Wind Energy Basics
Wind energy, the world’s fastest growing energy source, is a clean and renewable source of energy that has been in use for centuries throughout Europe and, more recently, in the United States and other nations, becoming an increasingly popular choice for new electricity generation around the world. Wind turbines, both large and small, produce electricity for utilities and homeowners and remote towns.

North America is expected to continue as the second largest regional market in terms of total installed capacity, with anticipated average annual growth of approximately 25%.

Current Wind Projects
We currently have six wind projects that we are developing and a number of others in the “pipeline”. The projects are located in Montana (4 locations), California and New Mexico. Currently all our wind projects are in various stages of environmental impact studies, meteorological evaluations and various other regulatory approvals and processes. It is management’s current intention to acquire the necessary wind turbines and associated equipment in late 2008 or early 2009 to begin construction on one or more site locations.

Management intends to utilize its existing financing sources or access new capital available in the market to fund our wind projects. The business of producing electricity from wind energy is not a seasonal business. We may be required to enter into a power purchase agreement with a utility to purchase the electricity generated by our properties in order to be successful in developing our wind assets. We may also choose to sell our wind power in to the merchant market.  We have budgeted $90 million to develop a 50MW wind farm. This capital is currently anticipated to be spent in the year 2008. In addition, beginning in 2009, we anticipate spending a minimum of $2 million per year developing our additional wind prospects.

Investment in MingYang
GreenHunter executed a Subscription and Equity Transfer Agreement whereby GreenHunter will acquire a 6.30% equity interest in MingYang Wind Power Technology Co., Ltd, (“MingYang”) based in Guang Dong Province, People’s Republic of China (“PRC”) for approximately $10 million USD. GreenHunter’s investment has been approved by the appropriate governmental authorities to allow for a foreign investment in the PRC. We have certain anti-dilution protective provisions and preemptive rights in connection with our investment.

MingYang is involved in the manufacturing of industrial scale wind turbines in the PRC.  MingYang anticipates that once it reaches full production capacity at its new manufacturing plants within the next couple of years, it will become one of the largest manufacturers of wind turbines in the PRC. MingYang has existing orders from companies for installation of wind turbines within the PRC that exceed 1,000 MW.

In addition, Wind Energy has executed a landmark master turbine supply agreement with MingYang. This agreement allows Wind Energy to potentially purchase more than 900 MW of new capacity for wind projects to be developed between 2008 and 2012 in North America.

Key components of this transaction are as follows:

•     In 2008 Wind Energy will have the option to purchase up to 108 MW of turbines (1.5 MW sized
      machines) for new projects in the United States.
•     During 2009 through 2012, Wind Energy has the preferential right to purchase any turbines to be
      exported by MingYang to North America.
•     During 2008 through 2012, Wind Energy will have the right to purchase larger capacity turbines if
      MingYang manufacturers such turbines.
•     MingYang will provide maintenance services through a services agreement between the two companies.

The following is a brief summary of each of our current wind projects:

Montana

Kimmet Ranch Wind Project, Glacier County

•     2,750 Acres under lease.
•     Potential for 68 turbines (102 MW).
•     Wind Strength: Measured monthly average of 18 MPH.
•     Meteorological tower installed December 2005 at 60 meter hub height.
•     Interconnection with 115kV transmission line and proposed 230kV Montana — Alberta Tie Line.

Townsend Wind Project, Jefferson County

•     5,500 Acres under lease.
•     Potential for 140 turbines (210 MW).
•     Wind Strength: Measured monthly average of 10 MPH.
•     Meteorological tower installed April 2006 at 60 meter hub height.
•     Interconnection to proposed Townsend substation and proposed Northern Lights 500kV DC line from
      Townsen d to Las Vegas.

Valley County Wind Project, Valley County

•     20,000 Acres under lease.
•     Potential for 50 turbines (75 MW).
•     Wind Strength: Measured monthly average of 18 MPH.
•     3 Meteorological towers collecting wind data in four locations over a two year period at hub heights
      of 40 meters and 60 meters.
•     Interconnection to 161 kV WAPA transmission line upgradeable to 230kV, or to Colstrip lines jointly
      with coal project, or with upgrades to WAPA lines to the east into North Dakota and Minnesota.

California

Ocotillio Wind Project, Imperial County

•     6,280 acres under lease.
•     Seeking monitoring and testing ROW.
•     Potential for 150 turbines (225 MW).
•     1 Meteorological tower proposed for third quarter 2008.

New Mexico

Gerhardt Wind Project, Guadalupe County

•     16,000 acres under lease.
•     Potential for 200 turbines (300 MW).
•     Wind Strength: Measured monthly average of 18 MPH.
•     1 Meteorological tower installed on September 2005 at 60 meter hub height.