Corpfinance International Group Announces $52 Million Hydro Financing

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November 13, 2006

CFI Infrastructure Opportunities Fund Invests $4.75 Million of Equity

Toronto, Ontario - November 13, 2006 - The CFI Group, a leader in equity and debt financings for the structured finance industry, today announced the successful completion of a $52 million financing for the Zeballos Lake Hydroelectric project in British Columbia. The financing is comprised of $43.6 million of senior debt arranged by Corpfinance International Limited (CFI), and a $4.75 million investment by the CFI Infrastructure Opportunities LP, a private equity fund managed by CFI Capital, a subsidiary of CFI. CFI’s partner, Pacific Rim Power Corporation, contributed $3.75 million to the Project. The Ehattesaht First Nation is also a partner in the Project.

A unique element of this financing was The CFI Group’s ability to combine debt and equity in one financing package. “CFI is a leader in hydro financing in Canada, our ability to combine our segment specific knowledge, experience and creativity with the equity from the CFI Infrastructure Opportunities Fund and a structured finance solution from CFI results in tremendous efficiencies for clients like Zeballos,” said Kevin Andrews, President and CEO of the CFI Group.

“CFI’s ability to offer a package that covered 100% of our financing needs was a compelling business solution. In addition, working with a team that brings so much industry expertise and a willingness to partner to the table is reassuring,” stated Geoff Akehurst, President, Tercon Industrial Ltd. Tercon Industrial Ltd, Tercon Construction and Dependable Turbines Ltd. are the prime contractors for the Zeballos project.

Zeballos Lake Hydro Limited Partnership will sell the energy produced under a 20 year Electricity Purchase Agreement (EPA) with British Columbia Hydro and Power Authority (BC Hydro). Under this agreement, it is anticipated that an annual average production of 115 GWh will be generated at Zeballos Lake and delivered to BC Hydro.

The development of the Zeballos Lake Hydroelectric Project on Maraude Creek includes the construction of an intake structure and 900 m long tunnel, construction of a 1540 m long 72” diameter low pressure and high pressure steel penstock to the main powerhouse, construction of the powerhouse and installation of two 9.8 MW francis turbines with synchronous generators, switchgear, protection and controls.

At the exit of the tunnel there is a second 450 m long 36” diameter penstock to the “fish” powerhouse. The fish powerhouse will house a single 3 MW francis turbine with synchronous generators, switchgear, protection and controls. The fish powerhouse is located above the fish barrier but well below the lake water level. The flows to the “fish” powerhouse would otherwise be lost to flow compensation to maintain fish habitat in the bypassed reach of Maraude Creek between the Point of Diversion (POD) and the downstream main powerhouse.

The generating voltage of the “fish” turbine generator is 13.8 kV and the energy is transmitted to the main powerhouse along the penstock route. There the output of both stations is transformed to 138 kV and delivered to BC Hydro’s transmission system at Tahsis by an 18.6 overland transmission line.

A unique feature of the Zeballos Lake Hydroelectric Project is its utilization of an existing rock slide which occurred four to five hundred years ago. The present Zeballos Lake was formed as a result of the slide. The rock slide has acted as a porous dam essentially attenuating the inflows into Zeballos Lake and then releasing them through the rock slide back into Maraude Creek. The lake therefore has a naturally occurring annual operating range making it a “natural” hydroelectric site. The rock slide will be sealed and then capped with a concrete and rockfill overflow weir.

About CFI Group:

With over 20 years of experience and $5 billion of transactions, The CFI Group (CFI), through Corpfinance International Limited, CFI Capital and CFI Trust, specializes in providing customized medium and long-term structured and infrastructure debt and equity financing solutions for private and public corporations. The Company is based in Toronto, Ontario with offices in Quebec and British Columbia and is owned by management and Canada Life.

CFI are experts in understanding the specific financing needs of the Hydro Electric, Cogeneration, and Alternate Energy sector. CFI’s unique approach to financing combined with their considerable industry knowledge and extensive experience funding the energy sector ensures that their tailored solutions offer solid, viable financing options for the Canadian Energy Sector.

CFI offers capital solutions through its wholly owned subsidiary CFI Capital. CFI Capital manages the CFI Infrastructure Opportunities Fund, a committed equity capital fund designed to meet the needs of privately owned Canadian infrastructure projects. For more information on CFI, visit: http://www.corpfinance.ca

For more information, please contact:
Kevin Andrews
CFI Group
416-364-6191 x224
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