Transeastern Power Trust Announces Closing of Second Tranche of Previously Announced Private Placement and Quarterly Unit Distribution

TORONTO, ONTARIO--(Marketwired - June 23, 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, further to its previous press releases, it has closed a second tranche of its previously announced private placement (the "Offering") for gross proceeds of $585,000.

At the subscriber's election, the subscriber purchased 585,000 units of the Trust (a "Trust Unit") and 585,000 Trust Unit purchase warrants ("Warrants") rather than subscription receipts. The Warrants contain the same terms and conditions as the warrants to be issued upon the automatic exercise of the subscription receipts issued on June 9, 2015. Each Warrant entitles the holder thereof to acquire one Trust Unit for a period of 36 months from the date of the subscription receipt warrant issuance (the "Automatic Exercise Date") at an exercise price of $1.00 per Trust Unit. The Warrants contain an acceleration provision providing that, if: (i) October 10, 2015 has passed, 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 10^th business day after the Acceleration Trigger Date.

No commissions were paid in conjunction with the Offering. All securities issued in connection with the Offering are subject to a statutory restricted resale period expiring on October 24, 2015, in accordance with applicable securities legislation.

The Trust is also pleased to announce that it has confirmed its quarterly distribution of $0.021875 per Trust Unit. The distribution will be paid on July 15, 2015, in respect of the period from and including April 1, 2015 to July 6, 2015, to unitholders of record on July 6, 2015.

The Trust is also pleased to announce that the holder of an existing secured loan of $600,000 has agreed to convert the loan together with accrued interest into 7.5% convertible unsecured subordinate debentures (the "Debentures") that are governed by a debenture indenture dated May 28, 2014. The Debentures trade on the TSX Venture Exchange under the symbol "TEP.DB". Further details will be announced in due course.

The Trust continues to work towards the closing of the previously announced acquisitions and debt financing in the next few weeks and further details will be announced in due course.

About Transeastern

The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on hydroelectric power. The Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). All material information about the Trust may be found under Transeastern's issuer profile at www.sedar.com.

Forward-Looking Statements

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks relating to negotiations with third parties, failure to obtain bank financing, fluctuations in currency exchange rates, competition from other businesses, stock market volatility and changes in the Romanian economic climate. These statements speak only as of the date of, and to the information contained in, this press release. Details of the risk factors relating to Transeastern and its business are discussed under the heading "Risks and Uncertainties" in Transeastern's annual management discussion and analysis dated April 30, 2015, a copy of which is available on Transeastern's SEDAR profile at www.sedar.com. Most risk factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, Transeastern expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.