Plutonic Power Corporation

Plutonic Power Corporation

May 14, 2008 07:00 ET

Plutonic Power and Knight Piesold Ltd. Extend Agreement of Partnership for Identification and Evaluation of Potential Run-Of-River Sites Through to 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2008) - Plutonic Power Corporation (TSX:PCC) and Knight Piesold Ltd. have signed an agreement to extend the relationship that has been key to the identification and development of the suite of projects that make up Plutonic's Green Power Corridor.

"Plutonic Power and Knight Piesold have a had a very unique and mutually beneficial relationship since 2003 which we intend to continue on into 2014 through this revised letter of agreement," said Plutonic Vice-Chair and CEO, Donald McInnes, "Knight Piesold's high caliber staff and ability to identify and provide guidance on potential sites has proven invaluable to Plutonic's goal to help BC reach electrical self-sufficiency status."

The agreement provides Plutonic with a right of first refusal to acquire new projects identified by Knight Piesold and also includes a standard non-compete clause to ensure continued interactions between the two companies are free from conflict. The agreement provides for the issuance of 100,000 common share purchase warrants to Knight Piesold, exercisable at a price of $7.93 per share for a period of two years and a bonus structure if any of the identified projects become commercially viable. Knight Piesold will also be entitled to payment of its fees for services provided.

"Knight Piesold is pleased to agree to the extension of the relationship with Plutonic Power," said Knight Piesold President Jeremy Haile. "We plan to continue to work diligently on identifying renewable energy project sites with exceptional potential and working towards positioning Plutonic as a leader in the development of clean energy in BC."

About Plutonic Power Corporation

Plutonic Power's vision is to provide leadership and create a legacy through the development of renewable, reliable, made-in-BC clean energy. Its proposed Green Power Corridor, comprised of 40 facilities, including the flagship $660 million, 196 MW East Toba River/Montrose Creek run-of-river project currently under construction, have the potential 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 its run-of-river projects. By developing its suite of projects, Plutonic Power will help British Columbia realize its goal of becoming electricity self-sufficient by 2016, meet demand 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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