NACEL Energy Updates Channing Flats Texas Wind Energy Project

Wednesday, January 7th 2009

NACEL Energy Corporation, a wind power company in business to generate clean, renewable energy, today confirmed it has commenced the collection of site specific wind measurement data at its Channing Flats project site in Moore County, Texas, with the installation of a 60 meter (200 ft.) NRG Systems meteorological tower transmitting data back to NACEL Energy, via an Iridium satellite uplink.

NACEL Energy’s analysis indicates that the construction of a series of 10 MW phases is optimal at Channing Flats and that 20 MW, or more, of generating capacity may be achievable at build out. 20 MW of wind power is sufficient energy to meet the daily requirements of an estimated 6,000 average American homes.

While the Channing Flats wind data is collected and modeled, additional development milestones are to be undertaken by NACEL Energy including, without limitation, interconnection engineering, turbine engineering and obtaining turbine debt financing. Accordingly, the Company cautions that commissioning (completion) at Channing Flats is not expected until at least the end of the Company’s fiscal 2009-10 year, or later depending on future events.

NACEL Energy Chief Executive Officer, Brian Lavery, stated, “NACEL Energy is committed to updating shareholders and interested parties as important milestones at our wind power generation projects are achieved, or when other significant events occur. The successful ongoing collection and modeling of wind data at Channing Flats, as confirmed today, underpins our upcoming interconnection and turbine negotiations. Consequently, we advise the pace of development of Channing Flats (as well as of Blue Creek, our 30 MW Texas project, updated November 7, 2008) is proceeding satisfactorily and as contemplated by the Company.”