Mr. Mike Garland reports

PATTERN ENERGY REPORTS THIRD QUARTER RESULTS

Pattern Energy Group Inc. today released its financial results for the third quarter of 2014.

Highlights (comparisons made between fiscal third-quarter 2014 and fiscal third-quarter 2013 results, unless otherwise noted):

• Cash available for distribution of $10.9-million, up 73 per cent;
• Adjusted earnings before interest, taxes, depreciation and amortization of $44.3-million, up 39 per cent;
• Proportional electricity sales of 710 gigawatt-hours, up 94 per cent;
• Revenue of $71.5-million, up 25 per cent;
• Added three new projects to the identified ROFO list, representing an addition of 283 megawatts of owned interest, including the first solar project;
• Declared a fourth-quarter dividend of 33.5 cents per Class A common share, or $1.34 on an annualized basis, representing a 2-per-cent increase over the previous quarter's dividend.

"It was a strong quarter, as our production and cash flows clearly demonstrate. We continue to add projects to our list of identified ROFO projects, which now totals 724 MW of owned capacity, including our first solar project, which is ready for financing in Chile," said Mike Garland, president and chief executive officer of Pattern Energy. "Our identified ROFO projects provide a clear view of our growth pipeline, while our track record of successfully bringing projects on-line demonstrates our ability to execute. With two more projects scheduled to commence commercial operations this year, we expect to enter 2015 with strong momentum."

Financial results

Pattern Energy sold 710,325 megawatt-hours of electricity on a proportional basis in the third quarter of 2014 compared with 365,766 megawatt-hours sold in the same period in 2013. Pattern Energy sold 2,026,233 megawatt-hours of electricity on a proportional basis for the nine months ended Sept. 30, 2014, compared with 1,331,149 megawatt-hours sold in the same period in 2013. The increases in proportional megawatt-hours sold were primarily attributable to the commencement of commercial operations at South Kent, Panhandle 1 and El Arrayan and an increase in production at Ocotillo.

Net loss in the third quarter of 2014 was $9.3-million compared with net income of $4.2-million in the same period last year. Net loss for the nine months ended Sept. 30, 2014, was $24.0-million compared with net income of $29.4-million in the same period last year. The changes in net income (loss) during the third quarter and year-to-date periods were due primarily to unrealized losses on interest rate and energy derivatives.

Adjusted EBITDA was $44.3-million for the third quarter of 2014 compared with $31.9-million in the same period last year. Adjusted EBITDA for the nine months ended Sept. 30, 2014, was $140.4-million compared with $112.4-million in the same period last year.

Cash available for distribution in the third quarter of 2014 was $10.9-million compared with $6.3-million in the same period last year. CAFD for the nine months ended Sept. 30, 2014, was $44.8-million compared with $37.0-million in the same period last year. The $4.6-million and $7.8-million increases, in the respective periods, were primarily the result of a distribution from unconsolidated investments and the commencement of commercial operations at the El Arrayan and Panhandle 1 projects.

Quarterly dividend

Pattern Energy declared an increased dividend for the fourth quarter of 2014, payable on Jan. 30, 2015, to holders of record on Dec. 31, 2014, in the amount of 33.5 cents per Class A share, which represents $1.34 on an annualized basis. This is a 2-per-cent increase from the third-quarter 2014 dividend of 32.8 cents.

Construction pipeline

The table outlines Pattern Energy's projects currently in construction, the capacity owned or under contract to be acquired, and each project's anticipated commencement date for commercial operations.

                                              
Asset        Location  Owned MW   Commercial operations

Panhandle 2     Texas       147                 Q4 2014              
Grand         Ontario        67                 Q4 2014              
Total                       214                          

Acquisition pipeline

Pattern Energy has the right of first offer (ROFO) on a pipeline of acquisition opportunities from Pattern Development. In addition, Pattern Energy may seek to acquire assets from third parties.

On Sept. 30, 2014, Pattern Energy announced the addition of two new projects, Conejo Solar and Belle River Wind, to its list of identified ROFO projects from Pattern Development. With these new additions, and the Logan's Gap project announced in August, Pattern Energy has now identified seven projects with a total owned capacity of 724 megawatts in the list of identified ROFO projects.

