NaiKun Wind Energy Group Inc.
TSX VENTURE : NKW

NaiKun Wind Energy Group Inc.

May 16, 2011 09:30 ET

NaiKun Wind Releases Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 13, 2011) - NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) (the "Company' or "NaiKun Wind") today announced its financial results for the three months ended March 31, 2011, a fiscal period during which the Company maintained the expenditure level achieved through its restructuring and continued to progress the new strategies it began during the last quarter of fiscal 2010. The Company also announced on March 17, 2011 that the NaiKun wind energy project has been granted a federal screening decision, confirming that Canada's first offshore wind project can be constructed with no significant environmental, social and health effects.

NaiKun Wind is confident that the Company's current strategic efforts towards the procurement on an electricity supply contract, represents the best available opportunity to support the advancement of the project and maximize shareholder value.

For the three months ended March 31, 2011, NaiKun Wind incurred a net loss of $0.7 million ($0.02 per share), compared to $1.4 million ($0.04 per share) for the three months ended March 31, 2010. As at March 31, 2011 NaiKun Wind had $7.6 million in cash and cash equivalents, compared to $10.2 million at the end of March 31, 2010. These numbers are consistent with the Company's planned reorganization and restructuring.

For fiscal 2011, the Company expects cash operating expenditures to be approximately $1.8 million. On this basis, the Company has sufficient financial resources to sustain operations into 2014 and beyond.

Effective April 1, 2010, as stated in the Company's news release of May 20, 2010, compensation to members of the Board was reduced by 50%. As part of the newly lowered Board compensation it was also decided that going forward 25% of that compensation would be paid in the form of common shares in lieu of cash. Accordingly, the Company issued 52,991 shares to its directors for the quarter ended March 31, 2011. Additionally, the Company issued 54,348 common shares to the Company's CEO, for the quarter ended March 31, 2011, as the share portion of his compensation.

NaiKun Wind Energy Group Inc. is a British Columbia-based renewable energy company with offices in Vancouver, Masset and Skidegate. Located on B.C.'s northwest coast, where the wind resource is one of the strongest and most consistent in the world, NaiKun Wind's 396MW offshore wind project would generate enough energy to provide electricity to 130,000 B.C. homes. The NaiKun Wind project is at an advanced stage of development with environmental approvals from the Provincial and Federal Governments and agreements in place with key suppliers and First Nations. Given its development status, construction can begin within two years of the award of an electricity purchase agreement. For more information on NaiKun Wind, please visit www.naikun.ca.

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.

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

Contact Information

  • NaiKun Wind Energy Group Inc.
    Michael O'Connor
    President & CEO
    604-639-8460
    604-685-4215 (FAX)
    info@naikun.ca

    NaiKun Wind Energy Group Inc.
    Media Enquiries
    604-631-4476

    NaiKun Wind Energy Group Inc.
    Investor Enquiries
    604-631-4494
    www.naikun.ca