Schneider Power Inc.

Schneider Power Inc.

May 11, 2009 08:02 ET

Schneider Power to Acquire Grand Valley Wind Farms

Announces Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - May 11, 2009) - Schneider Power Inc. (TSX VENTURE:SNE) announced today that it has entered into a binding agreement to purchase Ontario-based Grand Valley Wind Farms Inc. from its parent company, EarthFirst Canada Inc., in partnership with Lands End Corporation, the original developer of the project. The completion of the all cash, $800,000 transaction is subject to, among other customary closing conditions, approval by the Court of Queen's Bench of Alberta pursuant to EarthFirst's current proceedings under the Companies Creditors' Arrangement Act. Assuming court approval is obtained, the completion of the transaction is expected to occur on or about May 27, 2009.

The Grand Valley Wind Farms hold three Ontario RESOP contracts for a total of 22 Megawatts of fully-permitted capacity, with an additional 28 MWs of capacity anticipated to be developed under the new Ontario Feed-in Tariff Program. Schneider Power will take a 66% ownership in the joint venture with Lands End Corporation retaining a 34% interest.

The Company also announced that it has received conditional approval from the TSX Venture Exchange for a non-brokered private placement of up to 10,000,000 units at a price of $0.11 per unit, up to 3,928,571 "flow-through" shares at a price of $0.14 per share, or a combination of units and flow-through shares for gross proceeds of up to $1,100,000. Each unit will be comprised of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share of the Company at a price of $0.22 for a 24-month period. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.

Gross proceeds from the offering are expected to be used to fund a portion of the Grand Valley acquisition and for ongoing development of the Company's portfolio of renewable energy projects.

About Schneider Power:

Schneider Power Inc. is one of Canada's premier renewable energy companies, with a portfolio in excess of 1,000 MW clean electricity generation development projects and advanced exploration projects located across two continents, and large land positions on the most promising and prospective wind and solar power areas in North America. Schneider Power is listed on the TSX Venture Exchange under the symbol SNE.

Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Schneider Power to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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