Vector Wind Energy Inc.
TSX VENTURE : VWE

Vector Wind Energy Inc.

February 01, 2006 13:48 ET

Vector Signs Memorandum of Understanding with Vision Quest

OTTAWA, ONTARIO--(CCNMatthews - Feb. 1, 2006) - Vector Wind Energy Inc. ("Vector") (TSX VENTURE:VWE) is pleased to announce that it has signed a memorandum of understanding to acquire the Royal Road Wind Farm development project from Vision Quest Windelectric, TransAlta's wind business. The Royal Road project is located in Prince Edward County near Picton, Ontario. The proposed project can support approximately 20 megawatts (MW) of wind development.

"Royal Road is an excellent compliment to our three other projects in the Kingston-Picton corridor," said Brian Barr, President of Vector. "This acquisition would allow us double our participation in the March 2006 tender call from the Ontario government and help us to achieve some important economies of scale once in operation," he said.

"The project is very well advanced," said Mr. Barr. "On-site wind data have been collected for several years and the Ontario Environmental Screening Process has been completed subject to the filing of the Statement of Completion." Mr. Barr noted that some residents have appealed the County's zoning approval decision to the Ontario Municipal Board. "We will review the merits of the appeal and hopefully meet with the appellants during the due diligence period," he said.

Vector stated that the acquisition is subject to the negotiation of a definitive conveyance agreement between the parties and satisfactory completion of Vector's due diligence review by February 16, 2006.

Vector is a developer of wind energy projects in Canada. Currently Vector has 18 active projects around the country at various stages of exploration and development. These projects have the potential to support over 1,000 Megawatts of wind energy capacity.

More information on the Company can be obtained at www.sedar.com.

Certain statements in this press release may constitute forward looking statements which relate to future events. Words such as "should" "believes", "expects", "intend", "anticipates", "potential" or similar expressions are examples of forward looking statements. Future events are subject to various risks and uncertainties and may not transpire as predicted by such forward looking statements. Please refer to our publicly filed documents for a more complete discussion of risk factors to which our company is subject.

Shares Outstanding: 16,271,632

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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