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Western GeoPower Corp. (WGP)

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Tuesday 27 January, 2009

Western GeoPower Corp.


Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this 

                            NEWS RELEASE




VANCOUVER, Canada,  January 26,  2009, TSX  Venture Exchange  Trading
Symbol: WGP -  Western GeoPower  Corp., a  renewable energy  company,
today announced that it has entered into a new US$11 million  secured
loan facility.   Under the  terms of  the loan  facility the  initial
tranche of US$7 million will be available to the company upon receipt
of approval of the TSX Venture Exchange for the issuance of  warrants
and the  payment of  certain lending  fees and  expenses. The  second
tranche of US$4  million will be  available to the  company when  all
conditions precedent to  that tranche  have been  met, including  the
perfection of  security,  the  discharge  of  any  liens  other  than
permitted liens, payment  of certain lending  fees and expenses,  and
that no event of default then exists.  Interest will be payable at  a
rate of 1% for the first six months, 1.25% for the second six  months
and 1.5% thereafter.

As partial consideration  for entering  into the  loan facility,  the
company has agreed to issue 43,495,543 warrants of the company,  each
warrant being exercisable for  a period of 24  months at a price  per
warrant of  CDN$0.14.  The  warrants and  underlying shares  will  be
subject to a hold period of four months following their issuance.

The  proceeds  of  the  loan  may  be  used  for  drilling,   project
management, development cost, plant  equipment, and up to  US$300,000
in monthly working capital and general corporate purposes.

On November  7,  2008, the  Company  entered into  an  initial  US$11
million secured loan facility, which has been fully drawn upon by the

The company will file a material change report as soon as practicable
after issuing this press release. The material change report will  be
filed less than 21 days prior  to the closing of the loan  agreement.
The timing of the material change  report is, in the company's  view,
both necessary and reasonable because the terms of the loan agreement
were settled and approved by the company's board of directors and the
company requires immediate funding to  maintain the schedule for  its
project at The Geysers Geothermal Field in California.

About Western GeoPower Corp.
Western GeoPower Corp. is a renewable energy company dedicated to the
development of geothermal energy projects for the delivery of  clean,
sustainable,  baseload   electricity  generation.   The  Company   is
developing The Western GeoPower Unit 1 geothermal power plant at  The
Geysers Geothermal Field in California,  United States and the  South
Meager Geothermal Project in British Columbia, Canada.
On behalf of the Board of Western GeoPower Corp
"Kenneth MacLeod"
Kenneth MacLeod, President & CEO
Cautionary Note Regarding Forward-Looking Statements
Statements in this  release that are  forward-looking are subject  to
various risks  and  uncertainties  concerning  the  specific  factors
identified  above  that  reflect   the  Company's  expectations   and
projections  about  its  future  results.    The  Company  has  tried
whenever possible to identify these forward-looking statements  which
include  but  are  not  limited  to,  words  such  as  "anticipates,"
believes," "estimates," "expects,"  "plans," "intends,"  "potential,"
and  similar  expressions.    Although  the   Company  believes   the
expectations expressed in such  forward-looking statements are  based
on reasonable  assumptions, such  statements  are not  guarantees  of
future performance  and actual  results  or developments  may  differ
materially from those in  the forward-looking statements.   Investors
are cautioned that any such  statements are not guarantees of  future
performance and  that  actual  results  or  developments  may  differ
materially from those projected  in the forward-looking  statements.
The Company disclaims  any obligation  or intention to  update or  to
revise any  forward-looking statement,  whether as  a result  of  new
information, future events or otherwise.  Such information  contained
herein represents management's  best judgment as  of the date  hereof
based on information currently available.   This news release is  not
for dissemination in the United States of America or to United States
of America news services.

The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.

For more information or to be put on our email list, please contact
our office: (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322,
email: [email protected]  Investor Relations: [email protected] :
[email protected]

--- End of Message ---

Western GeoPower Corp.
837 West Hastings Street Suite 411 Vancouver, 
BC<br>V6C 3N6 Canada

WKN: 254049; ISIN: CA95827Q1037; 


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