Pristine Power Inc. (Pristine Power) has reported revenues of CAD2.01 million for the year-end 2008, compared with the revenues of CAD0.94 million in the previous year-end. It also reported a net loss and comprehensive loss of CAD9.42 million, or CAD0.35 loss per diluted share, for the year-end 2008, compared with the net income and comprehensive income of CAD1.27 million, or CAD0.11 per diluted share, in the previous year-end.

“2008 was a breakout year in the evolution of Pristine as a leading Canadian-based independent power producer” commented Jeffry M. Myers, president and chief executive officer. “We completed our $55 million initial public offering on the Toronto Stock Exchange in March of 2008, laying the financial foundation for the future growth of the Company. We commenced commercial operations of our two 5 MW EnPower Energy Recovery Generation (ERG) facilities in the second half of 2008, followed by the closing of a $24.6 million non-recourse financing in the midst of turbulent capital markets. Our East Windsor project continued construction as planned and on budget and is scheduled for completion in mid 2009. In December 2008, we were awarded a 20 year contract by the Ontario Power Authority to build the 393 MW York Energy Centre in Ontario, our share of which is expected be 50%. With this win, Pristine’s net MW under contract grew 817% to 220 MW at the end of 2008 from 24 MW at the end of 2007, excluding the Mackenzie Green Energy Centre. During 2008, the amount of capital to be deployed by Pristine grew from $60 million to over $240 million, excluding the Mackenzie Green Energy Centre project. All in all, 2008 was an outstanding year for the company and a testament to the hard work of all of our employees and contractors.”

The company’s operating results for the year ended December 31, 2008 are compared below to the operating results for the year ended December 31, 2007.

Included in 2007 was a gain of $5.5 million on disposal of the company’s 25% interest in the East Windsor Cogeneration project. Following such disposition, Pristine retained a 25% effective interest in the project. Increased development, general and administrative costs and stock based compensation also accounted for the increased loss during the year.

Development activities increased in 2008 compared to the same period in 2007, reflecting a significant increase in requests for proposals and requests for qualifications in British Columbia, Ontario and Saskatchewan to which Pristine responded. During 2008, Pristine submitted five project proposals and three qualification submissions, compared to no such proposals or submissions in 2007. Of these proposals, Pristine was awarded the York Energy Centre contract and is awaiting the results of the Kleana Power run river project proposal, a project in which Pristine has a 10% net interest.

While the company’s three proposals bid to Phase I of BC Hydro’s Bioenergy Call for Power were not selected, the Company intends to resubmit these proposals to Phase II of Bioenergy Call later in 2009. Subsequent to year end, the Company also submitted two bids for 200 MW gas fired peaking plants in New Mexico, US. The company expects to hold a 50 percent interest in both of these projects.

General administrative costs increased due to a higher staff complement required to support the Company’s development and operational initiatives, increased consulting and legal costs due to the Company’s public listing requirements and higher rent expense. Stock based compensation expense increased as a result of options issued to employees and existing and new directors at the time of the IPO. Options were issued to directors in lieu of cash compensation for 2008.

Funds used in operations during the year ended December 31, 2008 were $8.0 million ($0.29 per share basic and diluted) compared to $4.0 million ($0.36 per share basic and $0.33 per share diluted) for the year ended December 31, 2007, reflecting the aforementioned higher development and general administrative costs. Funds used in operations represent funds used in operations before changes in non-cash working capital. Cash used in operations during the year ended December 31, 2008 was $10.0 million ($0.37 per share basic and diluted) compared to cash used in operations of $3.1 million ($0.28 per share basic and $0.26 per share diluted) for the year ended December 31, 2007.

At December 31, 2008, Pristine had about $37.7 million of cash on hand and $2.3 million of cash held in trust that was subsequently released for general purposes in February, 2009. The company expects to use these monies to fund future development and administrative activities as well as funding the project equity requirements of its newly awarded York Energy Centre project.

Projects in Operation

In 2008, the company completed its first two power development projects, the 5 megawatt (MW) waste heat recovery projects at Savona and 150 Mile House, British Columbia. Power generated from these two plants is sold to BC Hydro at fixed prices under the terms of related twenty-year contracts. Production at the plants in the fourth quarter of 2008 was negatively impacted by post-COD issues relating to construction quality control that is the responsibility of the major equipment supplier.

The cost to rectify a significant portion of these issues is fully recoverable under warranty. Both plants returned to full availability in the third week of January, 2009. During 2008, the two plants generated 11,536 gross MWh (5,768 MW net) of electricity and revenues of $475,000, net, with a combined capacity factor of 47% compared to an expected capacity factor of 82%.

Project under Construction

Construction of the $207 million, 84 MW East Windsor Cogeneration Centre continued in 2008, and is on schedule and on budget. By year end, all major equipment had been installed and interconnection to the grid was completed. Back feed power will be available in April, 2009 upon completion and verification of all protections and relays. Commissioning is expected to begin in the second quarter of 2009 and commencement

of commercial operation is anticipated in mid 2009. Remaining construction costs are expected to be fully funded by restricted cash on hand at December 31, 2008.

Projects under Contract

York Energy Centre

In December 2008, the company was awarded a 20 year contract by the Ontario Power Authority to construct and operate the York Energy Centre; a 393 MW natural gas fired peaking generation facility, located in the Township of King, Region of York, Ontario. Pristine is expected to hold a 50% interest in the project with total project costs expected to be up to $365 million.

The company has received confirmation from municipal authorities that all land use approvals are in place, and the company is currently completing the necessary provincial environmental assessment, permitting and site plan process to obtain the necessary approvals required for construction, with completion of the permitting process expected in the third quarter of 2009.

The company is also in the process of finalizing negotiations with engineering, procurement and construction contractors and major equipment suppliers for the facility. Preliminary discussions have commenced with potential lenders for long-term non-recourse financing, with such financing expected to be in place later in 2009 following receipt of all necessary construction permits. Construction is expected to commence in mid 2010 with completion anticipated late in 2011.

Mackenzie Green Energy Centre Development of the proposed 65 MW Green Energy Centre has been deferred until resolution of fundamental project issues related to site and fuel supply.