EarthFirst Canada Inc. ("EarthFirst") (TSX: EF, EF.WT) today  announced it is increasing the total capital cost estimate of the Dokie I wind project in the Northeast British Columbia region, from $325 million to $360 million. Approximately $22 million of the increase is due to higher than anticipated tendered pricing, largely as a result of increased natural gas exploration and other economic activity in the area affecting labor and commodity costs. The Company notes that the project tendering process is now substantially complete.

The remainder of the increase comes from raising the contingency allocation from $23 million to $36 million. This change reflects the recommendations of the independent engineer contracted by the senior lenders to the project. Management will make every effort to reduce contingency spending through effective construction management and cost control.

Separately, Garrad Hassan, the company’s independent wind consultant, has recently announced changes to the wind energy estimation methodology they are applying to North American wind projects.  As part of this change, Garrad Hassan is reducing its P50 estimate of annual energy production from the Dokie I wind project by 2.3% from 349.5 to 341.5 GWh/annum.

EarthFirst expects to launch the syndication of its senior credit facilities next week and is working with WestLB AG, its lead arranger, and its advisors to arrange any additional financing required to complete the project.

EarthFirst is a leading Canadian developer of wind energy projects with a portfolio of over 2,500 MW of potential renewable generating capacity. This includes the Company’s 144 MW Dokie I project in British Columbia which has commenced construction and is due to be completed in 2009. An additional 226 MW of fully permitted projects that are expected to be tendered into the recently announced BC Clean Power Call. 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:
 
Linda Chambers
President and Chief Executive Officer
EarthFirst Canada Inc.
Tel: (403) 513-0777
Toll Free: 1 877-513-0777
E-mail: lchambers@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

Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation including submission of bids into the BC Clean Power Call,  the timing of the construction of the Dokie I project and anticipated completion of the financing of this project. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of EarthFirst to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Specifically, some of the material risks include not being able to acquire required permits, delays in construction timing or turbine delivery and not being able to complete the financing for Dokie I Project. In providing such forward-looking information we have made various assumptions regarding, among other things, turbine availability, timing of the receipt of permits, interest rates, foreign currency exchange, projected construction costs, timeframes and the costs of and availability of skilled labour.
 
The forward-looking information contained in this news release represents the expectations of EarthFirst as at July 4, 2008, and, accordingly, is subject to change after such date. However, EarthFirst 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.

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EFC-PR14_2008-07-04_Dokie Revised Costs_Final.pdf	en	105.83 KB