TSX - NRG

OTCQX - ANRGF

Calgary, Alberta – August 14, 2009 (TSX - NRG; OTCQX - ANRGF) – Alter NRG Corp., ("Alter NRG" or the "Company") is pleased to report on its corporate activities and financial results for the three and six month period ended June 30, 2009. The following are the highlights for the second quarter of 2009 and the period up to August 13, 2009.

Q2 HIGHLIGHTS

Alter NRG owns an industry leading plasma gasification technology that can provide clean and renewable energy solutions from a variety of inputs including all types of waste and biomass. The technology is commercially proven with facilities operating since 2002. Alter NRG has a unique vision, a strong team, a leading technology, capable strategic partners and financial strength – we are well positioned for the opportunities ahead.

• Substantially completed the construction of Project Lighthouse, a commercial demonstration facility developed by Coskata Inc. (Coskata) that uses the Westinghouse Plasma Corporation (WPC) gasification solution to turn biomass into ethanol. The facility will begin operation in Q3 and represents a significant milestone in the development of cellulosic ethanol from non-food feedstocks.

• Announced the signing of an alliance agreement with Uhde Engineering Consulting (Shanghai) Co. to provide engineering services, marketing services and jointly pursue business opportunities predominantly in the Asia Pacific region, including China. This alliance agreement provides Alter NRG presence on the ground in China and Southeast Asia through a well respected and capable engineering firm.

• Travelled to China to follow up on interest generated from the initial visit in Q1 of this year. Alter NRG is currently advancing discussions with numerous large, credible Chinese companies and advancing a signed memorandum of understanding into a definitive agreement. The interest in China and Southeast Asia for the Westinghouse technology has been significant and the central government has aggressive plans to utilize renewable energy solutions.

• Continued the commissioning of the world's largest hazardous waste-to-energy (WTE) facility in Pune, India. The facility is working through commissioning and expects to be operational in late Q3 or Q4 of this year.

• Advanced discussions in the European market with sizeable companies, respected engineering firms and governments that are looking for renewable energy alternatives. This has resulted in advancing submissions into several WTE projects in the UK and EU, being shortlisted for plasma projects in advanced stages of regulatory approval and also advancing project developments with strategic partners in the area. The European market has very favorable incentives and regulatory framework.

• Advanced commercial discussions for a 75 tonne per day WTE project located in Dufferin County, Ontario. Alter NRG submitted into a request for proposal process and was selected as the technology provider.

• Focused engineering efforts on the construction of the Coskata facility and the preparation for the testing program of our gasification testing facility in Madison, Pennsylvania. This resulted in lower second quarter revenues as the testing facility was closed and our engineering resources were supporting preparation for the upcoming 50 test program in Q3 and Q4 of 2009 estimated at approximately $3 million in revenue.

• Advanced 14 projects located worldwide which are at the engineering stage of the project development. Alter NRG continues to advance discussions with industry leading engineering companies and well capitalized energy companies and project developers which have interest in the industry leading Westinghouse technology (see page 5).

For more information on the Company's activities please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2009 Second Quarter Report.

PRESIDENT'S MESSAGE

The commercialization of a breakthrough technology in an emerging market is an exciting opportunity but also presents execution challenges. Our strategy is to work with industry leading partners that are well capitalized and who also bring significant technical expertise and execution capability. We announced an additional partner this quarter in a new market which adds to our already substantial list of credible industry partners.

Increasing public awareness about utilizing both waste and biomass energy and the many associated environmental benefits is playing a key role in promoting the adoption of the renewable energy concept on a large scale. This is evidenced in the unveiling of the "The American Clean Energy and Security Act" on May 15th of this year. This Act includes credits for both waste and biomass to create renewable energy solutions and illustrates the commitment to sustainable development in the United States.

