Ann: Regulatory & Project Development Update, page-174

Big projects take a long time and it is worth reminding frustrated shareholders of the numbers .
Kalina is chasing 4 projects in Alberta of 200 MW, each gas fired with carbon capture and sequestration.
Each project will cost circa $1 billion and the investment tax credits and Alberta incentives currently being
legislated are worth $400 million per project.
As the project developer,Kalina is looking for a 10 per cent carried interest in each project worth,according to PWC,
$75 million or close to $300 million for all 4 that need to be up and running within 6 year to qualify for the credit.
Between $16 and $20 million will have to be spent over 2 years on each project to get to, FID.
Legislation is a very big hurdle but there are others such as bringing a large EPC contractor on board and securing
tolling contracts with gas suppliers.The negotiations are very complex but progress on any one is a step in the right direction.
Why would someone like Matt Jenkins, former CEO Macquarie Capital Markets Canada,join the board of KPO???
He has the track record and experience to pull this off.
Show me another opportunity like this anywhere in the world!
KPO has a market cap of under $10 million.