NEWS

Katabatic Power and the Gitxaala Nation Working Together on Banks Island Wind

RICHMOND, BC, January 25, 2007 ­ The Gitxaala Nation of Kitkatla, BC and Katabatic Power Corp., a privately held wind energy developer, are working together to make wind power on Banks Island, located south of Prince Rupert, a reality.

Katabatic officially met with the Gitxaala Nation in July, 2006. “We met once more in the fall, and are looking forward to building a strong partnership in the coming years,” said Anthony Duggleby, Katabatic’s CEO. “Katabatic recognizes that Banks Island is within the traditional territory of the Gitxaala Nation.”

“It’s clean energy,” said Cliff White, Chief Councillor of the Gitxaala Nation. “It’s environmentally friendly, and that’s what people are looking for. Right now we are working on developing an ongoing relationship. We are looking at the long-term benefits that wind energy can bring to the Gitxaala Nation and to the north coast.”

A letter of understanding, designed to guide the relationship between the Gitxaala and Katabatic on the proposed Banks Island wind power project, is being drafted. The document provides a framework for developing future cooperation agreements in areas such as environmental and cultural protection, training and education, employment, and partnerships.

A joint venture between Katabatic and Deutsche Bank AG, announced earlier this month, has brought the project closer to reality. "The Banks Island Wind Farm is a rare find and the joint venture with Deutsche Bank is a vote of confidence in the local resource and Katabatic Power," commented Duggleby.

The joint venture, announced earlier this month, represents a key milestone in the development of BC's West Coast wind potential and advances the province closer to its goal of energy self-sufficiency. Katabatic’s goal is to begin environmental assessment for the project this summer and to have the first 700 MW of wind power on Banks Island under construction by early 2009.

Katabatic is also involved in the development and construction of a smaller wind farm on Mount Hays, near Prince Rupert, pending applicable regulatory approvals.

For further information:

Fleishman Hillard, Jennifer Torney, Telephone: (604) 688-2505, jennifer.torney@fleishman.ca

Katabatic Power Corp., Jonathan Raymond, Telephone: (415) 931-6269, www.katabaticpower.com

Gitxaala Nation, Chief Councilor Clifford White, Telephone: (250) 848-2214

About the Gitxaala Nation:

The Gitxaala Nation is a Sym’Alyah speaking First Nation on the north coast of British Columbia. The Gitxaala Nation has no treaty with Canada or BC, but is in negotiations under the BC Treaty Commission process. The centre of the Gitxaala Nation is the community of Kitkatla on Dolphin Island, 60 km south of Prince Rupert and 20 km north of Banks Island. Access to the community is by boat or seaplane. The Gitxaala Nation is formally governed by an elected Chief and Council, currently led by Chief Councilor Clifford White, as well as a Gitxaala Governing Table including traditional hereditary leaders, elders and Chief and Council.

About Katabatic Power Corp.

Katabatic Power Corp. is a privately held wind farm development company based in Richmond, British Columbia with offices in San Francisco, California. Its mission is to produce clean, renewable energy to meet the growing demand in North America for affordable, non-polluting electricity. In September 2006, Katabatic signed a 25-year electricity purchase agreement with BC Hydro, the Province's primary electricity provider, for the output of the 25.5 MW Mount Hays wind farm. The Mount Hays project is scheduled to become the first commercial wind farm in the province, providing power to BC Hydro customers by the fall of 2008.