VANCOUVER, British Columbia, Canada, May 10, 2007, Western GeoPower Corp. announced today, the signing of a Power Purchase Agreement (PPA) between its wholly-owned subsidiary, Western GeoPower, Inc. and Pacific Gas & Electric Company of San Francisco, California (PG&E) for the supply of approximately 212,000 Megawatt-hours per year of clean, renewable, baseload electricity from Western GeoPower’s 25.5 Megawatt (net) geothermal power plant scheduled to come on line in 2010 at The Geysers Geothermal Field in Northern California.

Subject to approval by the California Public Utilities Commission, power deliveries from the plant – to be named Western GeoPower Unit 1 - are scheduled to commence in 2010. The contract allows for an increase in net capacity to a maximum of 31.5 Megawatts, which could accommodate the steam potential from a recently-acquired leasehold extension.

“The execution of this PPA reflects the positive project assessment presented in the feasibility report completed in October 2006 by independent consultants GeothermEx of Richmond, California,” said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower.

“With this agreement we’re taking a major step forward in meeting our renewable energy goals,” said Fong Wan, Vice President of Energy Procurement of Pacific Gas & Electric Company. “This project is yet another example of our company’s commitment to the environment by delivering reliable, climate-friendly energy to our customers.”

PG&E has a long history of developing, generating, and purchasing renewable power. The utility currently supplies 13 percent of its energy from qualifying renewable sources under California's Renewable Portfolio Standard (RPS)—one of the highest volumes of any utility in the United States. Renewables sources in PG&E's portfolio include solar, wind, biomass, geothermal, and small hydroelectric. In addition, more than 50 percent of the electricity that PG&E delivers to its customers comes from generating resources that emit no or low carbon dioxide, the primary contributor to global warming.

“The timing of our project could not be better as it responds directly to California’s legislated Renewable Portfolio Standard Program (RPS) requiring State utilities, including PG&E, to purchase at least 20% of their electricity from renewable energy sources by the year 2010,” said MacLeod .

California ’s RPS Program requires each utility to increase its procurement of eligible renewable generating resources by 1% of load per year to achieve a 20% renewables goal by 2010. The contract with Western GeoPower represents approximately 0.3% of load. The RPS Program was passed by the Legislature and is managed by California’s Public Utilities Commission and Energy Commission.

The Geysers Geothermal Field, located 75 miles north of San Francisco, California, is the largest producer of geothermal electricity in the world. Commercial geothermal power has been generated continuously at The Geysers Field since 1960, the present generation level being about 900 megawatts of clean, baseload electricity.

Western GeoPower’s Unit 1 leasehold is situated in the southwestern region of The Geysers Field in Sonoma County. A commercial power plant of 62 megawatt (gross) capacity, known as PG&E Unit 15, operated at the leasehold during 1979-1989.

Corporate Overview

Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, baseload electricity generation. The Company is developing the 25.5 Megawatt (net) geothermal power plant at The Geysers Geothermal Field in Sonoma County, California, United States. The Company is also developing the South Meager Geothermal Project in British Columbia, Canada.

On behalf of Western GeoPower Corp.
“Kenneth MacLeod”
Kenneth MacLeod, President & CEO

Cautionary Note Regarding Forward-Looking Statements

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified above that reflect the Company’s expectations and projections about its future results. The Company has tried whenever possible to identify these forward-looking statements which include but are not limited to, words such as “anticipates,” believes,” “estimates,” “expects,” “plans,” “intends,” “potential,” and similar expressions. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The Company disclaims any obligation or intention to update or to revise any forward-looking statement, whether as a result of new information, future events or otherwise. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. This news release is not for dissemination in the United States of America or to United States of America news services.

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