Alterra presentation sep

SEPTEMBER 2012
Page | 1 COMPANY PRESENTATION
www.alterrapower.ca TSX : AXY

Forward-Looking Information

This Presentation contains certain “forward-looking information” within the meaning of Canadian securities laws, which may include, but is not limited to,
statements with respect to future events or future performance, management’s expectations regarding Alterra’s production capacity, results of operations,
cash flows, revenues and requirements for capital, future demand for and prices of electricity, and Alterra’s business prospects and opportunities.

These statements reflect the current views of Alterra with respect to future events and are necessarily based upon a number of assumptions and estimates
that, while considered reasonable by Alterra, are inherently subject to significant business, economic, political and social uncertainties and contingencies.
Many factors, both known and unknown, could cause Alterra’s actual results, performance or achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this presentation, and Alterra has
made assumptions based on or related to many of these factors. Such factors include, without limitation: fluctuations in currency markets (particularly with
respect to the Icelandic krona, the U.S. dollar and Canadian dollar); risks related to the technological and operational nature of Alterra’s business; changes
in national or regional governments, legislation, regulation, permitting or taxation; political or economic developments in Canada, the United States, Iceland
or other countries where Alterra may carry on business; risks and hazards associated with the business of renewable energy generation; risks relating to the
creditworthiness and financial condition of suppliers and other parties which Alterra will deal with; inadequate insurance or inability to obtain insurance to
cover these risks and hazards; employee relations; relationships with and claims by local communities and First Nations; availability and costs of equipment
and labour; litigation; the success and timely completion of planned expansion and development programs; the growth rate in net electricity consumption;
support and demand for renewable energy; government initiatives to support the development of renewable energy generation; the reliability of technical
data and capital expenditure estimates; and availability of capital to fund development and expansion programs. Forward-looking information and
statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-
looking information and statements will occur.

Although Alterra has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described or intended. There can be no assurance that the forward-looking information will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should
not place undue reliance on forward-looking information. Other than as required by applicable securities laws, Alterra does not assume any obligation to
update or revise such forward-looking information to reflect new events or circumstances.

Page | 2 www.alterrapower.ca TSX : AXY

Alterra Power

Alterra’s mission: to be a leading global renewable energy company through…
 Continued excellence in production and safety as premier asset operator / manager
 Successful origination and development of new utility-scale projects
 Opportunistic acquisitions of other renewable power projects and development
assets

Our assets today:

Managed Owned Alterra totals:
Managed: 567 MW
Wind 144 MW 51% Owned: 298 MW

Managed Assets: $1.5 Billion
Hydro 235 MW 40%
Alterra Revenue: $110 MM
Alterra EBITDA: $ 55 MM
(a)
Geothermal 187 MW 69%
2015E EBITDA: $105MM
(a) Reflects 66.6% of HS Orka and 100% of Soda Lake assets.


Alterra: Recent Growth and Performance

Decrease reflects
Alterra’s recent growth ... partial sell-down of 2H 2011 Performance:
(net interest) HS Orka interest
(net interest)

CAPACITY (end of year) PRODUCTION
350 1,800
1,600
 $54.9 million revenue
300
1,400
250
200
1,200  $23.3 million EBITDA

GWh
MW

1,000
150 800
100 600  778 GWh electricity produced
400
50 200
0
- 102% of forecast
0
2009 2010 2011 2012e 2009 2010 2011 2012e

2Q 2012 Highlights:
REVENUE EBITDA
$120 $60

$100 $50  Production to 98% of forecast
Millions USD

$40
Millions USD

$80

$60
$30  Friendly offer for HS Orka
$20
$40
$10  Acquisition of BC coastal wind
$20 $-
portfolio
$- $(10)
2009 2010 2011 2012e 2009 2010 2011 2012e


