Company Overview

Northstone Power Corp. (“NPC”, or the “Company”) is an Alberta based independent power producer (“IPP”) that operates a 12 MW natural gas power plant located near Elmworth, AB, southwest of Grande Prairie. The company has a secure fuel supply contract from an adjacent gas plant and has secured line capacity to export up to 25 MW’s of electricity directly to the Alberta Integrated Electrical System (AEIS).

The Company operates the plant as a merchant peaking plant which means as the power pool prices rises above the production cost then the units are turned on and power is generated until the pool price falls below the production costs once again. Typically power prices are high during cold winter months, warm summer months or when there are unplanned outages of one or more of the larger coal generating plants in the province. The Company has installed an automated computer monitoring system which monitors the system marginal pool price every five minutes and alerts the head office and the operators every time the price goes over the production costs. Since installing this new system virtually no opportunities have gone unnoticed.

NPC is currently looking at ways to add value to its current plant. Two strategies are being pursued. One is recovering waste heat and producing further electricity and the other is wind power. The plant is located in an area that appears to have a large amount of wind and as such the company is currently looking at the best way to asses this potential and if warranted install wind capacity. In both case mentioned above the value added is even more attractive because the current infrastructure in place would be utilized thus substantially lowering the capital costs of any new capacity.

Corporate Information

Northstone Power Corp., is incorporated under the laws of the province of Alberta. Its head office is located at 15D Alberta, PO Box 5203 Spruce Grove, AB T7X 3A3, Canada.

Directors & Management

Directors

Jean-Luc Landry is a private investor. Until May 2000, Mr. Landry was President and CEO of Montrusco Bolton, a Canadian investment management firm listed on the TSE with $ 10 billion in assets under management.

Richard Ronchka has had over two decades of experience in the energy sector, having begun his career in oil refining, then migrating to the electricity business early on. Mr Ronchka has managed all aspects of the Energy Services value chain from Load Research and Forecasting, to Product Development, Price Setting and Program Delivery and Evaluation. Mr. Ronchka is the founding Chair and CEO of the Canadian Energy Efficiency Alliance, a member of the EnerQuality (R2000 Program) Board, and a founding member of the E7 Network of Expertise for the Global Environment, an international multi-utility group promoting energy efficiency in lesser-developed countries. He holds Bachelors degrees in Engineering and Education and a Masters degree in Business.

Doug St. Pierre holds a Bachelor of Education degree from the University of Alberta. Mr. St. Pierre has been working in the power industry for eight years, and has extensive experience developing power projects, from project inception to start of construction. While working for Westlock-Algonquin Power, he assisted the ownership team in developing two biomass power plants in Alberta. Over the last four years Mr. St. Pierre has gained extensive knowledge in the de-regulated power market in Alberta. He has developed many key industry related relationships, including gas and power marketers, engineering/construction firms and potential end users for power plants. Mr. St. Pierre also owns and operates a residential/commercial contracting company

Bruce Park holds a Bachelor of Commerce degree from the University of Calgary and is a Certified Management Accountant. Mr. Park has over twenty years of finance & accounting and project management experience. In his most recent assignments Mr. Park was the project manager in the development and implementation of financial systems & controls in Jakarta and Bontang Indonesia. Project management experience includes project planning, analysis, implementation and cost/project accounting. These assignments have provided both the knowledge and experience to effectively establish and monitor time/quality/cost priorities for special projects. Mr. Park has extensive accounting management experience to coordinate all daily Finance & Accounting activities. Career experience; 10 years overseas (Indonesia), 2 years in corporate head office (New York) and 8 years in regional offices (Calgary).

Management

CEO – Jean-Luc Landry – amaflo@videotron.ca

VP Operations – Doug St. Pierre – doug@northstonepower.com

CFO – Bruce Park – brucepark@shaw.ca

Elmworth Generating Station

NPC has successfully installed 4 of its 5 Cooper Bessemer LSV-16 reciprocating engine/generator sets (each units produces 3 MW) for a current plant capacity of 12 MW. Each unit was overhauled prior to being re-assembled. The units burn 100% natural gas to produce the electricity.

Re-assembly of the 5^th and final unit has not been started yet and is on hold until the markets warrant its installation. The overall shift from a construction project to an operating facility has been made and the current staff focuses on good operating results and overall plant maintenance and up keep.

A new boiler system was recently commissioned which allows the plant to remain at operating temperature during its down time. This has two very beneficial results;

1.The unit is at operating temperature when the price spikes happen which allows the unit to be put online much faster then otherwise, which maximizes profits.

2.Keeping the units warm eliminates the constant expansion and contraction of warming equipment up and then cooling it down again which is much better for the overall mechanical integrity of the equipment.