Plutonic Power Exits Electricity Purchase Agreement with BC Hydro for Rainy River Project Due to Environmental Permitting Complexities

Vancouver, BC, August 3, 2007 – Plutonic Power Corporation (PCC – TSX) has advised BC Hydro of its intention to exit the electricity purchase agreement (EPA) for the 15 megawatt (MW) Rainy River run-of-river project, due to unexpected complexities in the environmental permitting process caused by the discovery of a number of fish species in the area. Complexities in permitting have decreased certainty around the timing for the project commercial operation date.”Plutonic Power takes its environmental and contractual responsibilities very seriously,” said Donald McInnes, President of Plutonic Power. “The company feels that while these issues have the potential to be addressed, due to the uncertainty around timing, the best course of action is to exit this agreement and refocus its efforts on the development of the Green Power Corridor projects.”

A significant issue arising in the environmental permitting process has been the discovery of several fish species including salmon and steelhead, above the project site. The presence of these in addition to resident species in the projects proposed diversion reach were not anticipated and have made obtaining permits exceedingly more difficult.

“Any future actions on Rainy River will take into account the need to address these new complexities. Plutonic is currently reviewing a full range of options for this project,” added McInnes.

Plutonic Power was awarded an EPA for the 15 MW Rainy River project in the 2006 call for power by BC Hydro, in addition to the 196 MW Toba/Montrose project, on which construction is underway.

Plutonic Power is an emerging renewable energy producer in British Columbia. Its proposed 31 development projects have a design capacity of up to 1,600 MW with the potential to generate approximately 5,000 GWh per annum of green energy – enough energy to meet the annual energy needs of over 500,000 homes. These development projects represent the largest inventory of undeveloped green energy projects in British Columbia. Included in the 31 projects is the creation of the Green Power Corridor, a series of non-storage hydroelectric projects in southwestern BC, which hold the potential to catapult British Columbia to the forefront of green energy generation in North America. The completion of the Green Power Corridor would create approximately 4000 person years of employment.

Plutonic is committed to becoming the pre-eminent supplier of green energy in British Columbia by working with First Nations, stakeholder groups and local communities in the development of all its run-of-river projects. This commitment will help British Columbia realize its goal of becoming electricity self-sufficient by 2016 and meet demand utilizing 90% clean generation sources.

On behalf of the Board of Directors
PLUTONIC POWER CORPORATION

“signed”

Donald McInnes, President

For additional information please contact:
Elisha Moreno
Office: 604-669-4999
Elisha.Moreno@plutonic.ca
www.plutonic.ca

The TSX does not accept responsibility for the adequacy or accuracy of this release. Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.