NaiKun Wind Quarterly Shareholder Update

NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) distributed a quarterly project
update to shareholders yesterday. The content of the update appears below.


NaiKun Wind Quarterly Shareholder Update 

Welcome to the NaiKun Wind Quarterly Shareholder Update.

At the end of March, NaiKun Wind was advised by BC Hydro that our 396MW offshore
wind project was no longer under consideration for a contract award in the Clean
Power Call. This result is extremely disappointing, but it has not changed our
view that the project can play a role in the Government of British Columbia
fulfilling its clean energy and electricity self-sufficiency goals.


The wind resource in Hecate Strait is one of the strongest and most consistent
in the world and we will continue to work on developing a facility that
harnesses its power. While BC Hydro's decision means that our timeline to begin
construction in 2012 is delayed, our development work will carry on. With this
in mind, I want to provide our shareholders with an update on our activities and
strategy going forward.


Before going any further, however, I would like to assure everyone that the team
you have supported through the process to this point remains unified. Working
with ENMAX, First Nations and key suppliers such as Siemens Canada, NaiKun Wind
looks forward to near-term discussions with BC Hydro and the Provincial
Government on how the 396MW project and the Haida Energy Field can fit into the
Province's clean energy procurement plans. We continue to believe that the
Hecate Strait wind energy resource can play a very important role in the
Province's electricity portfolio.


Looking at things from a broader perspective for just a moment, development of
an offshore wind industry is an opportunity that British Columbia should
embrace, just as so many other jurisdictions around the world have done. There
is a world-class renewable resource off the shores of this province that can
bring unique benefits to its people.


There are a number of things on the horizon that will be of interest to our
shareholders. In the next few months, I would expect to be reporting on the
following items:




- The final steps in securing environmental certificates from the Federal
  Government and the Haida Nation
- The results of our de-brief with BC Hydro on why our project was not
  selected
- The tabling of the Clean Energy Act in the Provincial Legislature
- The results of deliberations by the Haida Nation on their becoming an
  equity partner in the generation project, and their efforts to secure
  support from the Federal Government for their participation
- Updates on our acquisition strategy



Environmental Approvals

As you know, the Province of British Columbia has issued an Environmental
Assessment (EA) Certificate for the 396MW project and related transmission
infrastructure. Still outstanding is the environmental go-ahead from the Federal
Government and issuance of an EA Certificate from the Haida Nation. Neither of
these processes has identified significant adverse effects and we expect them to
be finalized by mid-year.


On the federal front, all agencies have made their contributions to a draft
assessment report. The report now awaits a decision from Fisheries and Oceans
Canada regarding NaiKun Wind's proposed Habitat Compensation Plan. We have put
forth what we believe to be a proposal which meets the required feasibility test
and expect their decision on this document in the coming weeks. Once finalized,
the federal report will be issued to participating First Nations for their final
review. Following that step, the Federal Government will review the feedback and
issue its approvals.


As for the Haida Nation, they have concluded their environmental review and the
next step is the issuing of an EA Certificate which specifies the conditions of
the approval and the commitments that NaiKun Wind has made to ensure local
benefits are maximized and any negative influence on the environment is
minimized.


Clean Power Call Follow-up with BC Hydro

Our communication with BC Hydro regarding their March 31 decision on our Clean
Power Call proposal has thus far been very limited. Given the significant effort
put into the proposal and our plan to continue advancing the project through
future power procurement processes, we believe it is important to work with BC
Hydro to more fully understand its decision and the evaluation process that was
followed.


We also believe it is important for BC Hydro to understand the perspective of
developers who have invested significant time and resources in developing
proposals, no matter the result of a given contract award process. We further
believe that it is important for BC Hydro and the Province to encourage the
development of a provincial offshore wind industry. As such, we have approached
BC Hydro regarding a de-briefing session and been assured of a meeting in the
near future. This step will help to shape our approach to obtaining a contract
going forward.


Clean Energy Act and a New Approach to Procurement

With the pending conclusion of the Clean Power Call, the focus for clean energy
opportunities in British Columbia shifts to the Clean Energy Act, which is
expected to be introduced and passed in the current sitting of the BC
Legislature. The Clean Energy Act was announced in the Throne Speech earlier
this year and comes in response to the limited progress realised in advancing
the BC Energy Plan, which was introduced early in 2007. The Clean Power Call and
its ability to deliver near-term generation from clean energy projects have been
cited by the government as a specific concern.