Alterra: Planned Internal Growth

Current plan would almost double EBITDA by 2015

Current Assets Operating by 2015 Growth
Managed 567 MW 927 MW +64%
Net Owned 298 MW 494 MW +66%
Net
1,380 GWh 2,200 GWh +59%
Production
AXY Revenue $110 MM $180 MM +63%
AXY EBITDA $55 MM $105 MM +91%
Projects Dokie 1 144 MW Dokie 1 144 MW
Toba Montrose 235 MW Toba Montrose 235 MW
Reykjanes 1+2 100 MW Reykjanes 1+2 100 MW
Svartsengi 72 MW Svartsengi 72 MW
Soda Lake 15 MW Soda Lake 15 MW
Dokie 2 156 MW
Upper Toba 124 MW
Reykjanes 3+4 80 MW
ABW Solar 50 MW
 20%+ implied annual growth rate
 Mariposa, Eldvörp and other projects online post-2015…


Assets and Pipeline

Globally diversified across technology types and renewable power markets
 Wind and hydro: primarily concentrated in North America
 Geothermal: located in overlap of resource and strong markets / power demand

Power Plant Capacity Technology
Operating (2012) Gross AXY Share
Reykjanes 1 + 2 100 MW 67 MW Geothermal

Svartsengi 72 MW 48 MW Geothermal

Soda Lake 16 MW 16 MW Geothermal
East Toba &
235 MW 94 MW Hydro
Montrose
Dokie 1 144 MW 73 MW Wind
Total Capacity 567 MW 298 MW
Annual Net Generation 1,425 GWh

Planned (2016)
ABW Solar 50 MW 5 MW Solar
Upper Toba 124 MW 62 MW Hydro
Reykjanes 3 + 4 80 MW 54 MW Geothermal
Dokie 2 156 MW 80 MW Wind
Mariposa 50 MW 25 MW Geothermal
Eldvörp 50 MW 34 MW Geothermal
BC, Chile, Peru, Italy 200 MW 200 MW Geothermal
Planned Total 710 MW 460 MW
Total Capacity 1,277 MW 758 MW


BC Opportunity

British Columbia’s demand for power is expected to grow significantly in the next 3-5 years

 LNG plants in Kitimat
 Mining growth
 General population growth

Clean renewable power sourced from IPPs is expected
to be a critical source of new supply

Alterra is uniquely positioned to benefit
from this new demand
 Built and operate largest wind farm and
run-of-river plants in British Columbia
 History of delivering on-time and on-budget
 Established reputation with First Nations
 Large portfolio of expansion and development projects
 Currently growing this portfolio
 Largest IPP in the province


Outstanding Developer Track Record

Successful developer track record across renewable technologies
 Proven ability to develop and deliver large assets at greenfield
locations
 Development teams from all these projects remain substantially intact

Recent project successes

Wind Dokie 144 MW 2011 COD
Hydro Toba Montrose 235 MW 2010 COD
Geothermal Reykjanes 100 MW 2006 COD

Near term organic growth - all near existing operations

Wind Dokie 2 up to 156 MW COD 2014E
Hydro Upper Toba up to 124 MW COD 2015E
Geothermal Reykjanes 3/4 80 MW COD 2014E


Geothermal Development: The Right Approach

Early mover: moving into promising power markets with strong geothermal potential
Strong development skills: resource assessment, community relations and project de-risking
Utilize value-add partners: sharing capital outlays and further de-risking projects

CHILE PERU ITALY
 Negotiating definitive agreement  Negotiating agreement with  Early-stage discussions
with prospective partner prospective partner  48,000+ ha of concessions in
 320 MW resource and 158,000+  157,000+ ha of concessions, established geothermal field
ha of concessions 1000+ MW potential  Strong clean power tariffs
 Mid-stage development project  Rapid growth in economy and in  Easy year-round site access,
power demand
 Emerging clean power market close to transmission,
with world-class potential  Established relationships with established contractor base
government and communities


Leading Growth Profile

Alterra has one of Canada’s largest clean energy development pipelines
2,500
600

2,000
500 203

153 1,500
Net MW

400

GWh
153
156
300 1,000
73 73 156

94 500
200
94 94 243
185
165
131 131
100 0
2012e 2013e 2014e 2015e 2016e
GEOTHERMAL HYDRO WIND SOLAR
Existing
Generation Capacity Additions

