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Forward-Looking Information

Cautionary Note Regarding Forward Looking Information This presentation contains certain forward-looking information and statements and within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking information. Examples of such information in this presentation include, but are not limited to, statements with respect to future events or future performance, management’s expectations regarding Alterra Power Corp.’s (“Alterra”) requirements for, and availability of, capital and financing support, future demand for and prices of electricity, Alterra’s growth and development programs, including regarding the development and construction of the U.S. solar projects and Flat Top project, closing of Alterra’s acquisition of an 80% ownership interest in the U.S. solar projects, and the date the U.S. solar projects or and Flat Top project achieve commercial operations, ability to secure a viable corporate or hedging offtake party for the Flat Top project, eligibility of projects for production tax credit programs, successful refinancing of Icelandic holding company bonds, drilling plans, the U.S. renewable energy market projections, dividend potential, power generating capacities, Adjusted EBITDA forecasts 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 operational, business, economic, regulatory, political and social uncertainties and contingencies. Many risks, 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 risks, assumptions and other factors include, without limitation: fluctuations in currency markets (particularly with respect to the Icelandic krona, the U.S. dollar and Canadian dollar); power and commodity pricing; assumptions related to expected generation; 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, construction of renewable energy projects and renewable energy resources; contractual risks; litigation; the success and timely completion of planned expansion and development programs; support and demand for renewable energy; government initiatives to support the development of renewable energy generation; delays or cost overruns in the construction of our projects; imprecision of estimations of resources; fluctuations in weather; our ability to refinance on favorable terms, or at all, existing indebtedness; and availability of capital to fund development and expansion programs as well as our ability to satisfy the conditions precedent related thereto. Additional risks, assumptions and influential factors are set out in Alterra’s management discussion and analysis and most recent annual information form, copies of which are available on SEDAR at www.sedar.com. Alterra cautions readers to review such public disclosure materials in full. 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, 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.


Mission – to be a leading global renewable power company through:

• Successful origination and development of new utility-scale projects

• Opportunistic acquisitions of other renewable power projects and development assets

• Excellence in production and safety as a premier operator/manager

Alterra Power – Company Mission

Company Mission Dokie 1 Wind Farm

Shannon Wind Farm Substation


• Seasoned senior leadership with depth of expertise

• 100% success at delivering projects on-budget/on-time

• Proven skills in USA growth market

• 35% ownership by management

• Long contract life: 23 years in North America (18 years including Iceland)

• High quality offtakes

• Stable jurisdictions

• Historically above “P50” generation: 100.5% in 2014, 101.1% in 2015

• Built-in growth of ~50% by capacity from new projects

• Extended USA tax incentive provides development runway through 2020

• New corporate and industrial appetite for renewable power

• Almost $1.0 billion raised in last 24 months

• Strong availability of capital for asset class

• Numerous well-capitalized partners available for growth

• 5.2% overall cost of debt (YE 2015)

• Well-positioned to exploit USA blue sky growth opportunities

• Improved power market and landmark deep drilling program for Iceland assets

• Potential to introduce regular company dividends near term

Alterra Power – Overview

Investment Highlights

Toba Montrose Hydro Facility

Strength of Management

Stable Asset Portfolio

Solid Growth Profile

Access to Capital

Valuation Upside


Alterra Power – Management

Management Structure / Profiles

Lynda Freeman, CFO

• 15+ years finance experience • Multiple closed transactions

Paul Rapp, VP Wind + Geothermal Power

• 20+ years power experience • Delivered Shannon + Dokie projects

Jay Sutton, VP Hydro Power

• 15+ years infrastructure experience • Delivered Toba and Jimmie projects

Murray Kroeker, VP Solar Power / Eng.

• 25+ years renewables experience • Delivered ABW project

Jon Schintler, VP Project Finance

• 12+ years finance experience • Led Jimmie/Shannon/AMP financings

Shannon Webber, General Counsel

• 12+ years legal experience • Key role: Jimmie/Shannon/AMP

John Carson, CEO

• 15+ years experience in finance and renewable business leadership

• Billions of $ in closed transactions

Ross Beaty, Executive Chairman

• 40 years experience as entrepreneur in minerals and renewables

• Founded Alterra (Magma) in 2008

FINANCE / TRANSACTION LEADERS DEVELOPMENT / OPERATIONS LEADERS

Ásgeir Margeirsson, CEO, Iceland business

• 20+ years geothermal experience • Former COO of Reykjavik Energy


Alterra Power – Asset Map

Global Partners:

