Paris, 25th January 2010

VELCAN Energy has signed a Joint Venture agreement with the Lao People's Democratic Republic (Lao PDR) state-owned Company Electrical Construction and Installation (ECI).

The companies have agreed to jointly develop several hydropower plants with installed capacities below 50 MW each. The target is to build a portfolio of 300MW in Lao PDR.

ECI is a Lao Government company under the Ministry of Energy and Mines. ECI focuses its activity on distribution of electricity, grid maintenance and extension as well as rural electrification. ECI has been chosen by the Lao Government to be its representative for small hydropower projects up to 50MW.

Antoine Decitre, co-Managing Director of VELCAN Energy says:

"Laos is a country gifted with a significant hydropower potential of 28 000 MW. As of today, only 1 670 MW has been built. Laos needs power for domestic consumption and can also export to its neighbours Thailand, Vietnam, Cambodia and China. We are glad to have added Laos as a new investment possibility for VELCAN Energy. So far our relations with the Government of Lao PDR have been excellent. The Government and its various administrations have been very helpful. With its important know-how and connections, ECI is an ideal partner for VELCAN Energy to invest in Lao PDR."

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Summary Information on Velcan Energy

Velcan Energy is a Nyse Euronext quoted Independent Clean Power Producer which builds and operates medium sized renewable energy power plants in India and Brazil

The Company's strategy is to become a market leader in up to 100 MW renewable energy power stations in India,Brazil and Laos with a particular focus on the hydroelectric sector. Conditions are favourable for this type of plants because:

These countries suffer from serious under capacity in electricity production, particularly India where an estimated 650 million people do not have regular access to electricity

Under capacity has led to both Indian and Brazilian national governments liberalizing the state controlled electricity market and allowing increased private and foreign competition

Laos has a strategic position in South-East Asia, and can export to high power-demand growing countries such as Thailand, Vietnam, Cambodia and China.

These countries have huge untapped hydroelectric potential; India with an estimated 100,000 MW, Brazil with an estimated 190,000 MW and Laos with an estimated 28 000 MW.

Source: http://www.euroinvestor.co.uk/news/story.aspx?id=10846566