Alter NRG Corp. and Dufferin County have signed a Memorandum of Understanding to develop an energy recovery facility that will process 75 tones per day of household waste and convert it into approximately two megawatts of electricity in the County of Dufferin, Ontario. The MOU includes funding by Dufferin County of an initial $200,000 of preliminary engineering on the project. In May, 2009, Dufferin selected Alter NRG as the technology provider and initial operator for the energy recovery facility. The facility is expected to be located at a partially permitted site at East Luther Grand Valley. Under the terms of the MOU, Dufferin County will provide the waste feedstock for a 20 year period, a serviced site for the facility, and will work with Alter NRG to obtain regulatory approval, project financing, and government grants for the project. The project will incorporate Alter NRG's commercially proven Westinghouse Plasma Gasification Technology which uses high temperature plasma energy to convert the waste into a syngas and than converted to electricity through conventional turbine equipment. The Westinghouse Plasma Gasification Technology has been used commercially in two energy recovery facilities in Japan for over six years. The Japanese facilities have met all Japanese environmental standards which are similar or more stringent than North American standards. The decomposition of waste in landfills produces methane gas, which is 21 times more potent than CO2 as a greenhouse gas emission.

Alter NRG Corp. has expanded its activity base in North America, the United Kingdom, the European Union and Southeast Asia with further strategic partnerships and facilities being planned or engineered using the Westinghouse Plasma Corp. Plasma Technology in each region. The Westinghouse Technology which is 100% owned by Alter NRG and has been independently ranked as a leading plasma technology, is being applied for renewable and sustainable energy projects worldwide. Alter NRG is pleased to provide a strategic update in each geographic region. Currently, the Company has 16 projects in the engineering stage and over 43 proposed projects being advanced worldwide. Proposed projects are those projects that are actively being developed by customers or strategic partners and are sourcing feedstock, site selection, key contracts and other early stage development activities. Projects in the engineering phase are those projects that are further along and are actively doing engineering work using Alter NRG under a signed engineering services agreement or a broader memorandum of understanding that is being negotiated. Upon successful development, the total revenues to Alter NRG to support the 16 projects in the engineering stage would result in over $400 million in engineering, equipment and licensing revenues.

Alter NRG Corp. reported earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net loss of $6,087,592 or $0.11 per basic and diluted share on revenue, interest and other income of $354,733 compared to net loss of $2,454,308 or $0.04 per basic and diluted share on revenue, interest and other income of $1,363,471 for the same period a year ago. Comprehensive loss was $8,048,276 against $2,670,791 for the same period a year ago. Cash used in operations was $2,800,230 against $2,326,796 for the same period a year ago. Total capital expenditures was $1,652,023 against $5,894,205 for the same period a year ago. For the six months, the company reported net loss of $9,033,141 or $0.16 per basic and diluted share on revenue, interest and other income of $1,605,197 compared to net loss of $4,263,441 or $0.08 per basic and diluted share on revenue, interest and other income of $2,427,320 for the same period a year ago. Comprehensive loss was $10,255,715 against $3,484,531 for the same period a year ago. Cash used in operations was $6,131,830 against $3,523,080 for the same period a year ago. Total capital expenditures was $3,050,175 against $7,863,539 for the same period a year ago. Revenues for the first six months of 2009 decreased by $152,862 or 10% with the majority of the decrease related to the reasons described above related to Project Lighthouse.