Universal Energy Group Ltd.
TSX : UEG

Universal Energy Group Ltd.

September 19, 2007 10:07 ET

Universal Energy Group Ltd. Provides Update on Ethanol Operations

TORONTO, ONTARIO--(Marketwire - Sept. 19, 2007) - Universal Energy Group Ltd. ("Universal Energy Group") (TSX:UEG) is pleased to provide an update on its wholly-owned subsidiary, Terra Grain Fuels Inc. ("TGF"). TGF confirms its schedule for construction to be substantially mechanically complete by December 31, 2007 and ready for commissioning. Following commissioning, the plant is expected to ramp up to full production by March 31, 2008. (end of fiscal Q2 of 2008). Expenditures continue to be in line with budget expectations.

In addition, TGF has entered into an ethanol sales arrangement with a multi-national integrated company with retail operations across North America. Under the terms of this agreement, TGF will, through to the end of fiscal Q2 of 2008, sell approximately 5.5 million litres of ethanol per month to the purchaser for delivery into Eastern Canada. TGF continues to negotiate with prospective purchasers of ethanol and dried distillers grains.

Universal Energy Group's common shares are listed on the Toronto Stock Exchange under the symbol "UEG". Universal Energy Group sells electricity and natural gas in Ontario and natural gas in British Columbia (through its subsidiary Universal Energy Corporation) to residential, small to mid-size commercial and small industrial customers and sells natural gas in Michigan (through its subsidiary Universal Gas & Electric Corporation) to residential, small to mid-size commercial and small industrial customers. Universal Energy Group (through its subsidiary TGF) is constructing an ethanol facility near Belle Plaine, Saskatchewan that is designed to produce approximately 150 million litres of ethanol annually. Additional information about Universal Energy Group is available on SEDAR (www.sedar.com).

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