Western Wind announces the status of its various projects and financing arrangements



    Toronto Venture Exchange Symbol: "WND"
    Issued and Outstanding: 29,942,221

    VANCOUVER, June 4 /CNW/ - Western Wind has issued several news releases
in the past two years announcing the development of new projects and the
status of existing projects and financing arrangements. Western Wind is
pleased to provide this update on the status of projects and financing that
were previously announced.
    To more fully understand the renewable energy business and the status of
its various development projects, Western Wind provides the following brief
primer. For more detailed information on the renewable energy industry, please
see Western Wind's Form 20-F filed with the United States Securities Exchange
Commission ("SEC"): www.sec.gov.
    Wind energy projects are generally developed according to specific
milestones. In addition to the necessary financing, each project must meet the
following milestones to be a viable project:

    
    -  Site control, i.e., the land on which the renewable energy generating
       facility (wind turbines or solar arrays) will be located. For wind
       farms the amount of land and the distribution of wind speed and
       direction are determining factors in the number of megawatts that can
       be generated on a given piece of land. Site control is required to
       apply for interconnection and transmission service;

    -  Transmission access, i.e., executed interconnection and transmission
       service agreements with transmission line owners and/or operators.
       Prior to execution of such agreements, the transmission line
       owners/operators must complete system impact studies showing
       sufficient capacity is available on the transmission line(s) and
       facilities studies showing the electrical equipment that must be
       installed to ensure that the generation facility has no adverse
       impacts on the reliability and operation of the transmission owner's
       system. The interconnection and transmission process in the U.S.
       follows the Federal Energy Regulatory Commission's ("FERC") standard
       generation interconnection procedures, which generally requires that
       agreements be executed within approximately 14 months from the date of
       the interconnection request, barring any unforeseen issues;

    -  Power purchase agreements ("PPA") for the sale of energy generated
       from the project facility;

    -  Zoning, if special zoning required (e.g., wind energy zone or, if
       unavailable, a conditional use permit) and construction permits. Zone
       change applications and conditional use permits entail archaeological
       and environmental surveys to ensure that the generating facility has
       no significant impact to the environment or adverse impacts on nearby
       residents;

    -  Design and engineering of the project site, including the kinds of
       wind turbine generators or solar arrays, towers and electrical
       equipment to be used and the layout of the project. The design and
       engineering drawings and layouts are then submitted to the applicable
       local government to obtain building permits;

    -  Ordering long-lead items, e.g., turbines or solar arrays and
       transformers (these items can take a year or more from order date to
       on-site delivery);

    - Project construction;

    - Testing and commissioning; and

    - Commercial operation.
    

    Profitability of renewable energy generation is based on, among other
things, the cost per megawatt (referred to as "CAPEX"), the PPA rate, the
energy yield per megawatt ("MW"), the annual operating and maintenance cost
("OMEX"), the number of MWs built and, if PPA prices, as in California, are
based on prices of oil or gas at specific delivery points in the U.S., then
the price of such fuels at those delivery points. PPAs are generally 5, 10,
15, 20 or 30 years in duration in California.
    In its October 1, 2007 news release, Western Wind reported that it "has a
credible pipeline of over 1,300 megawatts of site locations in the state of
California." Western Wind has identified many sites throughout California that
could produce up to 1,300 MW based on the level of wind resource available. We
have purchased or leased over 6,500 acres in California to date. The 1,300 MW
target is based on the exclusive wind resource package of 66 sites presented
to us by one of the leading meteorologists in the wind industry today, Rich
Simon, M.S. as part of our California Initiative.

