NaiKun Wind Energy Group Inc.
TSX VENTURE : NKW

NaiKun Wind Energy Group Inc.

November 24, 2008 08:30 ET

NaiKun Submits 396 MW Proposal Into BC Hydro Clean Power Call

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 24, 2008) - NaiKun Wind Energy Group Inc. ("NaiKun") (TSX VENTURE:NKW) is pleased to announce that today it will submit a proposal into BC Hydro's Clean Power Call to supply up to 396 megawatts of electricity, or enough to power approximately 130,000 homes, from Canada's first offshore wind energy project.

NaiKun's proposal covers the first phase of its project and comprehensively addresses all aspects of the project including pricing, delivery dates, and transmission routing and connection options. The proposal also includes an option for HaidaLink, NaiKun's unique plan to connect Haida Gwaii (the Queen Charlotte Islands) to British Columbia's main electricity grid via NaiKun's generation facility, ending the islands' reliance on diesel generators. The company's project site is in Hecate Strait, between Haida Gwaii and the northwest coast of mainland British Columbia.

"NaiKun's project is complementary to the province's existing hydroelectric system and will supply competitively priced, clean and green electricity to British Columbians," said Paul Taylor, NaiKun's President and CEO. "We are confident of our success given that our proposal features a superior wind resource, proven technology, collaborative partnerships, an experienced team and strong public support."

BC Hydro's Clean Power Call seeks 5,000 gigawatt hours of clean, renewable energy per year as part of its effort to attain the goal of energy self-sufficiency by 2016. Proposals must be received by BC Hydro no later than November 25, 2008, with contract awards scheduled for the second quarter of 2009.

The next key milestone for NaiKun will be submitting an application for an Environmental Assessment Certificate in early 2009. The application will be formally submitted to the B.C. Environmental Assessment Office and to the Council of the Haida Nation.

NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) is a Vancouver-based renewable energy company that is traded on the TSX Venture Exchange. Its subsidiary, NaiKun Wind Development Inc., is engaged in the development of an offshore wind project in British Columbia, Canada. Additional information is available on NaiKun's website, www.naikun.ca.

NaiKun Offshore Wind Energy Project Phase 1

Background Information

NaiKun is proposing to construct and operate an offshore wind energy project in Hecate Strait between Haida Gwaii (the Queen Charlotte Islands) and Prince Rupert. Located in the shallow waters of Dogfish Banks off the east coast of Haida Gwaii, turbines will harness the power of the wind to produce electricity that will be transmitted via submarine cable to an onshore substation and connected to the mainland electricity transmission grid.

Features of the project include the following:

Proven Technology:

- Wind energy is one of the cleanest, most abundant and cost-effective resources for electricity generation. Wind speeds over water are generally greater than on land which makes the energy from offshore wind projects more consistent and efficient. Offshore wind projects similar to NaiKun's are successfully operating in Europe and several are being considered throughout North America.

- NaiKun recently signed a letter of intent with Siemens Wind Power regarding the supply of up to 110 wind turbine generators. Turbines will be installed in 2013 and 2014. Siemens Wind Power is a global leader in the development and installation of wind power solutions with more than 7,000 installed turbines.

- NaiKun has also signed a memorandum of understanding with Siemens Canada Limited's Power, Transmission and Distribution Division for the transmission components of the project.

Superior Wind Resource and Favourable Site:

- Hecate Strait has some of the strongest, most consistent winds in Canada. Based on data collected, the NaiKun project site is located within an area with mean annual wind speeds between 9.5 and 10 metres per second. The actual mean wind speed during the first full year of measurement was 10.1 metres per second. This region has the potential to become one of the most efficient and high-producing wind project locations in the world.

- The shallow and sandy seabed at the NaiKun project site is well suited to offshore construction. As well, additional project phases can be implemented as needed to meet the future energy needs of British Columbians. This proposal covers the first of five phases for the development.

Collaborative Partnerships:

- NaiKun has partnered with First Nations on key aspects of the project, and local First Nations are actively engaged in ownership, operations, and employment and training. The Haida Nation, as equity participants in the operating company, will have the benefit of long-term ownership and participation. NaiKun also has commercial agreements in place with the Lax Kw'alaams and Metlakatla First Nations on the transmission component of the project.

- Jobs will go to local residents whenever possible. Local residents have been employed during project planning and design, 200 seasonal jobs will be created during project construction, and 30 to 50 long-term career positions will be created for operations and maintenance.

- ENMAX Green Power Inc. (EGPI) is a key participant in NaiKun's proposal. EGPI is a subsidiary of ENMAX Energy Corporation, Alberta's leading competitive electricity retailer. EGPI is one of Alberta's largest investors in renewable energy with partial ownership of the McBride Lake Wind Farm, complete ownership of the Taber Wind Farm and, through a subsidiary, Kettles Hill Wind Farm.

- NaiKun is continuing to respond to interest in its plan to bring a third strategic partner into Phase 1.

Strong Public Support:

- A public opinion poll, conducted by the Mustel Group in September 2008 on behalf of NaiKun, indicated that 73 per cent of British Columbians support the project.

- NaiKun's consultation, public information and community relations activities have demonstrated strong local support for the project.

Experienced Management and Consulting Team:

- NaiKun has a strong experienced team of energy sector business leaders, engineers and project managers with proven ability to deliver large-scale and complex infrastructure projects, including offshore wind projects, on time, on budget and in keeping with community needs.

- The project team includes U.K.-based Offshore Design Engineering Ltd. (ODE) and Vancouver-based Sandwell Engineering Inc. as consulting engineers, both of which have extensive offshore design and construction experience.

- Other key consultants assisting with the project include: financial advisors Bank of Tokyo-Mitsubishi UFJ, insurance and risk advisors AON Reed Stenhouse, environmental consultants Hemmera Envirochem, project certification consultants Germanischer Lloyd Certification Gmbh, wind resource analysts Riso DTU, and engineering consultants RPS Energy and Ramboll Wind Energy.

- The NaiKun project represents a new way of doing business in which independent power producers take responsibility for building and maintaining local partnerships and generating local benefits.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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