Shear Wind Inc.
TSX VENTURE : SWX

Shear Wind Inc.

December 23, 2010 21:20 ET

Shear Wind Announces Proposed Financing

HALIFAX, NOVA SCOTIA--(Marketwire - Dec. 23, 2010) - Shear Wind Inc. ("Shear Wind") (TSX VENTURE:SWX) announced today that Genera Avante Holdings Canada Inc. ("GAHC"), which holds approximately 62% of the common shares of Shear Wind ("Common Shares") on a fully-diluted basis, has agreed, subject to regulatory approval, to loan up to $5,000,000 to Shear Wind for required project development expenditures, operating expenses, as well as , to advance funds to Shear Wind's wholly owned subsidiary, Vindt Resources Inc. Vindt Resources Inc will use the funds provided for required project development expenditures in Alberta as well as repayment of Vindt's promissory note with GAHC provided in August 2010. Shear Wind will issue an unsecured promissory note ("Note") to GAHC, in the principal amount of $5,000,000 with an initial draw down of $3,000,000 (the "Initial Draw"). The Note shall bear interest at 10% per annum. Fifty percent of the principal drawn on the Note, together with interest, shall be due on December 31, 2012 with the remainder due on December 31, 2013. If the amounts due and owing at each repayment date are not paid in full, the amounts due and owing under the Note at the maturity dates may be converted, in whole or in part, at the option of GAHC into Common Shares at a conversion price of $0.20

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Shear Wind in any jurisdiction.

About Shear Wind

Shear Wind is headquartered in Halifax, Nova Scotia and is engaged in the exploration and development of renewable wind energy properties in Canada. Shear Wind is focused on building a strong company based on a secure and sustainable supply of clean wind energy. Shear Wind is committed to building shareholder value governed by environmental stewardship. Inveravante Inversiones Universales, S.L., an international corporation based in Spain, indirectly owns 62% of Shear Wind on a fully-diluted basis through Genera Avante Holdings Canada Inc., following its investment in Shear Wind in November 2009. The most advanced project is the Glen Dhu wind power project which is presently on track to begin commissioning turbines in December 2010 and to be fully operational by March 2011.Additional information on the various projects may be viewed on Shear Wind's website: www.shearwind.com.

Forward-Looking Statements / Information

This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects, using words including "anticipate", "believe", "could", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "will", "would" and similar expressions, which are intended to identify a number of these forward-looking statements. More particularly, and without limitation, this press release contains forward looking statements concerning: the obtaining of shareholder approvals, TSX Venture Exchange approvals and the closing date of the Asset Transfer. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. Actual results may differ materially from information contained in the forward-looking information as a result of a number of material factors, including failure to secure adequate financing to develop projects of Shear Wind. Shear Wind undertakes no obligation to publicly update or revise any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.

Shear Wind Inc. trades on the TSX Venture Exchange under the symbol "SWX".

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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