    In California and Arizona, Western Wind owns or leases 27,480 acres,
which comprises the following projects:

    
    -------------------------------------------------------------------------
    Generating Facility   Development Stage    Nameplate   Land      State
                                                Capacity  Resource
                                                  (MW)    (acres)
    -------------------------------------------------------------------------
    Mesa Wind Farm        Producing                  30     440    California
    -------------------------------------------------------------------------
    Windridge Wind Farm   Producing                 4.5     192    California
    -------------------------------------------------------------------------
    Windstar Project      Late-stage development    120   1,389    California
    -------------------------------------------------------------------------
    Barstow Project       Early-stage development   100   3,300    California
    -------------------------------------------------------------------------
    Reef City             Early-stage development    40   1,200    California
    -------------------------------------------------------------------------
    Steel Park            Late-stage development     15   1,108      Arizona
    -------------------------------------------------------------------------
    Steel Park Expansion  Early-stage development   200  19,051      Arizona
    -------------------------------------------------------------------------
    Howling Dog           Early-stage development    15     360      Arizona
    -------------------------------------------------------------------------
    Red Lake              Early-stage development    20     440      Arizona
    -------------------------------------------------------------------------
    

    In addition, Western Wind is currently in the process of acquiring
additional sites as part of its California Initiative and due to the
proprietary nature of site locations, Western Wind cannot disclose the details
about future site locations and estimated capacity.
    Estimated nameplate capacity for particular projects can increase or
decrease based on the following risk factors: limiting construction factors,
such as topography and geography; any future or unknown environmental
uncertainties; changes in capital cost items; changes in projected operating
and maintenance costs; ability to obtain project financing and market
conditions in the debt and project equity markets; interest in power purchase
entities to procure specific amounts of energy; changes in local zoning
policies; and events of force majeure, such as earthquakes, landslides, etc.
    Western Wind has purchased or leased additional sites with potential for
solar and wind development in California and Ontario and continues to pursue
acquisitions of sites with sufficient wind and/or solar resources.

    Windstar Project, Tehachapi, California

    Site control

    Western Wind currently owns 1,389 acres of land in Tehachapi, California
sufficient to build its 120 MW Windstar Project.

    Transmission Access

    Western Wind has submitted the required applications and expects to have
all required transmission agreements executed by early October 2008. Western
Wind has executed interconnection and transmission service agreements for the
privately owned Sagebrush Line. In accordance with the rules approved by the
U.S. Federal Energy Regulatory Commission, Western Wind must construct
Windstar by December 31, 2010 to maintain its current queue position with the
California Independent System Operator. This date may not be extended. If
Western Wind is not in commercial operation by December 31, 2010, it will have
to reapply for interconnection and transmission access.

    Power Purchase Agreements

    Western Wind has a PPA with Southern California Edison Company, which has
been amended from time to time to extend the commercial operation date.
Currently, the PPA requires that the Windstar Project be in commercial
operation by December 31, 2009; however, the Company is waiting for approval
from SCE for an amendment to extend the commercial operation date to December
31, 2010. Western Wind may terminate the contract if it cannot acquire
turbines at specified prices; however, due to the California Renewable
Portfolio Standard requiring utility companies to meet specified targets by
specified deadlines, Western Wind can negotiate a new PPA if the price term in
the existing PPA cannot be adjusted.

    Zoning and Permits

    Western Wind has submitted to Kern County the required applications and
associated archeological and environmental reports and expects to receive
approval of its application for a zone change for the Windstar Project by the
end of August 2008.

    Design and Engineering

    Upon receiving approval for the requested zone change, Western Wind will
prepare and submit the design and engineering for the project site to Kern
County to complete the building permit. The information to be submitted
typically includes, but is not limited to engineered plot plans showing
turbine locations, engineered structural foundation design and drawings,
engineered structural soil reports, civil design drawings for roads and pads,
and engineered substation design drawings. If approval is received on or about
August 2008, Western Wind projects that the structural permit process can be
completed and permits issued by March 2009.

    Long-lead items

    In its November 12, 2007 press release, Western Wind stated that delivery
of turbines was expected in late 2008 and commissioning expected in the second
quarter 2009. Upon securing financing, Western Wind will order turbines and
other electronic equipment or turbines will be provided by another party as
part of their participation in the project. Generally, turbines must be
delivered six months prior to the anticipated construction completion date.
The strategic partners with which Western Wind is currently negotiating have
wind turbines in inventory.

    Construction

    Assuming meeting the above timelines, construction is anticipated to
begin in April 2009 and be completed in November 2009.