• Axium Infrastructure • Starwood Energy Group • Berkshire Hathaway

Energy • Citigroup • Energy Development

Corporation (EDC) • Jarðvarmi • Graziella Green Power • Inovateus Solar

Generating Capacity:

• 381 MW Owned • 819 MW Operated

Highest expected growth: 2016-2020


Alterra’s 819 MW Power Plant Fleet / Remaining Contract Life

Toba Montrose

Capacity: 235 MW Contract: 29 years Ownership: 40% Alterra 60% Axium

Dokie

Capacity: 144 MW Contract: 20 years Ownership: 25.5% Alterra 74.5% Axium

Reykjanes

Capacity: 100 MW Contract: Multiple Ownership: 66.6% Alterra 33.4% Jarðvarmi

Svartsengi

Capacity: 74 MW Contract: Multiple Ownership: 66.6% Alterra 33.4% Jarðvarmi

Alterra Power – Existing Operations

Jimmie Creek

Capacity: 62 MW Contract: 40 years Ownership: 51% Alterra 49% Axium

Shannon

Capacity: 204 MW Contract: 13 years Ownership: 50% Alterra 50% Starwood (Sponsor Equity)

RUN-OF-RIVER: 297 MW operated / 126 MW owned

WIND: 348 MW operated / 139 MW owned

GEOTHERMAL: 174 MW operated / 116 MW owned


Alterra Power – Reliable Project Delivery

Construction Track Record

Plant Capacity Commercial Ops On-Time On-Budget

Jimmie Creek 62 MW 2016

Shannon 204 MW 2015

Dokie 144 MW 2011

Toba Montrose 235 MW 2010

Reykjanes 100 MW 2006

Svartsengi 74 MW 1978

• Alterra has completed every project on-time and on-budget

• Leadership teams that delivered those projects remain substantially in place (except Svartsengi)

• Jimmie Creek project successfully commenced full commercial operations at the beginning of August 2016

Jimmie Creek construction (now completed) Shannon construction (now completed)


Alterra Power – Current Growth Phase Nearly Complete

* Here and elsewhere, "Adjusted EBITDA" is a "Non-IFRS Measure" and the estimates for 2016 and 2017 are "Forward-Looking Financial Information". Refer to

Slides 27 and 28 for the "Cautionary Note Regarding Non-IFRS Measures" and the "Cautionary Note Regarding Forward-Looking Financial Information".

Current Growth Phase Expands Generation Capacity by 50% - “Built-In Growth”


Alterra Power – Next Growth Phase, Now Beginning

Alterra’s growth will be US-focused to take advantage of recent tax incentive extensions

Important USA developments:

1. Four-year extension (through 2020) of

production tax incentive regime

announced in 4Q 2015 (two years full

credit, two years partial)

2. New IRS guidance released in 2Q 2016

states that projects commencing

limited construction in 2016 will qualify

for full tax credits through 2020

3. Corporate/Industrial PPA offtakes are

surpassing utilities as primary new

demand for renewable power

- Alterra is currently marketing power

from its own projects as well as co-

marketing with other developers Alterra is actively marketing renewable power (RFPs etc.) in 2016 in these denoted regions

Map:


Alterra Power – Next Growth Phase

Expanding Demand from Corporations for Renewable Power

• Corporate buyers have emerged as the new growth area for renewable power demand, primarily wind and solar, led by major technology and retail players, including Google, Amazon, Walmart and Facebook(a)

• Non-utility customers accounted for about half of the more than 4,000 MW of wind PPAs contracted in the U.S. in 2015(b)

• A 2014 report(c) estimated that 43% of the Fortune 500 companies in the U.S. had set clean energy and emission reduction targets, but only a small portion of them had signed PPAs for new energy sourcing

• New first-time corporate buyers continue to enter the market for renewable power Source: Bloomberg New Energy Finance and The Business Council for Sustainable Energy

(BCSE), Sustainable Energy in America Factbook 2016 Sources:

(a) Bloomberg New Energy Finance (b) American Wind Energy Association (c) “Power Forward 2.0” report (June 2014) by the World Wildlife Fund,

