Friday, December 23, 2005

SkyPower Corp. announces completion of initial public offering for SkyPower Wind Energy Fund LP

Press Release Source: SkyPower Corp.

SkyPower Corp. announces completion of initial public offering for SkyPower Wind Energy Fund LP
Friday December 23, 1:05 pm ET

TORONTO, Dec. 23 /CNW/ - SkyPower Corp. is pleased to announce that SkyPower Wind Energy Fund LP (the "Partnership") has completed an initial public offering of 7,724,084 limited partnership units at a price of $10 per unit for gross proceeds of $77,240,840.

The syndicate of agents for the offering was led by RBC Capital Markets and Scotia Capital as joint bookrunners, BMO Nesbitt Burns as co-lead manager, and TD Securities, Genuity Capital Markets, Dundee Securities, Canaccord Capital, Desjardins Securities, and HSBC Securities (Canada) as co-managers.

Net proceeds of the Offering will be used to invest in shares of Terrawinds Resources Corp. ("Terrawinds"), which will own, construct and then operate a 201 MW wind park near Rivi�re-du-Loup, Quebec (the "Facility"). Terrawinds will use the proceeds towards the construction and operating of a test phase for the Facility (the "Test Phase"). The Partnership anticipates that most of the costs of the Test Phase will qualify as Canadian Renewable and Conservation Expenses ("CRCE") under the Income Tax Act (Canada). CRCE eligible expenses are deductible for income tax purposes and will be flowed through to investors in the Partnership. As a result, investors in the Partnership are expected to be entitled to claim certain tax deductions from income for the 2005 taxation year as a result of their investment.

Following the installation of the Test Phase wind turbines, and upon satisfactory completion of a 120-day test period, Terrawinds intends to complete the installation (the "Infill Phase") of the balance of the Facility using construction debt financing. Upon completion, the Facility is anticipated to be one of the largest wind energy parks in North America.

About SkyPower Corp.

SkyPower Corp. is a privately owned and controlled wind energy development company based in Toronto, Ontario. The Company is focused on becoming the largest owner and operator of wind parks in Canada and currently has developed a national footprint with interests in 23 wind power projects at various stages of development in eight provinces in Canada, representing more than 5,500 MW of capacity. SkyPower is actively developing partnerships with growth-oriented communities and First Nations, leveraging its management expertise in building and managing large multinational projects, and drawing on its relationships with leading North American suppliers and financial institutions.

For further information

Kerry Adler, President and Chief Executive Officer, SkyPower Corp., (416) 979-4602
Cory Basil, Vice President, Project Development, SkyPower Corp., (416) 979-4613
Bruce Wigle, Investor Relations, The Equicom Group, (416) 815-0700 ext. 228