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Alterra Power Corp. (TSX: AXY) ("Alterra" or the "Company") is pleased to report its financial and operating results for the three and six months ended June 30, 2015.

For further information on these results please see Alterra's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis.

For the quarter ended June 30, 2015, Alterra consolidated 100% of the results of operations at HS Orka, while Alterra's interests in the Toba Montrose run of river hydro facility and the Dokie 1 wind facility were accounted for as equity investments. In certain statements in this news release, Alterra's results are disclosed as Alterra's "net interest", which means the effective portion of results that Alterra would have reported if each of HS Orka (66.6%), Toba Montrose (40%), and Dokie 1 (25.5%) had been reported in accordance with Alterra's actual share of ownership at June 30, 2015 and for the three months
then ended. While management monitors the consolidated results closely, it believes that net interest reporting provides the clearest view of Alterra's performance.

Highlights for the quarter and subsequent period include:

Fleet generation: The Company's fleet-wide performance against budget was 103%, driven by strong quarterly generation at Toba Montrose (118%).

Shannon wind farm:

Project financing completed: On June 30, 2015, the Company closed a $286.8 million non-recourse credit facility for the Shannon project. The facility was supplied by Citibank, N.A., Santander Bank, N.A.

and the Royal Bank of Canada, and consists of a $212.2 million construction loan plus $74.6 million in various letters of credit. The loan is expected to be repaid from a $219 million tax equity investment commitment (subject to typical conditions precedent) supplied by subsidiaries of Citicorp North America, Inc. and Berkshire Hathaway Energy.

Partnership agreement executed: On June 30, 2015, the Company entered into a partnership agreement under which an affiliate of Starwood Energy Group Global, LLC ("Starwood") acquired a 50% interest in the Shannon project. Under the agreement, Alterra will continue to manage the project.

Construction activities: Road construction, turbine foundations and collector lines have been completed. Wind turbine delivery commenced in June 2015 and turbine erection commenced in July 2015. The Company expects commercial operations to commence in the fourth quarter of 2015 or early 2016.

Jimmie Creek hydro project: Construction is ahead of schedule, with intake excavation complete, penstock installation 75% complete, concrete intake and rubber dam 50% complete, and the powerhouse and associated facilities well underway. The facility is expected to commence generation in the summer of 2016.

Agreement signed for new hydro project: The Company signed an agreement with the Klahoose First Nation to jointly develop the 15 MW Tahumming hydro project in British Columbia, near the Toba Montrose and Jimmie Creek projects.

Distributions received: The Company received distributions as follows:

Toba Montrose: The project declared and paid a C$18 million distribution on August 4, 2015, the Company's share being C$7.2 million.

Dokie 1: The project declared and paid a C$3.5 million distribution on July 31, 2015, the Company's share being C$0.9 million.

Blue Lagoon hf: Blue Lagoon hf declared and paid a distribution during the quarter of which HS Orka's share was $2.7 million.

HS Orka: HS Orka declared a distribution of $2.4 million in the first quarter of 2015. The Company's 66.6% share is $1.6 million and was received in July 2015. This distribution is a flow through of the 2014 Blue Lagoon hf distribution.

EBITDA and revenue: Consolidated EBITDA increased 17% against the comparative quarter to $11.6 million, reflecting increased generation at Toba Montrose and lower operating costs at HS Orka along with fluctuations in foreign exchange. Consolidated revenue declined by 18% to $13.5 million predominantly due to the sale of the Soda Lake facility on January 30, 2015 ($1.1 million impact quarter on quarter) and the weakening of the Icelandic Krona (ISK), resulting in lower revenue at HS Orka.

Consolidated Results

Revenue was $13.5 million for the quarter ended June 30, 2015, down 18% from the comparative quarter primarily due to the loss of revenue resulting from the sale of Soda Lake on January 30, 2015 ($1.1 million impact quarter on quarter) and unfavorable currency fluctuations.

The Company recorded net income of $6.8 million in the current quarter, compared to net income of $6.0 million in the comparative quarter. The increase was primarily from changes to income from equity-accounted investees and non-cash items such as the change in fair value of bonds payable and the gain on deconsolidation of Shannon which includes the $1.5 million developer's fee.

Consolidated cash and cash equivalents at June 30, 2015 was $25.8 million of which $23.0 million is held in the Company's Icelandic subsidiary ($63.2 million and $25.1 million respectively at December 31, 2014).

Net Interest Results

Alterra's net interest in revenue decreased by $2.1 million to $17.7 million against the comparative quarter due to the sale of Soda Lake on January 30, 2015 ($1.1 million impact quarter on quarter) and currency impacts, slightly offset by increased generation at Toba Montrose. EBITDA increased by 18% to $9.5 million primarily due to higher generation at Toba Montrose and lower operating costs at HS Orka along with fluctuations in foreign exchange.

The net interest cash position at June 30, 2015 was $22.6 million.


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