An Independent Power Producer with 33 MWs of Awarded ComFIT Projects - PowerPoint PPT Presentation

An Independent Power Producer with 33 MWs of Awarded ComFIT Projects in Nova Scotia at $0.131/kW 1

DISCLAIMER Watts Wind Energy Inc. Important Notice: This document has been prepared by Watts Wind Energy Inc. (“ Watts Energy ”). Some of the information in this document has been obtained from sources which Watts Wind believes to be reliable, we do not represent or warrant its accuracy and such information may be incomplete or condensed. This document may contain or refer to certain forward-looking statements relating, but not limited to, Watts Wind's expectations, intentions, plans and beliefs with respect to Watts Wind. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Watts Wind to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Although Watts Wind has attempted to identify important factors that could cause actual actions, events or results or cause actions, events or results not to be estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Other than as required by applicable Canadian securities laws, Watts Wind does not update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements. This document may not be reproduced (in whole or in part) to any other person without the prior written permission of Watts Wind. THIS CEDIF OFFERING MAYBE A HIGH RISK INVESTMENT. THE CEDIF OFFERING IS MADE THROUGH AN OFFERING DOCUMENT, WHICH CAN BE OBTAINED FROM AN AUTHORIZED SALES AGENT OR FINDER, BY CONTACTING 902-482-0920 OR INVEST@WATTSWIND.COM. THIS OFFERING CONSTITUTES AN EXEMPT OFFERING OF THESE SECURITIES ONLY IN NOVA SCOTIA BY AUTHORIZED SALES AGENTS. INVESTORS SHOULD READ THE OFFERING DOCUMENT BEFORE MAKING AN INVESTMENT DECISION. WATTS WIND IS SUBJECT TO NUMEROUS RISK FACTORS AND POTENTIAL CONFLICTS OF INTEREST AS DESCRIBED IN THE OFFERING DOCUMENT AND INVESTORS SHOULD CAREFULLY READ AND CONSIDER SUCH RISK FACTORS AND POTENTIAL CONFLICTS OF INTEREST. Enquiries: Stan Mason, P.Eng., President Watts Wind Energy Inc. Phone : +1.902.482.0920 Email : Invest@wattswind.com 2

Current Projects New Glasgow 6.4 MW – 4 units In-service: 2015 Watts Section 1.5 MW – 1 unit In-service: 2011 Wedgeport Watts Wind Current and Phase One Projects Barrington 1.7 MW – 1 unit 3.2 MW – 2 units In-service: 2015 In-service: 2015 3

Watts Wind Energy - Overview • Generating operating cash flow since March, 2011 • Track record of consistent dividends • 9.7% projected average annual yield (1) • Structured as a “CEDIF” (2) to provide Nova Scotians up to 65% in personal tax credits (3) • Most MWs awarded under the NS ComFIT program, 33 MWs • Experienced board and management team Notes: 1) Assumes a top marginal tax rates for a Nova Scotia resident used and includes non-refundable provincial tax credits assuming an investor has sufficient taxes payable Additional conditions apply to the non-refundable tax credits. The 9.7% is comprised of cash distributions of 6.4% and 3.3% in non-fundable NS tax credits. 4 Notes: 1) Tax credits are non-refundable provincial tax credits the applicability for which the Issuer is subject to additional requirements 2) Community economic development investment fund 3) Tax credits are non-refundable provincial tax credits the applicability for which the Issuer is subject to additional requirements.

Mandate for Clean Power in NS • 40% of power generation must come from renewable sources by 2020 • ComFIT program introduced to help achieve this 5

Watts Does Not Bear the Risk of Speculative Development Activities… Speculative ‘Development’ Activities Watts Wind Activities Post - trade Site Prospecting Securing Power Environmental Wind Resource Project Project Operation and Land Lease Purchase Impact Screening Assessment Construction and Management Negotiation Agreement • Prospecting for • Assessing the • Measuring the wind • Entering into a • Preparing the • Procuring the wind suitable project environmental data at the project PPA (typically engineering plans, turbine(s). sites which impacts such as sites (typically using with a utility) as specifications and • Final interconnection included finding wildlife, birds, a meteorological part of a Request contractor tendering studies and entering the basis resources, bats, vegetation, tower (MET tower) for Proposal documents into an including land, ground and and possibly a sodar process, a Feed- • Contracting with interconnection wind and a surface water, unit. (Land based in-Tariff, such as suppliers and agreement with the transmission noise and visual sodar units are the ComFIT, or subcontractors utility or systems market impacts. typically used in some other • Construction of the operator • Negotiating land conjunction with process. balance of plant, • Ongoing operations access agreements MET towers as a include roads and and maintenance of second source of power lines. the wind turbine(s). wind speed data, • Installation of • Obtaining all useful in turbines, including municipal and extrapolating 60m installing the building permits. wind data to 80m foundation, raising • Obtaining all turbine hub height). the wind turbines, necessary debt and electrical equity financing connections, utility interconnection, etc. …it only invests in a project once there is a signed contract from NS Power Inc. 6

Project Pipeline Project Name Project Wind Land Lease Comments Size (m/s) Option (MW) Watts Section 1.5 6 - 7 Yes Operating New Glasgow 6.4 7 – 8 Yes Under construction – Apr. 1 target Wedgeport 1.7 7 - 7.5 Yes Under construction – Mar. 11 target Barrington 3.2 7.5 - 8 Yes Under construction – Mar. 4 target Porters Lake 3.2 6 - 7 Yes Fully developed – construction ready ComFIT contract awarded. Advanced Ketch Harbour 4.8 7 - 7.5 Yes stage development. ComFIT contract awarded. Early stage Otter Lake 9.0 7 – 7.5 No development. ComFIT contract awarded. Advanced Lingan 0.8 7.5 - 8 Yes stage development. ComFIT contract awarded. Early stage Bayswater 1.6 7 – 7.5 No development. Arlington 3.0 7.5 - 8 No Kings County Bylaw review underway. 7

Watts Business Structure Watts Wind Energy Inc. (A Nova Scotia CEDIF company) Watts Watts Watts Wind II LP Wind LP Wind III LP Watt Section - 1 New Glasgow – 4 turbines Porter’s Lake – 2 turbine turbines Barrington – 2 turbines Wedgeport – 1 turbine 8

Project Equity Partner Elemental provides supplemental equity to Watts’ projects but stands behind Watts for its annual returns 9

The Team Consists of Experienced Wind Engineers and Finance Professionals Name Function Experience EVP, Corporate Development, DHX Media Ltd. Former David Regan, MBA Non-executive management consultant with A.T. Kearney. INSEAD chairman MBA. Principal, Seaforth Engineering Group Inc. Stan Mason, P. Eng. President 15 years experience installing 50kW wind turbines around the world. Owns and operates a 750kw hydro power plant supplying NS Power. President and founder, Eon WindElectric Inc. Installs Paul Pynn, P. Eng. Vice-president and maintains turbines for large wind farms. Installed, managed or supported in excess of 250 MW of wind power. Former CFO of several public companies and former Michael Kinley, CA CFO partner at KPMG. Former VP with Goldman Sachs and chartered Gordon Stevens, CFA Independent accountant with Deloitte. Founder and president of the director Uncommon Group. Former CFO of Linear Gold and Senior Manager with Keith Abriel, CA, CFA Independent PwC. CFO-for-hire to emerging public and venture director backed start-up companies. Angel investor, former director of Empire Company Ltd, J. William Ritchie Independent Sobeys Inc. and co-founder of Scotia Bond Ltd. Current director director of DHX Media Ltd. and e-Academy Inc. 10