Soda Lake Mariposa
HS Orka Reykjanes 3 Reykjanes 4 Eldvörp
Toba Montrose Upper Toba
Dokie 1 Dokie 2
ABW Solar


Recent News

Recent positive events:
 $37.5 MM infusion into HS Orka business per
exercise of partner option, increasing partner
stake to 33.4%

 Cash earmarked for Reykjanes expansion

 Production in first half of 2012 was
1,028,962 MWh (98% of budget)

 Unsolicited, friendly offer for HS Orka from Icelandic consortium

 Acquisition of coastal B.C. wind sites, total potential capacity > 1,000 MW

 50 MW ABW solar farm under construction, completion expected by end of 2012


Alterra: Headwinds / Tailwinds

Headwinds Tailwinds

 Growth of natural gas reserves  BC growth: “move the gas
 Disappearance / uncertainty cleanly”
around programs that benefit  High supply of capital for
renewable power energy projects
 Gas acceptance by some as a  Attractiveness of Canada
“cleaner” thermal source of  Technology prices driven down
energy
 Tough times create
 Current investment cycle opportunities
attributes no value to
 Growth investors will return
development pipeline


2012: Next Milestones

Looking ahead in 2012:
 Finalize partnership agreements
 Upper Toba hydro
 Chile geothermal
 Peru geothermal

 Finalize PPAs
 Dokie 2
 Reykjanes 3+4

 Opportunistic acquisitions: wind, geothermal and hydro
 Continue work in British Columbia and elsewhere for
positive regulatory/political environment
 Move projects into construction: Upper Toba, Dokie 2,
Reykjanes 3+4


Analyst Coverage and Capital Structure
CAPITAL STRUCTURE: ( NET INTEREST )

MARKET CAPITALIZATION (31 AUGUST 2012) C$ 242 MM

CASH (30 JUNE 2012) US$ 37 MM

TOTAL ASSETS (30 JUNE 2012) US$ 862 MM

LONG TERM DEBT (30 JUNE 2012) US$ 471 MM

FIRM CONTACT

Canaccord Genuity Jared Alexander
Cormark Securities MacMurray Whale
Jacob Securities John McIlveen
Mackie Research Capital Matthew Gowing
Mirabaud Securities Gus Hochschild
National Bank Financial Jeremy Mersereau
Northland Capital Partners Tania Maciver
Raymond James Securities Steven Li
Salman Partners Mike Plaster
INDEX COVERAGE
S&P/TSX Clean Technology Index
RENIXX Renewable Energy Industrial Index


APPENDICES

SEPTEMBER 2012
Page | 15 www.alterrapower.ca

Senior Management

Outstanding development, financial and operations expertise
Ross Beaty: Executive Chairman
Mr. Beaty is a geologist and resource company entrepreneur with over 40 years of experience in the international minerals industry. He is the
founder of Magma Energy Corp., Pan American Silver Corp., and several other resource companies, many of which have been successfully
divested. Mr. Beaty is a Director of The Nature Trust of BC and patron of the Beaty Biodiversity Center at the University of BC.

Donald McInnes: Executive Vice-Chairman
Mr. McInnes, founder of Plutonic Power, currently serves as Chairman of the Clean Energy Association of BC, the Duke of Edinburgh’s Award-
British Columbia and Yukon Division and is a Governor of the British Columbia Business Council. Mr. McInnes is a frequent public speaker and
contributor to the debate on public policy and the integration and value of clean power.

John Carson: Chief Executive Officer
Mr. Carson is a highly experienced renewable energy business leader with a core expertise in structuring and leading financial transactions. His
financing experience includes senior positions held with GE Energy Financial Services, Terra-Gen Power and Noble Environmental Power. He
has closed over US$2 billion of transactions, primarily in the renewable energy sector, including geothermal, wind and hydro transactions.

Bruce Ripley: Chief Operating Officer
Mr. Ripley has 30 years of engineering experience in the hydroelectric and heavy civil industries, including 16 years with BC Hydro where he
was Vice President of Engineering. He oversees all technical and commercial work at Alterra’s assets including operations and exploration. He
has worked on development, design, construction, operations and maintenance projects in Canada, USA, China, Philippines and Australia.