    Financing

    The projected cost to construct the entire project is estimated, at this
time, to be approximately US$280 million. Upon approval of the zone change
request, Western Wind will be in a position to obtain standard debt financing
or project tax equity. Western Wind may also elect to pursue other financing
options, such as equity financing through a private placement of its stock or
a joint venture with another company. Some of the institutional investors with
which Western Wind is in discussions have turbines in inventory or have access
to turbines, which would obviate the need to order turbines separately. There
is no guarantee that Western Wind will receive financing on acceptable terms.

    Valuation of the Windstar Project

    In its May 21, 2008 news release, Western Wind announced that, although
it had received an offer of $228 million to purchase the Windstar assets,
Western Wind was still reviewing other options. The $228 million offer to
purchase Western Wind's Windstar Project assets is based on a $36 million
up-front payment on the commencement of construction and the balance of
$192 million payable over the 30-year life of the lease, based on the value of
a 7% gross annual royalty from payments on the land, which would be retained
by Western Wind and back-end bonus payments based on a confidential formula.

    Risks

    A detailed discussion of the general business risks and project
milestones are contained in Western Wind's Form 20-F filed with the SEC. Other
than the risks discussed above, Western Wind does not believe there is any
particularly increased risk specific to completing the necessary milestones to
fully develop the Windstar Project.

    Barstow Project, California

    On February 14, 2008, Western Wind announced that it had secured a new
100-megawatt wind energy and solar site near Barstow, California. Western Wind
has signed an agreement with the United States Bureau of Land Management
("BLM") to conduct all required environmental surveys to install
meteorological towers to complete detailed micro siting of the wind resource
and to complete the installation of the towers. Detailed micro siting is
scheduled to begin this summer and Western Wind projects that it will be
completed within approximately six months. If Western Wind determines that the
project economics are sufficient to justify developing a project, it will
conduct the required environmental surveys to install wind turbines and towers
and associated electrical equipment and apply for a commercial right of way
grant from the BLM of approximately 3,300 acres. Western Wind is first in the
queue to obtain this right of way. Western Wind fully expects the wind
resource to support developing a project based on Rich Simon's findings that
wind speeds in the area average nine (9) meters per second. This project is in
the earliest stages of development and Western Wind has not begun negotiations
for a PPA or submitted applications for interconnection and transmission or
zoning and permitting.

    Mesa Wind Farm Repower Project, Palm Springs, California

    The Mesa Wind Farm is an operating 30 MW wind farm, located on
approximately 1120 acres leased from the BLM. Western Wind has submitted an
application, including all required environmental and archeological studies to
the BLM to replace the existing wind turbines with newer turbines to increase
the total capacity of the wind farm to 50 MW. As an alternative to a repower
of the entire wind farm, Western Wind is considering using a portion of the
BLM right-of-way grant for a new 20 MW project. If the BLM approves the plan
to repower, expected by the end of August 2008, Western Wind will determine
whether to repower the entire project or add a new 20 MW project.

    Windridge Wind Farm, Tehachapi, California

    The Windridge Wind Farm is an operating 4.5 MW wind farm, located on 192
acres owned by Western Wind. Currently, the wind farm is operating below
capacity and Western Wind is exploring options to replace the older wind
turbines with fewer new larger capacity turbines to reach the 4.5 MW project
capacity. In its October 24, 2007 news release, Western Wind announced that
the U.S. Federal Aviation Administration ("FAA") had approved the installation
of three new wind turbines. Western Wind is now in the process of negotiating
for wind turbines to use at this site. The site has the potential to be
increased to 12 MW with appropriate transmission upgrades and a new PPA for
the additional capacity. Such an expansion would require structural permits
from Kern County and FAA approval for additional turbines to exceed the
maximum height limit.

    Solar Projects, Ontario, Canada

    Western Wind is currently obtaining lease options to purchase land in
Ontario for solar energy development. The options will allow Western Wind to
purchase the land if Western Wind determines to move forward with the project.
Western Wind has applied for interconnection and transmission service for two
10 MW projects with the Ontario's Independent Electricity System Operator.

