NKW Oceanic Wind Energy Inc

NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) distributed a quarterly project
update to shareholders after the close of markets yesterday. The content of the
update appears below.


NaiKun Wind Quarterly Shareholder Update

Welcome to the NaiKun Wind Quarterly Shareholder Update for January-March 2010.
The previous quarter's Update presented a comprehensive look at Clean Power Call
scheduling, NaiKun Wind's environmental assessment process, the Haida Nation's
plan to acquire an ownership position in our 396MW project, and renewable energy
development pledges from the B.C. Government. In this issue, we'll bring you the
latest on each of these files, talk about an important addition to our project
team, and also provide some dates to put on your calendar for potential news on
our company and sector.


Clean Power Call

Given the comprehensive overview of the Clean Power Call schedule presented in
last quarter's Update, we will keep this section brief. What most shareholders
want to know is when contract awards will be announced. In late December 2009,
the British Columbia Utilities Commission granted BC Hydro's request for an
extension of the deadline by which it must make its Clean Power Call contract
awards to March 31, 2010. While it is disappointing to learn of a further
extension in the Call timeline, it may actually work to the advantage of
proponents such as NaiKun Wind who have significantly advanced their work on the
First Nations and environmental assessment fronts.


Given this, and the level of due diligence BC Hydro is conducting on the
proposals, it is reasonable to assume that contract award announcements will
begin in the near future.


Environmental Assessment

NaiKun Wind's project is the first of its type in Canada and we were pleased
that British Columbia's Environmental Assessment Office conducted a thorough
review on schedule and granted NaiKun Wind an Environmental Assessment
Certificate on December 10, 2009. The receipt of our provincial approval puts us
in a select group among the 47 remaining Call proponents, as the number of
projects to have reached this milestone is a handful at best.


We are now waiting for the Federal Government to finalize its review. Given that
the federal agencies took part in the harmonized federal-provincial review, it
should not be long before we receive word from Ottawa. The Haida Nation has also
conducted its own environmental assessment, much of it paralleling the
harmonized federal-provincial process, though with a greater emphasis on studies
such as the traditional use of the area.


Haida Enterprise Corporation Making Progress with Federal Government

Haida Enterprise Corporation (HaiCo) and NaiKun Wind signed a Memorandum of
Understanding in August 2009 giving HaiCo the opportunity to acquire up to 40%
of the 396MW project. Since early September 2009, HaiCo representatives have
held a number of discussions with Federal Government officials, seeking support
for the plan that would see Ottawa assist with the equity participation by
providing a loan guarantee to HaiCo.


This being the largest investment the Haida Nation has ever considered, the
Nation's leadership will be seeking the support of the Haida people through a
general vote. Four information sessions for the Haida community will be held in
advance - two on Haida Gwaii, plus one each in Prince Rupert and Vancouver. A
"Yes" result would lead to HaiCo making its final approach to Ottawa. It is
anticipated that the vote will take place in February. NaiKun Wind is supporting
the Council of the Haida Nation in its work to ensure that the Haida people have
the information they need to make an informed decision.


NaiKun Wind believes the investment is an excellent opportunity for the Haida
Nation. Cash flow from the project could, among other uses, support development
in timber, aquaculture and tourism on Haida Gwaii.


Top Danish Marine Contractor Joins our Team

We are pleased to say that NaiKun Wind signed a Letter of Intent with Danish
firm MT Hojgaard in the fourth quarter covering design, supply and installation
of foundations, inter-array cables and other key project elements. MT Hojgaard
is a leading marine contractor for offshore wind energy projects in Europe and
we will benefit greatly from their experience. MT Hojgaard will be working with
Siemens and our consulting engineers on the project, giving us a superb line-up
in terms of expertise in offshore wind farm design and construction.


B.C. Energy Sector Developments

In the previous quarter's Update, we discussed at length efforts by the
Government of British Columbia to follow through on commitments made in its
August 2009 Throne Speech, explaining that several steps had already been taken,
including the formation of a cabinet-level committee chaired by the Premier to
review input from a newly formed Green Energy Advisory Task Force (comprising
four advisory groups).


These groups submitted their reports in January and the government is now
assessing the recommendations, deciding changes that need to be made in order to
bring greater efficiency to procurement, First Nations consultation, and other
important processes. The government has also made it clear that B.C.'s abundant
renewable energy potential brings the opportunity to establish a vibrant
electricity export industry that would serve the province through jobs, skills
development and revenue creation that extend over generations. British
Columbia's economy has been built on the export of goods and services, and power
is a value-added commodity that the province can sell to others after it has met
its own needs. In addition, by exporting locally produced clean energy, British
Columbia can play an important role in helping to address climate change,
including the challenges faced along the west coast of the continent.


Investors in B.C.'s renewable energy sector have welcomed the government's
stated goals since 2007 but been disappointed by the follow-through. That might
be about to change, though, as we are now seeing a progression from ideas to
action, as evidenced by the Special Direction on Burrard Thermal and the
efficiency displayed by the Green Energy Task Force. Investors have clear
expectations that the B.C. Government will make hard commitments to specific
changes and actions, followed up with an unyielding focus on execution....the
results must match the words. With leadership at the Provincial Government
level, B.C. definitely has the resources and ability to become a global leader
in clean energy generation and supply.


We expect that the Provincial Government will move in the coming weeks with a
set of initiatives on the clean energy front. Specifically, NaiKun Wind expects
that the Throne Speech on February 9 and the Olympics-related Climate Action and
Clean Energy reception on February 15 will be showcase events for the Province
and the Premier to unveil initiatives to regain the impetus on green energy
development. We will ensure that investors are updated on any announcements that
arise from these two important events.


Conclusion

NaiKun Wind continues to make significant progress in the development of its
offshore wind project, as evidenced by the recent granting of a provincial
Environmental Assessment Certificate, advancement in welcoming the Haida Nation
as a potential generation company equity partner, and the addition of a global
leading marine contractor to carry out the important foundation preparatory work
in cooperation with Siemens Wind Power, which will provide the turbines. We are
also looking forward to BC Hydro meeting its commitments on announcing
successful proponents in the Clean Power Call.


We are often asked what our next steps would be following receipt of an
Electricity Purchase Agreement. NaiKun Wind would move quickly to finalize
arrangements with our project co-owners, sign supplier agreements, finalize
project permits and procure project financing.


I would like to invite investors to watch a currently scheduled interview in
which I will be participating on February 9. It will be aired on Canada's
Business News Network at 10:50 a.m. EST. I expect the interview to focus on the
project's status.


As always, I thank you for your ongoing support of the team and the project.

Sincerely,

Paul Taylor, President and CEO

NaiKun Wind Energy Group Inc.

Caution Regarding Forward-Looking Statements - This news release contains
certain forward-looking statements, including statements regarding the business
and anticipated financial performance of the Company. These statements are
subject to a number of risks and uncertainties. Actual results may differ
materially from results contemplated by the forward-looking statements. When
relying on forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties and
should not place undue reliance on such forward-looking statements. The Company
does not undertake to update any forward-looking statements, oral or written,
made by itself or on its behalf.

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