EarthFirst Canada Inc. (“EarthFirst”) (EF, EF.WT; TSX) is pleased to announce the release of its third quarter financial results. 

The third quarter was a quarter of significant change at EarthFirst as it prepared itself for its $140 million Initial Public Offering (“IPO”) which, as previously announced, closed on December 11, 2007.

On August 31, 2007, EarthFirst’s Shareholders approved a Restructuring of EarthFirst aimed to: i) simplification of the capital structure of the Corporation by re-designating the Class A Shares of the Corporation as Common Shares, creating Convertible Preferred Shares and changing all of the issued and outstanding Class B Shares of the Corporation and Preferred Shares of the Corporation into Common Shares and Convertible Preferred Shares that automatically convert into Common Shares on the achievement of certain milestones, ii) internalization of the management of a joint venture in place between EarthFirst Energy Inc. and Creststreet Capital Corporation through  the acquisition of all of the issued and outstanding shares of certain affiliates of Creststreet and EFE in exchange for Convertible Preferred Shares in the Corporation, and iii) secure for the Corporation certain executive, management, administrative and other services necessary to proceed with the construction, development and financing of the Dokie I Project in British Columbia as well as carry out its other business activities. This restructuring was a prerequisite to EarthFirst proceeding with its IPO.

On August 31, 2007 the shareholders also approved the acquisition of Windrise Power Inc., Benchlands Wind Power Corp., Grand Valley Wind Farms Inc., Bonavista Wind Power Inc. and Buffalo Atlee Wind Energy Inc. from the Creststreet Windpower Development LPs, Creststreet entities and independent joint venture partners (collectively the “Seedco Acquisitions”).  These Acquisitions closed concurrently on December 11, 2007 with the closing of EFC’s $140 million initial public offering.  These Seedco Acquisitions are further described in the Acquisition Transaction section of the third quarter MD&A.

On August 7, 2007 EarthFirst completed a $15 million private placement which raised net proceeds of $13.85 million pursuant to which 4,270,000 flow-through common shares and 2,162,500 Common Shares were issued. This private placement provided funding for the EarthFirst until the IPO was completed.

During the third quarter operational activities at the Dokie I project in the Peace River Region of British Columbia were focused on detailed electrical design engineering work, geotechnical work as well as road and bridge design. The Dokie I project is a 144 MW windpower project located at Dokie Ridge in the Rocky Mountain foothills of the Peace River region in northeast British Columbia approximately 150 kilometres southwest of Fort St. John, British Columbia. At Grand Valley, a 30MW windpower project approximately 15 kilometres west of Orangeville Ontario, work continued on the Environmental Assessment, interconnection and the turbine supply agreement for the project.

EarthFirst is a development stage company that does not anticipate generating revenues from windpower production until late 2008 when the CRCE Phase of the Dokie I project is completed. During the third quarter EarthFirst incurred $0.9 million of expenses related to the restructuring of the organization. It also incurred a non cash expense of $9.5 million in connection with the exchange of the Preferred Shares for Common shares, which occurred as part of the Restructuring transactions. This resulted in a net loss for the third quarter of $9.7 million and a loss of $9.8 million for the year to date.

EarthFirst is a leading Canadian developer of wind energy projects with a portfolio of over 2,500 MW of potential renewable generating capacity including its 144 MW Dokie Ridge project in North East BC which is expected to enter commercial production by the end of 2009. Common shares and warrants of EarthFirst Canada Inc. are listed on the TSX under the symbol EF and EF.WT respectively.

For further information, please contact:

Grant Bunker
Director, Investor Relations
EarthFirst Canada Inc.
Tel: (416) 628-2164
Toll Free: 1 866-622-4715
E-mail: gbunker@earthfirstcanada.com
 
Derren Newell
VP, Finance and Chief Financial Officer
EarthFirst Canada Inc.
Tel: (403) 513-0766
Toll Free: 1 877-513-0777
E-Mail: dnewell@earthfirstcanada.com

View PDF below for Financial Statements

CERTAIN STATEMENTS INCLUDED IN THIS NEWS RELEASE CONSTITUTE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES ACT (ONTARIO). SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE PARTNERSHIP TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF EARTHFIRST CANADA INC. AS AT December 14, 2007, AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, EARTHFIRST CANADA INC. EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART (I) IN OR INTO THE UNITED STATES, THE UNITED KINGDOM, AUSTRALIA, JAPAN, THE REPUBLIC OF IRELAND, GERMANY, SWITZERLAND, SOUTH AFRICA OR ANY OTHER JURISDICTION IN OR INTO WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL; OR (II) TO ANY NATIONAL, RESIDENT OR CITIZEN OF SUCH JURISDICTIONS.

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