North America, however, is still playing catch up to the European Union which has favorable credits and incentives for clean and renewable energy solutions. The recent clean energy policies are a great advantage at a time when concerns about the United States dependence on foreign oil are rapidly increasing. However, despite recognizing the benefits of renewable energy, governments in North America have been slow to develop this as a primary energy source. We are making progress, but it takes time to bridge the gap between concept and action.

The Asian and European markets have recognized the development of efficient, sustainable energy as an environmental and economic imperative. It makes sense for us to continue our pursuit of those markets and aim for a presence on the ground in China and Southeast Asia. At the end of Q2, we successfully negotiated an alliance agreement with a well respected and capable engineering firm, Uhde Engineering Consulting (Shanghai) Co. Ltd who will license, market and promote the Alter NRG technology in waste-to-energy projects and other developments. This agreement will increase our sales pipeline and will help to reduce the capital cost of our plasma gasification systems worldwide.

Reflecting on our Company strategy is a key part of our growth and movement forward. At the outset we committed to being an aggregator of commercially proven but still emerging technology in the alternate energy space. It has been our objective to have working relationships with strategically important partners and, to regularly review and refresh these relationships. We are continuing that focus by evaluating and considering how other technology in the alternative energy space could potentially accelerate and strengthen our balance sheet.

Alter NRG continues to grow, and we are maintaining focus on our strategic relationships and the strength of our team. We remain confident that Alter NRG has an exciting future and we thank our loyal shareholders for their confidence in us amid these most challenging economic times.

FINANCIAL RESULTS ($)

For the complete consolidated financial statements please visit www.alternrg.com or www.sedar.com to view Alter NRG's 2009 Second Quarter Report.

MANAGEMENT'S DISCUSSION AND ANALYSIS EXCERPTS

CORPORATE OVERVIEW

Alter NRG provides and pursues alternative energy solutions through gasification to meet the growing demand for clean energy in world markets. The Corporation's vision is to become a leader in the development of economically viable and environmentally sustainable gasification projects for the commercial production of energy. Alter NRG creates revenues by selling plasma gasification technology and through participation in gasification projects that fit its strategic growth plan.

Alter NRG's mission is to maximize returns for its investors by participating in financially accretive projects in the emerging alternative energy market, through technology sales and project interests. Alter NRG endeavors to be a leader in innovative gasification related technologies applied to produce profitable and clean alternative energy solutions. The Corporation invests in the skills of its people who will provide the creativity, determination and passion to generate growth in stakeholder value. The Corporation strives to be transparent and fair in its activities and works to form positive relationships with the communities where it operates and with all of its stakeholders.

Initially, the Corporation is focusing its efforts on technology sales and developing a strategic portfolio of customers with the capability to advance projects from internally generated cash flow. The focus will be to increase near term cash inflows by generating operational revenues and reducing capital expenditures by limiting the working interest we hold in projects and slowing project timelines.

The Corporation owns Westinghouse Plasma Corporation (WPC). WPC has proprietary technology that the Corporation believes is an industry leading technology with the following broad advantages:

• Commercially proven – the technology has been commercially applied, for six years, in facilities in Japan for gasification of waste. The plasma torches, which are core to the overall technology, have been commercially used for over 20 years.

• Environmentally responsible – the technology has the capability to reduce emissions significantly as compared to other conventional fossil fuel technologies.

• Flexible technology – the technology can handle a wide range of feedstocks, including many types of waste (municipal, commercial, industrial, and hazardous), biomass, coal and petroleum coke. The flexibility to accept a variety of feedstocks gives the technology a range of uses and markets to which it can be applied.

• Scalable technology – the technology is ideal for projects with total capital between $50 million and $500 million. The technology is larger scale than most other plasma gasification technologies, and has a longer commercial operating history.

The current economic and capital market conditions provide a challenging environment to navigate. To mitigate the challenges, Alter NRG is focusing on technology sales to parties that bring the capital, skill and expertise to develop energy projects. A core part of the corporate strategy is the use of strategic alliances and partnerships to commercialize the technology into different geographic regions and markets.

