Making the Right Wind Power Investment University of Toronto Wind Workshop October 12th, 2005 Mike Crawley, President/CEO AIM PowerGen Corporation

AIM Overview  Ontario based wind power development company  Over the past four years focused on:  Establishing wind power market  Developing wind projects  Building strong wind power development team  Prominent in wind power & energy sector with AIM’s CEO appointed/elected to:  Association of Power Producers of Ontario's Board of Directors  Ontario Government's Electricity Conservation & Supply Task Force  Renewable Energy Task Team (Co-Chair )  99MW Erie Shores Wind Farm successful in Ont. 300MW RFP  Developing several projects across Canada and abroad

Erie Shores Wind Farm Status  $186MM 99MW Phase One under construction  66 GE 1.5MW turbines along Lake Erie shoreline  60% foundations complete  Tower delivery next month  Turbines in December / January  Commercial operation by late April 2005  Largest wind farm in Ontario  Power for 30,000 – 40,000 homes  51MW Phase Two under development and planning

Why Invest in Wind Power?  Many jurisdictions need significant amounts of new power supply  Ontario needs to replace or refurbish almost 75% of its power supply  Wind power is an increasingly attractive alternative  Concerns regarding air quality and climate change  Relatively rapid deployment  Large hydro and nuclear permitting challenges and time to construction  Good synergies with hydro power  Dramatic increase in natural gas prices  Public policy strongly encouraging wind power  Federal government very supportive  Ontario, Quebec, Manitoba and Atlantic provinces at the forefront  Tax incentives and government backed power purchase agreements  Significant opportunities in EU ascension countries and stable developing nations

Financing Stages Seed Capital Exploration, Site Secure And Permitting Funding Construction Financing

Overall Challenges Investor Risks  Technology  Market  Regulatory  Development  Permitting  Price Competitiveness  Construction  Operation Response  Sell Wind Power  Build Team  Understand/Influence Market & Regulatory  Sell Project(s )

(1) Seed Capital Use of Funds  Research sector and market  Identify and assess potential project sites  Develop corporate structure  Establish supplier relationships  Lobby (maybe) Amount Required $0 - $250,000 Source of Funds  Principals  Angel Investors  Government Programs (difficult) Challenges  Return?  Valuation?  High Risk

(2) Exploration, Site Secure & Permitting Funding Use of Funds  Negotiate land option agreements  Test towers  Preliminary engineering  Grid connect studies  Municipal zoning  EA Amount Required Small Project $50K - $250K Large Project $500K - $2MM Source of Funds  Institutional Flow Through Funds  High Income Individuals (Can. Renewable & Conservation Expense – CRCE)  Industrial Research Assistance Program  Fed. Of Can. Mun.  ‘Ethical’ investors  Risk tolerant investors (hard dollars) Challenges  Permitting risk  PPA risk  Liquidity  Restrictions/ timelines on gov’t programs

(3) Construction Financing Use of Funds  Turbine procurement  Balance of plant  Engineering  EPC contractor  Grid connect Amount Required $1.6MM - $2.1MM per MW installed Source of Funds Equity  Flow Through Funds (diversified and project specific)  High Income Individuals (CRCE)  Environmentally challenged corporations  Corporations with depreciation appetite (class 43.1)  Power generation corporations  Income Funds Debt  Wind-wise Banks  Insurance Co’s  Some Finance Co’s Challenges  PPA terms  Wind data  WPPI  IRR hurdles  Capital cost certainty

Construction Financing Options CRCE/Test Turbine Model CRCE Test Turbines Turbine Infill (Debt) Income Fund Construction Traditional Construction Bridge 70% Debt/ 30%Equity Income Fund?

Investor Options (for discussion purposes only) Risk Return Seed Capital (hard) Seed Capital (Soft) Site/ Permitting (Soft) Site/ Permitting (Hard) Construction (Soft) Construction (Hard)

Mike Crawley President/CEO AIM PowerGen Corporation x224