Universal Energy Group Completes IPO

On February 2 and February 7, 2007 Universal Energy Group Ltd. completed its initial public offering of an aggregate of 13,068,183 common shares at a price of $11 per share for aggregate gross proceeds of approximately $144 million. This includes the issuance of 1,704,546 common shares on February 7, 2007 pursuant to the exercise in full of the underwriters' over-allotment option.

Universal acquired all of the issued and outstanding securities of Universal Energy Corporation and Terra Grain Fuels Inc. in connection with the closing of its initial public offering for a total purchase price of $111,250,006 in cash and 23,204,544 common shares.

Universal sells electricity and natural gas in Ontario (through its subsidiary UEC) 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 small to mid-size commercial and small industrial customers. Universal (through its subsidiary TGF) is constructing an ethanol facility near Belle Plaine, Saskatchewan designed to produce approximately 150 million litres of ethanol annually.

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

Universal was represented by Burnet, Duckworth & Palmer LLP with a team that included Bill Maslechko, Jeff Oke, Scott Kearl and James Kidd (securities); John Brussa and Jeff Fortin (tax); and Michael Martin and Colin Luke (corporate).

UEC was represented by its general counsel, Michael Silver. TGF was represented by MacLean Keith, Barristers and Solicitors, with a team that included Pat McDonald, Q.C.

The underwriting syndicate was represented by Osler, Hoskin & Harcourt LLP with a team that included Chris Murray, David Pathe and Robert Hughes (securities) and Kim Wharram (tax). Jason Comerford of the New York office of Osler acted as US counsel to the transaction.


Christopher S. Murray Damian J. Rigolo John A. Brussa Jeffrey T. Oke Jeff Fortin Colin A. Luke Scott D. Kearl Kimberly J. Wharram William S. Maslechko Jason Comerford Michael G. Martin James L. Kidd Robert Hughes


Burnet, Duckworth & Palmer LLP MacLean Keith Osler, Hoskin & Harcourt LLP