Balaton Announces Subsidiary's Agreement in Principal with Essar Aluminum Orissa Limited to Develop Gandhamardan Bauxite Deposit

Balaton Power Inc. BPWRF is pleased to announce that it's wholly owned subsidiary Continental Resources (USA) Ltd. ("CRL") has entered into an agreement in principal (the "Essar Agreement") with Essar Aluminum Orissa Limited ("Essar"), an Indian resource development corporation, to develop the Gandhamardan Bauxite Deposit (the "Project") and set up an Alumina/Aluminum complex subject to feasibility study and applicable approvals. The Essar Agreement is subject to the negotiation and execution of a definitive shareholder's agreement among Essar and CRL and, additionally, subject to the approval of the Orissa Mining Corporation ("OMC") and the approval of the revised agreement between CRL and OMC to develop the Gandhamardan Deposit by the State of Orissa, India.

Continental is extremely pleased to have reached an agreement in principal with Essar, a leading Indian business conglomerate with significant financial and technical resources, expertise and project experience in India. The Company is of the belief that Essar is the ideal partner for this venture given its local knowledge, expertise and track record.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, the continued advancement of Balaton's general business development, research development and/or the Company's development of mineral exploration projects. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan," "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Although Balaton Power Inc. believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that Balaton's mineral deposit(s), fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our annual report on Form 20F filed with the U.S. Securities and Exchange Commission and filings made with the British Columbia Securities Commission.