HIGHLIGHTS

Technology Sales

Alter NRG has a strategic focus for technology sales to large waste and energy companies with the ability to advance plasma gasification projects in this challenging market environment. The Corporation is initially focusing on opportunities in North America, the European Union and Southeast Asia. Discussions have advanced with numerous companies with strong balance sheets and a focus on renewable energy solutions. Alter NRG has significant strategic customers and alliances with NRG Energy, a leading independent power producer in the US, Air Products, a world leader in industrial gasses, Coskata Inc., a leading cellulosic ethanol developer, and also credible engineering firms such as Uhde Shanghai, Saipem, and SMS Infrastructures Ltd.

In the first half of 2009, the Corporation announced the signing of a Joint Development Agreement with Air Products to pursue renewable energy opportunities in North America and Europe. Air Products is a leading industrial gas provider and a Fortune 500 Company, with annual revenues of over $10 billion, operations in more than 40 countries and 21,000 employees. The non-exclusive agreement allows Air Products to license and incorporate Alter NRG's proprietary Westinghouse Plasma Gasification technology in renewable energy projects. Air Products will initially focus on developing energy facilities using renewable feedstock to generate synthesis gas (syngas – a mixture of hydrogen and carbon monoxide) for power, heat or steam generation.

Alter NRG continued to advance Project Lighthouse, a commercial demonstration facility developed by Coskata Inc. (Coskata) that uses the WPC gasification solution to turn biomass into ethanol. This breakthrough technology will use non-food biomass (waste biomass) to create ethanol at a market leading low cost, which is expected to be under $1.25 per gallon. Coskata, a leading second generation ethanol company, was recently named number one in the "50 Hottest Companies in Bioenergy". Project Lighthouse is expected to generate approximately $3 million in revenues for use of our plasma centre and has attracted international interest from leading energy companies and developers from around the world. Coskata is also advancing engineering on their first commercial facility which is expected to generate approximately $50 million in engineering services and equipment sale revenues.

NRG Energy, another strategic partner, continues work on multiple projects using plasma gasification. The Somerset project operated by NRG Energy will convert coal and biomass into 120 MW of power. This project received regulatory approval from the Department of Environmental Protection of Massachusetts on January 25, 2008, but was subject to various regulatory appeals. Management understands that NRG Energy anticipates commencing construction during 2010 and currently this would result in an approximately $40 million sale of equipment. The Corporation also supports NRG Energy's project development efforts on other waste-to-energy (WTE) projects and coal retrofit opportunities.

The Corporation announced the signing of an alliance agreement with Uhde Engineering Consulting (Shanghai) Co. Ltd. Uhde is one of the world's leading engineering companies in the design and construction of chemical, refining and other industrial plants with over 2000 plants to its credit. The non-exclusive alliance agreement allows Uhde to license, market as well as promote the Alter NRG technology in waste-to-energy projects and other developments. The alliance agreement includes a preferred engineering relationship for engineering and procurement support for the projects requiring the syngas conditioning and gasification expertise that Uhde Shanghai and Alter NRG, respectively, can provide its customers in the China and Southeast Asian market.

During the first half of 2009, management continued its marketing efforts in Europe and China for discussions with companies advancing renewable energy projects. The response was very positive and resulted in commercial discussions with several different companies. This includes two developers entering proposals for a waste project, entering final round technology discussions for several projects in Spain and signing an initial MOU with a company in China. Further details will be available when binding contracts are executed.

The Company continued to advance 14 projects to the engineering stage. Nine opportunities are located in the United States, three in Europe and two in Southeast Asia. An average plasma gasification equipment sale would result in approximately $10 million to $100 million of revenues upon successful development.

