VANCOUVER , Canada, October 12, 2006: Western GeoPower Corp., a renewable energy company focused on geothermal energy development, today announced its intention to build a 25.5 megawatt (net) power plant at the Company’s Unit 15 leasehold at The Geysers Geothermal Field located 75 miles north of San Francisco, California, with commercial operations projected to commence in late 2009. The proposed plant, to be named Western GeoPower Unit 1, will supply approximately 200,000 megawatt-hours per year of clean, baseload electricity to the California market.

On September 26, 2006, California adopted a new Renewables Portfolio Standard (RPS) that requires regulated utilities to produce at least 20% of their electricity supply from renewable energy by 2010, advancing the goal from 2017. Western GeoPower has submitted power sales bids in response to Requests For Proposals issued by several California utilities that are expected to conclude Power Purchase Agreements early in 2007.

A feasibility study prepared by independent consultant, GeothermEx, Inc. of Richmond, California projects that the Unit 15 leasehold will commercially support a 25.5 megawatt (net) power plant for a minimum of 20 years, with generation continuing at a slightly reduced output factor through 30 years. GeothermEx based its report on a large database of resource information and demonstrated production history on the Unit 15 leasehold.

“The requisite elements for a successful 25.5 megawatt power plant are in place at Unit 15,” said Dr. Subir Sanyal, President of GeothermEx. “Sufficient reserves of steam exist; well productivity is adequate; sufficient productive ground is available to locate the necessary wells; and steam chemistry is acceptable.”

California-based GeothermEx is a recognized international authority in the evaluation of geothermal resources and has been involved in the development of all the producing geothermal fields in the United States and over 750 projects worldwide. Their knowledge of The Geysers Geothermal Field is extensive, having been associated with the development of the field for over 30 years.

Power Engineers, Inc. of Hailey, Idaho, was engaged to prepare the conceptual plant design and to provide cost estimates for the steam gathering system, power plant and electricity sub-station. Power Engineers is a nationally ranked consulting engineering firm with offices across the United States and overseas and is a leading geothermal power plant design engineer.

The proposed 25.5 megawatt (net) power plant [27.66 megawatt (gross)] is expected to have a 95% availability factor. Total development costs, including power plant, gathering system, transmission system, administrative and finance charges, have been estimated at US$90 million. Western GeoPower has launched efforts to secure funding for the entire field and plant development.

Environmental and engineering consultants, Brelje & Race of Santa Rosa, California, have provided advice on the environmental studies required for permitting the drilling of the geothermal wells and plant construction. “The prior development at Unit 15 provides infrastructure improvements, including roads, well pads and a helipad that can be reused or reworked for this project,” said Paula Blaydes, Senior Environmental & Land Use Planner with Brelje & Race . “The site reuse should reduce the lead time needed while minimizing any environmental impacts to the previously disturbed site.”

For regulatory purposes, the project is reviewed in two phases. Under the California Environmental Quality Act (CEQA), the California Division of Oil, Gas and Geothermal Resources is the lead agency for the permitting of up to 6 initial wells. Sonoma County has lead agency status under the CEQA for the well field development, power plant, steam pipelines and infrastructure. In the normal course of events, approval for the initial drilling is anticipated for the first half of 2007 and project development permitting is anticipated to be granted by mid-2008.

The Geysers is one of only five operating geothermal fields in the world that produce “dry” steam, a feature that reduces both capital and operating costs of power generation. Commercial geothermal power has been generated continuously since 1960, with the present generation level being about 900 megawatts, making The Geysers the largest producer of geothermal electricity in the world. The Unit 15 leasehold is situated in the southwestern region of The Geysers in Sonoma County and much of the leasehold lies within the presently known boundary of The Geysers Geothermal Field. A commercial power plant of 62 megawatt (gross) capacity, known as PG&E Unit 15, operated at the leasehold during 1979-1989.

It is now recognized that the Unit 15 plant was oversized for the available resource. For this reason, the wells supplying the plant experienced a rapid decline in productivity, similar to the decline experienced throughout The Geysers at that time. The plant was shut down in 1989 and eventually dismantled, and the wells were plugged and abandoned.

Since the mid-1990s, the rate of decline in well productivity at The Geysers has eased substantially, and reservoir pressure has stabilized. In large part, this is due to increased injection into the reservoir. Reservoir pressure under the Unit 15 leasehold has substantially recovered since the wells stopped production.

Corporate Overview

Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, base-load electricity generation. The Company holds 100% interests in the South Meager Geothermal Project in British Columbia, Canada and the Unit 15 Steam Field located in The Geysers Geothermal Field in California, United States.

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