Run of River Power Completes Acquisition of Pacific Northwest Biomass Corp.



    TSX Venture Exchange Symbol: ROR

    VANCOUVER, Sept. 18 /CNW/ - Run of River Power Inc. ("ROR Power") (TSX-V:
ROR) announced today that it has completed the acquisition of 80% of the
issued and outstanding shares of Pacific Northwest Biomass Corp. (PNBC). When
completed, PNBC's proposed 30 MW biomass power plant to be located near
Hazelton, BC, would produce in excess of 240,000 MWh/yr of green, sustainable
energy, or electricity for approximately 24,000 homes annually. PNBC recently
submitted its proposal ("Suskwa Power project") under Phase 1 of BC Hydro's
Bioenergy Call. BC Hydro is expected to conclude the Call process with EPA
awards in mid-October.
    A total of 4,000,000 shares have been issued to the shareholders of PNBC
which are held in escrow to be released in two stages. All shares issued to
the PNBC shareholders are subject to a hold expiring on January 17, 2009.
    The first stage will trigger with the release of 2,000,000 of the
escrowed shares upon receipt of an engineering study confirming the economic
feasibility and the receipt of a report confirming the adequacy of the fibre
supply. In the event these conditions are not met by September 30, 2008, all
of the escrowed shares will be cancelled and returned to treasury.
    A further 2,000,000 of the escrowed shares are to be released upon the
execution of a long term power purchase agreement between BC Hydro and Power
Authority and PNBC. In the event this condition is not met by September 30,
2009, the shares remaining in escrow will be cancelled and returned to
treasury.
    Holders of the escrowed shares are not entitled to exercise their voting
rights in respect of the escrowed shares until such time as the shares are
released from escrow. An additional 1,000,000 shares of the Company may be
issued to PNBC shareholders should PNBC achieve a second long term power
purchase agreement.

    About Run of River Power Inc.

    Run of River Power Inc. (ROR Power) develops renewable, sustainable
energy through its portfolio of run-of-river and biomass projects in BC. The
Corporation operates an Eco Logo(C) certified hydroelectric power generation
station at Brandywine Creek, near Whistler, B.C. which generates cash flow
under a long-term 20 year contract with BC Hydro. ROR Power is well positioned
for profitable growth from generating green power and its dominant position in
the sea-to-sky corridor in pursuit of high-quality, power generation
initiatives. Its total development potential in excess of 770 MW is addressing
the increasing demand for clean, sustainable power and energy self
sufficiency.

    
                           www.runofriverpower.com

        The TSX Venture Exchange does not accept responsibility for the
                    adequacy or accuracy of this release.
    

    %SEDAR: 00013735E




For further information:

For further information: Jako Krushnisky, President and CEO, Run of
River Power Inc., Tel: (604) 946-9232, jako@runofriverpower.com; Vick Dusik,
Chief Financial Officer, Run of River Power Inc., Tel: (604) 818-4100,
vsdusik@runofriverpower.com

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Run of River Power Inc.

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