Disclaimer

We are a developer, owner and operator of 20 EcoLogo^M generating facilities totalling 364 MW net to the Company’s interest located in British Columbia, Alberta, Ontario and Quebec:

• 12 “run of river” hydroelectric plants,
• Seven wind plants;
• One biomass plant

In 2007, we commenced construction on the $285,000,000, 132.0 MW Melancthon II Wind Project. At year end, we completed 66 wind turbine foundations and access roads in one of the two townships where this project is located. We are awaiting final municipal approvals in the second township, which we anticipate receiving in the upcoming weeks. In the Spring, we will complete the remaining 22 foundations and access roads in the second township, erect the wind turbines and complete the construction of the substation expansion and transmission lines. Our targeted completion date is November 2008.

Melancthon II was awarded a 20-year power purchase agreement (RES II Contract) with the Ontario Power Authority (OPA), an agency of the Ontario government, for the purchase of electricity and Renewable Energy Certificates (RECs). In September 2007, we closed a $184,600,000 construction facility with our corporate lenders to debt finance this project

We were engaged in the development of the following projects at year end:

In Ontario:

• The $410,000,000, 197.8 MW Wolfe Island Wind Project with a targeted completion date October 2008, pending environmental approvals;
• The $71,000,000 ($35.5 million net to our interest) 20 MW (10 MW net to our interest) Island Falls Hydroelectric Project with a targeted completion date of October 2009; and
• The $40,000,000, 18.0 MW Royal Road Wind Project with a targeted completion date of August 2010.

Wolfe Island and Island Falls have been awarded RES II Contracts with the OPA. Royal Road has been awarded Standard Offer Contracts (SOC) from the OPA under the Standard Offer Program at $110 per MWh for power generated for 20 years. Regulatory approvals and financing are required prior to proceeding with construction of these projects.

In BC:

• The $48,600,000, 18.0 MW Bone Creek Hydroelectric Project;
• The $26,600,000, 11.0 MW Clemina Creek Hydroelectric Project;
• The $22,000,000, 9.6 MW Serpentine Creek Hydroelectric Project;
• The $10,000,000, 5.0 MW English Creek Hydroelectric Project.

The targeted completion date for all four B.C. projects is the fall of 2009. Bone has a 20-year and Clemina, Serpentine and English have 40-year Electricity Purchase Agreements with BC Hydro, for the purchase of electricity and RECs. Bone and Clemina Creek have received all regulatory approvals, construction facilities of $48,900,000 in the aggregate have been placed with the Lenders, and the projects are ready to commence construction in the Spring. Regulatory approvals, which are well underway, and financing are required prior to proceeding with construction of Serpentine and English.

In Quebec:

• The $160,000,000, up to 70 MW Le Nordais Expansion Wind Project is expected to be completed in 2010.

In December 2007, we acquired the 99.0 MW Le Nordais Wind Plant, which included a potential expansion to the existing site by up to an additional 70.0 MW. The expansion is at various stages of regulatory approvals, and the electricity generated as a result of Le Nordais expansion is anticipated to be sold under the terms of the existing power purchase agreement with Hydro-Quebec, which expires in December 2033. Construction is targeted for completion in 2010. Regulatory approvals and financing are required prior to proceeding with construction.

In addition to our construction projects, we have up to an additional 1,562.0 MW of renewable energy prospects that are in various stages of permitting for construction in the next several years.

MISSION, VISION, CORE BUSINESS AND STRATEGY

CHD is passionate about building a sustainable future for our children and grandchildren by balancing the interests of investors and the needs of the environment. The Company's 10 year vision is to be the premier independent builder, owner and operator of renewable energy projects focusing on operational excellence, environmental stewardship and growth, empowering employees, and providing attractive returns to investors.

In 2006, we developed our five-year plan focused on our growth. Our goal is to exit 2011 with 900 MW of net installed capacity and an inventory of at least 1,500 MW in active prospects to foster future growth. We will continue to focus development in the current provinces in which we operate (B.C., Alberta, Ontario and Quebec) while considering expansion into other provinces, such as Manitoba. As part of our strategic plan, we targeted Quebec and Manitoba as attractive provinces for growth, particularly in wind, due to the provinces’ large storage hydroelectric plants, which can easily manage intermittent wind generation. The December 2007 acquisition of Le Nordais in the Gaspe peninsula of Quebec marks our strategic entrance into this province. In Manitoba, we continue to work diligently on readying our 1,000 MW of wind prospects for bid into future calls for wind power by Manitoba Hydro, of which an additional 600 MW are anticipated between 2012 and 2018.

We are the only pure-play company in Canada that provides a diversified portfolio (wind, water and biomass) of EcoLogo^M certified, low-impact, renewable energy generation facilities and projects under development.  The Company's key competency is operational excellence in everything that we do.  Our competitive advantage is our strategy of design, build and operate. We want to capitalize on the demand for renewable energy and the economics that present themselves today, while maintaining an entrepreneurial spirit and ensuring our future.  To achieve our vision and five-year targets, one of our main strategic priorities over the next five years is a dedicated people strategy, including succession planning, and an evolution of the corporate structure to support future growth.