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Schneider Power Inc.: Schneider Power Successfully Closes Project Equity Transaction with Energy Farming

^{Published on 2009-02-26 10:15:54, Last Modified on 2009-02-26 10:16:49 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2009) - Schneider Power Inc. (TSX VENTURE:SNE) announced today that it has completed its previously announced transaction and signed a definitive framework and limited partnership agreement with Energy Farming Invest Inc. ("EFI") a subsidiary of German wind project developer Energy Farming International AG.

Pursuant to the framework agreement EFI has agreed to provide the project equity and debt financing for the construction of the 10 MW Arthur Wind Farm and conditionally agreed to provide the project equity financing for the construction and commission of 3 additional Ontario wind projects with a combined nameplate capacity of 26.5 MW. EFIs obligations to provide funding for these three projects is conditional on SPI acquiring final building permits and is subject to certain termination rights that EFI holds until Sept 30, 2009.

Under the terms of the definitive agreements Schneider Power will retain a 20% interest in each project and receive a development fee of up to $2.3 million ($1.4 million guaranteed). Schneider Power will also be involved during the construction process and will be compensated for construction and operations management for each project.

"We are extremely pleased to be able to move forward on projects even in a time when the industry has stalled in Ontario," said Jonathan Lundy, Chief Executive Officer of Schneider Power. "Our partnership with Energy Farming will provide access to financial resources and construction expertise which will have a significant impact on our speed and ability to build value for our shareholders."

Kelly Campbell, Director of Energy Farming Invest added; "We are looking forward to working with Schneider Power and their experienced and accomplished development team to expand our renewable portfolio and presence in North America." Energy Farming can be found at [ http://www.energyfarmingontario.com/ ].

The transaction is subject to TSX Venture Exchange approval.

About Schneider Power

Schneider Power Inc. (TSX VENTURE:SNE) is one of Canada's premier renewable energy companies, with a large portfolio of clean electricity generation development projects and advanced exploration projects located across two continents, and a large land positions on the most promising and prospective wind and solar power areas in North America and the Caribbean. Visit us on the web at [ http://www.schneiderpower.com/ ].

Schneider Power is listed on the TSX Venture Exchange under the symbol SNE.

Forward Looking Information

This news release contains forward looking information. Actual future results may differ materially. Additional financial and operational information is filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.