Sequoia Energy Inc. Announces Manitoba Investment in Renewable Energy Development

WINNIPEG, MANITOBA--: Sequoia Energy Inc. (the "Company") today announced that it has closed an offering of preferred shares through Crocus Investment Fund. Net proceeds from the offering will be used to fund the development and pre-construction work of the 99 MW St. Leon Wind Energy Project and with the balance of the proceeds being utilized for the development of new prospects and for general corporate purposes. The St Leon project will be the largest individual wind development in Canada and the construction schedule as well as the final ownership structure will be announced in a forthcoming release.

"We are pleased that Sequoia selected Crocus as their investment partner" say James Umlah, Crocus' Chief Investment Officer. "They had many potential partners to work with and we think they selected Crocus because of our focus on investing in companies with significant profit potential, and the fit with our broader goal of creating responsible development of Manitoba companies and sound community initiatives. I also believe our record of bringing global partners to an initiative like this was a key factor in Crocus being selected."

The Crocus investment opens the door for all Manitobans to join in the growing momentum of clean energy projects. "Today's announcement is just the beginning," adds Umlah. "With Sequoia Energy we are creating a brand new industry in Manitoba that in the long term will lever more than $200 million in economic development right here in Manitoba. This gives Crocus shareholders the opportunity to benefit as early stage investors, facilitates significant job creation that will benefit all Manitobans, and provides an important source of income for family farmers and other Manitoba landowners. It is the perfect Crocus project."

The investment by Crocus in Sequoia Energy complements a previous investment by Genesis Capital Corporation. Genesis Capital is the investment subsidiary of the Kraus family. The Kraus family is committed to supporting clean energy development and has had extensive experience in the development of new energy based technologies on an international level through previous owned Companies. The combined investments create a solid Manitoba base in which the Company will expand and develop significant new wind energy projects in Manitoba and the rest of North America.

To further attest to the Company's belief in the Manitoba opportunities, Sequoia Energy's President, Bob Spensley, is also pleased to announce it has selected Manitoba as its new head quarters for operations. Sequoia has established its legal team, its accounting functions, and its environmental advisory resources in Winnipeg; it is now in the process of setting up the new corporate office.

In a move to reinforce its Manitoban team, as part of the noted Genesis investment, Sequoia gains the expertise of Ron Diduch, in the new role of Chief Operating Officer for Sequoia. Diduch has previous experience in the local and international energy field with Westcoast Energy, Canadian Utilities and as President of the former Kraus Group. Diduch was recently CEO of Jazz Golf Equipment Inc.. "I'm thrilled to be working in such a meaningful yet challenging new industry with dynamic people and it is quite enjoyable to move back to the energy industry especially when there are so many exciting new technologies that will change the industry over the next decade" says Diduch.

Spensley states, "Our recent investments have facilitated our Company's building a solid base of expertise in our new home base. I personally want to express my deep gratitude to our new partners, Genesis and Crocus, for their investment and support. We are also extremely pleased by the operational expertise that Ron Diduch is bringing to Sequoia Energy. Further announcements regarding our growth in Manitoba will be forthcoming."

Through renewable energy development, Sequoia Energy Inc. is helping to create a new industry in Manitoba. In the process, it is working diligently to ensure that Manitobans benefit from it as much as possible. Sequoia has concluded that the potential exists in the Province of Manitoba to support between 600 and 1,500 MW of wind based electricity generation. This would represent $1 to $2 billion of capital investment and construction activity as well as provide approximately $3 to $8 billion of power production over the lifetime of the projects. A 100 MW facility is sufficient generation to supply a community of 40,000 households and can be constructed in approximately one year. The Wind generated power would be complementary to hydro-based power development and together this can provide a natural way to manage the energy. The available energy will help contribute to a long-term sustainable energy model as well as increase the export potential for the Province of Manitoba.

Wind energy is the fastest growing segment of the renewable energy sector. The wind energy market had a value of $7.5 billion US last year and is expected to grow to over $47.6 billion US over the next decade.

Corporate Overview: Sequoia Energy Inc. ("Sequoia") is a Canadian based renewable energy development company. Sequoia is an affiliate of WK Windkraft Kontor Planungsgesellschaft mbH ("WK") of Kassel, Germany. This affiliation has established Sequoia as a leading expert in the field and has developed the capacity to provide this knowledge in the North American market. The company currently delivers a variety of wind-based solutions comprising the best aspects of project management with pro-active, progressive partners. WK currently has 9 sites operating in Germany and more than 20 sites in development in France, Germany and Greece.

Sequoia Energy Inc. is differentiated from all other Canadian wind development companies because it incorporates:

• Extensive experience developing wind farms in Europe
• Expertise in operating and administrating wind farms in Europe
• A significant portfolio of sites identified and selected for development
• Corporate philosophy which strongly establishes local community participation in the development and planning of new energy projects

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