Klahoose First Nation and Alterra Power Sign Agreement for Upper Toba Project

TSX : AXY

VANCOUVER, May 23, 2012 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) and the Klahoose First Nation are pleased to announce that they have signed a Resource Development Agreement (RDA), establishing the framework under which Alterra and the Klahoose will work together to advance the Upper Toba run-of-river hydroelectric project, which lies within the traditional territory of the Klahoose First Nation.

The comprehensive RDA sets out the terms under which the construction of the facilities can proceed and the project can be brought into commercial operation.

Klahoose Chief James Delorme said, "This agreement between the Klahoose First Nation and Alterra Power builds upon our Toba Montrose agreement and represents another significant milestone for our Nation. The Klahoose First Nation supports quality green energy development in our traditional territories, achieved with a partner that is respectful of our land, our culture and our people. We value the work our past leaders have done for us to get us to this place. It has helped us to make a difference building this new profound agreement."

Donald McInnes, Alterra's Executive Vice Chairman, said, "We value our relationship with the Klahoose First Nation and are very grateful for their support of run-of-river hydro projects in their traditional territory. We look forward to working together again in the Toba Valley to develop and operate these environmentally-responsible projects that will benefit the Klahoose First Nation and all British Columbians."

About Upper Toba Hydroelectric Project

The Upper Toba run-of-river hydro power project is an expansion of Alterra's operations in the Toba Valley, where the 235 MW Toba Montrose run-of-river hydro facility is located. The project will comprise two new run-of-river hydro power plants, at Jimmie Creek and the Upper Toba River, with a combined capacity of up to 124 MW, subject to final design. The new facilities will utilize much of the infrastructure already in place for Toba Montrose. The project has a 40-year power purchase agreement in place with BC Hydro, has received its Environmental Assessment Certificate and has signed an interconnection agreement with BC Hydro.

Upper Toba is located on the traditional lands of the Klahoose First Nation and the project will use the existing Toba Montrose power line, which travels through the traditional territory of Alterra's partners, the Sliammon and Sechelt First Nations.

Cautionary Note regarding Forward-Looking Statements and Information

This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations, management's expectations regarding our growth, business prospects and opportunities and energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. 

SOURCE Alterra Power Corp.