China Wind Power International Corp.
TSX VENTURE : CNW

China Wind Power International Corp.

January 17, 2012 13:30 ET

China Wind Power Provides Update on Bank Financing and Phase II Wind Farm

Tight Credit Conditions Slow Loan Disbursements; Delay Completion of Phase II

TORONTO, ONTARIO--(Marketwire - Jan. 17, 2012) - China Wind Power International Corp. (TSX VENTURE:CNW) ("China Wind Power" or the "Company"), an independent wind power producer in China, has provided an update with regards to its loan agreement with the Agricultural Development Bank of China (the "Bank"). The Company confirms that it has received 50 million Yuan of the remaining 120 million available under the original 330 million Yuan loan approved by the Bank.

"We were originally expecting the full 120 million Yuan to be disbursed earlier and all at once, which would have enabled us to complete our 49.5 MW Phase II wind farm," said Mr. Jun Liu, Chief Executive Officer, China Wind Power. "In 2011, China increased the requirements on bank reserves. Accordingly, banks increased their loan interest by adding a premium on the prime rate and gave priority to higher interest loans in order to maintain their earnings. We are fortunate that we still managed to obtain this loan at the prime rate without a premium. However, the Bank only disbursed 50 million Yuan before the end of the calendar year. While we expect to receive the remaining 70 million Yuan any day now, this has unfortunately pushed back our timeline for completing Phase II."

The Company confirms that the remaining 13 turbines required for the 49.5 MW wind farm have been assembled in the supplier's warehouse awaiting delivery. Contingent on the timing of the final disbursement from the Bank, the Company now expects to complete Phase II by spring of this year.

The timing of the final loan disbursement and the delay in completing Phase II do not have any impact on the construction of the Company's 198 MW Phase III wind project. Phase III is being constructed under more favourable financial terms through an engineering, procurement and construction contract with a different turbine supplier than Phase II. Foundations have been laid for all 132 turbines at Phase III, with construction expected to be completed by the end of June 2012.

About China Wind Power International Corp.

China Wind Power International Corp. is an Ontario company that is uniquely positioned to capitalize on the growing demand for wind power in China. The Company indirectly holds the exclusive rights for wind energy development in Du Mon County, Heilongjiang Province, which has a demonstrated potential installed capacity of 1,150 MW of wind energy developable over an area of 612 square km. While 1,150 MW represents the Company's long-term potential for wind power in the area, its current plans are for building out approximately 800 MW over five development phases. The Company's common shares are listed on the TSX Venture Exchange under the symbol "CNW". The Company has approximately 63.9 million shares outstanding.

For more information and the latest updates on China Wind Power International Corp., visit our investor relations blog at http://chinawindpower.posterous.com or follow our updates on Twitter at http://twitter.com/ChinaWindPower.

Caution Regarding Forward-Looking Statements

Certain statements that are not historical facts made in this press release may be forward looking statements subject to risks and uncertainties. Statements containing words such as "will", "could", "expect", "may", "anticipate", "believe", "intend", "estimate", "plan" and other similar expressions are forward-looking statements that represent management's beliefs at the time the statements are made and are based on certain factors and assumptions including wind farm construction and commercial production schedule, output and capacity, revenue and earnings expectations and market potential. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties involving the availability of financing; fluctuations in currency exchange rates; uncertainties relating to economic and market conditions; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to develop the projects and uncertainty as to the availability and terms of future financing; the possibility of delay in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the information circular dated November 5, 2010, which is available at www.sedar.com under the Company's profile. Except as required by applicable securities laws, the Company undertakes no obligation to update any forward looking statement to reflect events or circumstances after the date on which such statement is made.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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