NaiKun Wind Energy Group Inc.
TSX VENTURE : NKW

NaiKun Wind Energy Group Inc.

July 08, 2008 07:30 ET

NaiKun Wind Energy Group Outlines Key Activities to Advance Canada's First Offshore Wind Energy Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2008) - NaiKun Wind Energy Group Inc. ("NaiKun") (TSX VENTURE:NKW) is pleased to provide a project update on key activities being undertaken throughout 2008 to advance the development of Canada's first offshore wind project, located in Hecate Strait off the north coast of British Columbia. Large scale offshore wind projects are successfully operating in Europe today and are a key part of the global shift to increasing the use of renewable energy.

NaiKun's team of energy sector business leaders, engineers and project managers is on track with the preparation of a competitive response to BC Hydro's Clean Power Call Request for Proposals ("RFP"), issued June 11, 2008. This RFP is focused on larger power projects using proven technologies, which is ideally suited to NaiKun's project plan. Phase 1 will have a generating capacity of 320 MW.

As part of NaiKun's development program and to meet BC Hydro's bid submission date of November 25, 2008, NaiKun is undertaking the following key activities:

- Advancing discussions with leading offshore wind turbine manufacturers regarding the supply and maintenance of turbines for Phase 1 and future phases of the project.

- Analysing wind data, ocean currents and patterns from NaiKun's meteorological station located at the project site in Hecate Strait and correlating with long term wind data from a number of the Environment Canada meteorological stations in the area. Data from the meteorological station, which was installed in September 2007, continues to confirm the strength of Hecate Strait's world class wind resource and the economic viability of the project.

- Advancing geophysical seabed surveys at the project site and transmission corridors. These surveys involve side-scan and multi-beam sonar which provides detailed mapping of the seabed topography and make-up. Geophysical work to date confirms that the composition of the seabed is suited to a large-scale wind project.

- Continuing with detailed work necessary to support the environmental assessment of the project. Environmental field studies will be completed in late 2008 and the information from this work, together with feedback and input from First Nations, local communities and other interested parties, will be included in NaiKun's application for an environmental assessment certificate. Approvals are targeted for fall, 2009.

- Advancing transmission studies and related proposals with Siemens Canada Limited, Power Transmission and Distribution Division.

- Finalizing the engineering team for the project which will contribute to the preparation of the bid and construction of the offshore wind project.

To date, NaiKun has done a significant amount of work related to technical and commercial aspects, social and environmental matters and project execution and operations. In addition, NaiKun continues to build on commercial agreements that are in place with the Council of the Haida Nation, and certain Tsimshian communities on the north coast. These efforts have enabled NaiKun to bring the preparation of the bid to an advanced stage, while confirming the project's viability and reducing risks.

Other Key Project Activities

NaiKun has also put forward an innovative proposal to connect nearby Haida Gwaii, via the project, to the mainland electricity transmission grid. Known as HaidaLink, this transmission connection will be majority owned by the Haida Power Authority in partnership with NaiKun. HaidaLink is consistent with Premier Gordon Campbell's recent announcement that governments must work to eliminate the dependence of our northern communities on diesel to generate power. Haida Gwaii is the largest area of British Columbia not served by the main electricity grid and receives most of their power from expensive diesel generation that produces an estimated 26,000 tonnes of greenhouse gas emissions annually.

NaiKun is also continuing to respond to interest in our stated plan to bring in a third strategic partner into our Phase 1 power generation subsidiary, NaiKun Wind Generating Inc., which is currently owned 50/50 by NaiKun and ENMAX Corporation, a Calgary headquartered energy distribution, supply and service company.

NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) is a Vancouver-based renewable energy company that is traded on the TSX Venture Exchange. Its subsidiary, NaiKun Wind Development Inc., is engaged in the development of an offshore wind project in Hecate Strait off the coast of British Columbia. For more information, please visit www.naikun.ca.

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

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