts and work that has commenced, the Company believes that between September and January, Urban will not only execute the $6 million worth of contracts already awarded, but will also increase the planned amount of over $17 million as well as the portion of the contracts already awarded.

Financial highlights for the first three and nine months ended June 30, 2024:

The Company’s key financial results for the three and six months ended June 30, 2024 are as follows:

Access to materials

Urban has filed its unaudited interim financial statements and MD&A for the third quarter of 2024 with Canadian securities regulators. This news release should be read in conjunction with our unaudited interim financial statements and MD&A for the third quarter of 2024, which documents can be accessed at www.sedarplus.ca.

About the Urban Infrastructure Group

Urban Infrastructure Group Inc. (TSXV: UIG) is a leading concrete and drainage infrastructure construction group active in the earliest stages of the construction process – known as Phase One. Urban Infrastructure Group specializes in large-scale, community-planned housing developments and has partners and clients behind some of Ontario's most significant residential projects.

Connect with UIG: https://urbaninfrastructuregroup.com/

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WARNINGS

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

Forward-looking information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking information. Some of these risks are described in the “Cautionary Statement Regarding Forward-Looking Information” section and the “Risk Factors” section of the MD&A. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Actual results and developments could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking information, except in accordance with applicable securities laws.

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