Run of River Power Reports Second Quarter Results

VANCOUVER, Aug. 26, 2010 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the second quarter ended June 30, 2010. The management discussion and analysis, consolidated financial statements and accompanying notes will be filed on SEDAR and posted on ROR Power's website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.

Highlights

    
    -   On May 6, 2010, BC Hydro and ROR Power signed an Electricity Purchase
        Agreement ("EPA") for the 25 MW Mamquam Power Project.

    -   On July 15, 2010, the Company registered the 34 MW Tsilhqot'in Power
        Project and the 34 MW Suskwa Power Project in BC Hydro's Bioenergy
        Phase 2 Call. ROR Power is currently preparing project proposals and
        intends to submit them prior to the October 28, 2010, deadline.
        Selection of preferred proponents by BC Hydro is currently scheduled
        for mid-January 2011, with final approvals and EPA signings expected
        in April 2011.

    -   Repairs to the generator at the Company's Brandywine facility were
        completed in early May. The facility has been fully operational since
        that time.


    Financial Summary

    -------------------------------------------------------------------------
    ($ in thousands, except            Three Months Ended   Six Months Ended
     per share amounts)                      June 30            June 30
                                      ---------------------------------------
                                         2010      2009      2010      2009
    -------------------------------------------------------------------------

    Electricity sales                      593       577       772       662
    EBITDA(1)                             (367)       (7)     (761)     (403)
    Net loss                              (733)     (317)   (1,423)   (1,063)
    Basic and diluted loss per share     (0.01)    (0.00)    (0.02)    (0.02)
    Cash flow used in operations          (739)     (328)     (747)     (810)
    Total assets                        32,243    31,176    32,243    31,176
    Generation (MWh)                    10,121     9,918    13,189    11,389

    -------------------------------------------------------------------------

    (1) EBITDA is earnings before interest, taxes, depreciation and
        amortization and is not a measure under Canadian Generally Accepted
        Accounting Principles ("GAAP") and may not be comparable to similar
        measures presented by other companies. Refer to Non-GAAP measures
        section of the MD&A for an explanation and reconciliation.
    

Operating Results

Electricity sales during the second quarter of 2010 totaled $592,625, an increase of 3% from the same quarter of 2009. The gain resulted from a 3% increase in electricity generated, to 10,121 MWh.

For the first six months of 2010, electricity sales totaled $772,324, representing an increase of 17% from the same period last year. Year-to-date electricity production increased by 16% to 13,189 MWh. The increase in electricity generation and sales is attributable to increased water flows and performance and reliability improvements at the Brandywine Creek facility.

Net loss for the second quarter totaled $733,353, an increase of $416,062 from the same quarter in 2009. Six-month net loss increased by $359,543 to $1,422,779. The increase in net loss for the quarter and year to date is primarily attributable to severance payments and an increase in stock-based compensation.

Funds used in operations were $738,946 in the second quarter of 2010, compared to $328,118 last year. For the six-month period, the total was $746,610 compared to $810,366 in 2009. The improvement in funds used in operations for the half year is substantially due to the collection of a GST refund received in the first quarter of 2010, which more than offset the increase in G&A and net interest expense.

Non-GAAP Measures

The Company reports its financial position, results of operations and cash flows in accordance with Canadian generally accepted accounting principles ("GAAP") in Canadian dollars.

About Run of River Power Inc.

ROR Power develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects. The Company operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power is well positioned for profitable growth through power generation initiatives that include its Mamquam Power Project, selected by BC Hydro for an Electricity Purchase Agreement. ROR Power's total development potential, in excess of 715 MW, represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self sufficiency by 2016.

Forward-Looking Statements

Statements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.

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

www.runofriverpower.com

SOURCE Run of River Power Inc.

For further information: For further information: Vick Dusik, Chief Financial Officer, Tel: 604-946-9232, vsdusik@runofriverpower.com

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Run of River Power Inc.

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