ONA Energy Inc.
CNQ : OEIX
FRANKFURT : O3X

ONA Energy Inc.

January 08, 2008 12:29 ET

ONA Energy Announces Commissioning of the First 60 MW Unit at the Company's Yongxing Power Plant in China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 8, 2008) - ONA Energy Inc. ("the Company") (CNQ:OEIX)(FRANKFURT:O3X) is pleased to announce that the Company's 60% owned subsidiary, the Yongxing Power Plant Corporation (YPPC), has completed the construction of the first 60 MW unit and has now begun the commissioning process.

The Company further announces that the first 60 MW unit has reached a major milestone in the commissioning and testing process by completing the 110 kilo-volt (kV) high voltage transmission substation to the Hunan Provincial Grid. The power plant substation consists of the 110 kV step-up transformer, all the protection and metering equipment and the 6.3 kV and the 600 volt distribution systems; thus paving the way for commissioning and testing of all the major components and electrical drives of the power plant. Electricity is now flowing from 110 kV transmission lines of the Hunan Provincial grid to the power plant following an inspection and approval by the Hunan Provincial Transmission Authority.

The first unit of the power plant is expected to be in full operation by March 2008, following completion of the trial run.

John Wong, President of ONA stated, "With this major achievement, the YPPC commissioning team will be able to power up and test the drives and validate all the major components and systems of the power plant. It won't be long before we start turning the generator and electrons will be flowing out, instead of flowing into the power plant."

Yongxing Power Plant Corporation is a Sino-Foreign Joint Venture Company constructing an environmentally friendly power plant in the Yongxing County, Hunan province of China. The power plant will burn a mixture of up to 75% coal tailings (coal mining waste) and 25% coal as fuel to generate electricity for sale to the Hunan Provincial grid. The power plant is approved by the Chinese National Development and Reform Committee (NDRC) as an environmentally friendly project, not only by addressing the utilization of coal tailings which has become a major environmental issue for the Yongxing County, but also by complying with the NDRC guidelines of achieving very low NOx and SO2 emissions. The YPPC power plant has been designed to emit less than 50 milligrams/nominal cubic metre (mg/Nm3) of fly ash to the atmosphere, which is the lower end of the range of particulate matter emissions as recommended by World Bank Group guidelines. The fly ash contained in the flue gas will be captured by a five-field electrostatic precipitator and will be sold to the local cement plants to generate a secondary revenue stream for YPPC.

YPPC being a Sino-Foreign Joint Venture Company will enjoy a five-year tax holiday beginning on the day the plant starts generating electricity.

ONA Energy Inc. (www.onaenergy.com) is a Canadian-based international energy company focused on the acquisition and development of power generation projects.

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements. In particular the ability of Ona to fund construction of the first phase of the YPPC power plant is subject to numerous risks, including its ability to raise further funds, and market conditions in general. Accordingly there is no guarantee that YPPC will be able to successfully complete construction of phase one of the YPPC power plant, or if completed, that Ona will not have its interest diluted due to its inability to raise sufficient funding.

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