Plutonic Power Corporation

Plutonic Power Corporation

August 15, 2008 16:00 ET

Plutonic Power Announces 2008 Second Quarter Results and an Update on the Construction of the East Toba River/Montrose Creek Run-Of-River Hydroelectric Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2008) - Plutonic Power Corporation (TSX:PCC) has released its financial results in Canadian dollars, unless otherwise noted.

During the quarter ended June 30, 2008, the Company incurred a net loss of $3.7 million ($0.09 net loss per share) compared with a net loss of $2.7 million ($0.07 net loss per share) for the quarter ended June 30, 2007. The Company's net loss for the quarter ended June 30, 2008 is comprised of $2.1 million (2007 - $2.1 million) of non-cash expenditures, including share based compensation, share based guarantee fees, an unrealized loss on the fair value adjustment of interest rate swaps, and $1.6 million (2007 - $0.6 million) of cash operating expenditures.

The increase in loss resulted from higher operating costs as the Company is preparing to submit a portfolio of as much as 1,000 megawatts of run-of-river capacity into British Columbia Hydro Authority's (BC Hydro) Clean Power Call Request for Proposals (RFP). BC Hydro issued the RFP on June 11, 2008 for 5,000 gigawatt hours per year of seasonal and hourly firm energy to help ensure that the Province of British Columbia has sufficient electricity to meet its electricity needs by 2016. BC Hydro has proposed November 25, 2008 as the deadline for submission of proposals with EPA awards scheduled for mid April 2009 through June 2009.

As at June 30, 2008, the Company had consolidated cash of $63.7 million including $14.8 million in cash restricted for use in construction activities for its Toba Montrose project. Consolidated working capital, including cash restricted for use in construction activities, was $40.3 million. Plutonic's partner in the Toba Montrose General Partnership (TMGP), GE Energy Financial Services (GEEFS) has fully funded to TMGP the $100 million equity bridge loan. This loan is to be to be converted into project equity upon commencement of operations once the construction of the Toba Montrose project is completed in 2010.

As at June 30, 2008, the Company had recorded $39.0 million in long term debt, $73.2 million in property plant and equipment and $5.2 million in intangible assets based on its 40% share in TMGP.

This financial summary should be read in conjunction with the Company's June 30, 2008 unaudited consolidated interim financial statements and Management's Discussion and Analysis, both of which are available on and on the Plutonic Power Corporation web site at

Update on the construction of the East Toba River/Montrose Creek run-of-river project

As at June 30, 2008, Peter Kiewit Sons Co. (Kiewit) had completed 31% of the contracted work under the EPC contract, including the necessary infrastructure and road access to the two generation facilities. TMGP is on budget and on schedule to commence delivery and sale of electricity to BC Hydro in 2010 under a 35-year Electricity Purchase Agreement. The plan for the remainder of 2008 is to commence construction of the powerhouses, prepare for the intake diversions, complete all right-of-way clearing for the transmission line and complete up to 60 km of transmission line conductor. The project maintains a high health, safety and environmental standard, which is confirmed by independent inspection. To date, approximately 350,000 man-hours have been spent on the EPC contract with no lost time accidents. Currently, 21% of the workforce on site is from First Nations communities and programs are in place to support training for near and long-term job placement. First Nation contracting alliances for camp catering, right-of-way clearing and barging are meeting the project requirements of the Impact Benefit Agreements with the Klahoose, Sliammon and Sechelt First Nations.

About Plutonic Power Corporation

Plutonic Power's vision is to provide leadership and create a legacy through the development of renewable, reliable, clean energy. Its proposed Green Power Corridor™, comprised of 40 locations, including the flagship $660 million, 196 MW East Toba River/Montrose Creek run-of-river project currently under construction, have the design capacity to generate enough energy to meet the annual needs of about 630,000 homes and create approximately 5,500 person years of employment. Once built, the Green Power Corridor™ could offset an estimated 4 million tons of CO2 emissions every year - the equivalent to taking as many as 650,000 vehicles off the road. Plutonic is committed to working in partnership with First Nations, stakeholder groups and local communities in the development of all of its run-of-river projects. By developing its suite of projects, Plutonic Power will help British Columbia realize its goals of becoming electricity self-sufficient by 2016 and utilizing 90% clean domestic generation sources and will play a significant role in the fight against climate change.

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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