Ceres, Calvert Investments, David Gardiner and Associates

MW of Renewable Capacity Contracted by Corporations: 2008-2015



Proof of Concept: Shannon Project

Alterra’s recent success with the 204 MW Shannon project underscores ability to exploit USA growth opportunities:

• Supplied power to growing corporate demand

‒ Shannon project supplies 100% of power needs for Facebook’s new Texas data center

• Engaged premier financing partners

‒ Arranged lender and tax equity financing with premier partners (Berkshire Hathaway, Citi, RBC, Santander)

• Efficiently used USA tax credit incentives

‒ Alterra team has deep technical expertise and experience over thousands of MW of transactions

‒ Alterra completed all tax and financial modelling in-house (used by all parties to the transaction)

• Continued perfect construction record

‒ On-time and on-budget

‒ Managed construction from start to finish (119 turbines erected in less than 6 months)

Shannon turbines



Flat Top Wind Development Project

• Will replicate our recent success financing and constructing the nearby 204 MW Shannon wind farm in Texas

• Expected to qualify for the U.S. production tax credit (PTC) program

• Conversations ongoing with several corporate and hedging offtake parties

Location Comanche County & Mills County, Texas

Technology Wind

Estimated capacity 200 MW

Ownership 100% Alterra

Acquisition closed June 2016

Est. financial close H1 2017

Estimated COD End of 2017

Flat Top county road

• Alterra is separately developing or pursuing multiple other wind and solar projects in the USA



Inovateus Solar Development Projects

• Agreement to acquire 80% interest in a two-project portfolio of solar farms in the Midwestern U.S.

• Both projects are contracted under long-term investment grade PPAs

• Pairs Alterra’s technical and financing resources with Inovateus’ solar project development and EPC expertise

• Opportunity to extend this partnership to other U.S. solar projects

Locations Indiana & Michigan

Technology Solar

Estimated capacity 20 MWDC

Ownership 80% Alterra 20% Inovateus Solar

Acquisition announced

July 2016

Est. Construction Completion*

End of 2016

Estimated COD* Q1 2017

Inovateus ground mount solar farm

*First project: 7 MWDC site in Indiana

Inovateus Solar is one of the leading solar development, EPC and supply companies in the Midwest U.S. Based in Indiana, the company has developed and built more than 250 MW of utility, commercial and industrial, and microgrid solar systems in the U.S., the Caribbean and Latin America.



British Columbia

Iceland Chile Other

Hydro • Tahumming (15 MW) • South Toba (50 MW) • Fir Point Pumped

Storage (1,000 MW) • Bute Inlet (1,000 MW) Wind • Dokie 2 (156 MW) • Coastal Wind • Knob Hill

Hydro • Hvalá (55 MW) • Bulandsvirkjun

(150 MW) • Brúarvirkjun (10 MW) • Skúfnavatnavirkjun

(10 MW) Geothermal • Reykjanes 3+4 (80 MW) • Eldvörp (50 MW) • Krýsuvik (500 MW)

Geothermal • Mariposa (320 MW

inferred) Drilling to begin

when certain development conditions are met

Solar • Mid- to late-stage

assets

Geothermal • Peru – Five early-stage

projects • Italy / Tuscany

Roccastrada Mensano

Development Projects / Activities Outside of the USA

4,000 MW Pipeline for Future Growth


Alterra Power – Iceland Assets

Near-Term Goals in Iceland

• Commence deep drilling program at Reykjanes field

— Landmark program partnering with Statoil and EU consortium — HS Orka will own 100% of the well and its benefits upon completion

• Advance development of growth assets:

— Near term development projects include: • Reykjanes IV 30 MW geothermal (no drilling required) • Brúarvirkjun 10 MW run-of-river hydro

— Other development projects are focused on hydro (including 55 MW Hvalá project) and geothermal (including 30 MW Eldvörp project)

• Optimize / increase current generation

— Complete Reykjanes field maintenance program and re-injection project — Complete Svartsengi drilling program and new effluent pipeline

• Refinance holding company bonds by July 2017 (US$120 MM)

• Expansion of Blue Lagoon resort facility (30% owned); no capital injection required


Alterra Power – Capital Raised

Strong Availability of Capital for Asset Class

C$20.0M Renewal of

Revolving Credit Facility

(Mar 2016)

C$67.3M Holdco Debt Tranche A

(Aug 2014)

C$176.5M Project Loan Facility for

Jimmie Creek

(Oct 2014)