Peter Wong: Chief Financial Officer
Mr. Wong joined the Company in 2005; over the last 18 years he has held a number of progressive senior financial management positions with
publicly listed mining and technology companies at the venture, development and operational stages. Mr. Wong articled with the accounting
firm of Deloitte and Touche and obtained his CA designation in 1992. He is a current member of the Institute of Chartered Accountants of BC
and holds a B.Comm. from the University of B.C.


Board of Directors

Ross Beaty Mr. Beaty is a geologist and resource company entrepreneur with more than 40 years of experience in the international minerals industry,
the founder and chair of Magma Energy Corp and Pan American Silver (TSX: PAA, NASDAQ: PAAS) and several other resource companies
Executive Chairman
that were successfully built and divested.

Donald A. McInnes Mr. McInnes was the Founder, Vice-Chair and CEO of Plutonic Power Corporation. He currently serves as Vice-Chair of the Clean Energy
Association of British Columbia and is a director of Prostate Cancer Canada, the Powell River Economic Development Society, the Duke of
Executive Vice-Chairman
Edinburgh's Award-British Columbia and Yukon Division and is a governor of the British Columbia Business Council.

David Cornhill Mr. Cornhill is the founder, Chairman and Chief Executive Officer of AltaGas Income Trust, one of Canada's largest energy infrastructure
groups, focused on gas and power infrastructure and renewable energy (wind and hydro). With more than 25 years of experience in the
Director
energy industry, Mr. Cornhill also sits on several private and public boards including AltaGas Utility Group and Ivey Business School.

Donald Shumka Mr. Shumka is Managing Director of Walden Management Ltd., a financial consulting firm. Mr. Shumka received a Master of Business
Administration from Harvard University. From 1966 to 1979 he worked in a variety of positions in the forest industry, from 1979 to 1989 he
Director
was Vice President and Chief Financial Officer of West Fraser Timber Co. Ltd. and from 1989 to 2004 he headed the Forest Products Group
for two Canadian investment banks. Other public company boards include Eldorado Gold Corp and Paladin Energy Ltd.

Jamie Bruce Mr. Bruce is a senior partner of Capital West Partners, a private Vancouver-based investment banking firm specializing in investment
advisory services. He is well-known as both a financial and business leader and has served widely in public and private companies, crown
Director
corporations and not-for-profit organizations, most recently as Vice-Chairman of southern BC’s transportation authority and Chair of the
2010 Games Operating Trust. Mr. Bruce is a mechanical engineer and certified management accountant with over 20 years‘ experience in
the corporate finance and investment banking industry.

Paul Sweeney Mr. Sweeney has over 30 years experience in financial management of mining and renewable energy companies. From 2007-2010, he was
Executive Vice President, Corporate Development, of Plutonic Power Corporation. He has served as CFO of a number of successful mineral
Director
resource companies including Canico Resources, Sutton Resources and Gibraltar Mines and is a director of several resource companies
including Pan American Silver Corp. where he chairs the audit committee.

Walter Segsworth Mr. Segsworth recently served as Chairman of Plutonic Power Corporation. He is past President and Director of Westmin Resources. Upon
the takeover of Westmin by Boliden in 1998, Mr. Segsworth joined Homestake Mining Company of California where he was subsequently
Director
appointed President, Director and Chief Operating Officer and served until the merger with Barrick in early 2002. He is past Chairman of
both the Mining Associations of BC and Canada and was named BC's Mining Person of the Year in 1996.


