eei presentation feb 2014v9

Eclipsol Energy Inc. Quesnel Lake Pumped Storage Hydro Projects

February 2014

Forward-Looking Information This presentation and the associated slides and discussion contain forward-looking statements regarding Eclipsol Energy Inc. (Eclipsol), our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management’s assumptions and beliefs in light of information available to them at this time.

These forward-looking statements are, by their very nature, subject to significant risks and uncertainties, and actual results, performance or achievements may be materially different from those expressed in the forward-looking statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to; ability to access sufficient capital from internal and external sources, regulatory changes, future levels of industry product supply, demand and pricing, customer adoption levels, wars and acts of terrorism, technical risks related to product design, development and production, acts of competitors and other changes to business conditions. Eclipsol undertakes no obligation to revise any such forward-looking statements to reflect any changes in Eclipsol’s expectations with regard thereto or any change in circumstances or events after the date hereof.

Confidential Information

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Mission Statement Our mission is to develop, build, and responsibly manage a

high caliber portfolio of core infrastructure energy

projects in Canada and internationally to meet the ever-

increasing global demand for energy.

Eclipsol Energy is committed to providing our customers

with quality energy solutions that positively impact our

environment and communities while delivering superior

returns to investors.


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Company Profile Eclipsol Energy has a number of hydro-electrical pumped storage projects in its project

portfolio on Quesnel Lake in British Columbia, totaling more than 1,000 MW of power.

Additional pumped storage projects totaling more than 600 MW are under review as well

as a large number of operating projects in the hydro, wind, and solar sectors.


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Directors Robert Coelho – CEO and Director

Bringing over a decade of senior business and corporate management experience in the energy sector

Has procured, managed and financed several high profile energy projects in the Canadian and International markets

Casper Bych – Executive Chairman of the Board

Bringing over two decades of experience in management; the legal industry practicing securities law at national law firm; and in the investment banking industry as the CEO of Mountainview Capital Corporation, a Vancouver based corporate finance boutique

Obtained law degrees from University of Copenhagen (Cand. Jur.) and McGill University (L.L.B. and B.C.L. - with Distinction)

David Kiess – Manager of Project Development

Bringing over 35 years of hydroelectric development experience

Served as a Director for IPPBC and also participated in consultations with the BC Liberal Provincial Caucus regarding formulation of the BC Energy Plan


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Directors William Anderson – VP Corporate Development and Director

Bringing over a two decades of international business experience in the mining and energy sector with a focus on

corporate finance

Holds a law degree (L.L.B.) from Osgoode Law School (York University) and is a member of the Law Society of Upper

Canada and was first in class in International and Banking law

J. Lewis Dillman – VP Corporate Finance and Director

Seasoned executive with over 15 years of experience in the public and private resource industry

Holds a Masters degree in International Affairs from Columbia University in New York with a specialization in

international banking and finance

Craig Bond – Executive Vice President & Director

Have over a decade experience in the financial markets sector

During his time in the industry has given speeches and training sessions at various investment seminars.

2/21/2014 Confidential Information

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Track Record Experience

Extensive experience in financing and building large infrastructure assets

Has permitted over 2,000 MW of power projects

Comprehensive knowledge of working with BC Hydro and Provincial Ministries in permitting projects

Select Projects:

Big Hanaford (Centralia, Washington) Combine-

cycle power plant: $200 Million; 160 MW

Peace Canyon Hydro Electrical Power Plant

Refurbishment (Hudson’s Hope, BC) $70 million;

550 MW

Vancouver Island Transmission Reinforcement

Project (submarine power cable) $135 million

Brandywine Creek, (near Whistler, BC) $18

million, 6.5 MW

Green Mountain Energy Wind Farm (Brazos, Texas)

160 MW


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Global Demand for Power The International Energy Outlook 2013 (IEO2013) projects that world energy consumption will grow by 56 percent between

2010 and 2040.

Renewable energy is the world's fastest-growing energy source, increasing by 2.5 percent per year.


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BC Demand for Power In British Columbia, B.C. Hydro is forecasting that the province’s electricity needs will

grow by as much as 40 per cent over the next 20 years. (as of 2013).

The province’s focus is to secure clean energy sources to meet the growing demand.


