Communicators

are winners!

News

19.03.2008
WESTERN WIND ENERGY CORP.: Ongoing Negotiations for Project Financing, Turbine Delivery and Construction Funding

WESTERN WIND ENERGY CORP.: Ongoing Negotiations for Project Financing, Turbine Delivery and Construction Funding

March 18, 2008
Toronto Venture Exchange Symbol: “WND”
Issued and Outstanding: 29,378,218


Western Wind Energy Corporation (“Western Wind Energy”) is pleased to announce that it is in ongoing negotiations with several parties regarding funding for the build-out of Western Wind’s 120 MW Windstar Project in Tehachapi, California. The parties include affiliates of wind turbine manufacturers and national energy companies with current supplies of wind turbines. Also, included in the funding discussions is the expansion of the Mesa Project, from 30 MW to 50 MW. This new construction totals up to 170 MW of new facilities.

The dynamics of the project economics call for a direct project cost of between $2.3 - $2.5 million per megawatt with a further project developer profit payable to Western Wind Energy for up to $1 million per megawatt or up to $170 million of net present value potential profit payable to Western Wind Energy.

Unlike the financing of Canadian wind energy projects, none of these financing structures in the US involve the sale of corporate equity. The sale of corporate equity is not required in US project finance structures. All equity and potential debt facilities can be done at the project level allowing the corporate parent, Western Wind Energy to remain dilution free during this capital-intensive process.

Due to the size and importance of these project finance negotiations and the direct significant financial benefit for the Western Wind shareholders, Pacific Hydro Pty. Limited has indicated its support for Western Wind to negotiate the best deal possible for the Western Wind Energy shareholder, including Pacific Hydro Pty. Limited, which currently owns 20% of the issued and outstanding shares of Western Wind Energy.

To further support Western Wind Energy in its negotiations with project finance partners, Pacific Hydro Pty. Limited has offered to provide an extension of the repayment date of the Mesa acquisition loan from the current repayment date of April 28, 2008 to June 24, 2008 for an extension fee of $100,000 payable by March 19, 2008. This will allow Western Wind Energy ample time to ensure an adequate process for extracting the best value for the Western Wind Energy shareholders.

Jeffrey Ciachurski, CEO of Western Wind Energy states, “Mesa and Windstar are the most financially lucrative wind opportunities in North America. Each project is blessed with the best wholesale power rates on the continent and coupled with the record setting 9.92 meter per second wind regime at Mesa, which is the highest wind energy resource anywhere in the continent, the project economics generate discounted net present values of approximately $1 million per megawatt. With $170 million of profit potential to be negotiated, it is of the utmost importance that we have the adequate time to negotiate the best deal for all of the Western Wind Energy shareholders. The California market has allowed us to build some of the best assets in the wind energy marketplace, own a fleet of over 500 wind turbines in production capacity and yet, have only 29 million shares issued and outstanding. We are grateful of the support of Pacific Hydro in allowing us the ability to build significant shareholder value.”

With no coal production in the State of California, California derives all of its fossil fuel electrical production from oil and gas. California has rightfully decided not to subsidize coal production as the true cost of electrical generation is reflected in the State’s energy prices.

Western Wind Energy is North America’s largest publicly traded non-income trust producer of pure wind energy. Western Wind Energy has the capacity to produce 34.5 MW of clean renewable electrical energy from over 500 wind turbine generators located in Tehachapi (Windridge) and San Gorgonio Pass (Palm Springs), California with annualized energy output capacity of approximately 70 billion watt hours per year.

Western Wind Energy also has over 145 MW of expansion power sales agreements with the associated projects in the late stages of development. In addition, Western Wind Energy has a credible pipeline of over 1,300 MW of site locations in the State of California. During the past two years, Western Wind Energy has executed or acquired over $1 billion of power sales agreements totaling 145 megawatts from the sale of wind energy electrical generation. Western Wind Energy was the first to execute a "wind" PPA in the State of Arizona, and in California, is expanding from management's 27-year continuous operating history in the Tehachapi Pass.

Western Wind Energy is in the business of acquiring exceptional land sites, capital and technology for the production of electricity from wind energy. 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


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Certain statements included herein are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Management cautions that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statement. Important factors that could cause the actual results of operations or financial condition of the Company to differ include, but are not necessarily limited to, the risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.