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MEDIA RELEASE
(TSX-V:AFG)

MALAHAT ESTABLISHES $6,000,000 PROGRAM
WITH ALLIANCE FINANCING GROUP INC.

March 14, 2002, LAS VEGAS--(BUSINESS WIRE) (MAHT: OTC BB)

Malahat Energy Corporation is pleased to announce an energy lease program established with Alliance Financing Group Inc. (TSX-V:AFG) for $6,000,000 Cdn. to enable Malahat customers in the greenhouse industry to lease Malahat's M500 BioFuel System™. This energy lease program accelerates the number of M500 units deployed by Malahat. Alliance Financing has also committed to provide all aspects of the lease program administration for Malahat.

Ben Dulley, president of Malahat has stated, "Leasing of the M500 BioFuel Systems™ is a popular preference by Malahat customers, as it reduces their upfront costs, generates energy savings and given Malahat's lease model, provides them with an attractive fixed cost of business. Malahat greatly benefits with advancing more of its M500 units for manufacture and use by its customers, generating increased revenue flow from its energy services."

M. Scott Hinsperger, Executive Vice-President of Alliance Financing states, "We are pleased to be able to work with Malahat as they deploy the M500 BioFuel System™ across Canada and the US. We see tremendous potential for adoption of this technology, particularly in the greenhouse industry. We were very impressed by studies conducted by Malahat which indicated the tangible energy cost savings available to customers year after year by leasing this revolutionary technology."

About Malahat:
Malahat Energy Corporation's BioFuelTM System (patent pending) enables it to deliver low cost power to high-energy consumption industries. The Malahat BioFuelTM System converts biomass waste (such as wood residues) to produce a green, renewable fuel replacement for natural gas-yielding thermal and electrical energy at a fraction of the prevailing market price. It is a cost effective energy solution for the agricultural, horticultural and timber industries and for municipalities with abundant biodegradable waste resources for recycling. Malahat has initially targeted North America's greenhouse industry to generate an on-site power supply at substantially reduced energy costs.

About Alliance Financing Group Inc.
Established in 1989, Alliance Financing Group Inc. is a leader in providing leasing and financing solutions for businesses. Alliance Financing is a "one-stop financing shop" acting as an aggregator of products and services of top lease-financing companies, commercial finance institutions and banks, and delivering these products and solutions to the end-user customer. Alliance's proprietary private labeled technology for online vendors, verticals and portals also deliver a comprehensive suite of end-to-end financing fulfillment solutions, coupled with live online assistance for the end user. Its customers range from Fortune 1000 corporations to Small to Mid-sized Enterprises (SME's) across Canada and the US.

For further information, contact Rich Kaiser - Investor Relations - Malahat Energy Corporation at 800-631-8127 or 757-306-6090 and/or Rich@yesinternational.com, www.MalahatEnergy.com.

Safe Harbor Statement
This release by Malahat Energy Corporation includes "forward looking statements" under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that may involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. . These statements are based on current expectations at the time this material was prepared and actual results may differ materially from those projected in forward-looking statements for a number of reasons, including, but not limited to, customer acceptance of and demand for the Company's product(s), the ability of the Company's products to reduce energy costs, whether the Company can obtain a patent for its technology, customer acceptance of the Company's product(s), the ability of the Company's products to deliver cleaner energy and power generation, whether the Company's product(s) are cost effective to customers, and the ability of the Company to deliver and install its products in a timely manner. This information is not a recommendation to buy or sell the securities of Malahat Energy Corporation. The statements and opinions presented are the view of the Company's management and are subject to change.

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