Pasto Bueno: Commissioning of the first phase of the Pasto Bueno hydroelectric scheme
Montr�al, Qu�bec, April 24, 2008 - Malaga Inc. (TSX: MLG) is pleased to announce that the reconstruction of the Pasto Bueno hydroelectric scheme is progressing according to schedule. The rehabilitation of the first phase of the scheme was completed in November 2007, and the commissioning took place in December 2007, thus enabling Malaga to considerably reduce its fuel consumption. The final technical conformity tests were successfully completed in March 2008, enabling the rehabilitation of the second phase of the scheme to progress according to schedule. It is expected to be commissioned mid 2008. The fuel consumption at the mine will then be further reduced, as the power plant will produce a reliable source of renewable energy throughout the year thanks to the large storage capacity of Lake Pelagatos.
The Pasto Bueno hydroelectric scheme is composed of a hydroelectric power plant equipped with 2 Pelton turbines and alternators operating under a 170 m water head and a 22.9 kV high voltage transmission line. Two new 22.9 kV - 380 V substations were built on the Huaura mining compound to supply the ore crushing plant and the main mining galleries with energy. The hydroelectric scheme, initially built in the fifties with an 800 kW installed capacity, was dismantled at the end of last century.
"We are very pleased that the first phase of the scheme is now operational and we are looking forward to implementing all the new possibilities that this new renewable power source makes possible" said Jean Martineau, President & CEO of Malaga. He further stated that "the Pasto Bueno hydroelectric scheme will enable the company to reduce its carbon emissions and will save the company more than USD 500,000 per annum".
The Pasto Bueno hydroelectric scheme is rehabilitated by Hidropesac S.A. a subsidiary of Malaga Inc, in partnership with Electrokraft S.A., a Peruvian energy company, and the Swiss companies Emerging Power Developers Ltd and STUCKY Ltd, a specialist in hydropower. Emerging Power Developers Ltd and Electrokraft S.A. are also shareholders of Hidropesac, and hold respectively 51% and 5%.
ABOUT MALAGA INC.
Malaga Inc. is a tungsten mining company that uses modern, efficient and productive mining technology. The Company is committed to growth, through increasing its tungsten concentrate production, continuing the exploration of the Pasto Bueno property, and through strategic acquisitions. It also seeks diverse growth opportunities such as developing the hydroelectric potential of the Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.3%.
For more information, please contact:
President & CEO
514 288-3224 ext. 224
RENMARK FINANCIAL COMMUNICATIONS INC.
JAMES BUCHANAN: JBUCHANAN@RENMARKFINANCIAL.COM
�RIC SAINT-PIERRE: ESTPIERRE@RENMARKFINANCIAL.COM
TEL. : 514 939-3989
FAX : 514 939-3717