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Power Demand Synopsis Shale Gas Plays:

1. Cordoba Basin 2. Horn River Basin 3. Montney Basin

Proposed LNG Export Facilities:

1. AltaGas Idemitsu Joint Venture 2. LNG Canada 3. Kitimat LNG 4. Pacific NorthWest LNG 5. BC LNG Export Co-Operative 6. Imperial Oil/Exxon LNG Project 7. Prince Rupert LNG 8. Nexen/Inpex LNG Project 9. Kitisualt Energy LNG Project 10. Woodfibre LNG


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1

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3

4

5

6

7

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Power Demand Synopsis Mining Facilities:

1. Existing Mines and Quarries

a. Metal Mines 10

b. Coal Mines 10

c. Industrial Mineral 36

2. Mines Under Development

a. Permitted Projects 4

b. In Mines Act Permitting Process 3

c. EA Certification Process 11

d. Pending Permit Application 11


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Projects Eclipsol’s answer to the

demand for power in B.C. is our Pumped Storage Quesnel Lake cluster projects.

We have collected a high quality portfolio of projects in BC that exceed 1 GW of power generation.


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Hen Ingram Lake

Why Pumped Storage? A proven technology Pumped storage has been utilized for more than a century in

Europe and the U.S. as a utility-scale energy storage technology with low forced outage

rates (<2%).

World wide capacity of pumped storage is more than 130 GW.

Our projects can provide more than 1 GW of firm capacity and is the most compelling

solution to the required increase in capacity and firm power production in B.C.

Can alternate pumping and generating as required by BC Hydro. This provides BC Hydro

with a versatile utility resource that can provide peaking capacity, ancillary services,

arbitrage and transmission optimization.

BC Hydro specifically named this technology in the 2012 Integrated Resource Plan as one

of its Recommended Actions.


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Pumped Storage Explained

Gravitational

flow will

rotate turbine

to generate

power at peak

power

pricing.

At low power

pricing, water

will be

pumped up to

reservoir for

next cycle.


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Pumped Storage Explained Top view of

turbine

configuration

in the power

house

Side view of

turbine and

pump

arrangement


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Hen Ingram Hydro Power Station Capacity: 200 MW

Est. Capex: $680 Million

Plant Type: Pumped Storage

Est. Annual Production: 665,000 MWh

Est. Annual Revenues: $93 Million

Est. Financial Close: 2016

Est. Time of COD: 2018

Est. Cost to Financial Close: $4 Million

Upper Storage Location: Hen Ingram Lake

Lower Storage Location: Quesnel Lake


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Project Location


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Quesnel Lake

Williams Lake

Project Site

Soda Creek

100 Mile House

Geographical Details


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Hen Ingram

Lake (Upper

Reservoir)

Penstock

Power House

Quesnel Lake

(Lower

Reservoir)

Project Geographical Details


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Power House

Land Application Area

Transmission ROW

Upper Reservoir Intake

Intake

Transmission Interconnection


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Transmission Line

Schedule for Hen Ingram Project


2014 2015 2016 2017 2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Investigative Use Permit

Hydrology and Environmental Review

Environmental Assessment Office

First Nations Consulting

Electricity Purchase Agreement

Financial Close

Engineering

Construction

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Project Development Phases These are four major milestones in the development of a hydro

project in British Columbia:

1. Impact Benefit Agreement with First Nation bands

2. Electricity Purchase Agreement (EPA) with BC Hydro

3. Environmental Assessment Approval

4. Closing of the construction and project financing


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Environmental Approval We have commenced the following studies in support of our Environmental Assessment Application:

Wildlife and Habitat Studies

Fish and Habitat Studies

Hydrology and Geomorphology studies

Archaeological and Cultural Studies

We expect to submit our Environmental Assessment Application in Q2 of 2015 and to receive an Environmental Assessment Certificate by the end of 2015.


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Environmental Approval Process


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First Nation Consultation We have identified two First Nation bands for consultation: Xatśūll First

Nation (Soda Creek Indian Band) and the Williams Lake Indian Band.

Our approach is to involve the applicable First Nations as much as possible

in all aspects of the project. We will work with First Nations on the

identification of employment opportunities associated with the

development of the project.

Plan of Action:

Enter into an Investigative Use Agreement

Enter into an Impact Benefit Agreement

Ongoing process throughout the project


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Electrical Purchase Agreement Off-taker will be BC Hydro under a long

term EPA

Expected term of EPA is greater than 40 years (60 years has been contracted recently)

Price will be set at a specific price per MWh adjusted for inflation

One-off negotiation for an EPA with BC Hydro – instead of waiting until the next Call-for-Power

BC Hydro is AAA rated (from Moody’s)

Expected time frame to secure EPA: 18 month process from Q3 2014 to Q1 2016


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Financing Plans We expect to initially raise approximately $20M to fund our four pumped storage projects through

permitting, First Nations consultation, EPA negotiations and financial close.

