LOWER CHURCHILL HYDRO ROYALTY

Altius continues to pursue a royalty investment in the Lower Churchill hydroelectricity project of Newfoundland and Labrador Hydro.  The Lower Churchill Project consists of two of the best undeveloped hydroelectric sites in North America: Gull Island, located 225 kilometers downstream from the existing Churchill Falls Generating Station; and Muskrat Falls, located 60 kilometers downstream from Gull Island. Combined, the projects will produce an estimated 2800 megawatt of clean energy.

Altius can provide no assurances that an agreement will be reached as a result of this initiative. However, the Company believes its proposal complements the Province's stated objective of maximizing benefits for Newfoundland and Labrador while remaining consistent with Altius' investment objectives.

Company management is pleased with the Province's initial response to the proposal, which was noted to be unique and innovative.

Altius looks forward to the next stage of evaluation and potential discussion with the Province of Newfoundland and Labrador and Newfoundland and Labrador Hydro into this exciting opportunity.