Conejo Solar is the first solar project identified within Pattern Energy's list of identified ROFO projects. It is a 104-megawatt photovoltaic solar project that is being constructed approximately 30 kilometres east of Taltal in Chile's Atacama Desert. Conejo Solar is 100 per cent owned by Pattern Development, with Pattern Energy's ROFO providing at least a 73-megawatt owned interest in the project. A third party will have an option to buy a 30-per-cent stake. The project has a 22-year PPA with Minera Los Pelambres, an affiliate of Antofagasta Minerals SA, for approximately 70 per cent of the project's output over the term of the agreement. Pattern Energy has an existing relationship with Minera Los Pelambres, which has a long-term agreement to purchase power produced by the El Arrayan wind facility in Chile. Antofagasta Minerals SA owns a minority interest in the El Arrayan wind facility. Conejo Solar has its required permits and interconnection rights and is ready for construction financing. Pattern Energy anticipates an end-of-year or early 2015 financial closing.

The 100-megawatt Belle River wind project has been jointly developed by Pattern Development and Samsung Renewable Energy Inc. The project, which will be built in Lakeshore, Ont., has a 20-year PPA with the Ontario Power Authority. Belle River wind is in the process of securing its final permits, and construction is expected to begin in the fourth quarter of 2016.

The table sets forth the identified ROFO projects.

                                                                 
Asset                 Location     Owned MW              Commercial  operation

Gulf Wind                Texas           76                        Operational
K2                     Ontario           90            2015  (in construction)
Armow                  Ontario           90             2015 (in construction)
Meikle        British Columbia          185         2016 (ready for financing)
Logan's Gap              Texas          160         2015 (ready for financing)
Conejo Solar             Chile           73         2016 (ready for financing)
Belle River            Ontario           50      2017 (securing final permits)
Total                                   724

Conference call and webcast

Pattern Energy will host a conference call and webcast to discuss these results at 10:30 a.m. Eastern Time on Friday, Oct. 31, 2014. Mike Garland, president and chief executive officer, and Mike Lyon, chief financial officer, will co-chair the call. Participants should call 888-231-8191 or 647-427-7450 and ask an operator for the Pattern Energy earnings call. Please dial in 10 minutes to 15 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial 855-859-2056 or 416-849-0833 and enter access code 22630205. The replay recording will be available until 11:59 p.m. Eastern Time, Nov. 13, 2014.

A live webcast of the conference call will be also available on the events page in the investor section of Pattern's website. An archived webcast will be available for one year.

                  CONSOLIDATED STATEMENTS OF OPERATIONS
          (in thousands of U.S. dollars, except per-share data)

                                             Three months ended Sept. 30,
                                                      2014           2013
Revenue
Electricity sales                                  $ 64,251      $ 37,950
Energy derivative settlements                         2,591         2,656
Unrealized gain (loss) 
on energy derivative                                  3,139         6,659
Related party revenue                                   868           202
Other revenue                                           670         9,790
Total revenue                                        71,519        57,257
Cost of revenue 
Project expense                                      23,835        14,592
Depreciation and accretion                           30,015        21,194
Total cost of revenue                                53,850        35,786
Gross profit                                         17,669        21,471
Operating expenses 
General and administrative                            5,772           214
Related-party general and administrative              1,492         3,607
Total operating expenses                              7,264         3,821
Operating income                                     10,405        17,650
Other income (expense) 
Interest (expense)                                  (17,999)      (14,695)
Equity in (losses) earnings
in unconsolidated investments                        (5,002)        1,845
Interest rate derivative settlements                 (1,030)       (1,059)
Unrealized gain (loss) on derivatives                    66           776
Related party income                                    664            --
Net (loss) gain on transactions                         (68)           --
Other income, net                                       145           321
Total other (expense)                               (23,224)      (12,812)
Net (loss) income before income tax                 (12,819)        4,838
Tax (benefit) provision                              (3,538)          595
Net (loss) income                                    (9,281)        4,243
Net (loss) income attributable to
non-controlling interest                             (2,073)        3,248
Net (loss) income attributable to
controlling interest                                 (7,208)          995
Cash dividends declared
on Class A common shares                            (15,258)
Deemed dividends
on Class B common shares                             (7,222)
Net (loss) attributable
to common stockholders                              (29,688)
Earnings (loss) per share
Class A common stock 
Basic (loss) per share                                (0.15)
Diluted (loss) per share                              (0.15)
Class B common stock 
Basic and diluted (loss) per share                    (0.06)
Cash dividends declared
per Class A common share                               0.33
Deemed dividends per Class B common share              0.46

We seek Safe Harbor.