Tonbridge Power Announces MATL Project and Budget Update

TORONTO, June 23, 2011 /CNW/ -- 
TSX Venture Exchange
Symbol: TBZ


TORONTO, June 23, 2011 /CNW/ - After careful review, Tonbridge Power
 Inc. (TSXV-TBZ) has determined at this time that at least US$25 million
 in additional funding is required to complete the construction of its
 MATL project. This represents an increase to the US$5.8 million
 shortfall estimate previously disclosed in the MD&A and press release
 in respect of the 2010 year end.  The full extent of the funding
 requirement will only be known when certain variables, including
 discussions with key stakeholders, have been addressed and resolved.


The company's current credit facilities are insufficient to fund this
 shortfall. As a result, management is in discussion with its lenders,
 stakeholders and others to address this estimated funding gap. It
 expects to make further announcements as details emerge.


The changes to MATL's budgetary status can be attributed to a number of
 things. They include a disruptive court decision in respect of eminent
 domain in Montana, construction contractor disputes, construction and
 regulatory delays, land access and acquisition of rights of way ("ROW")
 issues and general materials cost increases. All of these issues have
 been intensely reviewed and are constantly being evaluated for project
 impact.


As previously announced, in connection with the contractor disputes,
 construction efforts on the transmission line have been halted. The
 company is currently working with its contractor to resume construction
 activities in Canada where they were stopped in March because of
 permitting restrictions.  Work resumption discussions on the
 substations and the line in Montana are also ongoing.


Although these are challenging times, the company, is working towards
 meeting the company's goal of delivering an operating transmission line
 by year end 2011.


Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose
 principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares
 of the Corporation are traded on the TSX Venture Exchange under the
 symbol "TBZ". The Corporation's financial statements and other filings
 can be found on SEDAR.


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Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements", within the
 meaning of applicable Canadian securities legislation, concerning the
 business, operations and financial performance and condition of the
 Company. Forward- looking statements include, but are not limited to,
 statements with respect to future revenues. Generally, these forward-
 looking statements can be identified by the use of forward-looking
 terminology such as "plans", "expects" or "does not expect", "is
 expected", "budget", "scheduled", "estimates", "forecasts", "intends",
 "anticipates" or "does not anticipate", or "believes", or variations of
 such words and phrases or state that certain actions, events or results
 "may", "could", "should", "would", "might" or "will be taken", "occur"
 or "be achieved". Forward-looking statements are subject to known and
 unknown risks, uncertainties and other factors that may cause the
 actual results, level of activity, performance or achievements of the
 Company to be materially different from those expressed or implied by
 such forward-looking statements, including but not limited to: the
 conditionality of the revenue contracts, risks related to the financing
 or construction of the transmission line; risks related to the
 performance of parties contracting for transmission capacity; delays in
 obtaining governmental approvals, permits or project financing or in
 the completion of development or construction activities, requirements
 for additional capital, government regulation, environmental risks as
 well as those factors discussed in the section entitled "Risk Factors"
 in the Company's Annual Information Form for the year ended December
 31, 2005, available on www.sedar.com. Although the Company has attempted to identify important factors that
 could cause actual results to differ materially from those contained in
 forward-looking statements, there may be other factors that cause
 results not to be as anticipated, estimated or intended. There can be
 no assurance that such statements will prove to be accurate, as actual
 results and future events could differ materially from those
 anticipated in such statements. Accordingly, readers should not place
 undue reliance on forward-looking statements. The Company does not
 undertake to update any forward-looking statements that are
 incorporated by reference herein, except in accordance with applicable
 securities laws.


Neither the TSX Venture Exchange nor its Regulation Service Provider (as
 that term is defined in the policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this release.


To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/23/c8702.html



p Robert van Beers, Chief Executive Officerbr/ (416)     850-2150 email: a href="mailto:[e-mail]" font-style="italic"[e-mail]/a /p p Robert McFarlane, Chief Financial Officerbr/ [phone] email: a href="mailto:[e-mail]" font-style="italic"[e-mail]/a /p p Brisco Capital Partners Corp.br/ Graeme A. Dick,br/ [phone] email: a href="mailto:[e-mail]"[e-mail]/a /p p Please Visit the Company's Website at: a href="http://www.tonbridgepower.com"www.tonbridgepower.com/a /p 

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