Form 51-102F3
Material Change Report
Item 1 Name and Address of Company
Balaton Power Inc.
16678 77th Avenue
Surrey, BC V3S 8G1
(the "Company")
Item 2 Date of Material Change
August 20, 2009
Item 3 News Release
The Company disseminated a news release on August 20, 2009.
Item 4 Summary of Material Changes
On August 20, 2009, the Company closed the first tranche of a non-brokered private placement and received gross proceeds of US$180,000 from the sale of 6,000,000 Units.
Item 5 Full Description of Material Change
5.1 Full Description of Material Change
On August 20, 2009, the Company closed the first tranche of a non-brokered private placement and received gross proceeds of US$180,000 from the sale of 6,000,000 Units.
Each Unit consisted of one common share of the Company and two share purchase warrants (an "A Warrant" and a "B Warrant", respectively). Each A warrant is exercisable to purchase one additional common share of the Company at an exercise price of US$0.05 until August 20, 2010 and each B Warrant is exercisable to purchase one additional common share of the Company at an exercise price of US$0.10 until August 20, 2011. No finder's fee was payable on the placement.
The securities issued pursuant to the placement are subject to a hold period expiring December 21, 2009.
5.2 Disclosure for Restructuring Transactions
Not applicable.
Item 6 Reliance on subsection 7.1(2) or (3) of National Instrument 51-102
Not Applicable.
Item 7 Omitted Information
Not Applicable.
Item 8 Executive Officer
To obtain further information contact the President of the company, Michael Rosa, at 604-574-9551.
Item 9 Date of Report
August 24, 2009