Overview - Toba Montrose Hydro

Alterra owns a 40% economic interest in two run-of-river hydroelectric generation facilities in
southwestern British Columbia

Facilities  East Toba River and Montrose Creek

Capacity & Production  235 MW generating 727 GWh / year

 60% - GE EFS
Ownership
 40% - Alterra

Start of Operation  2010

Power Purchase
 EPA to 2045 with BC Hydro
Agreement

 $470 MM total project debt with 35 year amortization and 6.4%
Project Debt
effective interest rate

 Average annual project revenue of $78 MM
Revenue
 Includes $10/MWh ecoEnergy Program incentive

 Average annual project EBITDA of $60 MM
EBITDA
 $24 MM net EBITDA to Alterra


Overview - Dokie 1 Wind Farm

Alterra owns a 51% economic interest in the Dokie 1 wind farm, located in northern British
Columbia

Facilities  Dokie Wind Farm

Capacity & Production  144 MW generating 330 GWh annually

 51% - Alterra
Ownership
 49% - GE EFS

Start of Operation  March 2, 2011

Power Purchase
 EPA to 2036 with BC Hydro
Agreement

 $175 MM total project debt with 20 year amortization and 7.2%
Project Debt
effective interest rate

 Average annual project revenue of $39 MM
Revenue
 Includes $10/MWh ecoEnergy Program incentive

 Average annual project EBITDA of $27 MM
EBITDA
 $14 MM net EBITDA to Alterra


Overview - Svartsengi and Reykjanes Geothermal

Alterra’s 67% - owned subsidiary HS Orka owns two geothermal power plants in
southwestern Iceland

Facilities  Svartsengi and Reykjanes

 172 MW generating 1,258 GWh /year
Capacity & Production
 Thermal (hot water) production 150 MWth

 67% - Alterra
Ownership
 33% - Jarðvarmi (Icelandic pension funds)

Start of Operation  1978 (Svartsengi) and 2006 (Reykjanes)

 Two PPAs with varying terms through to 2026;
Power Purchase additional power sold on one-year contracts
Agreements
 36% of power sales paid in USD and linked to aluminum price

 $170 MM total company debt with average 9 years to maturity and
Project Debt
average 2.65% effective current interest rate

Revenue  2011 revenue of $64 MM

EBITDA  2011 EBITDA of $20 MM


Overview - Soda Lake Geothermal

Alterra owns a 23 MW geothermal power plant near Fallon in northern Nevada

Facilities  Soda Lake 1+2

 23 MW, currently operating at 15 MW gross and generating
Capacity / Production
84 GWh /year

Ownership  100% Alterra

Start of Operation  1987 / 1991

Power Purchase
 Two PPAs to 2020 with NV Energy
Agreement

Project Debt  None

Revenue  Average annual revenue of $5 MM

EBITDA  Average annual EBITDA of $1 MM


Overview - ABW Solar

Alterra has an option to acquire a 10% interest in a portfolio of solar facilities from First Solar,
to be built in southern Ontario

Facility  3 solar facilities in southwestern Ontario

 Amherstburg – 10 MW
Capacity  Belmont – 20 MW
 Walpole – 20 MW

Proposed  90% - GE EFS
Ownership  10% - Alterra

 4Q 2012
Start of Operation
 Construction began in May 2012

Power Purchase
 20 year EPA with Ontario Power Authority
Agreement

Project Debt  TBD

EBITDA  $3 MM net annual EBITDA to Alterra


Overview - Upper Toba Valley Hydro

A power purchase agreement and permitting are in place for additional run of river hydro
plants near the Toba Montrose facilities in southwestern B.C.
 Jimmie Creek and Upper Toba River
Locations
 In close vicinity to existing Toba Montrose facility

Capacity / Production  89 to 124 MW, generating 300-320 GWh annually

 51% - Alterra
Ownership
 49% - GE EFS

 Environmental Assessment Certificate granted and water licence
Permitting
pending

Power Purchase
Agreement  40-year contract with BC Hydro

Begin Construction  1Q 2013E

On Line  2Q 2015E

 Completion of preliminary engineering and cost estimation
targeted for mid-2012
Notes
 Utilizes existing transmission line and other infrastructure at
Toba Montrose


Overview - Reykjanes 3 & 4 Geothermal Expansion

The Reykjanes geothermal reservoir shows solid promise for further utilization and is
permitted for an expansion of production

