Wind Works Power Corp. Closes Sale of 75% Interest in 50 MW of Ontario Projects to Renewable Energy Developers Inc., formerly...

August 27, 2013

 OTTAWA,
ONTARIO   August 27, 2013 ? Wind Works
Power Corp. (OTC:WWPW - News)(WKN: A0RPM2) is pleased to announce
it has closed the sale to Renewable Energy Developers Inc. (?ReD?) formerly
known as Sprott Power Corp.,of a 75% interest in 4 wind energy projects
totaling 50 megawatts (?MW?) of contracted capacity with the Ontario Power
Authority under the FIT program in Ontario, Canada. ReD is expected to develop
and co-own these projects with a financial partner (together, the
?Purchasers?).

ReD(TSX:RDZ) (TSX:RDZ.DB) recently announced its acquisition by Capstone Infrastructure Corporation (TSX: CSE; CSE.PR.A;
CSE.DB.A). The transaction, expected to close in September 2013, is subject to
a shareholder vote on both sides as well as regulatory approval.

The 4 projects subject to the sale transaction include Grey
Highlands Zero Emission People, Settlers Landing, Snowy Ridge, and ZEP Ganaraska.
It is expected that construction will commence in 2014, subject to permitting. The
total investment costs is approximately $150 Million once built. The turbines
that have been purchased previously for the projects are 2 MW RePowerMM92-100m
tower wind turbines, with an option for a full 15-year warranty.

Highlights of the Transaction:

1.    
The Purchasers will make the following payments and
consideration to Wind Works:

a.    
$56,000 at closing;

b.    
$1.5 million, subject to milestones and final accounting; and

c.    
Contingency payments of up to $10 million, subject to certain
milestones and performance criteria

 

2. Other
   consideration by the Purchasers:


1. $15
   Million in outstanding loans of Wind Works for the Ontario projects will
   be assumed or released by the Purchasers, except for $ 1.6 Million, which
   are bridge loans for 2 Ontario Projects that Wind Works will continue to develop
   on its own ? Cloudy Ridge and Whispering Woods;


2. The Purchasers
   are to fund all additional development costs for the 4 projects involved
   in this transaction; and


3. The
   Purchaser will organize construction and long term financing for the 4 projects.

 

3. The
   Purchasers will build the 4 projects turnkey.

4. Wind Works
   will retain a 25% interest in all 4 projects, subject to funding its share
   of the equity in each project.

Conditions precedent to
the transaction were met or waived, including receipt of consents required from
the Ontario Power Authority and other third parties.

?We have been working
with Sprott Power (now ReD) for a number of months, and now appreciate and look
forward to a long-term partnership?, comments Dr. Ingo Stuckmann, Wind Works?
President and CEO. ?Our objective is to raise the funds necessary to retain our
25% equity stake and thus be that much closer to our goal to own and operate a
minimum of 100 MW of wind farms in the next 3 years in our 3 markets, Germany, Canada,
and the United States.?

About Wind Works / Zero Emission People

 

Wind Works now operates 4.6 megawatts in Germany, in which it
has a 49% ownership stake. In addition, Wind Works is developing 77 megawatts
of near-term permitted projects in Germany; 50 megawatts of FIT contracted
projects in Ontario with ReD plus an additional 20 megawatts on its own; and
425 megawatts of projects in the United States.

 

Our mission is to provide the opportunity for people to
participate in the development of renewable wind energy projects. We believe in
making sound, environmentally conscious investments that are good for our
shareholders and our planet. To eliminate one person`s carbon footprint of 20 tons
each year (for Canada), it only takes a modern windmill 2 days by producing
approx. 40,000 kilowatt hours of zero emission energy.

 

For more information, please visit: www.windworkspower.com

 

Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained herein which are not historical
are forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in the
forward-looking statements including, but not limited to, certain delays beyond
the company's control, inability to successfully conclude negotiations
currently in progress, and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission.

 

 

 

 

Forward-Looking
Statements

 

Certain information
contained in this press release may constitute ?forward-looking information?
which reflects the current expectations of Wind Works. This information
reflects Wind Work?s current beliefs with respect to future events and is based
on information currently available to management.  Forward-looking information involves
significant known and unknown risks, uncertainties and assumptions. Many
factors could cause actual results, performance or achievements to be
materially different from any future results, performance or achievements that
may be expressed or implied by such forward-looking information including,
without limitation, the regulatory environment for developing renewable
generation in Ontario as well the ability to raise equity financing and
maintain interests in the projects. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results, performance or achievements could
vary materially from those expressed or implied by the forward-looking
information contained in this release. Although forward-looking information
contained in this release is based upon what Wind Works believes to be
reasonable assumptions, management cannot assure stakeholder that actual
results, performance or achievements will be consistent with this
forward-looking information. The forward-looking information is made as of the
date of this release and Wind Works does not assume any obligation to update or
revise it to reflect new events or circumstances, except as required by law.

 

For additional
information, please contact:

Investor Relations 

[e-mail]