    Discontinued Projects

    In its February 20 and May 28, 2007 news releases, Western Wind announced
that it was in discussions with an international consulting firm regarding the
development of a 1,000-megawatt project in the Republic of India. Although the
discussions proceeded to an advanced stage, the discussions ultimately failed
to result in an agreement on developing the project.
    In its January 25 and June 14, 2006 press releases, Western Wind
announced that the Grand Manan project had received all permits and approvals
and that Western Wind had selected the turbine manufacturer. In its Form 20-F,
Western Wind stated that it had executed a PPA with New Brunswick Power,
requiring the project to be in commercial operation by October 31, 2006. When
Western Wind could not construct the project by October 2006, New Brunswick
Power declined to amend the PPA and terminated the agreement. All operations
in New Brunswick were discontinued.

    Financial Updates

    In its October 1 and 26, 2007 news releases, Western Wind also reported
that it had begun negotiations with a major European commercial bank
(Norddeutsche Landesbanke) for a debt facility to repay a loan to Pacific
Hydro Pty Ltd. used to purchase and secured by the Mesa Wind Farm.
Negotiations with Norddeutsche have been put on hold with regard to this loan,
pending the closing of a private placement. As announced in its May 27 and 29,
2008 news releases, Western Wind engaged Loewen, Ondaatje, McCutcheon Limited
to raise $15 million in a private placement of special warrants. The agents
exercised their option to increase the private placement by 20 percent. The
net proceeds will be used to repay the approximately $12.5 million balance of
the Mesa acquisition loan from Pacific Hydro and for working capital purposes.
The closing of the offering is expected to occur on or about June 20, 2008.
    Western Wind is in the business of acquiring exceptional land sites,
capital and technology for the production of electricity from renewable
sources. Western Wind Energy conducts its operations through its wholly owned
subsidiaries in Arizona and California. Management of Western Wind Energy
includes individuals involved in the operations and ownership of utility scale
wind energy facilities in California since 1981.

    ON BEHALF OF THE BOARD OF DIRECTORS

    "SIGNED"
    Jeffrey J. Ciachurski
    Chief Executive Officer

    Cautionary Note on Forward Looking Statements

    Certain statements included in this news release are forward-looking
statements, which are made pursuant to the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995. They include
estimates and statements that describe the Company's future plans, objectives
and goals, including words to the effect that the Company or management
expects a stated condition or result to occur. When used herein, words such as
"expect", "estimate", "believe", "intend", "intent", "scheduled";
"projection"; "anticipate" and other similar expressions are intended to
identify forward-looking statements. In particular, statements relating to the
future revenues, profitability, cash flows, expenses, capital costs,
regulatory approvals, financing, construction and commissioning are
forward-looking statements. Such forward-looking statements involve inherent
risks and uncertainties and subject to other factors, many of which are beyond
our control that may cause the actual results or performance to differ
materially from those expressed or implied by such forward-looking statements.
Such factors include, among others, asset impairment, price volatility,
fluctuations in foreign exchange rates, economic and political events
affecting energy supply and demand, fluctuations in wind grade, geological,
operating and environmental risks, problems during the development,
construction and start-up phases of wind projects, inadequacy of insurance,
etc. For a more comprehensive review of risk factors, please refer to the
Company's most recent annual report under "Management's Discussion and
Analysis of Financial Results" and Form 20-F under "Risk Factors" on file with
the U.S. Securities and Exchange Commission and Canadian provincial securities
regulatory authorities filed on SEDAR at www.sedar.com. The Company disclaims
any obligation to update or revise any forward-looking statements whether
because of new information, events or otherwise. Readers are cautioned not to
put undue reliance on these forward-looking statements. Additional information
regarding the Company is included in the Company's filings with the Canadian
securities regulators and the United States Securities and Exchange
Commission, a copy of which is posted on the SEDAR website at www.sedar.com.




For further information:

For further information: Western Wind Energy Corp., 1326 - 885 West
Georgia Street, Vancouver, BC, V6C 3E8, Telephone: (604) 685-WIND (9463),
Facsimile: (604) 685-9441, www.westernwindenergy.com

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Western Wind Energy

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