Universal Energy Group Ltd.

Universal Energy Group Ltd.

January 29, 2007 13:44 ET

Universal Energy Group Ltd. Files Final Prospectus for $125 Million Initial Public Offering

TORONTO, ONTARIO--(CCNMatthews - Jan. 29, 2007) -


Universal Energy Group Ltd. ("Universal Energy Group") is pleased to announce that it has filed a final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with Universal Energy Group's initial public offering of its common shares. Universal Energy Group will issue 11,363,637 common shares at $11.00 per common share for gross proceeds of $125,000,007. Universal Energy Group has also granted the underwriters an option (exercisable within 30 days of closing) to purchase up to an additional 1,704,546 common shares at $11.00 per common share for additional gross proceeds of up to $18,750,006. Closing is scheduled for February 2, 2007. The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the common shares under the symbol "UEG", subject to Universal Energy Group satisfying the customary requirements of the TSX.

In connection with the closing of the offering, Universal Energy Group will acquire all of the issued and outstanding securities of Universal Energy Corporation ("Universal Energy") and Terra Grain Fuels Holdings Inc. ("Terra Grain Fuels"). Universal Energy sells electricity and natural gas in Ontario to residential, small to mid-size commercial and small industrial customers and sells natural gas in Michigan to small to mid-size commercial and small industrial customers. Terra Grain Fuels is constructing an ethanol facility near Belle Plaine, Saskatchewan that is designed to produce approximately 150 million litres of ethanol annually. The facility is scheduled to be commissioned and on production in late December 2007.

The underwriting syndicate for the offering is led by National Bank Financial Inc. and includes CIBC World Markets Inc., GMP Securities L.P. and HSBC Securities (Canada) Inc.

A copy of Universal Energy Group's final prospectus is available on SEDAR (www.sedar.com).

The common shares offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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