The Clean Energy Act will play a central role in fulfilling the government's
announced "commitment to fair, predictable, clean power calls that will feature
simplified procurement protocols and new measures to encourage investment ..."
British Columbia Energy Minister Blair Lekstrom recently highlighted the
important role to be played by the Clean Energy Act in developing a strong,
sustainable energy industry. The Haida Energy Field and the NaiKun Wind project
can be prominent in future procurement initiatives, given the need to source
electricity from utility-scale energy solutions. 


The legislation will likely be introduced in late April or early May and passed
no later than June 3rd. Among its expected contents are significant improvements
to the contract procurement process as well as measures to encourage new
investment in the renewable energy sector. Once the Act has been introduced,
NaiKun Wind intends to engage the government and BC Hydro to discuss how best to
advance the offshore wind project and the development of an offshore wind
industry.


We also expect the Clean Energy Act will deal with an export policy that builds
on British Columbia's tradition of using power sales to drive economic
development and pay for government services. This is the legacy of late Premier
W.A.C. Bennett that has served the Province and economy so well. As a complement
to the export policy, we could see commitments to major transmission upgrades
and plans to go to the Environmental Assessment phase of the Site C
hydroelectric dam in northeast BC. While this would be an important step forward
for BC Hydro's Site C project and the development of new transmission
infrastructure, we should not underestimate the time required and the hurdles
that must be overcome to finish these initiatives.


This speaks to the important role that the NaiKun Wind project can play in
addressing BC's future energy needs, since our environmental approvals are
largely in place, there is strong community and First Nations support and there
is significant transmission capacity available where our project would connect
to the main grid.


Dealing with these changes in direction will be new leadership at BC Hydro and
BC Transmission Corporation. Both companies are currently conducting executive
searches to fill their vacant Chief Executive Officer positions. Leadership
searches by their nature create a degree of uncertainty within organizations and
we look forward to this matter being settled soon. Strong leadership at these
Crown corporations will be crucial to implementing the policy objectives and
energy procurement framework laid out in the Clean Energy Act.


Haida Equity Investment

The Haida Nation continues to view our project as a potential cornerstone of
their economic independence and is determined to ensure that the opportunity is
maintained as they work through their process regarding participation as a
direct equity owner in the 396MW project.


Since September of last year, the Haida Nation, supported by NaiKun Wind, has
held a series of discussions with the Federal Government aimed at procuring a
loan guarantee so that they can secure the funds necessary to make the
investment. This effort is reaching important milestones on two fronts.


First, the Haida Nation held the final two information sessions for their people
last week, on April 15 and 16. We anticipate the Haida will soon conduct a vote
regarding the decision to take the direct ownership position, which could be up
to 40% of the project. This is a major decision for the Haida, and NaiKun Wind
respects and supports their decision-making process.


The status of the discussions with the Federal Government is quite advanced.
Ministries with direct authority over files pertinent to the Haida Nation's
request have expressed support for the idea. In the next few weeks,
representatives from the Haida Nation and NaiKun Wind will be holding additional
meetings with key government officials to ensure this option is available to the
Haida Nation should they decide to exercise it.


Investigative Use Permit

NaiKun Wind is authorized to develop its wind project through the issuance of
Investigative Use Permits by the Province of British Columbia and the Haida
Nation. We recently renewed the Haida Nation permit and will be renewing the
provincial permit in May 2010. These two important steps allow us to continue to
advance the project.


Potential Acquisitions

As mentioned in recent news releases, NaiKun Wind has since last year been
assessing potential acquisition opportunities in the renewable energy sector. We
have identified several projects of interest that share the characteristic of
being significantly advanced (some operating or contracted and ready to build)
and are in varying stages of analysis on them. For assets, or portfolios of
assets, of a certain size, we have identified entities that are interested in
joining NaiKun Wind as a direct equity owner. Discussions with the
developers/owners of several projects are ongoing.


Conclusion

In summary, NaiKun Wind continues to advance its offshore wind project in
anticipation of opportunity to be presented shortly by the Clean Energy Act.
While its content has yet to be made public, we believe the Act will be an
important part of a new framework that will result in significant opportunities
for renewable energy companies like NaiKun Wind. We will keep shareholders
updated on developments as they occur.


Thank you for your ongoing support.

Paul Taylor, President and CEO

NaiKun Wind Energy Group Inc.

www.naikun.ca

Caution Regarding Forward-Looking Statements - This news release contains
certain forward-looking statements, including statements regarding the business
and anticipated financial performance of the Company. These statements are
subject to a number of risks and uncertainties. Actual results may differ
materially from results contemplated by the forward-looking statements. When
relying on forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties and
should not place undue reliance on such forward-looking statements. The Company
does not undertake to update any forward-looking statements, oral or written,
made by itself or on its behalf.