Run of River Power Inc.

Run of River Power Inc.

August 27, 2007 08:00 ET

Run of River to Acquire Western Biomass


Run of River Power Inc. (TSX VENTURE:ROR)("Run of River" or "the Company") is pleased to announce that it has reached agreement to purchase 100% of the issued and outstanding shares of Western Biomass Power Corp. ("Western Biomass"). Run of River will issue 3,786,726 shares, subject to a voluntary escrow agreement which will escrow 66.6% of the shares for release as key milestones are achieved.

Jako Krushnisky President of Run of River Power stated, "Western Biomass presents a compelling value proposition and we are delighted to join with them to enhance shareholder value for our shareholders and the shareholders of Western Biomass. T.J Grewal, Western Biomass' President, has assembled a package of opportunities that we are confident will provide a sound basis for growth in the wood fired power generation industry."

Western Biomass is a private company that was formed to provide solutions to the growing need for power and the disposal of the large biomass inventory created by the mountain pine beetle epidemic which has devastated vast areas of pine forest in the interior of British Columbia.

Western Biomass intends to build a series of wood fired plants utilizing pine beetle killed trees as well as logging and mill wastes. The first of these projects is expected to be a 50-100MW plant located in the traditional territories of the first nations which make up the Tsilhqot'in National Government ("TNG"), located west of Williams Lake B.C.

Western Biomass has entered into a letter of intent with the TNG and is finalizing a joint venture which will advance this project to the feasibility stage. TNG and Western are engaged in consultation with the traditional users of the land to ensure that the project has the necessary community support.

BC Hydro has announced that a separate call for biomass generated power will be made later this year or early in 2008 and Western Biomass is expecting to submit a bid in response to this call.

TJ Grewal Western's President and chairman will be joining the Board of Run of River. Mr. Grewal is a successful entrepreneur based in Prince George B.C. with business interests throughout the interior of the Province.

Mr. Grewal stated "We recognized that a strong financial partner was necessary to bring these projects to fruition and Run of River has been very successful in raising over $30 million of debt and equity over the past two years. Their commitment to green power development has the company at the forefront of this emerging sector in BC. This all dovetails well with the BC government's energy plan which sets out the goal of energy self sufficiency from clean and green sources."

The agreement to acquire Western Biomass is subject to acceptance by the TSX Venture Exchange. The transaction is considered a related party transaction as 24.2% of the issued shares of Western Biomass are owned by Michael Sweatman, the CFO of Run of River, and Richard Hopp, a director of Run of River.

About Run of River Power Inc.

The Corporation is currently developing hydroelectric projects in two clusters located near Vancouver. The ten development projects, totaling 193 MW of capacity, will generate over 670 GWh of electricity annually, when completed, providing in excess of $60 Million per year in gross revenue to Run of River.

Run of River operates a hydroelectric power generation station at Brandywine Creek, near Whistler, BC. The plant provides power to over 4,000 homes annually through a long-term 20 year contract with BC Hydro.

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

Contact Information

  • Run of River Power Inc.
    R.G. ("Jako") Krushnisky
    (604) 946-9232
    Run of River Power Inc.
    David Speck
    Investor Relations
    (416) 801-8369