news
MEDIA

Plutonic Power Finalizes Impact Benefits Agreement with Klahoose First Nation

02/20/2007


The Klahoose First Nation and Plutonic Power Corporation (PCC - TSX.V) are pleased to announce they have signed an Impact Benefit Agreement (IBA) that facilitates the development of the East Toba River/Montrose Creek run-of-river hydroelectric project. The East Toba/Montrose project site is located within the traditional territory of the Klahoose First Nation. The IBA establishes terms under which the Klahoose Nation supports and endorses the development of the Project.

Specific terms of the Impact Benefit Agreement remain confidential, however, the Agreement does include:
  • Ongoing respect by Plutonic for asserted aboriginal rights and title of the Klahoose First Nation in the Toba Watershed
    Annual payments to the Klahoose during project construction and in operating years 2 through 35 in consideration for crossing the Klahoose Reserve #1.
    A royalty payment to the Klahoose in operating years 36 through 50 as well as for the remainder of the Project life.
    Employment and training opportunities for Klahoose members
    Opportunities for Klahoose owned companies in the construction and operation of the project</ul></html>The Klahoose First Nation Chief and Council has given their full support for the construction and operation of the East Toba/Montrose project within their traditional territory. The Klahoose membership ratified the agreement during a series of meetings last week on Cortes Island, in Powell River and in Vancouver. The Agreement received unanimous support by all voting members.

    The IBA also outlines specific terms for future agreements between Plutonic and the Klahoose First Nation as concerns any further run-of-river projects that Plutonic wishes to develop within the Toba River Valley area of Klahoose traditional territory.

    Commenting on the agreement signed on January 31, 2007 by Chief Duane J. Hansen of the Klahoose First Nation and Mr. Donald McInnes, President of Plutonic Power, Chief Hansen said:

    "As the elected Chief of Klahoose I am very proud of what we as a people have accomplished in such a short time working together with Plutonic Power. I hold this IBA agreement up and take one step forward to begin a path to re-vitalize, re-empower and restructure our social, economic and cultural well being. This is a historic step on our journey to economic self sufficiency and we look forward to having a gift exchange ceremony soon with Plutonic Power in celebration of our people's new beginning of nation building and our new partnership."

    "Plutonic Power is delighted to have concluded this significant IBA with the Klahoose First Nation. It is a milestone agreement that provides certainty for both the Nation and Plutonic under which projects will be built and operated for our mutual benefit. Together we are at the forefront of renewable energy development and are making positive contributions to meet the energy needs of BC." said Donald McInnes.

    The East Toba/Montrose project, which will have a combined capacity of 196 megawatts, will be located on two sites on the East Toba River and Montrose Creek. The project also includes a 145 km long transmission line for interconnection to the grid.

    Plutonic Power is an emerging renewable energy producer in British Columbia. Its proposed 22 run-of-river projects have a design capacity of approximately 1100 MW and the potential to generate an estimated 3500 GW.h per annum of green energy, enough energy to meet the annual energy needs of about 300,000 homes. Included in the 22 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 be financed through one of the largest single private sector green energy investments ever made in British Columbia and would create over 3,000 person-years of employment.

    Plutonic is committed to continuously work with First Nations, stakeholder groups and local communities in the development of its run-of-river projects.

    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


    Chief Duane Hanson
    Klahoose First Nation
    Office: 250-935-6536
    hansondj@telus.net
    www.Klahoose.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.