Plutonic Power Corporation

Plutonic Power Corporation

October 04, 2007 16:00 ET

Plutonic Power Corporation: BC's Largest Private Run-Of-River Project Unites First Nations and Business Community

Blessing of East Toba/Montrose marks first step in the revitalization of the Toba Valley

TOBA RIVER VALLEY, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2007) - Plutonic Power Corporation (TSX:PCC) President Donald McInnes, The Honourable Gordon Campbell, Premier of British Columbia, GE Energy Financial Services' Mark Tonner, Chief Ken Brown of the Klahoose, Chief Walter Paul of the Sliammon and Chief Marita Paul-Franke of the Sechelt First Nation attended a ceremonial bridge crossing and blessing today of the $660 million, 196-megawatt East Toba River/Montrose Creek run-of-river hydroelectric project in the Toba Valley, north of Powell River.

"Today's ceremony signifies our commitment as a private sector developer to the success of our partnerships with the Klahoose, Sliammon and Sechelt Nations," said McInnes, President of Plutonic Power. "We feel strongly about bringing positive economic and social benefits back into this valley and to these communities while also ensuring that we bring BC back to a place of electricity self-sufficiency through a legacy of clean, reliable made-in-BC energy."

Initial rejuvenation and construction of forestry roads and bridges to the powerhouse sites for the East Toba/Montrose project began in July 2007. The completion of the first bridge enables economic development back into a valley that lay dormant for more than 20 years.

"The East Toba/Montrose project is an excellent example of how innovative companies, working with their First Nations partners can promote sustainable economic development and provide clean electricity at the same time," said Premier Gordon Campbell. "This is truly a model for others to follow and exactly the type of project our Energy Plan and New Relationship policies were designed to stimulate. I want to congratulate all partners involved for working together on this important project."

"This project is an excellent demonstration of our ecomagination, GE's program of helping meet environmental challenges, and a wonderful way to harness nature in a respectful, sensible manner," said Mark Tonner, Managing Director at GE Energy Financial Services in Canada.

The East Toba River/Montrose Creek run-of-river hydroelectric project crosses the traditional territories of three First Nations. The main powerhouse, diversion, intake and penstock and beginning of the transmission line are in Klahoose territory. The transmission line crosses through the land of the Sliammon First Nation and connects to the BC Hydro grid at the Saltery Bay substation, to be built on the territory of the Sechelt Indian Band.

"These run-of-river projects have already had a huge economic impact on our band," said Chief Ken Brown of the Klahoose First Nation. "Royalties are providing the ability to develop other initiatives in aquaculture and forestry while employment on the project is providing long-term jobs and skills development for our members."

"Over the past few years, the Sliammon Nation has worked hard to extract meaningful benefit from significant provincial crown land developments such as the East Toba River/Montrose Creek run-of-river project," said Chief Walter Paul of the Sliammon First Nation. "Sliammon looks forward to developments like the Plutonic Power project playing a significant, positive role in assisting Sliammon's continued efforts to access long-term employment, training and business development opportunity for Sliammon membership."

"The Sechelt are pleased to be able to work with Plutonic Power Corporation to reach an agreement that will bring real benefits to our community and we look forward to this project bringing the economic benefits to our people, both now and for generations to come," said Chief Marita Paul-Franke of the Sechelt Indian Band.

Once completed, the East Toba River/Montrose Creek run-of-river hydroelectric project will potentially displace an estimated 455,000 tonnes of greenhouse gases (GHG) annually. This is the equivalent of taking about 80,000 cars off the road per year or planting about 60,000 hectares of trees. Commercial operation of the Toba site is expected by mid 2010 and Montrose by late 2010.

About Plutonic Power Corporation

Plutonic Power is an emerging renewable energy producer in British Columbia. Its proposed 34 development projects have a design capacity of approximately 1,700 MW with the potential to generate approximately 5,500 GWh per annum of green energy, enough energy to meet the annual needs of about 550,000 homes. Included in the 34 projects is the creation of the Green Power Corridor, a series of non-storage hydroelectric projects in southwestern BC, which hold the potential to catapult British Columbia to the forefront of green energy generation in North America. The completion of the Green Power Corridor could create over 4,500 person years of construction employment.

Plutonic is committed to becoming the pre-eminent supplier of green energy in British Columbia by working with First Nations, stakeholder groups and local communities in the development of all its run-of-river projects. This commitment will help British Columbia realize its goal of becoming electricity self-sufficient by 2016 and meet demand utilizing 90% clean generation sources.

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.

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

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