Download - Alterra Presentation August 2012

TSX : AXY www.alterrapower.ca Page | 1 C O M P A N Y P R E S E N T A T I O N AUGUST 2012

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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.


Managed Owned

Wind 144 MW 51%

Hydro 235 MW 40%

Geothermal 187 MW 69%

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:

Alterra totals:

Managed: 567 MW Owned: 298 MW Managed Assets: $1.5 Billion Alterra Revenue: $110 MM Alterra EBITDA: $ 55 MM 2015E EBITDA: $105MM

(a)

(a) Reflects 66.6% of HS Orka and 100% of Soda Lake assets.


Alterra: Recent Growth and Performance

Alterra’s recent growth ... (net interest)

2H 2011 Performance: (net interest)

$54.9 million revenue

$23.3 million EBITDA

778 GWh electricity produced

- 102% of forecast

1Q 2012 Highlights: (net interest)

Production to 99% of forecast

Increase in cash from $32.0 million to $50.9 million

REVENUE

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HS Orka interest


Alterra: Planned Internal Growth

Current Assets Operating by 2015 Growth

Managed 567 MW 927 MW +64%

Net Owned 298 MW 494 MW +66%

Net Production

1,380 GWh 2,200 GWh +59%

AXY Revenue $110 MM $180 MM +63%

AXY EBITDA $55 MM $105 MM +91%

Projects Dokie 1 144 MW Toba Montrose 235 MW Reykjanes 1+2 100 MW Svartsengi 72 MW Soda Lake 15 MW

Dokie 1 144 MW Toba Montrose 235 MW Reykjanes 1+2 100 MW Svartsengi 72 MW Soda Lake 15 MW Dokie 2 156 MW Upper Toba 124 MW Reykjanes 3+4 80 MW ABW Solar 50 MW

Current plan would almost double EBITDA by 2015

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

(a) Project design currently being optimized; final capacity amount may vary.

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 & Montrose

235 MW 94 MW Hydro

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

McCoy 15 MW 15 MW Geothermal

BC, Chile, Peru, Italy 200 MW 200 MW Geothermal

Planned Total 725 MW 475 MW

Total Capacity 1,292 MW 773 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

Near term organic growth - all near existing operations

Wind Dokie 144 MW 2011 COD

Hydro Toba Montrose 235 MW 2010 COD

Geothermal Reykjanes 100 MW 2006 COD

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 2013-14E


Geothermal Development: The Right Approach

CHILE

Negotiating definitive agreement with prospective partner

320 MW resource and 158,000+ ha of concessions

Mid-stage development project

Emerging clean power market with world-class potential

PERU

Negotiating agreement with prospective partner

157,000+ ha of concessions, 1000+ MW potential

Rapid growth in economy and in power demand

Established relationships with government and communities

ITALY

Early-stage discussions

48,000+ ha of concessions in established geothermal field

Strong clean power tariffs

Easy year-round site access, close to transmission, established contractor base

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


Soda Lake HS Orka

Toba Montrose Dokie 1

ABW Solar

Reykjanes 3

Dokie 2

Reykjanes 4 Upper Toba

Mariposa Eldvörp

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GEOTHERMAL HYDRO WIND SOLAR

Leading Growth Profile

Alterra has one of Canada’s largest clean energy development pipelines

Existing Generation Capacity Additions


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

Toba Montrose back online after planned 1Q 2012 penstock warranty repairs

Generation at 132% of plan for stub period in April

$2.1 MM US treasury grant received at Soda Lake

Dokie 1 bump in PPA’s “firm energy”; 1.2% increase to annual revenue anticipated

All projects for ABW solar farm received their permits


Alterra: Headwinds / Tailwinds

Headwinds

Growth of natural gas reserves

Disappearance / uncertainty around programs that benefit renewable power

Gas acceptance by some as a “cleaner” thermal source of energy

Current investment cycle attributes no value to development pipeline

Tailwinds

BC growth: “move the gas cleanly”

High supply of capital for energy projects

Attractiveness of Canada

Technology prices driven down

Tough times create opportunities

Growth investors will return


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

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

Pritchard Capital Partners Veny Aleksandrov

Raymond James Securities Steven Li

Salman Partners Mike Plaster

INDEX COVERAGE

S&P/TSX Clean Technology Index

RENIXX Renewable Energy Industrial Index

CAPITAL STRUCTURE: (NET INTEREST)

MARKET CAPITALIZATION (31 JULY 2012) C$ 212 MM

CASH (30 MAR 2012) US$ 51 MM

TOTAL ASSETS (30 MAR 2012) US$ 863 MM

LONG TERM DEBT (30 MAR 2012) US$ 484 MM


APPENDICES

AUGUST 2012 www.alterrapower.ca


Senior Management

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.

Outstanding development, financial and operations expertise


Board of Directors

Ross Beaty

Executive Chairman

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

that were successfully built and divested.

Donald A. McInnes

Executive Vice-Chairman

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

Edinburgh's Award-British Columbia and Yukon Division and is a governor of the British Columbia Business Council.

David Cornhill

Director

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

energy industry, Mr. Cornhill also sits on several private and public boards including AltaGas Utility Group and Ivey Business School.

