GC China Turbine Corp. signs wind farm development agreement in Mongolia

16 February 2010 - GC China Turbine Corp. said it has signed a Cooperation Agreement with Fengshuo Wind Power Co., Ltd of Inner Mongolia, towards the development of regional 300 MW wind farms and subsequent purchase of wind turbines from the Company.

Fengshuo is a Wind Farm Project Development Company located in Inner Mongolia. Fengshuo has obtained a Consent Letter from the requisite authorities at the Alukeerqinqi Development & Reform Bureau of Inner Mongolia for developing wind energy resources in the Baoleng region. Furthermore, it has also obtained written consent from the Eastern Inner Mongolia Electric Power Corp. for pre-work assessment and planning for an initial 300MW wind power grid connection project.

GC China entered into the Cooperation Agreement with Fengshuo in order that GC China assist Fengshuo in completing all planning, permitting, and approvals for the aforementioned 300MW wind farms as well as assistance in obtaining increased access to capital and bank loans once the approvals are in place. On this basis, Fengshuo has guaranteed to use GC China's wind turbines in the development of its wind farms at a price based on the average market price at the time of order. Based on these guidelines and current prices, the Company estimates that if a turbine order required to operate a wind farm of 300MW installed capacity is placed, that could result in sales to GC China with a minimum value of $206 million.

The Cooperation Agreement further specifies that in the event that Fengshuo wishes to invite other partners to participate in the financing and purchasing of wind turbine equipment for any current or future 300MW wind farms, a unanimous written approval must be agreed upon between GC China and Fengshuo. Additionally, a preemptive first right of refusal for GC China as primary turbine supplier is guaranteed as part of the agreement.

The Agreement came into force from the date of signing on January 30th, 2010 and has subsequently moved ahead into an implementation phase.

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