Vancouver, British Columbia--(Newsfile Corp. - August 31, 2026) - Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) ("Stardust Solar" or the "Company"), a North American renewable energy company focused on solar energy, battery storage, franchise expansion and renewable energy infrastructure development, announces its financial and operating results for the three and six months ended June 30, 2026.

The second quarter reflected Stardust's continued evolution toward a higher-margin, recurring franchise and infrastructure platform. Revenue was $637,349, compared with $1.21 million in Q2 2025, primarily reflecting lower product and equipment sales as the Company continued to shift its revenue mix toward higher-margin franchise, training and recurring revenue streams. Despite the lower top-line revenue, gross margin increased to ~60% from 42% in Q2 2025, while recurring and franchise-related revenue represented ~63% of total revenue, up from ~38% in the prior-year period. Operating expenses declined 14% year-over-year. For the first six months of 2026, comprehensive loss improved by ~47%, while operating expenses decreased 19%, demonstrating continued progress in operating efficiency and the Company's evolving revenue mix. The company attributes these results to changes in residential solar incentives in United States and Canada, its focus on improved operational efficiency, and its focus on horizontal expansions into diversified markets.

Q2 2026 Key Financial and Operating Results:

• Revenue decreased 47%, reflecting lower product sales and an evolving revenue mix.
• Gross margin increased to 59.2%, from 42.2% in Q2 2025.
• Training revenue increased 74%, with gross profit up 110%.
• Cash increased 26% from year-end.
• Operating expenses declined 14% in Q2 and 19% year-to-date.
• Recurring and franchise-related revenue represented ~63% of total revenue, up from ~38%.
• Total assets increased 16% to $1.55 million, while total liabilities declined 4%.
• Working capital deficit narrowed by ~$181,000 from year-end, with the current ratio increasing to 0.69 from 0.58.

Beyond the headline financial results, the quarter also demonstrated continued progress in the underlying drivers of Stardust's scalable business model. Training and exam administration continued to strengthen the Company's revenue mix, while expansion of the franchise network further extended Stardust's operating footprint. These developments support the Company's strategy of building a more scalable platform with a greater contribution from franchise, training and recurring revenue streams. The Company continued to strengthen its financial foundation, raising approximately $833,000 through a private placement and making ~$483,000 in debt repayments during and following the quarter. The decision to prioritize debt repayment reflects a disciplined approach to capital allocation and positions Stardust to pursue future growth from a stronger financial base.

With a stronger financial foundation in place, Stardust is accelerating the strategic initiatives that can drive its next phase of growth across financing, international expansion and utility-scale renewable energy development. The Company's Lease-to-Own pilot successfully onboarded its first customer, demonstrating the potential of the financing model to expand customer access to solar and battery storage solutions. At the same time, Stardust continued to advance its flagship 30 MW Zambia solar project with Gamma Power Systems and POWERCHINA. Subsequent to quarter-end, the project received final government approval and a fully executed Implementation Agreement, representing one of the final government milestones before construction can commence.

Building on its established North American franchise network, Stardust is also advancing international expansion opportunities in Mexico and the Caribbean, with discussions progressing toward agreements that could extend the Company's reach into new high-growth renewable energy markets. Together with its pursuit of larger-scale renewable energy infrastructure and long-term energy asset opportunities, these initiatives are designed to expand Stardust's addressable market, diversify future revenue opportunities and create additional pathways for scalable, long-term shareholder value.

With global electricity demand accelerating and investment in energy infrastructure increasing, Stardust is positioning its platform to participate across multiple segments of the energy market from distributed solar and financing to utility-scale development and longer-term energy asset opportunities while maintaining capital discipline and a focus on long-term shareholder value.

About Stardust Solar Energy Inc.

Stardust Solar Energy is a globally expanding renewable energy company supporting the installation, development, training, and deployment of residential, commercial, and utility-scale solar solutions across international markets. The Company operates a diversified solar royalty platform generating recurring revenue through franchise installation operations, accredited training and development licenses and subscriptions, and technology-driven innovation initiatives. Through formal engagement with governments, utilities, and commercial stakeholders, the Company is scaling renewable energy capacity worldwide.

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