Coast Mountain Power Corp.

Coast Mountain Power Corp.

March 31, 2006 18:32 ET

Coast Mountain Power Corp.: Forrest Kerr Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - Cliff Grandison, President of Coast Mountain Power Corp. (TSX VENTURE:MW), announced the selection of Valard Construction Ltd. as its preferred contractor for construction of Coast Mountain Hydro Corp.'s Forrest Kerr/Meziadin 178km Transmission Line.

Coast Mountain solicited proposals from a number of contractors who were supplied with detailed specifications and drawings prepared by BC Hydro for Coast Mountain. The line is designed as a 138kV AC line that will carry up to 200MW of power with single pole construction. The line will have a maximum thermal capacity rating of 240MW and will transfer power from Coast Mountain's Forrest Kerr run-of-river hydroelectric project to the BC Hydro grid at Meziadin Junction.

The Company has started to clear the first 8 km of transmission line right-of-way beginning at the site of the Forrest Kerr powerhouse and adjacent to the company's site access road. This work is being completed independently of the Transmission Line Contract. Work on this section commenced March 17, 2006.

Completion of transmission line survey initiated, in the Fall of 2005, will recommence once snow levels have receded to an acceptable level.

About Coast Mountain Hydro Corp.

Coast Mountain Hydro Corp., a wholly owned subsidiary of Coast Mountain Power Corp., is developing the Forrest Kerr Hydroelectric Project located on the Iskut River near its confluence with Forrest Kerr Creek, in northwestern BC. The project will have an installed capacity of 115MW, and includes the development of a 178km, 138kV AC transmission line to deliver the power to the BC Hydro grid at Meziadin Junction. Power generated from the project is sold under a 15-year electricity purchase agreement with BC Hydro for the delivery of 540GWh of electricity on an annual basis.

About Valard Construction Ltd.

Valard Construction is one of Western Canada's largest power line contractors. For over twenty years they have continued to provide industry with safe and reliable products and services. Located in Grande Prairie, Alberta, Canada they also have regional offices throughout the area. Valard provides construction, operations and maintenance services to utilities, mining, oil and gas industries and Rural Electric Associations throughout the provinces of Manitoba, Saskatchewan, Alberta, British Columbia, Yukon, Northwest Territories and Nunavut.



Clifford Grandison, President

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

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