Vancouver, BC, August 3, 2007 - Plutonic Power Corporation has advised BC Hydro of its intention to exit the electricity purchase agreement (EPA) for the 15 megawatt (MW) Rainy River run-of-river project, due to unexpected complexities in the environmental permitting process caused by the discovery of a number of fish species in the area. Complexities in permitting have decreased certainty around the timing for the project commercial operation date.

"Plutonic Power takes its environmental and contractual responsibilities very seriously," said Donald McInnes, President of Plutonic Power. "The company feels that while these issues have the potential to be addressed, due to the uncertainty around timing, the best course of action is to exit this agreement and refocus its efforts on the development of the Green Power Corridor projects."

A significant issue arising in the environmental permitting process has been the discovery of several fish species including salmon and steelhead, above the project site. The presence of these in addition to resident species in the projects proposed diversion reach were not anticipated and have made obtaining permits exceedingly more difficult.

"Any future actions on Rainy River will take into account the need to address these new complexities. Plutonic is currently reviewing a full range of options for this project," added McInnes.

Plutonic Power was awarded an EPA for the 15 MW Rainy River project in the 2006 call for power by BC Hydro, in addition to the 196 MW Toba/Montrose project, on which construction is underway.

For additional information visit: www.plutonic.ca