Pristine Power Announces Award of a 20 Year Contract to York Energy Centre

    CALGARY, Dec. 11 /CNW/ - Pristine Power Inc. (TSX: PPX "Pristine" or the
"Company") announced today that its affiliate, York Energy Centre ("YEC") LP,
has been awarded a contract by the Ontario Power Authority ("OPA") to
construct, own and operate a 393 megawatt (MW) natural gas fired power plant
located in the Township of King, Ontario. The York Energy Centre ("YEC"), to
be owned jointly by Pristine Power Inc. and an affiliate of Harbert Power, LLC
is expected to be constructed for a total cost of approximately $365 million
with commercial operations anticipated to commence by the end of 2011.
    "We are extremely pleased to have the opportunity to execute another
major clean power project in Ontario," said Jeffry M. Myers, President and
Chief Executive Officer of Pristine. "The York Energy Centre will play a key
role in addressing the need for quick response peaking generation clearly
identified by the OPA for northern York Region, and reducing grid reliance on
coal fired generating capacity. The YEC marks Pristine's second major power
project in Ontario resulting from a successful submission to the OPA's
competitive procurement processes. Our first project, the 84 MW East Windsor
Cogeneration Centre, remains on budget and on track for the commencement of
commercial operations in mid-2009. Pristine is well capitalized to provide its
share of equity for the YEC and intends to seek non-recourse long term debt
financing later in 2009 upon finalization of major contracts and provincial
and municipal permits."
    The YEC was submitted by Pristine in response to the OPA's Request for
Proposals for Approximately 350 MW of Peaking Generation in Northern York
Region. The facility will use state-of-the-art low emissions gas turbine
technology and will be built to meet high environmental standards. The project
will be located in the Township of King adjacent to a major electrical
substation. On behalf of YEC, Pristine has managed the completion of an
Environmental Review Report and has submitted a Notice of Completion to the
Ontario Ministry of Environment.
    "We look forward to working with the community to make the York Energy
Centre a success. Up to 150 construction jobs are expected to be created by
the project and up to 7 full-time positions will be required to operate the
York Energy Centre," said Mr. Myers. "Numerous local and regional businesses
will be called upon to provide services to the facility during both the
construction and operational phases. Finally, we will create a fund to support
sustainable energy initiatives and local infrastructure in the area of the
power plant development."

    About Pristine

    Pristine Power (TSX: PPX) develops, owns, and operates environmentally
responsible power generation assets in Canada using proven, innovative, and
clean technologies. Pristine Power is committed to creating sustained growth
and value for its shareholders, while contributing to the economic, social and
environmental sustainability of the communities in which it operates. The
Company currently has two projects in operation, one under construction, and
one under contract and in advanced development. Using a strategy of
controlled, sustainable growth through a mix of proven technologies, Pristine
aims to become a leading independent power producer in Canada. Visit
www.pristinepower.ca for more information.

    About Harbert Power, LLC

    Harbert Power, LLC ("Harbert"), a subsidiary of Harbert Management
Corporation, is involved with development, construction, ownership and
operation of independent power generating facilities and power related assets
in North America. Harbert manages power assets for Harbert Corporation, an
affiliate, and develops, acquires and manages assets for the Harbinger Group.
Since Harbert began its power business in 1986, the company has managed
approximately $325 million of equity and raised approximately $1.5 billion of
debt in the commercial bank and capital markets to finance power projects in
the United States. Harbert currently is involved in the management of 17 power
generating facilities with an aggregate capacity of approximately 2,000 MW.
Harbert is based in Birmingham, Alabama and also has a significant operations
and asset management office in Pittsburg, California for managing its
California assets. Further information on Harbert can be found at
www.harbert.net.

    Cautionary Statement Regarding Forward-Looking Information

    Certain statements in this news release, including the Company's
construction plans, financing plans, cost estimates and commencement of
commercial operation dates of the York Energy Centre and East Windsor
Cogeneration Centre may constitute "forward-looking information" or
"forward-looking statements" which involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company or industry results to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking information. When used in this
news release, such information uses such words as "estimates", "expects",
"plans", "anticipates" and other similar terminology. This information
reflects the Company's current expectations regarding future events and
construction activities and speaks only as of the date of this news release.
Forward-looking information involves significant risks and uncertainties,
should not be read as a guarantee of future performance or results, and will
not necessarily be an accurate indication of whether or not such results will
be achieved. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking information.
Although the forward-looking information in this news release is based upon
what management of the Company believes are reasonable assumptions, the
Company cannot assure investors that actual results will be consistent with
this forward-looking information. This forward-looking information is provided
as of the date of this news release, and, subject to applicable securities
laws, the Company assumes no obligation to update or revise such information
to reflect new events or circumstances.

For further information: on this project or Pristine, please contact
either: Jeffry M. Myers, President and Chief Executive Officer, Pristine
Power, Telephone: (403) 444-5571; Geoffrey D. Krause, Chief Financial Officer,
Pristine Power, Telephone: (403) 444-6405