KWOIEK CREEK RUN-OF-RIVER PROJECT APPROVED

VICTORIA – Kwoiek Creek Resources Limited Partnership (the proponent) has received an environmental assessment (EA) certificate for its proposed run-of-river hydroelectric project.

Environment Minister Barry Penner and Energy, Mines and Petroleum Resources Minister Blair Lekstrom made the decision to grant the EA certificate after considering the review led by B.C.’s Environmental Assessment Office (EAO).

The proposed $150-million project, a 50-megawatt electrical generating facility, will be located on Kwoiek Creek, on the west side of the Fraser Canyon across from the community of Kanaka Bar, approximately 14 kilometres south of Lytton and 29 kilometres north of Boston Bar. An 80-kilometre transmission line will also be built between the generating facility and the Highland Valley substation near Ashcroft, delivering the renewable electricity to BC Hydro under a long-term contract awarded in 2006. The proposed project is a joint venture between the Kanaka Bar Indian Band and Innergex II Power Trust.

The EAO Assessment Report concluded the project is not likely to have significant adverse effects, based on the mitigation measures and commitments included as conditions of the EA certificate.

The provincial EA certificate contains 74 commitments the proponent must implement throughout various stages of the project. Key commitments include the following:

· Providing fish passage around the diversion structure.

· Maintaining in-stream flows to protect fish and fish habitat.

· Developing mitigation/compensation, access management and monitoring plans in consultation with regulatory agencies.

Up to 120 direct construction jobs are expected to be created for a period of two years, with additional indirect employment in the provision of services to support construction activities and workers. The proponent has committed to providing opportunities to workers within nearby First Nations, and is expected to pay the B.C. government $670,000 per year in water rental fees and another $600,000 per year in rural property taxes.

The proposed project is also reviewable under the Canadian Environmental Assessment Act as a screening study because authorizations or permits are required from Fisheries and Oceans Canada, Indian and Northern Affairs Canada and Transport Canada. All three Federal Responsible Authorities participated in the review and will prepare federal screening reports based on the information in the EAO Assessment Report and the EA consultative process.

The Nlaka’pamux Nation was consulted on the assessment and the Province is satisfied the Crown’s duties to consult and accommodate First Nations interests have been discharged.

Before the project can proceed, the proponent will still need to obtain the necessary provincial licences, leases and other approvals.

Over the last six years, BC Hydro has imported up to 15 per cent of its electricity, much of it from traditional coal-fired plants in the U.S. and Alberta. These plants are a large source of CO₂ emissions, which are contributing to climate change. Run-of-river hydroelectric power projects are consistent with the B.C. Energy Plan goal to have the province electricity self-sufficient by 2016, while producing zero net greenhouse gas emissions.

More information on the environmental assessment certificate can be found at www.eao.gov.bc.ca.

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Media contact:	Kate Thompson Manager, Media Relations 250 953-4577

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