Tonbridge Power Inc. Announces Senior Loan Arrangements for Construction Financing

TORONTO, ONTARIO, Sep 11, 2008 (Marketwire via COMTEX) -- Tonbridge Power Inc. (TBZ) ("Tonbridge" or the "Company"), through its wholly-owned subsidiary as borrower, Montana Alberta Tie Ltd. ("MATL"), is pleased to announce it has entered into a mandate letter and term sheet for proposed syndicated credit facilities (the "Credit Facilities") with a New York based financial institution for an up to US$90 Million Construction and Term Loan Facility to fund the construction and operation of an approximately 214 mile, 230kV AC transmission line between Lethbridge, Alberta and Great Falls, Montana and an up to US$9 Million Network Upgrade Facility to fund the upgrading of the related Great Falls substation (together the "Project").

The Credit Facilities, when finalized and combined with the previously announced US$35 Million prepayment (the "Prepayment") of revenues in respect of a transmission rights agreement, are expected to provide adequate financing proceeds for the remaining construction costs of the Project. The New York based financial institution will act as Mandated Lead Arranger and Bookrunner, Syndication Agent, Administrative Agent, Derivatives Provider, Technical and Documentation Agent and as a Lender for the proposed credit facilities. These facilities are still subject to credit approval and satisfactory completion of due diligence.

The Company believes that the Credit Facilities and the Prepayment are sufficient to fund the completion of the Project. The Company continues to assess its financing requirements.

Drawings on the proposed Credit Facilities and the Prepayment will be available rateably and proportionate after closing of the Credit Facilities ("Closing") and once all permits (including the non-appealable final AEUB permit) are received. The proposed Credit Facilities require a security interest over all the present and future assets of MATL and each subsidiary of MATL and a specific pledge of the shares in MATL and its direct holding companies and security interests relating to the Prepayment will be subordinate to these security interests. In addition, in conjunction with the finalization of definitive documentation and Closing of the Construction Loan Facility, the Company intends to issue share purchase warrants ("Warrants") to the New York based financial institution to acquire common shares of the Company. The Warrants to be issued will be subject to TSX Venture Exchange policies and their issuance will require TSX Venture Exchange approval.

The Company, MATL and the financial institution are discussing and negotiating the terms of the definitive loan documentation. Availability of these proposed Credit Facilities and the Prepayment will be subject to usual and typical conditions precedent, including: credit approval by the New York based financial institution; entering into of definitive loan documents; receipt of all permits; execution of all material contracts; satisfactory independent engineer reports, market consultant reports, due diligence and base case economic models; finalized credit supporter arrangements; approval of qualified off-takers and finalized transmission service rights agreements.

The completion of the proposed Credit Facilities and Prepayment is necessary for the construction of the Project to proceed.

Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose principle asset is a 100% interest in Montana Alberta Tie Ltd. Shares of the Company are traded on the TSX Venture Exchange under the symbol "TBZ".