(Lead Arranger)

C$22.5M Holdco Debt Tranche B

(Dec 2014)

US$8.5M proceeds from

sale of Soda Lake geothermal

facility

(Jan 2015)

US$286.8M Construction

Loan Facility for Shannon

(June 2015)

US$218.8M Tax Equity

Investment for Shannon

(Dec 2015)

Jun 2014 Oct 2014 Dec 2014 Mar 2015 Jun 2015 Oct 2015 Dec 2015 Mar 2016

Almost $1.0 billion

of capital raised in

last 24 months

https://en.wikipedia.org/wiki/File:Amp-capital-logo.png

https://en.wikipedia.org/wiki/File:Amp-capital-logo.png


Alterra Power – Value to our Shareholders

Value Proposition

• “Yield + Growth” Combination: Reliable existing fleet + continuous new projects added globally

• Valued Asset Class: Large, utility-scale renewable power assets with consistent cash flow streams

• Core Management Skills: Strong track record as developer / constructor / operator

• Capital / Financing: Proven ability to raise new capital efficiently

• Quality of Cash Flows:

– Predictable, long-term contracted revenue – Exceptionally long average contract life – Primarily AAA-rated offtake

• Resource Life: Essentially permanent resources to drive long asset life

• Healthy Diversification: Multiple geographies and proven clean energy technologies

• Upside for Current Investors:

– Significant operational growth phase now complete (Shannon + Jimmie Creek = 50% growth) – Extension of USA Production Tax Credits fosters significant new growth opportunities through 2020 – Growing stable of development assets is rapidly advancing – Potential to commence regular dividends in near term – Increased attractiveness of asset class to infrastructure investors


Alterra Power – Premier Clean Energy Producer

ADDITIONAL INFORMATION


Alterra Power – Construction Completed

Shannon Project

Location Clay County, Texas

Technology Wind

Capacity 204 MW

Estimated annual generation

794 GWh

Ownership (Sponsor Equity)

50% Alterra

Financial close June 2015

Project cost US $340 MM

COD 10 December 2015

• Commercial operations commenced 10 December 2015

• Tax equity investment closed concurrent with the start of operations

• Initial return of capital (US$3.5 MM) received in late December

Shannon turbines, February 2016

Project Partners:

Starwood Energy Berkshire Hathaway Energy Citigroup

Power Hedge Contract:

Citigroup - with PPA offtake from Facebook Data Ctr


Alterra Power – Construction Completed

Jimmie Creek Project

• Commercial operations commenced 1 August 2016

• Continued Alterra’s unbroken string of projects completed on schedule and on or under budget

• Operated by Alterra in cooperation with Axium Infrastructure and our First Nations partners

Location British Columbia

Technology Hydro

Capacity 62 MW

Estimated annual generation

159 GWh

Ownership 51% Alterra

Contract length 40 years

Financing closed October 2014

Project cost (est.) $227 MM

COD 1 August 2016

Jimmie Creek powerhouse under construction (1Q 2016)

Project Partners:

Axium Infrastructure


Key Capital Facts:

• Trading symbol: TSX - AXY

• 35% management-owned; remainder retail / institutional

• 150,150,621 shares issued in relation to Plutonic Power acquisition in May 2011

Alterra Power – Ownership Equity

Equity Capital Structure

May 10, 2016

Issued and outstanding shares

468,695,448

Stock options 19,294,145

Convertible / preferred shares

nil

Share warrants nil

August 4, 2016

Price per share $0.64

Market cap $300 million

Source: Yahoo! Finance Canada

Share price movement over last two years:


• Balance sheet numbers reflect 100% consolidation of Iceland (Svartsengi and Reykjanes) and all other operating and construction assets are recorded as an equity investment at respective ownership %

• The working capital deficit is predominately due to the holding company bonds (Sweden) of US$122.8 MM being classified as short-term (the bonds mature in 2016); excluding HS Orka and the impact of the Sweden bonds: working capital was US$4.2 MM

• The Company also has use of a C$20 MM revolving line of credit facility (matures March 31, 2017) for short-term needs

Alterra Power – Financial Position

Balance Sheet Highlights (Consolidated Basis)

Select Balance Sheet Statistics (US$MM) March 31, 2016 December 31, 2015

Cash 9.6 10.3

Total assets 598.8 593.0

Total debt 264.2 255.5

Total liabilities 400.8 393.8

Net assets 198.0 199.3

Current assets 33.5 45.7

Current liabilities 167.8 168.9

Working capital

(134.3) (123.2)

Working capital ex-HS Orka & Sweden bonds 4.2 2.2


Alterra Power – Debt Structure

Long-Term Debt (Net Interest Basis, US$, March 31, 2016)

Alterra Power Corp.

