NEWS RELEASE

 

DATE:    DECEMBER 14    , 2005

                                                        TRADING SYMBOLS:  TSX-V (Canada): WGP     FRANKFURT: WE6.F     NOTC: WGEO

WESTERN GEOPOWER RE-PRICES $6 MILLION FINANCING WITH DUNDEE SECURITIES 

 

VANCOUVER, Canada, December 14, 2005: (TSX Venture Exchange Trading Symbol: WGP – Frankfurt Exchange Trading Symbol: WE6.F – NOTC: WGEO) – Western GeoPower Corp., a renewable energy development company, announces a re-pricing of the minimum $6 million best-efforts financing with Dundee Securities Corporation as agent (the “Agent”) announced 30 November 2005.  

The financing will comprise of a minimum of 40,000,000 units at a price of $0.15 per unit (“Units”). Each Unit is comprised of one share and one share purchase warrant, each warrant entitling the holder to purchase one additional share at a price of $0.25 per share for a period of three years. The Agent has reserved the right to substitute up to $1,000,000 of the financing with up to 6,666,666 flow-through shares at a price of $0.15 per share. Closing of the financing is scheduled for December 16, 2005 (“Closing Date”).

The Agent will be paid a fee in common share Units equal to 10% of the common share Units and the flow-through shares raised in the financing, exercisable for a period of three years following the Closing Date, provided that if more than $6.7 million is raised in the private placement, the Agent will have the option to take the whole fee in cash on closing for the Units placed.  The fees for any flow-through shares placed will be paid in common share units.  The Agent will also receive compensation options (the “Compensation Options”) entitling it to acquire that number of Units, at $0.15 per Unit, that is equal to 10% of the number of Units issued in the financing exercisable for a period of three years following the Closing Date.

The proceeds of the financing will be used to conduct the flow-testing of the recently-drilled geothermal wells, MC-6; MC-7 and MC-8 to enable the completion of a feasibility study for the South Meager Geothermal Project; to repay $2,000,000 against the Quest Loan Facility; and for general working capital purposes.

Corporate Overview

Western GeoPower Corp. is dedicated to the development of its 100% owned South Meager Geothermal Project, held under a geothermal lease for the commercial generation of electricity. The project, located 170 kilometers north of Vancouver, B.C., is in close proximity to Whistler, the location of the 2010 Winter Olympic Games, and is the most advanced geothermal project in Canada. The Company currently is conducting a feasibility study to confirm the commercial viability of the South Meager Project to support an initial generation of 100 megawatts of electricity, which is equivalent to the power consumption of 80,000 households.

On behalf of Western GeoPower Corp.

“Kenneth MacLeod”

Kenneth MacLeod, President & CEO

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified above and in the corporation's periodic filings with the British Columbia Securities.  Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The corporation does not intend to update this information and disclaims any legal liability to the contrary. This news release is not for dissemination in the United States of America or to United States of America news services.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. For more information or to be put on our email list, please contact our office: (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322, email: info@geopower.ca Investor Relations: IR@geopower.ca