Dear Fellow Shareholders,

I am pleased to write to you today with an update on the various activities we as a company have been engaged in and an overview of our current objectives.  I am proud of our accomplishments to date and am excited about our future prospects with a sharp focus on becoming a leader in solar power generation.

Since signing the MOU (Memorandum of Understanding) with the Punjab Government, the key objectives have been.

1.    Produce a Detailed Project Report for presentation to Punjab government officials
2.    Produce a Feasibility Study for the Punjab government officials and the funders
3.    Identify and purchase a sufficient area of land suitable for a 200 Megawatt Solar Power Station
4.    Secure Power Purchase Agreement(s) with the Punjab electricity board
5.    Obtain financing in the form of debt or a Joint Venture partner
6.    Secure an implementation agreement with the Punjab government
7.    Complete phase 1 construction of the Solar Power Plant (25MW) and connect to the grid


The Detailed Project Report & Feasibility Study

The Detailed Project Report and the Feasibility Study are both well underway.  We have engineers both here and in India compiling the data required.  The company has a planned presentation date of January 29, 2010, to present these reports to the government officials in Punjab.  These reports are the base documents for planning and implementing the project in Punjab. 


The Land

The team, including a number of Indian Government officials, targeted the land most suited for the project.  The location is perfectly suited for the project because it is located on a plateau 400 meters up in the foothills of the Himalayan Mountains.  It is south facing for optimal sunlight, and being 400 meters above the valley will assist the company in the winter months when Punjab can experience days with heavy fog.  We currently need additional funds to complete the purchase of this land.  The entire 500 acres are secured by deposit and being purchased from a syndicate of land owners at a cost of approximately $2.8 million.  This site is approximately 8km to the nearest government substation connecting to the electrical grid system. 


Obtaining Financing

The company is currently in negotiations with 4 (four) separate entities interested in funding this project.  Two of which are well known financial institutions looking for solar projects and the other two are very well known solar companies.  Management feels that a Letter of Intent from one or more of these sources could be signed within the next 30 days.

Complete Construction of Phase 1 of the Solar Power Station

This project will be the largest Solar Power Station in India.  Phase 1 calls for the construction of 25 MW of power at a construction cost of approximately $100 million USD.  Currently all of India has a total of approximately 2.74 MW of installed Solar Power capacity.  Just this first phase is almost 10 times more solar power than currently installed.  It will provide enough electricity to power approximately 13,000 homes.


India’s National Solar Plan

According to the April 2009 National Solar Plan issued by the Government of India, the country’s aspiration is to ensure large-scale deployment of solar generated power for both grid connected as well as distributed and decentralized off-grid provision of commercial energy services.  The plan is to install 20,000 MW over the next 13 years, 100,000 MW over the next 30 years, and 200,000 MW over the next 50 years.  For the first 20,000 MW the deployment across four application segments is envisioned as follows:

•    -12,000 MW (12 Gig Watts) Utility (grid) power
•    -3,000 MW rooftop PV (captive & grid connected) this would entail 1 million rooftops with an average of 3kw per rooftop
•    -3,000 MW Rural Installations (rural grid plants & stand-alone applications)
•    -2,000 MW other distributed Solar PV applications (e.g. telecom towers)

Advisory Board

In early fall we elected to form an Advisory Board in order to bring on seasoned experts to assist the company with expert advice including Technical, Financial, Political and Business. Brain Kryska was announced on September 22 2009 as the company’s Chief Technical Advisor. The company plans to announce 2 to 3 more advisors to the board shortly. These board members will help the company as it grows and tackles the challenges of putting together large industrial size solar projects. The Advisory Board members are successful individuals chosen because of their knowledge and experience in their respect fields of expertise.

Sincerely Yours,

Raj-Mohinder S. Gurm
President/CEO P2 Solar Inc.

About P2 Solar, Inc.

P2 Solar, Inc. is dedicated to building large scale Solar Power Stations in countries with a high demand for clean renewable power. Currently the company is focusing its efforts throughout India as a primary target market, an area starved of power, yet enjoying maximum exposure to sunlight. The company will be involved in R & D for solar technology and will be implementing a Solar Module Assembly facility in India for the production of solar panels for application in its Commercial and Industrial projects. For additional information please visit our website at http://www.p2solar.com

Forward-Looking Statements

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995.  Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks.  All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the P2 Solar, Inc.’s reports filed with the Securities and Exchange Commission.  P2 Solar, Inc. undertakes no duty to update these forward-looking statements.