SOURCE: Nacel Energy Corporation

NACEL Energy Corporation

May 23, 2011 07:15 ET

Nacel Energy Pays Down $1.34 Millon in Debt and Provides Shareholder Update

DENVER, CO--(Marketwire - May 23, 2011) - NACEL Energy Corporation (OTCQB: NCEN) (FRANKFURT: 4FC) ("NACEL" or the "Company") today confirmed significant improvement in the Company's financial statements was achieved during the first nine months of the fiscal year ended March 31, 2011. Total debt reduction during the period amounted to $1,335,499. Accounts Payable was reduced by $245,837 to $61,464. Remaining debt outstanding amounted to $1,195,226 of which a member of NACEL's Board of Directors has advanced $460,753 on terms favourable to the Company. NACEL anticipates further improvement will be reported upon the release of its annual financial statements for fiscal 2010-11 to be filed at the end of June.

Shareholder Update

Following the appointment of Mark Schaftlein to the combined role of Chief Executive Officer/Chief Financial Officer in April 2010, NACEL embarked upon a restructuring of its operations with a focus on debt reduction. The restructuring included termination of various consultants and management, other cost reductions and the negotiation of a series of Notes with JMJ Financial of San Diego to provide a new source of operating capital for the Company.

As a result of the restructuring efforts and the level of debt reduction achieved during the first nine months of Fiscal 2010-11, in January 2011, the Board of Directors of NACEL authorized the acquisition of two blocks of the common stock of Crownbutte Wind Power, Inc. (OTCQB: CBWP) of Mandan, North Dakota ("Crownbutte"). With this stock acquisition, NACEL became the largest shareholder of Crownbutte.

Crownbutte developed and built the first utility scale wind park in the Dakotas and most recently, built the two-phase 30 MW Diamond Willow wind power facility near Baker, Montana. Twenty GE 1.5 MW wind turbines are operating today at Baker, which is presently owned by Montana-Dakota Utilities.

Subsequent to the Crownbutte stock acquisition, in February 2011, NACEL appointed Crownbutte's Executive Vice President, Terry Pilling, Ph.D., to the position of Chief Operating Officer of NACEL, thereby tasking Dr. Pilling with responsibility for the combined wind project portfolio of NACEL and Crownbutte -- a total of 13 wind projects in four States -- including three now ready to be constructed in 2011 pending the execution of definitive turbine financing. The Company cautions that while discussions with various parties regarding this wind turbine financing are ongoing there is no certainty these discussions will result in any financing arrangements being concluded.

In May 2011, following the completion of the review of the combined project portfolio by Dr. Pilling, NACEL determined it would participate directly with Crownbutte in the development of the 200 MW Gascoyne II wind power generation project. Gascoyne is located on 1733 acres between the towns of Bowman and Hettinger in North Dakota and is considered to possess among the best wind characteristics in the nation for a wind power generation project. NACEL then advanced funds directly to the Midwest Independent Transmission System Operator, Inc. (Midwest ISO) to complete the Feasibility Study for the interconnection of the Gascoyne II project to the electric grid.

NACEL anticipates it will continue to invest further capital in Crownbutte and will participate directly in other Crownbutte wind projects in the future. NACEL will update shareholders and other interested parties regarding the extent of NACEL's capital investment in Crownbutte subsequent to the Company becoming the largest shareholder of Crownbutte, following the filing of Crownbutte's next quarterly report on Form 10-Q.

For further information concerning today's news release please refer to NACEL's News Archive at http://www.nacelenergy.com/news/archive.html.

About NACEL Energy Corporation (OTCQB: NCEN)

NACEL is one of the first publicly traded companies in America exclusively developing clean, renewable, utility scale wind energy. The Company currently anticipates generating an aggregate 300 megawatts of new wind power upon the commissioning of the Gascoyne II project in North Dakota, together with the Company's Leila Lake, Hedley Pointe, Swisher, Channing Flats and Blue Creek, all located in the Texas Panhandle. NACEL was founded in 2006 and successfully completed its IPO in December of 2007. NACEL is also the largest shareholder of Crownbutte Wind Power Inc. (OTCQB: CBWP) of Mandan, ND.

NACEL Energy
The WIND POWER COMPANY™

Notice regarding Forward-Looking Statements

Statements in this press release relating to NACEL Energy's plans, strategies, economic performance and trends, projections of results of specific activities, and other statements that are not descriptions or historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in NACEL Energy's business. Forward-looking statements may be identified by words such as "should," "may," "will," "anticipate," "expect," "estimate," "intend" or "continue," or comparable words or phrases. Interested persons are encouraged to read NACEL Energy's Securities and Exchange Commission filings, particularly its Annual Report on Form 10-K for the fiscal year ended March 31, 2010 and its Quarterly Report on Form 10-Q for the quarter ended December 31, 2010, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.

Contact Information

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    NACEL Energy
    Investor Relations
    1-888-242-5848