news
MEDIA

Plutonic Power Signs Term Sheet with Sliammona First Nation for Run-of-River Hydroelectric Project

03/06/2007


Vancouver, BC - Plutonic Power Corporation (TSX VENTURE: PCC) is pleased to announce that it has signed a term sheet with the Sliammon

First Nation which sets out the essential terms of an Impact and Benefit Agreement ("IBA") to be finalized between the two parties with respect to the proposed 196 MW East Toba River /Montrose Creek run-of-river hydroelectric power project, 150 kilometers north of Powell River, BC.

Pursuant to the IBA, the Sliammon

First Nation will support Plutonic's construction and operation of the East Toba River /Montrose Creek run-of-river hydroelectric power project and appending transmission line (the "Project"). A large portion of the Project's transmission line will be located within the traditional territory of the Sliammon

First Nation. The line will extend 145 km in a southward direction from the Project generation sites in the Toba Valley to the interconnection point with the British Columbia Transmission Company ("BCTC") grid at a substation to be constructed at Saltery Bay on the north shore of Jervis Inlet.

In building the Project, Plutonic will recognize and respect Sliammon

assertion of aboriginal title and rights, archaeological sites and artifacts and Sliammon

traditional use in the area. Plutonic will also provide Sliammon

members with opportunities for employment, training and contracting. The Band will receive cash payments from Plutonic during construction and operation of the Project. Under the agreement, the Sliammon

consents to and supports the construction and operation of the project.

The term sheet was signed by Donald McInnes, President of Plutonic Power and Sliammon

Chief Councillor Walter Paul and a quorum of Sliammon

First Nation Council members on February 28th, 2007.

"Plutonic Power is extremely grateful for the support we have received from the Sliammon

Nation over the last two years as this hydro project has advanced through the permitting process," said Donald McInnes. "The Sliammon

Nation has shown great foresight in helping Plutonic meet its objectives in becoming a preeminent green power producer in British Columbia. We look forward to a long and prosperous working relationship with the Sliammon

Nation that will help them achieve their social, economic and cultural goals."

Chief Walter Paul said "We have high expectations of what this agreement will mean to our Nation. We rely on the promises made to us by Plutonic for training and employment opportunities for the members of the Sliammon

First Nation and look forward to the opportunity to participate meaningfully in future power projects within our traditional territory."

Plutonic Power is an emerging renewable energy producer in British Columbia. Its proposed 22 run of river projects have a design capacity of over 1100 MW and the potential to generate approximately 3500 GW.h per annum of green energy, enough energy to meet the annual energy needs of approximately 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 Walter Paul
Sliammon

First Nation
Office: 604-483-9646
Walter.Paul@Sliammon.bc.ca

www.Sliammontreaty.com


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.