Run of River Power Reports First Quarter Results

VANCOUVER, May 27, 2010 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the quarter ended March 31, 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.

Financial Summary

    
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             Three months ended March 31
    ($000's except per share & generation amounts)         2010         2009
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    Electricity sales                                       180           86
    EBITDA(1)                                              (393)        (395)
    Net loss                                               (689)        (746)
    Basic and diluted loss per share                      (0.01)       (0.01)
    Cash flow used in operations                             (8)        (471)
    Total assets                                         32,538       31,455
    Generation (MWh)                                      3,069        1,471

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    (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 in Q1 2010 totaled $179,699, an increase of 110% from 2009 sales of $85,546 as a direct result of increased electricity generated to 3,069 MWh from 1,471 MWh. The increase in electricity generation and sales is attributable to increased production at the Brandywine Creek facility due to increased water flows during the period.

EBITDA for Q1 2010 was negative $393,923, essentially unchanged from negative 395,288 for the same quarter in 2009. Improved electricity sales were offset by additional maintenance costs at the Brandywine facility and increased general and administration expenses. The Company recorded a net loss for the first quarter of $689,426 compared to a net loss of $745,945 for the comparable quarter in 2009. Funds used in operations were $7,664 in the first quarter of 2010 compared to $470,840 for the first quarter of 2009. The improvement in funds used in operations during the first quarter of 2010 is due substantially to the collection of a GST refund claim.

Financial Position

ROR Power has $2.2 million of cash on hand to fund ongoing development activities.

Subsequent to March 31, 2010, BC Hydro and ROR Power signed an Electricity Purchase Agreement for the 25 MW Mamquam Power Project located on Skookum Creek. The Company has commenced evaluating alternatives for raising the necessary equity capital and project debt totaling approximately $95 million.

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 in British Columbia (BC). 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 high-quality power generation initiatives that include its recently contracted Mamquam Power Project. ROR Power's total development potential, in excess of 740 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.

For further information: Information Contact: Vick Dusik, Chief Financial Officer, Tel: [phone], [email protected]