Location  Existing Reykjanes facility and steam field

Capacity / Production  80 MW generating 630 GWh annually

 67% - Alterra
Ownership
 33% - Jarðvarmi (Icelandic pension funds)

Permitting  Completed

Power Purchase
Agreement  Resolution expected 2H 2012

Begin Construction  2H 2012

 Reykjanes 3 - 50 MW in 2H 2014
On Line
 Reykjanes 4 - 30 MW in 1H 2015

 High pressure 50 MW turbine for Reykjanes 3 already on site
Notes  Reykjanes 4 will run on existing well field output in a 30 MW low
pressure turbine


Overview - Dokie 2 Wind Farm Expansion

The Dokie Wind Farm in northern B.C. is permitted for a 156 MW expansion

Location  Undeveloped ridgelines within Dokie 1 wind farm area

Capacity / Production  107 to 156 MW, generating 330-460 GWh annually

 51% - Alterra
Ownership
 49% - GE EFS

Permitting  156 MW

Power Purchase
Agreement  Seeking opportunities with BC Hydro or other off-takers

Begin Construction  1Q 2013E

On Line  3Q 2014E

 Wind assessment, turbine layout, infrastructure and financial
Notes studies in progress


Overview - Mariposa Geothermal (Chile)

The Mariposa geothermal field in Chile has an inferred capacity of 320 MW

 In the Andes Mountains in south-central Chile, approximately 300
Location
km south of Santiago

 320 MW inferred resource with promising characteristics
Capacity / Production
 Exploitation concession granted for first phase of 50 MW
 Permanent production concession at Laguna del Maule
Concessions  Resource area continues on adjacent Pellado concession
 Alterra has a third adjacent concession at Los Cristales

 Letter authorizing first round of exploratory holes
Permitting
 Baseline prepared for subsequent permitting

Exploration &  Access road and infrastructure advance
Development  Three slim holes completed by core drilling

Next Phase  Deep rotary and wide diameter drilling planned in 2013

On Line  50 MW in 2016E

 Recent volcanism and hot springs near concession
Notes
 Seeking investment partner for next phase


Overview - Geothermal Assets in Peru

Alterra’s new concessions in Peru are at an early stage of exploration and development

 100% Alterra
Ownership  Interest from multiple prospective partners

 Region of hot springs and silica sinters
Opportunity  Alterra plan: advance to inferred status
 Strong public and government support for clean power

Crucero, Loriscota, Tutupaca Norte,
CHARACTERISTICS Sara Sara
Pasto, Panejo Suche, Atarani
In the NE trend of the
Location southern volcanic In the SW trend of the southern volcanic belt
belt
Size 77,400 hectares 59,900 hectares 20,000 hectares
• Temperatures significant fumaroles
over 150oC at and steaming ground
Known Geology 2,000 m depth
• Hot springs
Surface studies
begun and
Beginning geophysics Detailed exploration
Work Program and surface studies detailed
planned
exploration
planned


Overview - Mensano and Roccastrada Geothermal (Italy)

Alterra’s exploration concessions in Italy are in the historic and promising Larderello region of
Tuscany
 100% Alterra
Ownership
 Interest from multiple prospective partners
 32 geothermal plants already operating in region
Opportunity  Attractive power prices as high as €180 /MWh
 Strong public and government support for clean power

CHARACTERISTICS Roccastrada Mensano
Location South of Larderello in Tuscany Southeast of Larderello in
Tuscany
Size 27,190 hectares 21,256 hectares
o
Known Geology • Nearby 1000m exploratory • Temperatures over 150 C at
wellhead temperatures up to 2000m depth
o
100 C • Thermal springs and
• Hot spring and high heat flow hydrothermal alteration areas

Potential • Potential reservoir within • Large geothermal system
3000m depth inferred with two potential
• Estimated temperature 200 C
o reservoir targets:
o
- 250 C  at 1000-2000m, 150oC
 at 2800-3000m, 200 C
o

Work Program Prospecting to build a Detailed exploration program to
geothermal system and define confirm high enthalpy resources
targets for exploration wells


SEPTEMBER 2012
Page | 29 www.alterrapower.ca

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