Canasia Power Secures 2nd Major Power Project in India

TORONTO, ONTARIO--(Marketwire - Jan. 16, 2009) - Canasia Power Corp. ("Canasia"), a Canadian power development company, is pleased to announce that it has been selected and approved to develop, construct and own a 1,320MW (2 x 660MW) supercritical thermal power plant in the State of Gujarat, India.

The Company entered into a Memorandum of Understanding on January 13, 2009, with the State Government of Gujarat, Ministry of Energy and Petrochemicals, to develop the 1,320MW thermal "clean-coal" project to be constructed and commissioned by 2014.

Gujarat is the westernmost State in India and one of India's foremost industrialized and prosperous States. This power project is to be constructed on the coast, facilitating the potential import of fuel required.

Canasia is the developer and sponsor of the advanced 1,320MW 'Jawaharpur' Supercritical Thermal Power Project near the capital city of Delhi, in the northern State of Uttar Pradesh. The Jawaharpur Power Plant is anticipated to achieve financial closure latter part of this year, 2009, and will supply critically needed power to the State and to Delhi.

With the second power project of equal size, Canasia is now the developer of over 2,500MW of power in India, one of the strongest growing economies in the World.