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Press release from CNW Group

Run of River Power Reports Second Quarter Results

Friday, August 24, 2012

Run of River Power Reports Second Quarter Results19:00 EDT Friday, August 24, 2012VANCOUVER, Aug. 24, 2012 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the quarter ended June 30, 2012. The consolidated financial statements and management discussion and analysis will be filed to SEDAR and posted on ROR Power's website ( All figures reported herein are in Canadian dollars unless otherwise stated.HighlightsQuarterly production at the Brandywine hydro-electric facility - 11,165 MWh compared to the comparable quarter in 2011 of 9,202 MWh - an increase of over 21.3%.Recorded a General and Administration ("G&A") reduction of $320,524, or 49.5% lower than G&A expense during the comparable quarter in 2011.The Company continues to work with its partner, Concord Pacific, to identify and secure the most favourable debt financing terms for the Skookum Power Project.Advanced finalization of the permits and licences required to begin construction of the Project."ROR is very pleased to report that the Company continues to meet its objectives to enhance shareholder value through continued plant optimization, cost reduction efforts and the realization of the 25 MW Skookum Creek Project," stated Richard Hopp, ROR Power's President and CEO.  "We have made significant progress on Project financing and advancing the required material permits for the Skookum Creek Power Project.   We are still on target to commission the Project, as planned, in the first quarter 2014."Financial Summary       ($000's except per share and generation amounts) Three Months EndedJune 30Six Months EndedJune 30  2012201120122011Electricity sales 669545810697EBITDA 162(285)(270)(957)Loss (357)(836)(1,539)(2,027)Basic and diluted loss per share (0.01)(0.01)(0.02)(0.02)Cash flow used (from) in operations 361(420)(113)(649)Total assets 27,09727,03627,09727,036Long-term debt 13,54110,11213,54110,112Generation-MWh 11,1659,20213,52111,765(1)     EBITDA is earnings before interest, taxes, depreciation and amortization and is not ameasure under International Financial Reporting Standards ("IFRS") and may not becomparable to similar measures presented by other companies. Refer to Non-GAAPmeasures section of the MD&A for an explanation and reconciliation.Operating ResultsThe Brandywine facility over the last year continues to benefit from improvements in conversion efficiency and increased generation potential. Q2  2012 electricity sales of $669,078 increased $123,921 or 22.7% from Q2 2011 sales of $545,157 as a direct result of increased electricity generated to 11,165  MWh from 9,202 MWh. YTD 2012 electricity sales of $810,234 increased $113,253 or 16.2% from 2011 YTD sales of $696,981. YTD production increased 14.9% to 13,521 MWh from 11,765 MWh. The increase in electricity generation and sales is attributable to increased water flows, primarily from a favourable annual snow pack melt profile, and efficiency improvements at the Brandywine Creek hydroelectric facility.EBITDA for Q2 2012 was $161,316 compared to negative $284,668.  The increase in EBITDA is due substantially to reduced General and Administration ("G&A") expense compared to the comparable period in 2011 and increased production at the Brandywine hydro-electric facility. G&A expense of $327,296 during Q2 2012 was $320,524, or 49.5% lower than G&A expense of $647,820 during Q2 2011.The Corporation recorded a loss for the second quarter of $356,760 compared to a loss of $835,861 for the comparable quarter in 2011. The decrease in the net loss is a result of a reduction in G&A expense. YTD loss decreased $487,541 to $1,539,070 compared to 2011 YTD loss of $2,026,611. The loss, before impairment, would have been $1,342,610 for 2012 YTD, an improvement of $684,001 compared to the YTD results of 2011.Funds from operations were $361,286 in the second quarter of 2012 compared to funds used in operations of $419,780 for the second quarter of 2011.  YTD funds used in operations were $112,642 compared to $648,800 for the comparable six month period in 2011. The change in funds used in operations for the 2012 quarter and YTD is due primarily to changes in working capital.Financial PositionAt June 30, 2012, the Corporation had $1.1 million in cash on hand. These cash resources will be used to carry out further development of the Mamquam watershed and future run-of-river development projects.The Company recently entered into agreements with certain subsidiaries in the Concord Pacific group of companies to provide equity financing for ROR Power's 25 MW Skookum Power Project as more fully described in the 2011 Annual Financial Statements as filed with Accordingly, the Company is evaluating alternatives for raising Project debt to complete this project and is currently negotiating with a lender.Non-GAAP MeasuresThe Company reports its financial position, results of operations and cash flows in accordance with International Financial Reporting Standards ("IFRS").About Run of River Power Inc.ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The company helps diversify BC's energy mix by providing a cleaner way to generate power and increasing the security of BC's energy supply.  ROR Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes. The company is well positioned for profitable growth through power generation initiatives that include its 25 MW Skookum Power Project, awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR Power's total development potential is approximately 400 MW.Forward-Looking StatementsStatements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.SOURCE: Run of River Power Inc.For further information: Information Contact Richard W. Hopp President and CEO Tel: 604-946-9232