Communiqués de presse

First Asset PowerGen Fund-Value Analysis

TORONTO, December 16, 2008 (PGT.UN) - The Manager of First Asset PowerGen Fund (the "Fund") believes it is appropriate to provide additional analysis of the Fund's assets to enable investors to better assess the Fund's prospects, particularly in light of the unusually large trading discount relative to the Fund's Net Asset Value. It is the Manager's view that the current market price of units of the Fund does not accurately reflect the value of the Fund's underlying assets.

As at December 15, 2008

Fund's Total Net Asset Value:        $89.9 million
Net Asset Value per Unit:            $16.75

Total Market Capitalization:         $29.5 million
Market Price per Unit:               $5.49

Discount of Market Price per Unit
to Net Asset Value:                  67.2%

Composition of Portfolio:

Cash:                                $17.9 million ($3.33/unit)
Publicly Listed Securities:          $20.2 million ($3.75/unit)
Confederation Power:                 $51.1 million ($9.51/unit)
Other Net Assets:                    $0.7 million  ($0.12/unit)

Based on the latest available information, the market price of $5.49/unit reflects a 22% discount to the value of the publicly listed securities and cash, while ascribing zero value to its private assets including Confederation Power Inc.

Description of Confederation Power Inc.

The following disclosure contains forward-looking information. The actual results could differ materially from the forward-looking information. Certain material factors or assumptions were applied in providing this information. Information about the material factors that could cause actual results to differ materially from the forward-looking information is contained in the Fund's most recent annual information form and management report of fund performance. Other than as may be required by law, the Fund and the Manager disclaim any obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.

Confederation Power Inc. ("Confederation Power" or "Company") is a developer and operator of renewable power projects. Confederation Power focuses its efforts on operating its existing wind power plants, progressing and constructing its developmental pipeline of wind and hydro power projects, and adding new sites to expand its portfolio of renewable energy projects. The Company has over $50 million invested in wind and hydro power development projects representing over 1,000 Megawatts (MW) of development potential, across 35 sites and its project portfolio currently consists of:

  1. 24 MW of operating wind capacity in Nova Scotia contracted to Nova Scotia Power Inc. under long-term power purchase agreements;
  2. 18 hydroelectric sites in development located in British Columbia, representing over 150 MW of capacity;
  3. Expansion potential of over 200 MW at the Nova Scotia wind farms; and
  4. Wind power development prospects in British Columbia, Saskatchewan, and Ontario.

Most recently, Confederation Power submitted 86 MW (hydro power) into the British Columbia Hydro Clean Power Call in November 2008.

Confederation Power's annualized revenues, with installed capacity operating at expected levels, would exceed $4.0 million, and after debt service and anticipated project operating costs would result in approximately $1.6 million of cash flow before operating expenses.

Confederation Power has an experienced management team, with a good mixture of technical and financial backgrounds, and significant experience with the project assets.

Sample Valuation Metrics

Confederation Power has received over $49 million of equity capital. The Company's current book value is approximately $32 million, representing equity capital less cumulative losses and the expected future income tax liabilities as a result of issuing flow-through shares.

On a full year basis, Confederation Power's east coast operating wind assets are expected to generate approximately 65 Gigawatt hours of production.

Wind Asset Valuation Matrix

To provide context to the chart below, a major bank-owned investment dealer recently indicated that its "standard" parameters for performing a net asset value type valuation for operating wind assets include valuing wind production at $820,000 per GWh/y of production.

Value of Wind Assets (net of $16 million debt)

Price                    70               65              60             55
(per GWh)
$800,000        $40,000,000      $36,000,000     $32,000,000    $28,000,000
$700,000        $33,000,000      $29,500,000     $26,000,000    $22,500,000
$600,000        $26,000,000      $23,000,000     $20,000,000    $17,000,000
$500,000        $19,000,000      $16,500,000     $14,000,000    $11,500,000

This information does not reflect the actual performance of Confederation Power and is provided only to illustrate the potential value of a wind asset at various Gigawatt hours of production pursuant to one method of valuation. This information is not, and should not be construed as a description of the future performance of Confederation Power. This information is provided solely for illustrative purposes.

Approximately $16 million has been invested in Confederation Power's hydro assets located in British Columbia, including the purchase of the Company's interest in the 30 MW Anyox hydroelectric power project and its existing dam and the Spuzzum Creek project. The Anyox facility and several nearby proposed run of river projects have been bid into the November B.C. Hydro Clean Power Call.

Unitholders who wish to find out more about Confederation Power can visit its website -

Publicly Listed Portfolio Holdings

Over the past 6 months, the Manager has been selling less liquid names in favour of cash and more liquid utility type holdings. The following were the top 10 publicly listed holdings of the Fund as at December 15, 2008.

Name                                   Symbol
----                                   ------
Northland Power Income Fund            NPI.UN
Transcanada Corp.                      TRP
Pembina Pipeline Income Fund           PIF.UN
Fort Chicago Energy Partners LP        FCE.UN
Inter Pipeline Fund                    IPL.UN
Fortis Inc.                            FTS
Superior Plus Income Fund              SPF.UN
AltaGas Income Trust                   ALA.UN
Enbridge Inc.                          ENB
Atlantic Power Corp.                   ATP.UN

For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit