Western GeoPower Corp.

Western GeoPower Corp.

July 18, 2007 18:45 ET

Western GeoPower Extends Warrant Incentive Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2007) -


Western GeoPower Corp., (TSX VENTURE:WGP) (FRANKFURT:WE6) (the "Company"), today announces the extension of the warrant incentive program (the "Program") to July 27, 2007.

In order to encourage the early exercise of the warrants, Western GeoPower is amending the December 2005 and the December 2006 warrant so that upon payment of the applicable exercise price of $0.25, the holder will receive one unit instead of one common share. The new units will consist of a common share and an additional warrant. Each warrant will allow the holder to acquire one common share at a price of $0.35 per share until December 30, 2008. The warrants are transferable. The warrants will also be subject to an acceleration provision, which would provide that if the Company's shares traded at $0.50 for ten consecutive trading days, it would trigger a 30 day timeframe within which to exercise the warrants or they would expire. The new units will be subject to a four-month hold period.

Under the terms of the Program, holders of 63,563,668 warrants expiring on December 30, 2008 (the "Warrants") with an exercise price of $0.25 per share will, until the closing date of July 27, 2007 (the "Incentive Period"), be entitled to receive an additional warrant. The program will only apply to those warrant holders who exercise their warrants. Any Warrants not exercised during the Incentive Period will remain unchanged.

The Company will issue the Units to any warrant holder that exercises their warrants or which has exercised its warrants prior to this incentive program being put in place on the basis that all warrant holders should be treated equally.

The Program is to encourage the early exercise of 63,563,668 warrants relating to share purchase warrants issued on December 30, 2005 and December 15, 2006.

Exchanging the warrants early will provide the capital to execute the Company's current business plan while reducing the overall dilution to shareholders versus a new financing. The gross proceeds to the Company if all the $0.25 warrants are exercised would be $16.5 Million. The proceeds of the early exercise will be applied to the development of the Company's wholly-owned Unit 1 project at the Geysers Geothermal field, in Northern California.

The Company is currently awaiting approval of the permits to drill the initial 6 production wells and anticipates commencement of drilling in fall 2007.

Corporate Overview

Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, baseload electricity generation. The Company is developing the 25.5 Megawatt (net) geothermal power plant at The Geysers Geothermal Field in Sonoma County, California, United States. The Company is also developing the South Meager Geothermal Project in British Columbia, Canada.

On behalf of Western GeoPower Corp.

Kenneth MacLeod, President & CEO

Cautionary Note Regarding Forward-Looking Statements

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified above that reflect the Company's expectations and projections about its future results. The Company has tried whenever possible to identify these forward-looking statements which include but are not limited to, words such as "anticipates," believes," "estimates," "expects," "plans," "intends," "potential," and similar expressions. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The Company disclaims any obligation or intention to update or to revise any forward-looking statement, whether as a result of new information, future events or otherwise. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.

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

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