Customer Projects Under Construction

Continuing projects that align with Alter NRG's strategic focus include the following:

• Project Lighthouse is a 40,000 gallon per year ethanol commercial demonstration project developed by Coskata. Coskata expects to complete the project, located at the Alter NRG pilot facility in Madison, Pennsylvania, in the summer of 2009. The existing plasma gasifier provides the syngas that will then be converted to ethanol through the Coskata proprietary conversion process. The Corporation expects this ethanol commercial demonstration project to result in $3.0 million in total revenues in 2009 and 2010. Further, the Corporation expects a successful demonstration will attract key customers with a focus on renewable energy to the Alter NRG pilot facility in 2009.

• SMS Infrastructure Limited (SMSIL) consists of two hazardous WTE facilities under construction in India. The first facility in Pune has undergone initial commissioning and is resolving several integration challenges. The first facility became operational in the second quarter of 2009 and is currently undergoing further gasifier design changes. Both facilities will use Alter NRG plasma gasification technology to convert approximately 68 tonnes per day of hazardous waste into power. The facilities are owned and operated by SMSIL, central India's largest civil engineering and infrastructure development company. These facilities will increase the number of commercial facilities processing waste using Alter NRG's technology from two to four and provide commercial experience for smaller scale industrial waste solutions that can be replicated.

Alter NRG Project Development

As a means to reduce Alter NRG's capital requirements the Corporation has adopted a staged approach for internally led projects under development, as described below:

• Fox Creek, Alberta is a coal-to-liquids project expected to produce up to 40,000 barrels per day of diesel fuel and naphtha from Alter NRG's existing coal reserves. Alter NRG is reducing project development expenditures to less than $1.5 million in 2009 on work defining the project scope. The delayed timeline will postpone completion of the development until late 2015, subject to successful partner selection by the end of 2009.

SELECTED FINANCIAL INFORMATION

PLASMA TECHNOLOGY SALES AND SERVICES

Plasma technology sales and service revenues result from engineering services provided for reactor design and process engineering, replacement parts for existing gasification customers and plasma gasification testing services provided at the Corporation's testing centre pilot facility located in the United States (US).

Direct costs of sales relate to direct materials and expenditures for products and services and reflect standard rates. Margins in 2009 are higher than 2008 due to the reduced amount of direct labor spent on engineering products.

The Corporation's revenue generating projects are advancing as expected and will generate revenues that vary from one quarter to the next. Revenues for the three months ended June 30, 2009 decreased over the prior period by 65% or $555,417. This is attributed to the shut down of the pilot facility for third party testing services and allocation of our engineering resource to prepare for Coskata Project Lighthouse. The Coskata Project Lighthouse has contracted to do 50 pilot tests between September 2009 and June 2010 which is expected to generate approximately $3 million in revenues. In the second quarter of 2008, the majority of revenue was derived from testing services conducted by WPC.

Revenues for the first six months of 2009 decreased by $152,862 or 10% with the majority of the decrease related to the reasons described above related to Project Lighthouse.

Alter NRG anticipates a key revenue stream from equipment sales of a plasma torch or a plasma gasification island. Plasma torches are one component of the plasma gasification island and the sale of torches used in a small scale gasification facility generates approximately $1.5 million to $3.0 million in revenue. The Corporation plans to sell a full scope gasification solution, the plasma gasification island, to third party project developers which would generate revenues of approximately $25 million each. Alter NRG has devoted significant efforts expanding its product offering while completing the engineering studies and product design enhancements required to construct the plasma gasification island.

The Corporation works with project developers worldwide in the early stages of planning and developing plasma gasification projects. Engineering services are required in the preliminary planning phase and equipment is ordered only after a project has received regulatory approval and project financing thus these sales have a long lead-time.

Since the Corporation purchased WPC it has tripled its number of customers. Key customers advancing commercial projects include SMSIL, Coskata, NRG Energy, and Air Products (see the Highlights section). These companies indicate they expect to order equipment in 2010 to support their development activities. Alter NRG also has 14 engineering sales for customer projects in various stages of development (see the Business Conditions and Risks section).

