Northland Power joins Compliance Energy to develop a 49 MW waste wood/coal power plant

Compliance Energy
Press Release
Vancouver, BC
May 26, 2005

COMMENT: Compliance is proceeding with this project with an application for an air emissions permit under the Environmental Management Act (former Waste Management Act). Attempts to have this project, likely BC's first coal-fired generation plant, reviewed under the Environmental Assessment Act, were dismissed by government, and of course we're hearing about it now, because it can't become hot election fodder. The project is set at 49 MW, 1 MW under the EA threshold of 50 MW.

Barry Penner is the guy responsible now. Harry Lalli is the MLA. Corky Evans is the NDP Opposition Energy Critic. Start your campaigns. Nail this thing.

Vancouver, British Columbia CANADA, May 26, 2005 /FSC/ - Compliance Energy Corporation (TSX - VX: CEC), (the "Company") is pleased to announce that it has signed a Memorandum of Understanding ("MOU") with Northland Power Inc. ("Northland Power") whereby Compliance and Northland will jointly develop a 49MW waste wood/coal power plant to be located at a former mine site near Princeton, BC. The selected site has extensive existing infrastructure, including; one large building that can house the boiler and turbine, established water system to support the plant, maintenance shops and warehouse facilities, office complex and a 138 KV power line that connects the site to the Provincial power grid. Northland and Compliance will be submitting this project into the upcoming call for tender from BC Hydro which is expected later this year, while also pursuing other power sales opportunities for the project. Over the past number of months Compliance has been preparing this project for the upcoming BC Hydro energy call and have: completed an extensive wood waste supply study of the area that confirmed waste wood availability in the area; engaged the British Columbia Transmission Corporation to complete an interconnection study on the project that concluded that no major line upgrades are required to the existing 138 KV power line; engaged engineering consultants to evaluate various boilers and confirm the government regulations can be met; commissioned an air dispersion study that concluded that there will be no significant environmental impact or air deterioration to the surrounding communities; and conducted public presentations and distributed information regarding the project plus provided a store front office in Princeton, BC.

"We believe the project will be a very positive project by adding long term employment and economic base for the region. We are very pleased to have Northland Power, an established power developer with an unblemished track record of environmental stewardship, as our partner to develop the project."

Northland Power, headquartered in Toronto, is a leading Canadian independent power company with extensive experience in developing, engineering, financing, operating and maintaining private power projects. Northland Power has earned a reputation for flexibility, responsiveness, innovation and reliability through the success of its projects. Northland Power and its subsidiaries operate four power facilities in Canada and one in the Ukraine and one commercial wood chipping facility in British Columbia.

Compliance recently developed and operates the Basin Coal Mine located near Princeton, British Columbia. The Company is on target in developing local thermal coal markets to match its production capacity, while it prepares for international coal sales planned for later this year. Compliance is also completing an exploration program consisting of trenching and a 30 drill hole program on the Bear Metallurgical Coal Deposit located on Vancouver Island. Compliance Energy Corporation's shares trade on the TSX Venture Exchange under the symbol CEC and investor information is available on the Company's web page at www.complianceenergy.com.

Contact Rod Shier at 604-689-0489 for further information.

On behalf of the Board of
COMPLIANCE ENERGY CORPORATION

"Jim O'Rourke"

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Compliance Energy Corporation
Suite 584, 885 Dunsmuir Street
Vancouver, BC V6C 1N5
Telephone: (604) 689-0489
Facsimile: (604) 681-5910
Web Page: www.complianceenergy.com