ALTER NRG CORP. PROVIDES OPERATIONS UPDATE FOR GEOEXCHANGE OPERATING DIVISION

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OTCQX - ANRGF

CALGARY, Nov. 2 /CNW/ - (TSX: NRG; OTCQX: ANRGF) Alter NRG Corp. ("Alter NRG" or the "Company") is pleased to provide an operations update on our geoexchange business division which is operated under the name CleanEnergy.  CleanEnergy has now executed upon and closed new commercial geoexchange solutions across Canada.  Revenues per project are typically $500,000 to $1,000,000.  As CleanEnergy continues to build its reputation as the coast to coast provider of design and build geoexchange solutions the backlog has grown to approximately $2.5 million, or roughly 4 times what it was at the start of the year. CleanEnergy has identified some $300 million of projects on which we could bid through 2012, illustrating the scale of the opportunity as this sector continues to grow.

Mark Montemurro, President and CEO states that "we are very pleased to see our business model pay off and the revenues, backlog and pipeline of opportunities all continue to increase.  We believed that the commercial geoexchange market was significantly underserved, with a lack of design and build solutions that encompassed the entire project.  The recent contracts and execution on larger scale jobs has validated our business model.  With such a large pipeline of opportunities the future of CleanEnergy is very promising."

As was previously announced in March, CleanEnergy won the contract for the installation of geoexchange at a pool complex in Cambridge, Ontario - located approximately 100 km west of Toronto - for approximately $450,000 worth of geoexchange field installation services.  This project has now been completed and the grand opening of this newly designed and energy efficient complex was recently held.  The City has government grants available for continued geoexchange installations and expects that this will be the first of several such projects.  Bob Paul, Director of Facilities Management and Development of the City of Cambridge comments "we believe geoexchange provides our community significant economic and environmental advantages and are looking to apply this elsewhere throughout the community.  CleanEnergy is one of the leading providers and that gives us comfort regarding quality and reliability."

CleanEnergy has also executed the engineering and installation of a vertical geoexchange ground loop underneath an eight story condominium building in downtown Toronto for revenues of $650,000. The geoexchange system will provide 100% of heating and cooling to all the condominium suites. The project is unique in that it utilizes the ground under the building.  CleanEnergy gained valuable operational learnings from this project, though the challenges did result in cost overruns.  Providing green condominiums has a large market potential and this was the first large scale implementation of this type in Canada for CleanEnergy. 

On the West Coast of Canada, CleanEnergy has completed the majority of the Helen Gorman Elementary School project located in Kelowna, BC for approximately $600,000 in revenues. Helen Gorman Elementary students will see their existing primary boiler system replaced with a geoexchange system using third party capital from a B.C. utility company and incentive funding through provincial EEMU Program. The project replaces failing equipment and improves the controls system. The estimated carbon footprint reduction is 83 percent or 84 tonnes per year due to increased efficiency.

Ben Stewart, Minister of Citizens' Services and MLA for Westside-Kelowna stated "Helen Gorman Elementary will benefit from cleaner air and more efficient heating, thanks to a $650,000 investment from the Province and school district. Ensuring schools use the latest heating and cooling technology means more money for educational services.  This project is an investment in our facilities, as well as an investment in the education of future students."

"These geothermal upgrades will produce much-appreciated cost savings over time," said Central Okanagan board chair Rolli Cacchioni. "More importantly, they will help ensure a healthy and comfortable learning environment for our students. The district is extremely pleased about the upgrades and we are happy to be contributing to a green future for British Columbia."

On the East Coast of Canada, CleanEnergy has been awarded a contract for approximately $975,000 for the Grant Harvey Arena in New Brunswick.   CleanEnergy and IceKube Systems were selected to supply the ice making equipment and geoexchange system as part of the new $29.8 million facility that will feature both an Olympic-size ice surface and a 1,500 seat NHL-size ice surface that will be home to the St. Thomas University men's and women's ice hockey teams as well as the Fredericton Amateur Speed Skating Club. The two-level complex will also house walking/running tracks, community event rooms, multi-purpose meeting rooms and kitchen facilities.  The ice making equipment together with the geo-exchange system will make ice for the ice surfaces, heat and cool the complex and store extra thermal energy to serve other buildings on site or in the vicinity.

CleanEnergy's minority investment in Groundheat Systems International ("Groundheat") will be written down to a nominal amount in the third quarter financial results.  This is the result of operational inefficiencies and personnel issues that have prompted the Groundheat Board of Directors to significantly downsize the Company.  As well, operational inefficiencies in drilling by Groundheat led to reduced and even negative margins on some of CleanEnergy's jobs in the third quarter. 

Mr. Montemurro, President and CEO of Alter NRG states "the downsizing of Groundheat has been a distraction and financial loss to our shareholders.  However, this is now behind us and we look forward to improved margins through lower cost drilling options in the Greater Toronto Area.  CleanEnergy maintains a strong relationship and preferred vendor status with the Remington Group who is the majority owner in Groundheat.  The Remington group has planned more than $15 million of geoexchange projects over the next several years."

ABOUT ALTER NRG
Alter NRG is pursuing alternative energy solutions to meet the growing demand for environmentally responsible energy in world markets. The Company's vision is to commercialize growth technologies through environmentally sustainable and economically viable alternative energy projects. The Company's objectives are twofold; First, is to further commercialize the Westinghouse Plasma Gasification Technology, through a wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and providing a wide variety of energy outputs - including  liquid fuels like ethanol and diesel, electrical power, and syngas;  Second, to capitalize on the rapidly growing geoexchange residential and commercial heating and cooling market through a wholly owned subsidiary CleanEnergy that enables consumers to reduce their carbon footprint and reduce the cost and volatility of energy bills using the energy from the earth.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

This news release contains certain "forward-looking information and statements" within the meaning of applicable securities laws.  The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements.  In particular, this new release contains forward looking statements pertaining to capital expenditures, schedules and commencement of projects under development; availability of project financing; timing of sales; industry trends; factors influencing capital investments and development activities; the Corporation's reputation and market position within the Geoexchange industry in which it operates and the Corporation's strategy and competitive advantages.  Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements reflect management's current beliefs and assumptions, based on information currently available to management. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, many of which are beyond the control of the Corporation. Among the material factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: that the information is of a preliminary nature and may be subject to further adjustment; unforeseen environmental effects; the completion of projects; the continued participation of the Corporation in other projects, arrangements with key suppliers; potential product liability and other claims; the possible unavailability of financing at competitive rates and the related effect on operational activities; changes in government regulation, including changes to environmental regulations; the effects of competition; and fluctuations in currency exchange rates and interest rates, as well as those factors discussed in or referred to under the heading "Risk Factors" in the Company's Annual Information Form dated March 29, 2010 available at www.sedar.com. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.

The Corporation cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Corporation assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

For further information:

Mark Montemurro, President and Chief Executive Officer
[phone]           [email protected]

Daniel Hay, Chief Financial Officer
[phone]           [email protected]