INTEREST AND OTHER INCOME

Interest income relates to funds invested in short-term, interest-bearing investments with a Canadian chartered bank and decreased by 76% for the six months ended June 30, 2009 versus the six months ended June 30, 2008. The decrease reflects the average interest rate earned on investments of approximately 0.8% and 0.5% for the current six month and three month periods versus the average 3.5% and 3.1% earned on investments for the same periods in 2008. The decrease in interest income also was due to lower levels of investments on hand during the current periods.

In July of 2009, the Corporation moved its investment to investment grade fixed income investments that provide for an improved rate of return.

GENERAL AND ADMINISTRATIVE EXPENSES

Employee costs increased due to the increased number of staff required to enact the Corporation's corporate growth strategy. At June 30, 2009, the team included 46 full time employees – 28 in the Calgary office and 18 in the US – compared to 29 employees at June 30, 2008. The Corporation does not expect significant changes to the current headcount for the remainder of 2009.

Office costs for the three and six months ended June 30, 2009 increased by $168,743 and $403,654, respectively. Both increases are due to increased expenditures for rent and insurance costs as the Corporation continues to ramp up its sales efforts in North America.

Repairs and maintenance for the three and six months ended June 30, 2009 increased by $366,535 and $390,745, respectively. The increase is due to one-time expenditures related to preparations for Project Lighthouse.

Professional and consulting fees consist primarily of audit and accounting fees, external recruiting fees and consulting and legal fees for business development. A portion of these fees are paid in US dollars, resulting in an increase in costs for the first six months of 2009 due to the strengthened US dollar compared with the same six months in 2008.

Travel costs for the three and six months ended June 30, 2009 increased by $12,958 and $58,967, respectively. Both increases are due mostly to expenditures related to trips to the European Union and China to meet with potential strategic partners.

The Corporation has recorded a provision in the amount of $120,620 at June 30, 2009 (December 31, 2008 – nil) after the completion of its review of all outstanding accounts receivable to assess whether the amounts are recoverable. A significant portion of the trade accounts receivable outstanding for greater than 90 days has been collected subsequent to June 30, 2009. The Corporation believes the remaining amounts will be collected.

Business development costs include the costs of acquiring and developing strategic partnerships for project development efforts.

Other costs include public reporting costs, IT-related costs, advertising, promotion and banking charges and are consistent with the increase in personnel.

Total general and administrative costs for 2009 are expected to be approximately $13 million, which reflects staffing at current levels for a full year and associated costs to support the current activity levels. Should prolonged negative market conditions persist or customer activity decline in a significant way, general and administrative costs will be evaluated and reduced.

FOREIGN EXCHANGE LOSS, NET

Foreign exchange relates mostly to US dollar amounts loaned to the US subsidiary. The increase in foreign exchange losses for both the three and six months ended June 30, 2009 compared to the prior year is mostly due to the strengthening of the Canadian dollar during the first six months of the year.

DEPRECIATION AND AMORTIZATION

The increase in depreciation for the six months ended June 30, 2009 over the same period in 2008 reflects a full six months of depreciation on the US facility upgrade, completed at the end of the first quarter of 2008. No depreciation was recognized on this asset in the first quarter of 2008.

Amortization relates to the intangible assets acquired on the purchase of the US subsidiary on April 17, 2007. The intangible asset is being amortized on a straight-line basis over an estimated useful life of thirty years.

WRITE DOWN OF ASSETS HELD FOR SALE

During the three months ended June 30, 2009, the Corporation determined that it would discontinue development of the Bruderheim property and began to actively market the property and equipment to potential buyers. The property consists of land, a building and a steam turbine.

During the three months ended June 30, 2009, the Corporation recognized an impairment of $1,866,000 to write down the Bruderheim property to its fair value less costs to sell the assets. The write-down was based on an assessment of the latest market conditions for each of the assets held for sale.

