Western GeoPower Corp.

Western GeoPower Corp.

March 18, 2005 17:04 ET

Western GeoPower Corp. Announces 'Bought Deal' Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WESTERN GEOPOWER CORP.

TSX VENTURE SYMBOL: WGP
FRANKFURT SYMBOL: WE6.F

MARCH 18, 2005 - 17:04 ET

Western GeoPower Corp. Announces 'Bought Deal'
Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 18, 2005) - Western
GeoPower Corp (TSX VENTURE:WGP) (FWB:WE6.F) (NOTC:WGEO), a renewable
energy development company, is pleased to announce that it has today
entered into a guaranteed agency agreement with Dundee Securities
Corporation under which Dundee has agreed to purchase 7,000,000
flow-through shares of the Company at a price of $1.00 per share for
gross proceeds of $7,000,000. The proceeds will be used to drill one
additional production well (MC8) in respect to the Company's South
Meager geothermal resource. Dundee will be paid a commission of 490,000
shares of the Company and will be granted a compensation option
entitling Dundee to purchase an additional 490,000 shares at $1.00 per
share for a period of three years.

The Company's previously announced offering has been modified and will
now comprise up to $15,000,000 (including the Dundee "bought deal") with
the balance being a combination of flow-through shares at $1.00 per
share or units, each unit comprising one non-flow-through share and a
warrant, each warrant entitling the holder to purchase one additional
share at $1.20 per share for a period of three years. If closing price
of the Company's shares on the TSX Venture Exchange exceeds $1.50 for 20
consecutive business days at any time after the closing, the Company may
issue a press release indicating the warrant expiry date will
"accelerate" to the date set forth in the press release which will be no
earlier that 30-days following the date the press release is issued.

The proceeds of the balance of the offering will be used to complete the
flow-testing of the previously drilled MC-6 and MC-7 production wells
and to complete MC8. The agents in respect to the balance of the
offering will receive a commission of 7% payable either in cash, shares
of the Company or units at the election of the agent, and a compensation
option entitling the agents to purchase 7% of the shares and/or units
that are sold for a period of three years at the issue price.

On behalf of Western GeoPower Corp.

"Kenneth MacLeod"

Kenneth MacLeod, President & CEO

The information provided in this news release may contain forward
looking statements within the meaning of the Safe Harbor provisions of
the US Private Securities Litigation Reform Act of 1995. These
statements are based on Western GeoPower Corp.'s current expectations
and beliefs and are subject to a number of risks and uncertainties that
can cause actual results to differ materially from those described in
forward looking statements. This news release is not for dissemination
in the United States of America or to United States of America news
services.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Western GeoPower Corp.
    Kenneth MacLeod
    President & CEO
    (604) 662-3338 or US/Canada Toll Free: 1-866-818-2211
    Email: info@geopower.ca
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.