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Plutonic Power Awarded Energy Purchase Agreements from BC Hydro

07/27/2006


Company Poised to Become the Largest Independent Renewable Power Developer in BC

VANCOUVER, BRITISH COLUMBIA, Jul 27, 2006 - Plutonic Power Corporation (TSX VENTURE:PCC) today announced that it has been offered Energy Purchase Agreements (EPA) for two run-ofriver hydroelectric projects from BC Hydro. The two agreements are for the supply of approximately 752 gigawatt hours (GW.h) of energy per year to BC Hydro over a 35 year term.

The two run-of-river hydroelectric projects (the East Toba River and Montrose Creek Project and Rainy River Project) have total design capacity of 211 megawatts (MW). Combined, the projects have an estimated capital cost of $500 million and will create over 300 full-time jobs over a three-year construction period. This represents the largest private sector renewable energy investment in the history of British Columbia with the potential to generate approximately $60 - 70 million annually in revenue for Plutonic Power.

"Obtaining these Energy Purchase Agreements is a major milestone for Plutonic that will help transform the Company into a significant energy producer," said Donald McInnes, President of Plutonic Power Corporation. "Over the last two-and-a-half years, Plutonic has invested $6 million in feasibility and engineering studies, permitting and public consultation. These Energy Purchase Agreements are a significant step for Plutonic towards securing the necessary debt and equity financing to allow development to proceed."

The 196 MW East Toba River and Montrose Creek Project is located at the headwaters of the Toba Inlet north of Powell River and is expected to produce enough electricity to meet the annual energy needs of over 70,000 homes. The 15 MW Rainy River Project is located in Howe Sound, and could produce enough electricity for over 5,500 homes.

Plutonic Power is committed to working cooperatively with First Nations in their traditional territories to provide jobs, training and economic benefits not just in the construction phase, but also over the lifetime of these projects. Discussions with First Nations concerning the development of the projects are ongoing.

"These renewable hydro projects will provide significant economic opportunities and social benefits for First Nations and rural communities," said McInnes. "We've had an incredible amount of support from the communities where these projects are located and we want to ensure they are developed in a sustainable manner for the benefit of everyone involved."

Run-of-river hydro projects differ from larger-scale traditional hydro in that dams or large reservoirs are not required. Run-of-river hydro plants use small catch basins at high elevations to divert a portion of the water from the river into an underground pipe called a penstock that runs parallel to the river. The penstock feeds water down to a turbine to generate energy. Once the water passes through the turbine, it is returned to the river system without altering the existing flow or water levels.

Conference Call

Plutonic Power Corporation will host a conference call to discuss these developments on Thursday, July 27, 2006 at 4:30 p.m. EST (1:30 p.m. PST). To participate in the conference call, please dial toll free 1-888-280-8277 or 416-695-9714. A live webcast will be available to all interested parties through Plutonic Power Corporation's website at www.plutonic.ca or www.ccnmathews.com. For those investors unable to participate in the call, a recording will be available for replay until August 3, 2006 by calling 1-888- 509-0081 or 416-695-5275 with the passcode 628264.

About Plutonic Power Corporation

Plutonic Power is an emerging renewable energy producer in British Columbia. Its proposed 19 projects have a design capacity of over 870 MW and the potential to generate approximately 2,900 GWh per annum of green energy - enough energy to meet the annual energy needs of approximately 300,000 homes. Included in the 19 projects is the creation of the Green Power Corridor, a series of non-storage hydroelectric projects in southwestern BC, which hold the potential to catapult British Columbia to the forefront of green energy generation in North America. The completion of the Green Power Corridor would create over 2,400 person-years of employment.

On behalf of the Board of Directors

PLUTONIC POWER CORPORATION

Donald McInnes, President

Plutonic Power Corporation
Marc Stachiw (604) 669-4999
Nancy Goertzen (604) 669-4999
www.plutonic.ca