Tonbridge Power Announces MATL Project and Budget Update

TSX Venture Exchange
Symbol: TBZ

TORONTO, June 23, 2011 /CNW/ - After careful review, Tonbridge Power Inc. (TSXV-TBZ) has determined at this time that at least US$25 million in additional funding is required to complete the construction of its MATL project. This represents an increase to the US$5.8 million shortfall estimate previously disclosed in the MD&A and press release in respect of the 2010 year end.  The full extent of the funding requirement will only be known when certain variables, including discussions with key stakeholders, have been addressed and resolved.

The company's current credit facilities are insufficient to fund this shortfall. As a result, management is in discussion with its lenders, stakeholders and others to address this estimated funding gap. It expects to make further announcements as details emerge.

The changes to MATL's budgetary status can be attributed to a number of things. They include a disruptive court decision in respect of eminent domain in Montana, construction contractor disputes, construction and regulatory delays, land access and acquisition of rights of way ("ROW") issues and general materials cost increases. All of these issues have been intensely reviewed and are constantly being evaluated for project impact.

As previously announced, in connection with the contractor disputes, construction efforts on the transmission line have been halted. The company is currently working with its contractor to resume construction activities in Canada where they were stopped in March because of permitting restrictions.  Work resumption discussions on the substations and the line in Montana are also ongoing.

Although these are challenging times, the company, is working towards meeting the company's goal of delivering an operating transmission line by year end 2011.

Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares of the Corporation are traded on the TSX Venture Exchange under the symbol "TBZ". The Corporation's financial statements and other filings can be found on SEDAR.

Should you wish to receive news via email, please email info@tonbridgepower.com and specify "company news".

Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements", within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. Forward- looking statements include, but are not limited to, statements with respect to future revenues. Generally, these forward- looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "should", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the conditionality of the revenue contracts, risks related to the financing or construction of the transmission line; risks related to the performance of parties contracting for transmission capacity; delays in obtaining governmental approvals, permits or project financing or in the completion of development or construction activities, requirements for additional capital, government regulation, environmental risks as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2005, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Tonbridge Power Inc.

For further information:

Robert van Beers, Chief Executive Officer
(416)     850-2150 email: rvanbeers@tonbridgepower.com

Robert McFarlane, Chief Financial Officer
(416) 850-2150 email: rmcfarlane@tonbridgepower.com

Brisco Capital Partners Corp.
Graeme A. Dick,
(403) 561-8989 email: graeme@briscocapital.com

Please Visit the Company's Website at: www.tonbridgepower.com

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Tonbridge Power Inc.

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