Stardust Strengthens Franchise Network Through Strategic Territory Optimization

Vancouver, British Columbia--(Newsfile Corp. - September 30, 2026) - Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) ("Stardust Solar" or the "Company"), a North American renewable energy company focused on distributed energy, commercial solar, utility-scale development and long-term renewable energy asset ownership, announces a strategic optimization of its franchise network designed to strengthen operator performance, improve resource allocation and create new opportunities for growth.

As part of an ongoing performance review, Stardust has terminated the franchise rights of 10 underperforming franchise operators representing 16 franchise territories. The terminations were made in accordance with the performance provisions of the applicable franchise agreements, including minimum sales requirements. Under Stardust's franchise model, franchisees are generally required to generate at least $250,000 in annual sales to maintain their franchise rights, subject to the terms of their respective agreements. Operators that consistently fail to meet their contractual performance obligations risk termination, helping protect the value and performance of the broader network.

The 16 territories remain within the Stardust system, with the Company assuming control at head office and intending to make select markets available to qualified new franchise operators. As a result, Stardust continues to have 102 franchise territories within its system. The optimization reduces Stardust's franchise operator base from 41 to 31, allowing the Company to focus its training, marketing, lead generation, technology, and operational resources on franchisees demonstrating stronger performance and growth potential. Despite representing approximately 24% of Stardust's franchise operators, the terminated franchisees generated only ~11% of franchise network revenue over the last 12 months, leaving the remaining operator base representing approximately 89% of trailing 12-month franchise network revenue.

"A strong franchise network is built on engaged, high-performing operators who are committed to growing their businesses and the Stardust brand," said Mark Tadros, CEO of Stardust Solar. "This optimization strengthens the foundation of our franchise platform and positions us for more disciplined, productive, and sustainable growth."

By reclaiming underperforming territories, Stardust can relicense select markets to qualified entrepreneurs, potentially generating new franchise fees, training revenue, product sales and recurring franchise revenue. The strategy also provides an opportunity to increase productivity within the existing network while maintaining the Company's geographic territory base. Going forward, management will continue to evaluate the network based on sales productivity, operator engagement, territory performance and revenue generated per franchise relationship. The Company expects to begin marketing select available territories to prospective franchisees as part of its ongoing franchise development strategy.

Stardust remains focused on building a disciplined, scalable and performance-driven franchise platform across distributed energy, commercial solar, battery storage and renewable energy infrastructure. By increasing productivity across its existing network and redeploying reclaimed territories to stronger operators, Stardust is positioned to improve revenue generation, enhance operating leverage and unlock greater value from its 102-territory platform, creating a stronger foundation for scalable growth and long-term shareholder value. This update is one of a series the Company plans to share as Stardust continues its strategic transition to capitalize on evolving energy demand, optimize operations and position the business to create sustainable 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/316823

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