CALGARY, AB — Pristine Power, an independent Canadian developer and operator of electricity and steam generation facilities, announced yesterday that it has entered into an agreement to conditionally acquire an additional 37% interest in 0755748 BC Ltd., the holding company which owns the Kleana Power Project and several other development assets. The Kleana project is a 600 MW run-of-river hydroelectric project located on the Klinaklini River in western British Columbia. As a result of this agreement, Pristine's ownership interest in the project will increase to 47%. This acquisition includes fractional interests in a number of other early stage hydroelectric development projects, including the 300 MW Machmell River project.

"Our increased investment in the Kleana project underscores our fundamental belief in the quality of the Klinaklini River hydro resource," stated Jeffry M. Myers, President and Chief Executive Officer of Pristine Power. "The economies of scale, location, minimal environmental footprint, and local participation make this project one of the most compelling run-of-river projects in North America. Once completed, Kleana will more than double Pristine Power's output, increasing net production capacity by 282 MW."

Under the terms of the share purchase agreement, Pristine has made a nominal initial payment to acquire an additional 37% of the shares of 0755748 BC Ltd. Future payments are dependent upon the project achieving specific milestones including the signing of an electricity purchase agreement, the completion of the required environmental assessment, and the issuance of full notice to proceed on the related construction contracts. The timing and likelihood of such payments cannot be determined at this time. At any time until the final payment is made under the agreement, there are provisions in the agreement that permit Pristine to return the shares to the vendor for a nominal price.

As currently envisioned, the 600 MW Kleana project would operate at a capacity factor of approximately 50% and would include the construction of a 180 km 2x230 kV transmission line with connection into the Campbell River substation on Vancouver Island. Total project costs are expected to be around $3-$4,000 per kW. In November 2008, the project was submitted into the BC Hydro 2008 Clean Power Call with awards expected in the fourth quarter of 2009.

Visit www.pristinepower.ca for more information.

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