Tonbridge Power Inc.
TSX VENTURE : TBZ

Tonbridge Power Inc.

November 27, 2009 17:50 ET

Tonbridge Power Inc. Provides Q3 Financial Results

Highlights include: Construction and Term Financing Closed - Notice to Proceed Issued - Share Consolidation Approved by 98.3% - Project 2 Announced - Supreme Court Leave to Appeal Denied

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2009) - Tonbridge Power Inc. (TSX VENTURE:TBZ) ("the Corporation"), 100% controlling shareholder of the Montana Alberta Tie Ltd. ("MATL") transmission line project to interconnect the electricity markets of Alberta and the US through a 300 MW transmission line, today announced financial results for the three month period from July 1, 2009 to September 30, 2009. There was a net loss on a per share basis of ($0.004). The total loss for the three months ended September 30, 2009 was $(1.1M).

"The Corporation is now in Phase 1 construction on MATL, and actively begun work on Project 2 and the MATL upgrade." said Johan van't Hof, President and CEO.

Significant Highlights

Construction and Term Financing Closed - On October 27, 2009, the Corporation executed final documentation with Western Area Power Administration ("Western"), a power marketing agency of the U.S. Department of Energy, for a US$161 million loan facility (the "Construction Loan Facility"). The Construction Loan Facility is being made available to the Corporation pursuant to the US Recovery Act and will be used to fund the construction of the Tonbridge Power Line.

Notice to Proceed - On October 29, 2009, following the execution of the Construction Loan Facility, the Corporation issued a Notice to Proceed to Rocky Mountain Contractors Inc. to proceed with the construction of the Project pursuant to the terms of the amended and restated fixed price engineering, procurement and construction contract with Rocky Mountain Contractors dated October 9, 2009.

Share Consolidation - On November 4, 2009, the Corporation held a special meeting of its shareholders at which its shareholders approved the consolidation of the issued and outstanding Common Shares on the basis of one new Common Share for every 10 existing Common Shares. The Corporation filed Articles of Amendment on November 4, 2009 to effect the consolidation of the Common Shares. The Common Shares began trading on a post-consolidated basis on the TSX-V on November 6, 2009.

Project 2 - On November 5, 2009 the Corporation entered into an agreement with Gaelectric North America Inc. ("Gaelectric") to begin detailed feasibility work for the potential construction of a new power transmission line ("Project 2") that would connect the Tonbridge Power Line with the 500 kV Colstrip transmission line (the "Colstrip Line") at or west of Townsend or Garrison, Montana. If the results of the feasibility work are favourable, it is expected that the Corporation and Gaelectric will enter into a development agreement. If Project 2 is constructed, it could result in, among other things, an upgrade in capacity on the Tonbridge Power Line to an estimated effective rate of 500-550 MW at acceptable line-loss performance. While the Corporation has applied for two interconnections with the Colstrip Line, the determination of any routing for Project 2 will depend on a number of factors, including the results of the feasibility work.

Supreme Court Leave to Appeal Denied - On May 5, 2009, the Alberta Court of Appeal dismissed an appeal by certain landowners of the Alberta Energy and Utilities Board's decision to grant MATL a permit to construct, and a license to operate, the Tonbridge Power Line. On August 5, 2009, three of the appellants filed an application with the Supreme Court of Canada for leave to appeal the Alberta Court of Appeal's decision. On October 22, 2009, the Supreme Court dismissed the application for leave to appeal and awarded costs to each of the respondents, including MATL.

Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares of the Company became publicly listed on the TSX Venture Exchange on July 7, 2005 and are traded under the symbol "TBZ". The Company's financial statements and other filings can be found on SEDAR.

Should you wish to receive news via email, please email info@tonbridgepower.com and specify "company news".

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements", within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements include, but are not limited to, statements with respect to future revenues. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "should", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the conditionality of the revenue contracts, risks related to the financing or construction of the transmission line; risks related to the performance of parties contracting for transmission capacity; delays in obtaining governmental approvals, permits or project financing or in the completion of development or construction activities, requirements for additional capital, government regulation, environmental risks as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2005, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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

Contact Information