A Letter from the CEO: the past Eleven Months, Our Path Forward and the Road to Monetization
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
NUE Power (NUEPF) outlined plans to monetize its Alberta projects while pursuing power buyers and development opportunities in other regions.
The 503.5 MWac Alberta Energy Park, in which NUE holds 50%, remains under a non-binding sale letter of intent with Green Harbor Partners. NUE plans talks in South Korea on November 24. No offtake agreements—contracts to buy power—have been signed.
Applying other transactions' prices to NUE's interest produces approximately C$4.4 million upfront and approximately C$20.4 million including milestones, versus approximately C$3.6 million invested. These are illustrative comparisons, not valuations; milestone payments may never be paid. NUE is also advancing a proposed Hays acquisition, continuing Darkhan studies and evaluating natural gas opportunities in Saskatchewan and Manitoba. Its monetization options include project sales, equity sell-downs and retained interests or fees.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately 145 MWac Hays Project proposed acquisition remains a company priority.
- Minor pointLethbridge One, an 8.75 MWac facility with NUE's 25% working interest, has generated power since January 2025.
- Minor pointLethbridge Two and Lethbridge Three have received Alberta Utilities Commission approval.
- Minor pointDarkhan joint development agreement signed with Tsegtskharaa in April; environmental and feasibility studies continue.
- Minor point. Forward-looking: it has not happened yet and may not happen.Long-term power contracts with data centre operators and large industrial users are company targets.
3 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Saskatchewan expansion plans include evaluating natural gas opportunities and planned energy research from the Regina base.
- Minor pointSoutheastern Manitoba natural gas opportunity is being evaluated as another development asset.
- Minor pointPotential partner discussions cover power-purchase arrangements and acquisitions, separate from the Green Harbor process.
Negative
- Moderate pointGreen Harbor sale letter of intent for the 503.5 MWac Alberta Energy Park remains non-binding.
- Moderate point. Forward-looking: it has not happened yet and may not happen.No power-purchase agreements signed; NUE requires offtake before committing the next round of project capital.
- Moderate pointHays acquisition letter of intent, signed in August, is non-binding.
- Minor pointAlberta grid connections remain in the AESO Cluster 3 process; Hanna remains in pre-development.
- Minor point. Forward-looking: it has not happened yet and may not happen.Benchmark milestone payments may never be paid; illustrative transaction comparisons are not project valuations.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - November 12, 2026) -
Dear fellow shareholders,
As we near the midway point of Q4, I want to look back on our business over the past eleven months, set out our path forward, and explain how we are working toward monetization, including how our projects compare with recent market transactions and how our business is designed to generate revenue.
Recent Alberta Transactions as a Reference Point
Shareholders often ask how our Alberta projects compare with similar projects that have been sold. To help answer that question, we have applied the prices from two recent, publicly disclosed Alberta solar transactions, at stages of development similar to ours, to our
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10063/323593_51c9cd47848f58a9_002full.jpg
Applied to our interest, the upfront prices total approximately C
These are comparisons only, not an estimate of what our projects are worth or what we would receive if we sold them. The projects and transactions also differ in stage, regulatory status, size and terms.
Two points matter in reading these figures. First, they compare amounts derived from other companies' transactions with the market value of NUE as a whole. Second, they reflect our projects at their current stage of development and make no assumption about whether or when they will advance.
Only a definitive agreement will set what a buyer will pay for our projects, and there is no assurance we will reach one on comparable terms. The notes at the end of this letter explain how we arrived at these figures.
How NUE Makes Money
We develop megawatt-hours the way a real-estate developer develops square footage. A real-estate developer takes land through zoning, permits and servicing, then exits by selling the entitled asset or building it out. We take sites with existing or emerging demand through permitting, grid position and offtake, then exit by selling, partnering or keeping a carried interest.
Our approach comes down to five steps: originate early, control the site, hold the grid position, gate the capital, and divest at value while retaining a royalty where we can.
A ready-to-build project, with its site, permits, interconnection and offtake in place, can create value in three ways:
Sell at ready-to-build: selling all or most of the project once it is permitted and contracted. This is typically the highest-margin point, and the proceeds go back into the next origination.