LOSS

The increased loss for the six months ended June 30, 2009 related primarily to lower interest income earned during the period and a write down of assets held for sale as well as increases in general and administration costs and depreciation and amortization. Profitability is a function of sales timing, type and margin as described in the "Plasma Technology Sales and Services" section and can be affected by various operating issues as outlined further in the "Business Conditions and Risks" section.

QUARTERLY INFORMATION

The increase in the loss from the first quarter of 2009 to the second quarter of 2009 was due primarily to the further write-down of assets allocated to the Bruderheim project ($1,866,000) to their fair values less costs to sell the assets and to lower interest income earned on account of lower interest rates.

Sales revenue related to engineering and testing services were nil in the second quarter compared to $810,970 in the first quarter.

CREDIT FACILITY

The Corporation's US subsidiary has a line of credit agreement with a major bank in the US for $500,000 US (June 30, 2008 – $500,000 US). The line of credit is due on demand and secured by the subsidiary's assets. The credit facility bears interest at a rate that is equal to the US prime rate. No amounts have been drawn on the credit facility as at June 30, 2009.

LIQUIDITY AND CAPITAL RESOURCES

The Corporation's working capital balance was approximately $41.2 million at June 30, 2009, a decrease of $8.2 million from the year ended December 31, 2008 ($49.4 million). Working capital provides funds for the Corporation to meet its operational and capital requirements. These funds will allow Alter NRG to focus on increasing its operational cash flows through sales revenues and prevail through the current economic downturn without relying on raising additional debt or equity financing in a volatile market.

CASH USED IN OPERATIONS

The increase in cash used in operations reflects the growth in the Company operations through its expansion in sales and marketing, engineering and administration personnel, related office operating expenses, costs for public filings and business development activities.

Cash flow used in operations is expected to decrease as Alter NRG secures equipment sales contracts and license revenue. The timing of these cash flows is a function of sales timing, type and margin and can be affected by various operating issues as outlined further in the "Business Conditions and Risks" section.

CAPITAL EXPENDITURES

Internally generated intangible assets consist of internal project development work on the Corporation's plasma gasification island. These costs are not currently amortized, as the related projects have not reached commercial operation. These costs will be amortized when a project begins commercial construction, which management expects to be in late 2009 or 2010.

Resource property expenditures for the six months ended June 30, 2009 include costs incurred for the Fox Creek core-hole program. Property, plant and equipment costs relate primarily to the facility upgrades for the Coskata Lighthouse project.

Alter NRG expects to expand its overall product offering during 2009 and to incur costs on the Fox Creek resource of approximately $1.5 million. The actual expenditures that will be incurred may vary significantly from this estimate as the Corporation regularly reviews its spending in light of current market conditions, opportunities and the estimated timing and cost of development projects. In addition, new projects may arise during the year that will require capital expenditures.

EQUITY

The number of common shares and options outstanding as of August 13th, 2009 was 56,198,051 and 5,242,933, respectively. The authorized share capital of the Corporation consists of an unlimited number of common shares.

For the complete management's discussion and analysis please visit www.alternrg.caa or www.sedar.com to view Alter NRG's 2008 Second Quarter Report.

For additional information please contact:

Mark Montemurro, President and Chief Executive Officer
(403) 806-3877 mmontemurro@alternrg.ca

Daniel Hay, Chief Financial Officer
(403) 806-3881 dhay@alternrg.ca

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

Advisory Respecting Forward-Looking Statements:
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: currency exchange rate fluctuations; environmental risks; unanticipated reclamation expenses; ability to finance; risk of obtaining regulatory approvals; ability to find joint venture partners; engineering and design risk; fluctuation in commodity prices and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties including but not limited to:, unexpected events during construction, and start-up; variations in feedstock grade,; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of commodities; failure of plant, equipment or processes to operate as anticipated; delays in the completion of development or construction activities, as well as those factors discussed in or referred to under the heading "Risk Factors" in the Company's Annual Information Form dated July 8, 2008 available at www.sedar.com which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.

The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.