Mr. Walt Howard reports

ALTER NRG REPORTS FIRST QUARTER 2012 ACTIVITIES AND FINANCIAL RESULT

Alter NRG Corp. has released its results for the three-month period ended March 31, 2012.

Alter NRG is pleased to be presenting highlights for its first quarter of 2012, as revenues have increased by 15 per cent over the prior quarter. This is reflective of a maturing business plan with significant long-term potential.

First quarter highlights

The first quarter of 2012 was a significant milestone as the company began the fabrication of the Westinghouse Plasma gasification solution for Air Products. The fabrication is approximately 7 per cent complete at March 31, 2012, and is progressing on time and on budget. The project is progressing full swing, and the company expects a very busy remainder of 2012.

Westinghouse Plasma

• Westinghouse Plasma had sales of $1.4-million, which is an increase over prior quarter, reflecting the sale to Air Products of the large-scale gasification solution. Revenue is expected to continue to increase in 2012 as the pace of fabrication increases.
• Westinghouse Plasma executed approximately 7 per cent of the purchase order from Air Products, a United States-based Fortune 500 company.
• SMS Infrastructure (which has already constructed two hazardous waste facilities) advanced two projects into the formal regulatory approval phase, with an expected equipment order in late 2012 or early 2013. These are the more advanced projects within a larger pipeline of projects that SMS is developing and marketing in India and the Middle East. SMS is a licensee of the Westinghouse Plasma gasification solution, and provides turnkey hazardous waste facilities to the market. It has approximately 140 people in its gasification division.
• Westinghouse Plasma supported the final engineering for Wuhan Kaidi, which continued construction of its demonstration facility in China. Upon successful demonstration (expected in the third quarter of 2012), Kaidi has more than 100 sites identified to take biomass and convert it into power and ethanol.
• Westinghouse Plasma supported a demonstration facility in Shanghai, China, for which it has delivered the detailed engineering and torches. The facility has finalized its feedstock agreement with a large Chinese waste company, and its site location, and the site plan is advancing.
• Westinghouse Plasma finalized the detailed engineering on the standard design of the 200-tonne-per-day Westinghouse Plasma gasification solution for a project in Minnesota being developed by the Koochiching Development Authority. The standard 200- to 400-tonne-per-day gasifier is expected to sell for $12-million, and the project has now applied for regulatory approval.
• Westinghouse Plasma continued the regulatory process and financing efforts for the Dufferin county energy-from-waste project in Ontario, using the standardized 200- to 400-tonne-per-day gasification solution. This project currently is being developed by Alter NRG through a subsidiary called Navitus Plasma.
• Westinghouse Plasma completed the necessary technical work with Coen Company Inc., a leading boiler burner manufacturer worldwide, to provide syngas as a viable replacement fuel to power plants that currently use fuel oil. The company is in commercial discussions with several island nations to provide its fuel replacement solution, which delivers significant economic and environmental benefits.
• With the introduction of Walter Howard as the newly appointed chief executive officer, the company began creating a structure for its investment options in current projects, to provide a more formal financing structure for the following investment options. Alter NRG has options to invest with key customers, including Air Products, which will allow the company to elect on the option after the project receives regulatory approval but without any promoted costs. This is a favourable option for the company, as it does not have to deploy the risky development capital but can participate in the project level annuity cash flow after the project has been derisked.

In addition to the highlights above, customers around the globe continue to advance their business development efforts using the Westinghouse Plasma gasification solution. This includes exclusive licence agreements for territories that are in advanced negotiations.

Corporate

• The company announced the sale of CleanEnergy, the company's geo-exchange division, for $5-million, so that the company could focus exclusively on the plasma gasification business. The transaction is expected to close in May, 2012.
• The company hired Mr. Howard as CEO. Mr. Howard brings more than 30 years of global project development experience, specifically renewable energy experience, including energy-from-waste, wind and water projects. Within these industries Mr. Howard has successfully executed technology development and implementation, project development and execution, and project finance.

CEO's message

"I want to start my message by saying that I am privileged to assume the role of CEO of Alter NRG Corp., following Mark Montemurro, who led the corporation since its founding in 2006. Under his leadership, the corporation developed an excellent platform for growth. I was compelled to join Alter NRG Corp. because of the technology -- it genuinely is world class and can change the face of the industry.

"While it's true that we live in fast-paced times, when markets expect quick, if not immediate, results, it would have been a mistake to rush to action simply to make a mark without first taking the time to investigate the present landscape of the corporation. What I've happily discovered since coming aboard is that the staff at Alter NRG matches the quality of the technology. We are fortunate to have outstanding and dedicated professionals across all departments and locations. In this regard, I am pleased to be working with a seasoned team that represents decades of experience in engineering, technology and business, with a great mix of various fields of knowledge. We have what we need to take the corporation to the next stage of growth.

"I have not come to this role with a radically new vision for the corporation, but with a sharply defined focus. We are a technology provider. Our focus is on plasma gasification technology for energy creation and as a solution to waste management issues. Our product is a solution to two of the most pressing problems of our time, and our job now is to get that product into the hands of vetted advocates. We're on the right road in this regard. The Tees Valley project is providing us the opportunity to substantiate our technology and engineering in a very big way -- not only to Air Products and Chemicals, but to the industry as a whole. There is a consensus among leaders that priority No. 1 for any company is excellence in execution, and there has never been a time in our corporation's history when this statement has been so meaningful. I understand the importance of integrating strategy and operations and in doing so creating sustainable excellence in performance. We know what is at stake, and I have reorganized the team to make it happen efficiently.

"We are committed to giving the market concrete value, and have revised our sales strategy with clear and more targeted value propositions and better-defined go-to-market strategies. We are focused on getting deals across the finish line. That means licensing deals, gasifier sales and engineering sales. We are approaching our business with discipline. Alter NRG is not a project development company, and we do not provide project financing. However, our support and advice, and the ability to bring co-investors to our customer's projects, does something that is critical -- it provides our customers, who are the developers, a better certainty of getting their projects financed. When the core technology is in the middle of the structuring and ownership box, financiers gain confidence because they know we are invested beyond reputation in the long term success of the project.

"This is the experience that I bring. Throughout my career in the energy technology sector, I have been on both sides of this scenario. I have both provided and raised project financing for natural gas, coal and wind projects for decades. With both broad and deep knowledge of the industry, I understand the model and I have the strategy to make this work. That matters because plasma gasification is a long-term story; there is no predicting the ups and downs of capital markets, but energy and waste management solutions are always in demand, critical demand in some cases, and with a disciplined approach, Alter NRG is uniquely positioned to grow and be successful, and to build value for our shareholders.

"We are charting a path to success for our corporation, our customers and our shareholders. Our team has the commitment and dedication to execute our strategic plan, and I look forward to advancing the Alter NRG story with them and with you, our valued shareholders."

                                                                               
                                   INCOME STATEMENT 
                                                                        Three months ended      
                                                            March 31, 2012  March 31, 2011
                                                                                        
Sales                                                         $  1,378,457    $  1,365,298
(Loss) from continuing operations                               (2,593,108)     (2,456,772)
(Loss) from discontinued operations                               (350,307)     (1,476,108)
Basic and diluted (loss) per share -- continuing operations          (0.04)          (0.04)
Basic and diluted (loss) per share -- discontinued operations        (0.01)          (0.02)

We seek Safe Harbor.