Velcan Energy Acquires the Quebra Dedo Hydroelectric Project in Brazil

Velcan Energy announced that it has acquired the Quebra Dedo 16 Megawatts hydroelectric projection in Brazil. Depending on the different authorizations still coming, construction of the Quebra Dedo should start in the first semester of 2009 and the start-up of production in 2010-2011. The Quebra Dedo Hydroelectric project is located on the Suaci Grande River, in the state of Minas Gerais, South-East region of Brazil. Financial terms of the transaction were not disclosed.