NA Holdco (matures 2023)

$66.5 MM

Jimmie Creek (matures 2054)

$62.8 MM

Sweden Holdco (matures 2016)

$122.8 MM

Dokie 1 (matures 2030)

$29.6 MM

Toba Montrose (matures 2045)

$136.1 MM

HS Orka (matures 2016-

2031)

$49.9 MM

100% 100%

51% 66.6% 25.5%

40%

Holding Companies

(non-recourse)

Project Companies

(non-recourse)

• Alterra holds the following non-recourse holding company debt:

— $122.8 MM Holding company bonds (Sweden)

— $ 66.5 MM Holding company loan (N. America)

• $278.4 MM total non-recourse project debt includes:

— $ 29.6 MM Dokie 1

— $136.1 MM Toba Montrose

— $ 62.8 MM Jimmie Creek

— $ 49.9 MM HS Orka

• There is no debt associated with the Shannon project; however the project has certain requirements with respect to the allocation of cash distributions, taxable income (losses) and tax credits amongst the sponsor and tax equity investors

Weighted Average Cost of Debt = 5.2%*

*as at Dec. 31, 2015 with pro-forma adjustment for extension of Iceland bond in July 2016


Alterra Power – Recent Results

Operational Results Highlights

Annual Results: Net Interest Basis Consolidated Basis

For the year ended December 31, 2015 (US$000s)

HS Orka (66.6%)

Toba Montrose

(40%) Dokie 1 (25.5%)

Soda Lake (100%) (a)

Shannon (50%)

Development & head office

Total

Generation (MWh) 818,488 316,976 86,648 6,991 19,192 - 1,248,295

Revenue 38,219 24,738 7,906 449 273 - 71,585

Adjusted EBITDA 18,800 18,825 5,735 152 35 (6,564) 36,983

For the year ended December 31, 2014 (US$000s)

HS Orka (66.6%)

Toba Montrose

(40%)

Dokie 1 (25.5%)

Soda Lake (100%) (a)

Development & head office

Total

Generation (MWh) 846,208 315,376 72,949 68,555 - 1,303,088

Revenue 43,890 28,597 7,631 5,050 - 85,168

Adjusted EBITDA 20,543 21,029 5,065 948 (6,308) 41,277 (a) The Soda Lake facility was sold on January 30, 2015

• Fleet-wide performance against budget was 99.6% for 2015 led by record high generation at both Toba Montrose and Dokie 1

• Net Interest Revenue and Adjusted EBITDA decreased by 16% and 10% respectively, primarily due to the weakening of the Canadian dollar by 19%; in originating currencies, the Net Interest Revenue and Adjusted EBITDA for HS Orka, Toba Montrose and Dokie 1 were up against prior year

Consolidated Results (US$000s)

2015 2014

Revenue 57,835 70,952

Gross profit 16,131 17,092

Equity income 22,125 12,200

Other income (exp.) (59,309) (59,503)

Loss before tax (21,053) (30,211)

Adjusted EBITDA

46,410 51,579

Loss for the year* (16,717) (36,340)

Loss per share* (0.04) (0.08)

