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MAGMA ENERGY CORP. AND PLUTONIC POWER CORPORATION ANNOUNCE MERGER TO CREATE ALTERRA POWER CORP.

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^{Published in Business and Finance on Monday, March 7th 2011 at 2:20 GMT by Market Wire}  

 - Solid base of producing assets in three key renewable energy sectors: Geothermal, hydro and wind. Six operating plants in three locations: two geothermal plants in Iceland and one in Nevada; two hydro plants in British Columbia; one wind farm in British Columbia; and an option on one solar project in Ontario. - Increased production capacity: 2011 production capacity of 198 megawatts generating 1,340 gigawatt hours/year from Magma's geothermal assets and 168 megawatts generating 460 gigawatt hours/year from Plutonic's hydro and wind assets. - Significant immediate increase in cash flow generation to both companies. - Strong growth platform in geothermal, wind and hydro sectors: Near-term growth in Iceland and Nevada geothermal production; near-term growth prospects in British Columbia hydro and wind assets and Ontario solar assets; significant large long-term growth prospects in Chile, Peru, Nevada and Iceland geothermal assets and British Columbia hydro assets. - Shared commitment to social responsibility: Both Magma and Plutonic recognize a commitment to social responsibility and sustainable development of renewable energy projects. The shared values and experience in this area will be a competitive advantage in creating long term value for shareholders and the communities in which Alterra operates. - Complementary management teams: Magma's and Plutonic's highly regarded management teams blend renewable energy exploration, development, financing and operations skill sets. - Significant administration synergies: Estimated at $2.2 million per year. - Financial support: Magma to provide short term financial support to Plutonic by subscribing for a $10 million convertible debenture. 

 Ross Beaty Donald McInnes David Cornhill David O'Brien Donald Shumka Paul Sweeney Walter Segsworth 

 Date: Monday, March 7, 2011 Time: 10:00 am Eastern Time - 7:00 am Pacific Time Dial-In Numbers: North American toll-free number: 1-888-231-8191 Switzerland toll-free number: 0-800-835-354 United Kingdom toll-free number: 0-800-051-7107 Audio Webcast: A live audio webcast can be accessed at: [ http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3434200 ] Playback Available for One Week Following the Call: North American and International: 1-800-642-1687 / 1-416-849-0833 Replay PIN Number: 5015 8963