VANCOUVER, BRITISH COLUMBIA (November 21, 2014) – Eclipsol Energy Inc. (the “Company” or “Eclipsol”) announced today its restructuring into a partnership in order to allow flow through of tax losses to investors.  In the new structure, any tax loss that Eclipsol incurs during the development phase will essentially be transferred to the unit holders. The Company will be converted into a partnership on a tax-deferred basis.  The purpose of the restructuring is to allow for the tax loss that Eclipsol will incur during the development phase to be allocated to the unit holders.  This allows the investor to realize the “flow through” tax deduction in their following tax year, which will reduce the effective investment cost for the investors equal to the top marginal tax bracket they are subject to in their annual tax assessment.

One of the ways deductions can be maximized is by placing the units purchased into an RRSP. The maximum deduction for the unit holders would be equal to the amount they invest in Eclipsol.  Most, if not all of the expenses that will be incurred during the development of Eclipsol’s projects, will result in an immediate tax loss, which will be allocated to the unit holders as the funds are spent (on an annual basis). 

"The tax deduction attributes to develop the projects will enable our unit holders to offset their personal or business taxes, which is more valuable to them personally then to Eclipsol at this point of development," said Robert Coelho, President and Chief Executive Officer of Eclipsol.  "This investment opportunity provides for an excellent entry point to a cluster of the most advanced pumped storage projects in British Columbia."  

About Eclipsol Energy

Eclipsol Energy Inc. is a privately held developer of independent power producer projects.  Eclipsol is focused on developing three pumped storage hydro-electrical facilities located in the surrounding lakes of Quesnel Lake in British Columbia, Canada. Quesnel Lake will be the lower lake storage while Hen Ingram Lake, Whiffle Lake, and Keno Lake will be the upper lake storage. All of the facilities will work in concert to maximize power output and will be modeled to provide an ideal combined output for their load patterns.

Eclipsol has received investigative use licenses for the development of the pumped storage project on each of the Hen Ingram Lake, Keno Lake and Whiffle Lake.  The combined projects will have up to 700 MW in installed capacity.  Eclipsol has also entered into an investigative use agreement with the two First Nation Bands in the area and the Company intends to work closely with those and other stakeholders in developing these projects.  In addition, Eclipsol is managed by a team with extensive experience in the independent power producer sector as well as employing world-class strategic partnerships with leading suppliers of services and equipment.

The use of proceeds will be allocated to advance the projects through environmental permitting, obtaining an electricity purchase agreement and securing our relationships with the First Nations.