Run of River Power Reports Results For Third Quarter 2009

VANCOUVER, Nov. 27, 2009 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the third quarter ended September 30, 2009. The management discussion and analysis, consolidated financial statements and accompanying notes will be filed to SEDAR and posted on ROR Power's website www.runofriverpower.com. All figures reported herein are in Canadian dollars unless otherwise stated.

    
    Highlights

    -   BC Hydro said November 17, 2009 that it will begin discussions with
        the developers of 13 proposed hydroelectric and wind power projects
        that it has identified as the most cost-effective and will begin
        awarding contracts in December 2009. Additionally, it will offer
        developers of the other 34 projects the opportunity to make their
        proposals more cost-effective.

    -   BC Hydro notified the Company that its 25 MW Mamquam proposal will
        proceed to the next stage of the 2008 Clean Power Call.

    -   The Company continues to make progress on its 34 MW Suskwa and 60 MW
        Tsilhqot'in biomass development projects and intends to submit them
        to BC Hydro's Phase II Biomass Call, expected in 2010.


    Financial Summary

    -------------------------------------------------------------------------
    ($ in thousands, except          Three Months Ended    Nine Months Ended
     per share amounts)                 September 30          September 30
                                    -----------------------------------------
                                      2009       2008       2009       2008
    -------------------------------------------------------------------------

    Electricity sales                   434        664      1,097      1,250
    EBITDA(1)                           (73)        58       (476)      (627)
    Net loss                           (418)      (278)    (1,481)    (1,510)
    Basic and diluted loss per
     share                            (0.01)     (0.00)     (0.02)     (0.02)
    Cash flow used in operations       (224)       (60)      (908)      (795)
    Total assets                     31,485     32,422     31,485     32,422
    Generation (MWh)                  7,464     11,484     18,853     21,615
    -------------------------------------------------------------------------
    (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 at the Brandywine Creek power facility decreased by 35% to $434,211 from $664,168 in the same quarter last year. The change was due to a decline in electricity generated, to 7,464 MWh from 11,484 MWh, primarily as a result of a much dryer summer. For the nine months, electricity sales decreased 12% to $1,096,691 from $1,250,096 last year because of reduced electricity generation, to 18,853 MWh from 21,615 MWh. The decrease in power generation and sales were attributable to lower production at the Company's Brandywine Creek facility, mainly because of lower precipitation this year. In addition, a five day unscheduled outage to remove silt from the head pond occurred in September 2009.

EBITDA in the third quarter of 2009 was negative $73,645, or $132,053 less than the same period in 2008. Nine month EBITDA of negative $476,162 was an improvement of $153,130 from the same period last year. The Company recorded a net loss of $418,079 for the third quarter of 2009, compared to a net loss of $277,719 in 2008. On a year-to-date basis, net loss was $1.5 million, unchanged from 2008. Funds used in operations totaled $224,095 for the quarter just ended, compared to $60,013 in 2008. The EBITDA reduction and increased net loss during the quarter were due to reduced electricity generation caused by lower than expected water flows. The improvement in nine month EBITDA was primarily due to reduced general and administrative costs, mainly owing to stock-based compensation and lower legal expenditures.

Subsequent to quarter end, an extraordinary outage at a BC Hydro substation led to the outage at the Company's Brandywine facility that resulted in damage to one of two generators. Although the generator is expected to be out of service for up to four months, the Company does not anticipate a significant impact on revenue as plant output is typically captured by one generator during the corresponding period. The Company's insurers are assessing the facility and repairs and business interruption are expected to be covered by insurance, subject to associated deductibles.

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 the company's high-quality power generation initiatives. 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.

%SEDAR: 00013735E

SOURCE Run of River Power Inc.

For further information: For further information: Jako Krushnisky, President and CEO, Tel: (604) 946-9232, jako@runofriverpower.com; 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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