Western Wind Energy Corp. - Tax Credits and Yabucoa Update

          Western Wind Energy Corp. - Tax Credits and Yabucoa Update

  PR Newswire

  VANCOUVER, British Columbia, January 2, 2013

VANCOUVER, British Columbia, January 2, 2013 /PRNewswire/ --

TSX.V Symbol: " WND" OTCQX Symbol: "WNDEF" Issued and Outstanding: 69,820,125

Western Wind Energy Corp. - (the "Company" or "Western Wind") (TSX Venture
Exchange - "WND") (OTCQX - "WNDEF") announces an update to its 30 MW Yabucoa
solar project located within the municipality of Yabucoa, Puerto Rico. Western
Wind has provided revised civil and electrical drawings to the lender's
independent engineer for review. Western Wind changed the design to
accommodate new inverters after the previous industry respected inverter
vender entered into financial restructuring.

Western Wind is continuing to work with the Puerto Rico Electric Power
Authority ("PREPA") in meeting its new Minimum Technical Requirements for
frequency regulation and power control.

The completion of these outstanding technical issues and subsequent financial
close will significantly increase the valuation of the entire company, which
is consistent to our previous July 30, 2012 news release indicating financial
close of Yabucoa is an essential and important milestone needed for
shareholders to receive the highest value in the sales process. Financial
close will not happen before January 28, 2013 and therefore the current
Brookfield bid does not reflect this significant milestone and achievement.

Tax Credits

For the monumental benefit of the entire US wind energy industry, including
Western Wind, today the United States Congress approved a vital extension of
the Production Tax Credit, the Investment Tax Credit and Bonus Depreciation.
The Investment Tax Credit allows 30% of an entire wind project's eligible
capital cost to be claimed as a full tax credit to a US taxpayer. In the
alternative, the Production Tax Credit allows a credit of 2.2 cents per kwh
for 10 years of the project's life, plus an inflation adjuster.

This is phenomenal news for the Western Wind shareholder, as all of our
development assets must now be re-evaluated and appraised for their full
development potential, as the new credits cover a wide variety of funding
options.

Jeff Ciachurski, President of Western Wind Energy, states " it is crystal
clear to Western Wind shareholders, that the Brookfield bid price does not
include Yabucoa nor did it ever include the assumption that the wind tax
credits would ever been extended.  Not only did Congress extend the
Production Tax Credit, it also extended the Investment Tax Credit and Bonus
Depreciation.  In essence,  US  Treasury is paying for 30% of the capital
costs of a wind project in the  US .  This amount is hugely significant and
infers that the  United States  is still the No. 1 place in the world to be
building, owning and operating wind and solar facilities.  In countries
outside of the  US , the shareholders have to dilute themselves by paying for
30% of a wind or solar project(s) capital costs by way of cash equity
contribution.  This celebrated move by the  United States  Congress adds
deep value to our development pipeline ."

ABOUT WESTERN WIND ENERGY CORP.

Western Wind is an independent vertically integrated renewable energy
production company that owns and operates wind and solar generation facilities
with 165 net MW of rated capacity operating in the States of California and
Arizona. Western Wind further owns substantial development assets for both
solar and wind energy in the U.S. The Company is headquartered in Vancouver,
BC and has branch offices in Scottsdale, Arizona and Tehachapi,
California.Western Wind trades on the TSX Venture Exchange under the symbol
"WND", and in the United States on the OTCQX under the symbol "WNDEF".

Western Wind owns and operates three wind energy generation facilities in
California, and one fully integrated combined wind and solar energy generation
facility in Arizona.The three operating wind generation facilities in
California are comprised of the 120MW Windstar, the 4.5MW Windridge, both in
Tehachapi, and the 30MW Mesa facility near Palm Springs. The facility in
Arizona is the Company's 10.5MW Kingman integrated solar and wind facility.
The Company is further developing wind and solar energy projects in
California, Arizona, and Puerto Rico.

ON BEHALF OF THE BOARD OF DIRECTORS

"SIGNED"

Jeffrey J. Ciachurski President & Chief Executive Officer

Neither the 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.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains certain statements that may be considered
"forward-looking statements, such as references to the intended sale of
Western Wind and its assets. Forward looking statements are statements that
are not historical facts and are generally, but not always, identified by the
words "expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. The forward-looking
statements in this press release include statements regarding the value of a
potential sale of the Company based on expressions of interest received from
auction participants, alternative sales discussions with third parties and
potential transactions resulting from such discussions. The forward-looking
statements included in this press release are based on reasonable assumptions,
including that the expressions of interest and discussions with third parties
may result in a higher potential sales price and that the Company will be able
to successfully negotiate and complete a sale with a third party. Factors that
may cause results to vary from anticipations include the risk that the Company
may not be able to successfully negotiate a sale on terms more favourable than
pursuant to the Offer and even if it is able to negotiate such a sale, that
may not be able to satisfy applicable conditions, including receipt of
requisite approvals, or complete the transaction. Although Western Wind
believes the expectations expressed in the forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
outcomes and actual results may differ materially from those contained in
forward looking statements. Forward looking statements are based on the
beliefs, estimates and opinions of Western Wind's management on the date the
statements are made. Western Wind undertakes no obligation to update these
forward-looking statements in the event that management's beliefs, estimates
or opinions, or other factors, should change, except as required by law.

For further information: Investor Relations Contact: Lawrence  Casse
AlphaEdge Tel:+1-416-992-7227 Email: alphaedgeinc@gmail.com