TSX : AXY

VANCOUVER, Dec. 19, 2011 /CNW/ - HS Orka hf ("HS Orka"), a 75%-owned subsidiary of Alterra Power Corp. (TSX: AXY) has received results from an arbitration proceeding concerning the validity of a power purchase agreement between HS Orka and Norðurál Helguvík ehf, under which HS Orka would supply power to a new aluminum smelter that Norðurál is constructing in Helguvík, Iceland.

The results of the arbitration were mixed, with each party succeeding on certain aspects of their claims. While the award confirmed a contingent obligation for HS Orka to deliver a portion of the power for the new smelter, this requirement remains subject to the satisfaction of a number of conditions that the tribunal ruled have not yet been fulfilled.  The tribunal dismissed Norðurál's claim for damages.

HS Orka will work with Norðurál to seek a satisfactory resolution to all issues arising out of the award.

Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations, management's expectations regarding our growth, business prospects and opportunities and energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.