Sell down at financial close: selling a majority of the equity to a construction partner, recovering our development spend and earning construction management fees.
Retain a royalty: keeping a minority stake or a management role at commercial operation, with asset management and oversight fees.
The three are not exclusive, and a single energy park can be structured across more than one of them. Whatever the technology, offtake is the gating item on every asset, and each project has to clear one gate before the next round of capital goes in.
Key Progress So Far in 2026
Lethbridge One: our 8.75 MWac solar facility, in which we hold a
Alberta Energy Park: 503.5 MWac across three Alberta projects, Lethbridge Two, Lethbridge Three and Hanna, advanced to a non-binding letter of intent for sale with Green Harbor Partners Corp. in January.
Darkhan: in April, we signed a joint development agreement with Tsegtskharaa LLC for the proposed Darkhan Energy Park in Mongolia. The project has been in environmental and feasibility studies since earlier this year, and that work continues.
Hays: in August, we signed a non-binding letter of intent to acquire the approximately 145 MWac Hays Project in southern Alberta.
Board and leadership: in October, we appointed the Hon. Tony Clement to our Board, and announced that Ranjith "Ran" Narayanasamy, former Chief Executive Officer of MAX Power Mining Corp., is expected to join the Board following our November 19 annual general meeting. That's alongside other key leadership updates including adding John Windsor as COO, as well as Peter Espig to our Board earlier this year.
Saskatchewan: in October, we were accepted as a tenant at Collider, Innovation Saskatchewan's tech-sector workspace in Regina's Research and Technology Park. The office serves as our Saskatchewan base for the build-out of energy-related projects in the region and our planned research and development work in natural gas, nuclear (micro and small modular reactors) and hybrid renewable and gas programs. Ran Narayanasamy is a former President and CEO of the Petroleum Technology Research Centre and a former senior leader at SaskPower. Together with our Regina office, his expected addition to the Board strengthens our position in the Saskatchewan market. We expect to provide further updates as material developments occur.
Market Conditions and Our Active Discussions
On November 3, U.S. voters elected Democratic majorities in both the House of Representatives and the Senate. We view this outcome as supportive of renewable energy development. Separate from the Green Harbor process, we are in a number of active discussions with potential partners on offtake and on acquisitions.
We are also seeing the data centre market cool and change, with closer scrutiny of AI spending. Over the past year, we have been clear with investors that NUE is a power company first. That positioning was deliberate: we believe it puts us in a stronger position against the potential headwinds from an AI investment bubble, because our projects are designed to serve data centre operators and broader power users alike. We continue to see interest in offtake from both, though no offtake agreements have been signed yet.
We are also working through development discussions in Saskatchewan, Manitoba and Washington State. We will update shareholders as and when any of these discussions reach a stage that warrants disclosure.
Our Near-Term Priorities
Alberta sale: working to convert the Green Harbor letter of intent into a definitive agreement. Our team will be in South Korea on November 24 to advance those discussions. We also continue to advance the proposed acquisition of the Hays Project.
Alberta projects: working to secure long-term offtake with data centre operators and large industrial users, and to advance the projects toward ready-to-build.
Saskatchewan: building industry relationships from our Regina base and evaluating natural gas development opportunities in the province, alongside renewables and emerging energy technologies.
Manitoba: evaluating a natural gas development opportunity in southeastern Manitoba as a further development asset.
Thank you for your support. I look forward to updating you on our progress.
Sincerely,
Broderick Gunning
Chief Executive Officer
NUE Power Corp. (CSE: NUE) (OTC Pink: NUEPF) (FSE: NUE1)
Notes on the benchmarks
In these notes and the forward-looking information below, "NUE" or the "Company" means NUE Power Corp. Net capacity reflects NUE's
Red Willow: Westbridge Renewable Energy Corp.'s August 2026 sale of its 225 MWac Red Willow project, which had AUC approvals and an AESO interconnection position; approximately C
Market capitalization is based on 93,242,951 common shares outstanding and a closing price of C
These benchmarks are illustrative. They are not a valuation, appraisal or forecast of the value of the Company's projects or its securities, and should not be read as directly comparable to them. The benchmark transactions differ, in some cases materially, from the Company's projects in size, stage, location, terms and market conditions. Figures come from the parties' public disclosure and have not been independently verified by the Company. Prices including milestones include contingent payments made only if a project reaches construction start and commercial operation, and there is no assurance that the Company's projects will reach those milestones or be sold at comparable prices. The Green Harbor letter of intent is non-binding and is not used in these benchmarks.
