Us Solar Fund Regulatory News (USF)

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13 May 2020

US SOLAR FUND PLC (USF, the "Company")

Q1 2020 Net Asset Value

Further to the Net Asset Value (NAV) update and factsheet released on 12 May 2020, US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to provide further information regarding the unaudited NAV of $193 million or $0.96 per Ordinary Share (as at 31 March 2020).

USF revalues its solar power assets on a quarterly basis and confirms that there has been no change in the carrying value of these assets in 1Q 2020. All of USF's assets have Power Purchase Agreements with investment-grade offtakes with a weighted-average remaining term of 15 years. Therefore, any recent short-term power price volatility in the US markets where USF owns assets has had no impact on revenues. USF has no exposure to UK or European power prices.

During the first quarter of 2020, USF incurred ongoing operating expenses and Investment Management fees totaling approximately $700,000, broadly in line with prior periods, while earning approximately $200,000 of interest income on cash held on deposit. USF also paid a quarterly dividend of $1,000,461 in February 2020. This represents an annualized dividend yield of approximately 2%. The net expenses and Investment Management fee for the quarter were paid from the Company's capital leading to a reduction in NAV of approximately $1.5 million or $0.01 per Ordinary Share.

On an annualized basis, the operating expenses and Investment Management fees represent approximately 1.45% of the 31 March 2020 NAV. Adjusted for the actual proceeds of the IPO, this is consistent with estimates provided at the time of IPO and the Company expects the ratio of operating expenses to NAV to reduce as USF grows.

As outlined in the recent factsheet, over 55% of USF's 383MWDC acquired portfolio is operating and generating cashflow for the Company. Therefore, the Board believes USF is in a strong position to cash cover remaining ramp-up dividends of 2-3% (annualized) for the remainder of 2020, and on this basis the Board does not expect future 2020 dividends to have any impact on NAV.

With the remainder of the Portfolio expected to become operational in the second half of 2020, USF also expects to be in a strong position to begin paying the full 5.5% target dividend in 2021.

The Company's Q1 2020 update and the latest quarterly factsheet are available on the Company's website at: www.ussolarfund.co.uk/investor-centre.

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Further information on the Company can be found on its website at http://www.ussolarfund.co.uk.

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About US Solar Fund plc

US Solar Fund plc listed on the premium segment of the London Stock Exchange in April 2019, following its successful US$200m IPO. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by investing in a diversified portfolio of solar power assets in North America and other OECD countries in the Americas.

The Company acquires or constructs, owns and operates solar power assets that are expected to have an asset life of at least 30 years and generate stable and uncorrelated cashflows by selling electricity to creditworthy offtakes under long-term power purchase agreements (or PPAs).

Further information on the Company can be found on its website at http://www.ussolarfund.co.uk.

About the Investment Manager

USF is managed by New Energy Solar Manager (NESM or the Investment Manager). NESM also manages New Energy Solar, an Australian Securities Exchange (ASX)-listed fund which has committed over US$900m to US and Australian solar plants since late 2015.

NESM is owned by Walsh & Company, the funds management division of Evans Dixon, an ASX-listed company (ASX: ED1) with over A$20 billion of funds under advice and management.