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Plutonic Power Corporation Announces $16 Million Underwritten Financing

10/24/2006


THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Vancouver, British Columbia, October 24, 2006 - PLUTONIC POWER CORPORATION (TSX-V:PCC) announces that it has entered into an agreement with Sprott Securities Inc. and Orion Securities Inc. as co-lead underwriters on behalf of a syndicate of underwriters, pursuant to which the underwriters will purchase (or find substituted purchasers for) 8,000,000 common shares of the Company at $2.00 per share for total gross proceeds of $16,000,000. The Company has also granted the underwriters an option exercisable up until closing to purchase up to an additional 2,000,000 common shares for additional gross proceeds of $4,000,000. Closing of the sale of the common shares is scheduled for November 9, 2006 and subject to normal regulatory approvals. The underwriters will be entitled to receive a 6.5% commission on gross cash proceeds. In addition, the underwriters will receive compensation warrants equal to 5% of the number of shares sold under the offering with each compensation warrant entitling the holder to purchase an additional common share of the Company at $2.00 per share for a period of 2 years.

Plutonic Power is an emerging renewable energy producer in British Columbia. Its proposed 22 development projects have a design capacity of nearly 1,000 MW with the potential to generate approximately 3,300 GWh per annum of green energy - enough energy to meet the annual energy needs of over 300,000 homes. Included in the 22 projects is the creation of the Green Power Corridor and a series of non-storage hydroelectric projects in southwestern BC which hold the potential to bring British Columbia to the forefront of green energy generation in North America. The completion of the Green Power Corridor would create approximately 3,000 person-years of employment.

In July 2006, Plutonic Power was awarded Energy Purchase Agreements from BC Hydro for its most advanced projects: East Toba River, Montrose Creek and Rainy River, which combined, total 211 MW of capacity. Plutonic has granted a Canadian affiliate of GE Energy Financial Services the exclusive right to provide $100 million of project equity as well as lead a $400 million debt financing for construction of the East Toba/Montrose Creek project.

Plutonic is committed to working with First Nations, stakeholder groups and local communities in the development, future construction and operation of its run of river projects.

The common shares of the Company trade on the TSX Venture Exchange under the symbol "PCC".

On behalf of the Board of Directors,
PLUTONIC POWER CORPORATION

"signed"

Donald McInnes, President

For additional information please contact:
Lisa May
Investor Relations
Office: 604-669-4999 ext 1034
Cell: 604-314-3362
lisa.may@plutonic.ca

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.