For further information:
Broderick Gunning, Chief Executive Officer
E-mail: brodie@nu-energy.ca
John Meekison, Chief Financial Officer
E-mail: john@nu-energy.ca
Forward-Looking Information
This letter contains forward-looking statements within the meaning of applicable Canadian securities laws, identified by words such as "may", "will", "would", "can", "expect", "intend", "plan", "believe", "continue", "potential", "seek", "proposed", "scheduled", "evaluate", "view", or similar expressions that involve substantial known and unknown risks and uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements in this letter include, but are not limited to: the Company's develop-to-divest model and expected sources of revenue; execution of a definitive agreement for the potential sale of its Alberta projects; offtake for, and advancement of, the Alberta projects; the proposed acquisition of an additional Alberta project; the Company's Saskatchewan office and planned research and development activities; planned travel and the timing of any definitive agreement; discussions with potential partners on offtake and acquisitions; development discussions in Saskatchewan, Manitoba and Washington State; the effect of U.S. policy on renewable energy development; demand for offtake from data centre operators and other power users; evaluation of natural gas development opportunities; environmental and feasibility studies for a proposed international project; the expected addition of a director; expected margins and reinvestment of project sale proceeds; potential retention of royalty or carried interests; the Company's positioning against data centre market headwinds; and the benchmarks and implied values described herein. Such statements are not guarantees of future performance. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Readers are cautioned that forward-looking information is not based on historical facts but instead reflects the Company's management's expectations, estimates or projections concerning the business of the Company's future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made.
The forward-looking statements are based on a number of material assumptions, including: the availability of additional financing on acceptable terms; the negotiation of definitive agreements on acceptable terms; the receipt of required partner consents and regulatory approvals; the receipt of utility and interconnection approvals; the maintenance of land and partner arrangements; continued offtake demand from power users; the benchmark transactions being a reasonable reference for projects at a similar stage; the expected director joining the Board; and stable government policy in Canada and the United States.
The Company is subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of the Company. Such factors include, among other things: the need for additional financing and its availability on acceptable terms or at all; failure to negotiate definitive agreements on acceptable terms; inability to secure offtake on acceptable terms; delays in or failure to obtain regulatory, utility and interconnection approvals; changes in land and partner arrangements; discussions not resulting in an agreement or transaction; changes in data centre and AI-related power demand; changes in government policy in Canada and the United States; the benchmark transactions not reflecting achievable prices; the expected director not joining the Board; adverse market conditions; and other risks that are customary to development-stage renewable energy issuers. Additional risk factors are described in the Company's continuous disclosure documents available on SEDAR+ at www.sedarplus.ca. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323593
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
Is NUE Power's Alberta Energy Park sale finalized?
No. The sale remains under a non-binding letter of intent with Green Harbor Partners, signed in January. NUE is working toward a definitive agreement and plans discussions in South Korea on November 24. The three projects total 503.5 MWac, and NUE holds a 50% interest.
How did NUE Power calculate its Alberta project sale comparisons?
NUE applied prices from Westbridge's Red Willow transaction and Revolve's southern Alberta transaction to its 50% project interests. Revolve's capacity was converted from MWp to MWac using a 1.197 DC/AC ratio. The transactions differ from NUE's projects in development stage, regulatory status, size and terms; the comparisons do not establish a sale price.
How does NUE Power plan to earn money from its energy projects?
NUE's model includes selling projects at ready-to-build, selling majority equity at financial close, or retaining an interest or management role. The financial-close option includes recovering development spending and earning construction management fees. A retained role can generate asset management and oversight fees. More than one approach can apply to a single energy park.
What board changes did NUE Power announce?
NUE appointed Tony Clement to its board in October and expects Ranjith Narayanasamy to join following its November 19 annual general meeting. Earlier leadership additions included John Windsor as chief operating officer and Peter Espig as a director.