Projects financing will consist of a mix of equity and debt via a project finance structure.

The initial phase of financing will fund construction through a consortium of institutions otherwise

known as bridge financing. Upon Commercial Operation Date (COD), this bridge financing will convert

to long-term debt.

The debt will be a non-recourse loan, which is secured by the project assets and paid entirely from

project cash flow.

Project financing will be divided into equity (25%) and debt (75%) according to market conditions.

Financing will be secured by all of the project assets, including the revenue-producing contracts.

We expect to partner with an institutional investor on the equity portion of the project financing,

where we will sell a minority interest in the projects.


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Hen Ingram Construction Plan Construction of the facility will be tendered to

an Engineer, Procure and Construct (EPC)

bidding process after the financial close.

Engage an owner’s engineering firm to consult

on procuring the turbines and EPC contactor.

Major equipment will be purchased directly

from OEM after the financial close.

Develop an RFP to send to the top five turbine

manufactures to bid on the project.

Develop an RFP to send to potential EPC

contractors who will be able to accept our

guarantee points for performance and the

engineering to date.


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Hen Ingram Segmented Capital Costs


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Roads 12,000$

Headworks 28,000$

Tunnel & Escavation 15,000$

Penstock 100,000$

Turbine & Pump 247,651$

Powerhouse 45,000$

Substation 2,500$

Transmission Line 22,000$

Interconnection 3,781$

Construction Management 37,641$

Engineering 15,000$

Fish Compensation 380$

Escalation 37,809$

Total Direct Costs plus Escalation 566,762$

Development Costs 23,253$

Contingency 89,985$

Total Indirect Costs 113,238$

Total Capital Cost2 680,000$

Cost per MW 3,400.00$

Figures above are in thousands

Why Invest in Eclipsol? Proven Industry Track Record

Our team has developed more than 40 electricity generation projects in North America totalling; more than 1.5 GW of installed capacity in the field of hydro electrical, wind, solar and thermal.

Proven Capital Raising Track Record

Our team raised more than $250M for companies in the renewable and conventional energy sectors as well as the mining and technology sectors.

Short Path to Major Valuation Milestones

We foresee a three year path to financial close on each of the Hen Ingram Lake, Polley Lake, Keno Lake and Whiffle Lake pumped storage projects in British Columbia, with a total installed capacity of 1 GW.


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Why Invest in Eclipsol? Long Term Power Purchase Agreement

Eclipsol will obtain a 40 to 60 year long Power Purchase Agreement from B.C. Hydro for our pumped storage projects (with a set price adjusted for inflation).

Increase in Electricity Consumption

In British Columbia, BC Hydro is forecasting that the province’s electricity needs will grow by as much as 40 per cent over the next 20 years and the only renewable solution will be damming or pumped storage. Our projects provide firm capacity to BC Hydro.

Tight Share Capital Structure

We have a tight share structure with significant ownership by the principals. We expect to complete the project financing in a manner that will resulting in the least dilution for shareholders.


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Polley Hydro Power Station Capacity: 400 MW

Est. Capex: $1.2 Billion


Est. Annual Production: 1,300,000 MWh

Est. Annual Revenues: $182 Million



Est. Cost to Financial Close: $4 Million

Upper Storage Location: Polley Lake

Lower Storage Location: Quesnel Lake


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Keno & Whiffle Power Plants Capacity: 200 MW (each)

Est. Capex: $683 Million (each)


Est. Annual Production: 665,000 MWh (each)

Est. Annual Revenues: $93M (each)



Est. Cost to financial close: $4 Million (each)


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Projects Under Review Sege Wind Farm

235 MW

Ghana, Africa

Duncan Lake Hydro Plant

200 MW

British Columbia, Canada

Spanish Lake Hydro Plant

200 MW


Haana Wind Farm

20 MW



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Contact Information Eclipsol Energy Inc.

Address: Suite 830 – 1100 Melville Street

Vancouver, B.C. V6E 4A6

Phone: 1.888.412.8380

Contact: Robert Coelho

Email: [email protected]

Web: www.eclipsol.com


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eei presentation feb 2014v9

Education

energy sectorhas

renewable energy

international energy

high profile energy

bc hydro

storage hydro projects

world energy consumption

growing energy source