Donald Shumka

Director

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

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

Director

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

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

Director

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

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

Director

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

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

Ownership 60% - GE EFS

40% - Alterra

Start of Operation 2010

Power Purchase Agreement

EPA to 2045 with BC Hydro

Project Debt $470 MM total project debt with 35 year amortization and 6.4%

effective interest rate

Revenue Average annual project revenue of $78 MM

Includes $10/MWh ecoEnergy Program incentive

EBITDA Average annual project EBITDA of $60 MM

$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

Ownership 51% - Alterra

49% - GE EFS

Start of Operation March 2, 2011


EPA to 2036 with BC Hydro

Project Debt $175 MM total project debt with 20 year amortization and 7.2%

effective interest rate

Revenue Average annual project revenue of $39 MM

Includes $10/MWh ecoEnergy Program incentive

EBITDA Average annual project EBITDA of $27 MM

$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

Capacity & Production 172 MW generating 1,258 GWh /year

Thermal (hot water) production 150 MWth


33% - Jarðvarmi (Icelandic pension funds)

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

Power Purchase Agreements

Two PPAs with varying terms through to 2026; additional power sold on one-year contracts

36% of power sales paid in USD and linked to aluminum price

Project Debt $170 MM total company debt with average 9 years to maturity and

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

Capacity / Production 23 MW, currently operating at 15 MW gross and generating

84 GWh /year

Ownership 100% Alterra

Start of Operation 1987 / 1991


Two PPAs to 2020 with NV Energy

Project Debt None

Revenue Average annual revenue of $5 MM

EBITDA Average annual EBITDA of $1 MM


Overview - ABW Solar

Facility 3 solar facilities in southwestern Ontario

Capacity

Amherstburg – 10 MW

Belmont – 20 MW

Walpole – 20 MW

Proposed Ownership

90% - GE EFS

10% - Alterra

Start of Operation 4Q 2012

Construction began in May 2012


20 year EPA with Ontario Power Authority

Project Debt TBD

EBITDA $3 MM net annual EBITDA to Alterra

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


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.

Locations Jimmie Creek and Upper Toba River

In close vicinity to existing Toba Montrose facility

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


49% - GE EFS

Permitting Environmental Assessment Certificate granted and water licence

pending

Power Purchase Agreement 40-year contract with BC Hydro

Begin Construction 1Q 2013E

On Line 2Q 2015E

Notes

Completion of preliminary engineering and cost estimation targeted for mid-2012

Utilizes existing transmission line and other infrastructure at Toba Montrose


Overview - Reykjanes 3 & 4 Geothermal Expansion

The Reykjanes geothermal power plant in southwestern Iceland has substantial existing well capacity and is permitted for an expansion of production

Location Existing Reykjanes facility and steam field

Capacity / Production 80 MW generating 630 GWh annually


33% - Jarðvarmi (Icelandic pension funds)

Permitting Completed

Power Purchase Agreement Resolution expected 2H 2012

Begin Construction 2H 2012

On Line Reykjanes 3 - 50 MW in 2H 2014

Reykjanes 4 - 30 MW in 1H 2015

Notes

High pressure 50 MW turbine for Reykjanes 3 already on site

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


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

Notes Wind assessment, turbine layout, infrastructure and financial

studies in progress


Overview - Mariposa Geothermal (Chile)

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

Location In the Andes Mountains in south-central Chile, approximately 300

km south of Santiago

Capacity / Production 320 MW inferred resource with promising characteristics

Exploitation concession granted for first phase of 50 MW

Concessions

Permanent production concession at Laguna del Maule

Resource area continues on adjacent Pellado concession

Alterra has a third adjacent concession at Los Cristales

Permitting Letter authorizing first round of exploratory holes

Baseline prepared for subsequent permitting

Exploration & Development

Access road and infrastructure advance

Three slim holes completed by core drilling

Next Phase Deep rotary and wide diameter drilling planned in 2013

On Line 50 MW in 2016E

Notes Recent volcanism and hot springs near concession

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


Interest from multiple prospective partners

Opportunity

Region of hot springs and silica sinters

Alterra plan: advance to inferred status

Strong public and government support for clean power

CHARACTERISTICS Crucero, Loriscota,

Pasto, Panejo Tutupaca Norte, Suche, Atarani

Sara Sara

Location In the NE trend of the southern volcanic belt

In the SW trend of the southern volcanic belt

Size 77,400 hectares 59,900 hectares 20,000 hectares

Known Geology

• Temperatures over 150oC at 2,000 m depth

• Hot springs

significant fumaroles and steaming ground

Work Program Beginning geophysics and surface studies

Detailed exploration planned

Surface studies begun and detailed exploration planned


Overview - Mensano and Roccastrada Geothermal (Italy)

Alterra’s exploration concessions in Italy are in the historic and promising Larderello region of Tuscany


Interest from multiple prospective partners

Opportunity

32 geothermal plants already operating in region

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

Known Geology • Nearby 1000m exploratory wellhead temperatures up to 100

oC

• Hot spring and high heat flow

• Temperatures over 150oC at 2000m depth

• Thermal springs and hydrothermal alteration areas

Potential • Potential reservoir within 3000m depth

• Estimated temperature 200oC - 250oC

• Large geothermal system inferred with two potential reservoir targets:

at 1000-2000m, 150oC

at 2800-3000m, 200oC

Work Program Prospecting to build a geothermal system and define targets for exploration wells

Detailed exploration program to confirm high enthalpy resources

TSX : AXY www.alterrapower.ca Page | 29 AUGUST 2012 www.alterrapower.ca