Resource World Magazine

j u n e / j u l y 2 0 1 5 www.resourceworld.com 57 alterra and Klahoose First Nation to develop tahumming river project Vancouver-based Alterra Power Corp. [AXY-TSX; MGMXF-OTC] and the Klahoose First Nation have signed a memorandum of understanding to develop the 15 MW Tahumming River hydro- electric project, located in the Toba Valley near the company's Toba Montrose and Jimmie Creek power projects in the tradi- tional territory of the Klahoose in southwest British Columbia. Alterra's Executive Chairman is well known mining entrepreneur Ross Beaty, Chairman of Pan American Silver. The parties plan to submit the project into BC Hydro and Power Authority's Standing Offer Program upon completion of the project's environmental assessment certificate. Klahoose Chief James Delorme said, "This agreement between the Klahoose First Nation and Alterra builds on our Toba Montrose and Jimmie Creek agreements and represents another significant milestone for our nation. The Klahoose First Nation supports quality green energy development in our traditional ter- ritories, achieved with a partner that is respectful of our land, our culture and our people. As we work together with Alterra and our Klahoose members on the best practices for this project we see the potential for success. We value the work our past leaders have done for us to get us to this place." Jay Sutton, Alterra's Vice President, Hydro Power, said, "We value our relationship with the Klahoose First Nation and are grate- ful for their continued support of run-of-river hydro projects in their traditional territory. We look forward to working together on a third environmentally responsible project in the Toba Valley that will benefit the Klahoose First Nation and all British Columbians." Alterra Power is a leading global renewable energy company, operating five power plants totaling 553 MW of generation capac- ity, including British Columbia's largest run-of-river hydro facility and largest wind farm, and two geothermal facilities in Iceland. Alterra owns a 247 MW share of this capacity, generating over 1,250 GWh of clean power annually. The company has projects in British Columbia, Ontario, Nevada, Texas, Iceland, Italy, Peru and Chile. Alterra also has two new projects under construction: Jimmie Creek is a 62 MW run-of-river hydro project adjacent to the existing Toba Montrose facility, expected to be in operation by Q3 2016 and 51% owned by Alterra. The Jimmie Creek Project consists of a new renewable power facility to be constructed in the Toba Valley on Jimmie Creek, approximately 80 km northeast of Powell River on BC's Sunshine Coast. The powerhouse will connect to the existing 155 km, 230 kV, Toba Montrose transmission line to Saltery Bay, which is the point of interconnection with the BC Hydro system. When com- plete, Jimmie Creek will have the potential to produce electricity for over 15,000 homes. The Jimmie Creek Project will comple- ment Alterra's larger existing Toba Montrose Project which has an installed capacity of 235 MW and an annual production of up to 727 GWh/yr. Construction is progressing ahead of schedule due to the mild winter. The Shannon Wind Farm is a 204 MW project located in Clay County Texas, expected to be in operation by Q4 2015 with a pro- jected 50% ownership by Alterra (currently 100%). The company is finalizing terms with the project financing parties and expects to complete the financing in the second quarter. Road construc- tion and improvements and turbine foundation excavation (on all 119 foundations) are complete, with turbine foundation construc- tion and collector line placement well underway. Alterra expects commercial operations to start in the fourth quarter of this year. Upon completion of these two projects Alterra will operate seven power plants totaling 819 MW of capacity and will own a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually. The National Energy Authority in Iceland awarded the company research permits for the Hvala (55 mega- watts) and Skufnavatnavirkjun (10 megawatts) hydro projects. The company's fleet-wide performance against budget (103%) was a first quarter record, driven by record quarterly generation at Toba Montrose (248% of plan). Alterra Power's revenue was $16.4 million for the quarter ended March 31, 2015, a decline of 13% from the comparative quarter in 2014, primarily due to the loss of revenue as a result of the sale of the Soda Lake Project on January 30, 2015 ($1.4-million impact quarter on quarter), and unfavourable currency fluctuations regarding HS Orka, an Icelandic geothermal power company. HS Orka declared a dividend of $2.4 million in Q1 2015. Alterra's 66.6% share is $1.6 million, and is expected to be received in Q2 2015. Consolidated cash and cash equivalents at March 31, 2015, were $45.7 million of which $15.3 million is held in the company's Icelandic subsidiary. n The East Toba intake at the Toba Montrose run-of-river power project, southwest British Columbia. Source: Alterra Power Corp.

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