Mr. Brent Ward reports

TRANSALTA ANNOUNCES RESTRUCTURED POPLAR CREEK CONTRACT WITH SUNCOR ENERGY AND ACQUISITION OF TWO WIND FARMS

TransAlta Corp. has agreed with Suncor Energy Inc. to restructure its current arrangement for the power generation services of its oil sands base site near Fort McMurray and to acquire Suncor's interest in two wind projects located in Alberta and Ontario.

TransAlta's Poplar Creek cogeneration facility, which has a maximum capability of 376 megawatts, had been built and contracted to provide steam and electricity to Suncor until 2023. Under the terms of the new arrangement, Suncor will acquire from TransAlta two steam turbines with an installed capacity of 132 MW and certain transmission interconnection assets. In addition, Suncor will assume full operational control of the cogeneration facility and have the right to use the full 244 MW capacity of TransAlta's gas generators until Dec. 31, 2030. TransAlta will provide Suncor with centralized monitoring, diagnostics and technical support to maximize performance and reliability of plant equipment. Ownership of the entire Poplar Creek cogeneration facility will transfer to Suncor in 2030.

As part of the transaction, TransAlta will acquire Suncor's interest in two wind farms: the 20 MW Kent Breeze facility located in Ontario, and Suncor's 51-per-cent interest in the 88 MW Wintering Hills facility located in Alberta.

The contract restructuring and asset acquisition provides TransAlta with the following benefits:

• Enhancing long-term value for TransAlta by increasing the duration of the contract until 2030;

• The addition of high-quality renewables assets to TransAlta's wind fleet;

• Sourcing of additional assets for potential future drop-down into TransAlta Renewables of the fully contracted gas generating assets and the two wind projects.

The restructuring transaction is subject to the satisfaction of a number of customary conditions and the receipt of regulatory approval. The transaction is expected to close in the third quarter of 2015.

We seek Safe Harbor.