Plutonic Power Corporation

Plutonic Power Corporation

July 17, 2007 08:49 ET

Plutonic Breaks Ground on $660 Million East Toba/Montrose Green Energy Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Plutonic Power Corporation (TSX:PCC), has authorized its contractor, Peter Kiewit Sons Co. under a limited notice to proceed, to begin construction of 60 kilometres of access roads and 11 bridges and related infrastructure in the Toba Valley, in preparation for ground breaking on the generation facilities for the $660 million, 196 megawatt East Toba/Montrose Creek run-of-river projects. The first barge successfully offloaded heavy equipment and materials at the head of Toba Inlet north of Powell River BC last week, after a twenty-hour trip across Howe Sound. More than 130 barge trips will be made during the three-year course of construction.

"Plutonic is extremely excited that work is underway in the Toba Valley. After a two-year rigorous permitting process we can now turn our attention from permitting to execution and construction of East Toba/Montrose," said Donald McInnes, President and CEO of Plutonic Power Corporation. "The arrival of the first barge of equipment was symbolic for us as it moves forward our vision of the 1,600 megawatt Green Power Corridor and our commitment to helping restore BC's self-sufficiency status."

"The remote nature of the site also creates some unique opportunities for Plutonic and Kiewit to be creative throughout the construction process," added McInnes. "In addition to barging equipment and materials, a 200-man construction camp will be built, as well as an airstrip and related facilities. Plutonic is also very proud of the work we have commenced with First Nations that is inclusive of training, employment and subcontracting opportunities. We also plan to actively engage and update the community and First Nations during the construction period to build on the solid relationships and expertise already in the region."

A partnership executed between Plutonic and GE Energy Financial Services will ultimately finance and operate the Toba Montrose Projects. The $660 million project budget includes the EPC contract ($497 million) and owners costs, contingencies and interest during construction. Most of the significant conditions precedent to the implementation of the partnership have been satisfied except execution by the partners of an EPC contract with Peter Kiewit Sons Co. which is anticipated by month-end.

Plutonic Power is an emerging renewable energy producer in British Columbia. Its proposed 31 development projects have a design capacity of up to 1,600 MW with the potential to generate approximately 5,000 GWh per annum of green energy - enough energy to meet the annual energy needs of over 500,000 homes. These development projects represent the largest inventory of undeveloped green energy projects in British Columbia. Included in the 31 projects is the creation of the Green Power Corridor, a series of non-storage hydroelectric projects in southwestern BC, which hold the potential to catapult British Columbia to the forefront of green energy generation in North America. The completion of the Green Power Corridor would create approximately 4000 person years of employment. For photos of the site progress to date visit

Plutonic is committed to becoming the preeminent supplier of green energy in British Columbia by working with First Nations, stakeholder groups and local communities in the development of all its run-of-river projects. This commitment will help British Columbia realize its goal of becoming electricity self-sufficient by 2016 and meet demand utilizing 90% clean generation sources.

On behalf of the Board of Directors


Donald McInnes, President

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.

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

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