*attributable to owners of the Company


Alterra Power – Analyst Coverage

Current Equity Research Coverage

* Other analysts currently considering coverage

Company Analyst Last Update

Cormark Securities MacMurray Whale 14-Jul-16

National Bank Financial Rupert Merer 20-Jul-16

Raymond James Steven Li 11-May-16


Forward-Looking Information

Cautionary Note Regarding Non-IFRS Measures Net Interest “Net Interest” means the effective portion of operating results or in the case of reference to operating, construction or development assets, the number that Alterra would have reported if each of HS Orka hf (66.6%, “HS Orka”), Toba Montrose General Partnership (40%, “Toba Montrose GP”), Dokie General Partnership (25.5%, “Dokie GP”), Shannon Wind Group Holdings, LLC (50%, “Shannon Wind Group Holdings”) and the Soda Lake facility (100% until the sale of Soda Lake on January 30, 2015) had been reported in accordance with Alterra’s actual share ownership for the year, as opposed to in the case of operating results, consolidating 100% of HS Orka (with an allocation to non-controlling interest), and Soda Lake (until the date of sale) and equity accounting for Toba Montrose GP, Dokie GP and Shannon Wind Group Holdings. Explanation of Adjusted EBITDA Here and elsewhere, adjusted EBITDA ("Adjusted EBITDA") is defined by Alterra as earnings before interest, taxes, foreign exchange, depreciation and amortization, as well as before adjustments for changes in the fair value of holding company bonds (Sweden) and derivatives, write-offs of development costs, other income (expense) except business interruption insurance proceeds, amortization of below market contracts, value assigned to options granted, share of results of equity investments, Alterra’s proportionate interest in Adjusted EBITDA of its equity investments and non-recurring items (insurance deductibles, litigation and arbitration costs). Adjusted EBITDA has been calculated on a consistent basis with the prior year. Alterra discloses Adjusted EBITDA as it is a measure used by analysts and by management to evaluate Alterra's performance. As Adjusted EBITDA is a non-IFRS measure, it may not be comparable to Adjusted EBITDA calculated by others. In addition, Adjusted EBITDA is not a substitute for net earnings. Readers should consider net earnings in evaluating Alterra’s performance. For a reconciliation of consolidated Adjusted EBITDA to Alterra’s consolidated financial statements refer to Alterra’s Management’s Discussion and Analysis for the year ended December 31, 2015 available on SEDAR at www.sedar.com.

http://www.sedar.com/






Forward-Looking Financial Information

Cautionary Note Regarding Forward-Looking Financial Information Certain information provided in this presentation including Slide 9 constitutes forward-looking financial information within the meaning of applicable securities laws. Management has provided this information as of the date of this presentation in order to assist readers to better understand the expected results and impact of Alterra’s operating and construction projects expected to be commissioned in the near term. Readers are cautioned that this information may not be appropriate for any other purpose, including investment purposes, and consequently, should not place undue reliance on this information. Forward-looking financial information also constitutes forward-looking statements within the context of applicable securities laws and as such, is subject to the same risks, uncertainties and assumptions as are set out in Slide 2. Adjusted EBITDA Projections Adjusted EBITDA projections include estimates for generation, revenue and costs. Estimated generation for Alterra’s hydro and wind projects is based on resource assessments of average annual generation at each project, adjusted for planned maintenance outages, assuming Jimmie Creek commences commercial operations in the summer of 2016. Forecast generation for geothermal facilities is based on historical generation, assuming the recently drilled new wells at Svartsengi are placed in service and reinjection at Reykjanes is successful, in each case, on schedule. Generation, revenue and Adjusted EBITDA for HS Orka are forecast to be lower in 2016 than 2017, as the anticipated positive impact from the reinjection program at Reykjanes is not expected to be substantially realized until 2017. Until full realization of the reinjection program has occurred, additional power purchases will be necessary in order to meet demand. Such purchases, while still profitable, achieve a lower gross margin than if such sales resulted from power generated by our power plants. Other relevant assumptions include consistent water, wind and geothermal resource production, minimal delays due to unplanned maintenance or other outages, and the forward-looking risks, uncertainties and assumptions set out in Slide 2.

Revenue and cost projections are based on internal budgets and models for revenue and cost for all operating projects (Jimmie Creek commencing summer 2016) and modest escalation of other expense and revenue streams. Shannon estimated revenue reflects the majority of power sales occurring under the long-term power hedge (commencing June 1, 2016) and a minority amount sold at estimated merchant spot prices. HS Orka revenue estimates reflect forecasted aluminum prices for a portion of revenue (25.9% in 2015). Anticipated head office cost and development spend has been included in Adjusted EBITDA and reflects budgeted spend for the year.

Revenue and Adjusted EBITDA projections have been converted from their functional currency to USD at a rate of C$1.34, ISK129 and Euro1.97 for both 2016 and 2017.


Alterra Power – Premier Clean Energy Producer

600 - 888 Dunsmuir Street Vancouver, BC V6C 3K4

Canada

www.alterrapower.ca

Email: [email protected] Investor Relations Phone: + 604.669.4999 Phone: + 604.235.6719 Toll Free: 1.877.669.4999

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