NaiKun Wind Energy Group Inc.

NaiKun Wind Energy Group Inc.

February 20, 2007 22:03 ET

NaiKun Announces Firm Underwriting by Northern Securities

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 20, 2007) - Michael C. Burns, Chairman of NaiKun Wind Energy Group Inc. ("NaiKun") (TSX VENTURE:NKW), announced today that NaiKun, has signed an engagement letter with Northern Securities Inc. ("Northern") to act as its lead agent to raise $3,000,000 through the sale of Units and Flow-Through Shares of NaiKun (the offering).

The funds will be used to finance the continuing development work of the NaiKun Wind Project, a five phase 1,750 megawatt ("MW") development proposed for the waters of Hecate Strait between Haida Gwaii (the Queen Charlotte Islands) and the British Columbia mainland near Prince Rupert. Construction of the 320 MW Phase I is anticipated to commence in 2009.

"NaiKun is delighted with the investor interest it has received," said Mr. Burns. "This Offering will enable NaiKun to respond to the BC Government's increased emphasis on clean energy by accelerating environmental and technical studies in preparation for an early proposal to BC Hydro."

Under the terms of the offering, NaiKun has agreed to sell up to 2,142,857 Units (assuming the offering is comprised entirely of Units), on a private placement basis, at a price of $1.40 per Unit and $1.70 per Flow-Through Share. In addition, Northern will have an over-allotment option to increase the offering by $500,000 of Units or Flow-Through Shares, subject to a maximum issuance of $2,000,000 of Flow-Through Shares.

Each Unit is comprised of one common share and one-half common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to purchase one common share at a price of $1.80 per common share for a period from the closing date of the Offering until May 30, 2008. It is anticipated that this offering will close on or about March 23, 2007.

Northern will receive a commission of 8 per cent of the gross proceeds of the Offering and NaiKun will issue to the Northern, at Closing, Unit Broker Warrants equal to 8 percent of the Units sold pursuant to the Offering and Flow-Through Share Broker Warrants equal to 8 per cent of the Flow-Through Shares sold pursuant to the Offering, each flow-through share broker warrant being exercisable into one common share of company at the Flow-Through Share issue price. Such broker warrants will be exercisable for a period from the closing date of the Offering until May 30, 2008.

The Offering is subject to the receipt of all necessary approvals including all regulatory and stock exchange approvals. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent from registration or an application exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

NaiKun Wind Energy Group Inc. is a Vancouver-based energy company that has traded on the TSX Venture Exchange (and its predecessors) since 1967. Its stock symbol is NKW. Since 2000, the company has focused on renewable energy and is now concentrating on development of a major wind farm in British Columbia's Hecate Strait. Interested parties are invited to visit the company's website at

Northern Securities Inc. is an independent, integrated investment bank that offers a full range of investment banking services including corporate finance, retail & institutional distribution, equity research, online trading, online public offerings and online private placements. Northern Securities is a wholly owned subsidiary of Northern Financial Corporation, a public company that trades on the Toronto Stock Exchange under the symbol NFC. Its website can be accessed at

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

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