Finavera Wind Energy Signs Agreement for $40 Million Sale of British Columbia Wind Project Portfolio

Finavera Wind Energy Signs Agreement for $40 Million Sale of British Columbia
                            Wind Project Portfolio

  PR Newswire

  VANCOUVER, December 20, 2012

VANCOUVER, December 20, 2012 /PRNewswire/ --

Finavera Wind Energy Inc. ('Finavera Wind Energy', 'Finavera' or the
'Company') (TSX-V: FVR) is pleased to announce that after a thorough review of
a number of corporate transaction options and numerous proposals from
interested parties, Finavera's Special Committee of the Board has recommended
and approved the signing of an agreement with Pattern Renewable Holdings
Canada ULC, a subsidiary of Pattern Energy Group LP, ('Pattern') for the sale
of the Company's 300 megawatt (MW) British Columbia wind project portfolio for
approximately $40 million. The agreement provides the best value for
shareholders after the review of a number of different deal structures,
assessment of execution risk and the potential for future value.

Finavera Wind Energy CEO Jason Bak said, "This transaction is a testament to
the quality of our portfolio and is an excellent example of the monetization
of value created through our development skill set. The transaction indicates
a significant difference between our market capitalization and our inherent
value as in addition to the $40 million in proceeds payable on the projects
proceeding to construction, Finavera maintains a 10% interest in the 105 MW
Cloosh Valley Wind Project and is expecting an additional $9.3 million payment
from the project in 2013. With the cash proceeds that will be received by
Finavera from these transactions, we will be well-positioned to continue to
pursue further high growth opportunities in renewable power development."

Under the terms of the agreement, Pattern has agreed to refinance up to $9
million of corporate debt, fund certain development costs going forward and
provide a further debt facility to the Company at a rate of 10%, all of which
will be applied against the purchase price at closing of the acquisition of
the projects. Post-acquisition, Pattern has also committed to development
spending on the near term projects. Approximately $11 million will be paid to
Finavera upon shareholder approval and on the completion of the acquisition of
the project companies with the balance of $40 million being proportionally
payable upon all projects proceeding into construction and obtaining
construction financing. The agreement is subject to approval from
shareholders and the TSX Venture Exchange.

Bak adds, "We are pleased to have Pattern as a partner in this transaction
given their depth of experience and financial ability. Finavera is confident
in Pattern's ability to move these projects forward to construction and to
honour the commitments that were made to project stakeholders during their
development."

Further information will be provided to shareholders in advance of a meeting
to be held by or before March 30 ^th , 2013.

Jason Bak, CEO

About Finavera Wind Energy Inc. ( http://www.finavera.com ) Finavera Wind
Energy is a company focused on developing, constructing and operating wind
farms in North America and Ireland. Our mission is to create and operate a
diversified portfolio of wind projects while protecting and enhancing the
physical and social environment. In British Columbia, Canada, four projects
totaling 300 MW have been awarded 25 year AAA-rated Electricity Purchase
Agreements and one has received full environmental approval and permitting for
construction, expected to begin in 2013. In Ireland, the Company has signed a
partnership agreement with SSE plc for development of the 105MW Cloosh Valley
Wind Project. Finavera is continuing to opportunistically review prospects for
growth and the enhancement of shareholder value.

Statements in this news release, other than purely historical information,
including statements relating to the Company's future plans and objectives or
expected results, constitute Forward-looking statements. The words "would",
"will", "expected" and "estimated" or other similar words and phrases are
intended to identify forward-looking information. Forward-looking information
is subject to known and unknown risks, uncertainties and other factors that
may cause the Company's actual results, level of activity, performance or
achievements to be materially different than those expressed or implied by
such forward-looking information. Such factors include, but are not limited
to: uncertainties related to the ability to raise sufficient capital, changes
in economic conditions or financial markets, litigation, legislative or other
judicial, regulatory and political competitive developments and technological
or operational difficulties. Consequently, actual results may vary materially
from those described in the forward-looking statements.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release."

SOURCE: Finavera Wind Energy Inc.

For further information:

Finavera Wind Energy Jason Bak CEO +1(604)288-9051 info@finavera.com

Capital West Partners Paul Langley Partner +1(604)718-6809 paul@capwest.com

(FVR.)
 
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