<SEC-DOCUMENT>0001279569-17-002405.txt : 20171218
<SEC-HEADER>0001279569-17-002405.hdr.sgml : 20171218
<ACCEPTANCE-DATETIME>20171215183018
ACCESSION NUMBER:		0001279569-17-002405
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20171215
FILED AS OF DATE:		20171218
DATE AS OF CHANGE:		20171215

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRANSALTA CORP
		CENTRAL INDEX KEY:			0001144800
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15214
		FILM NUMBER:		171260071

	BUSINESS ADDRESS:	
		STREET 1:		110 12TH AVE SW BOX 1900 STATION M
		STREET 2:		CALGARY ALBERTA T2P 2MI
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P2M1
		BUSINESS PHONE:		403-267-4724

	MAIL ADDRESS:	
		STREET 1:		110-12TH AVENUE SW
		CITY:			CALGARY ALBERTA CANADA
		STATE:			A0
		ZIP:			T2P2M1
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>transalta6k.htm
<DESCRIPTION>FORM 6-K
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<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT><FONT STYLE="font-size: 14pt">UNITED
STATES</FONT><BR>
<FONT STYLE="font-size: 14pt">SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT STYLE="font-size: 12pt">Washington, D.C. 20549</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: center"><FONT STYLE="font-size: 18pt"><B>FORM
6-K</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: center"><FONT STYLE="font-size: 12pt"><B>REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 24pt"><FONT STYLE="font-size: 10pt">For the month of December 2017</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 24pt"><B>TRANSALTA
CORPORATION</B></FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 24pt"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">(Translation
of registrant&rsquo;s name into English)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>110-12<SUP>th
</SUP>Avenue S.W., Box 1900, Station &ldquo;M&rdquo;, Calgary, Alberta, T2P 2M1</B></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-size: 10pt">(Address
of principal executive offices)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-size: 10pt">I<FONT STYLE="font-family: Times New Roman, Times, Serif">ndicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.</FONT></FONT></P>

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    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form 20-F &#9744;</FONT></TD>
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form 40-F &#9746;</FONT></TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DOCUMENTS
INCLUDED AS PART OF THIS FORM 6-K</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
the Exhibit Index hereto.</FONT></P>

<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>Signatures</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 24pt 3in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TRANSALTA
CORPORATION</B></FONT></P>

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    <TD STYLE="width: 43%; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:
    December 15, 2017</FONT></TD>
    <TD STYLE="width: 57%; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:
    &nbsp;<U>/s/ Scott Jeffers</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:&nbsp;&nbsp;Scott
    Jeffers</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:&nbsp;&nbsp;Assistant
    Corporate Secretary</FONT></TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in"><B>EXHIBIT INDEX</B></P>

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    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif; text-indent: 0in"><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="width: 85%; padding-right: 5.4pt; padding-left: 5.4pt; font: 12pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-size: 10pt">Material change report dated December 15, 2017</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;</P>



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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex991.htm
<DESCRIPTION>MATERIAL CHANGE REPORT DATED DECEMBER 15, 2017
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<P STYLE="margin: 0; text-align: right"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 8pt"><B>Exhibit 99.1</B></FONT></P>

<P STYLE="margin: 0; text-align: right"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="margin: 0; text-align: right"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B></B></FONT></P>

<P STYLE="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt"><B>&nbsp;</B><BR>
<BR></P>

<P STYLE="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><B>Form 51-102F3</B></P>

<P STYLE="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><B>MATERIAL CHANGE REPORT</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 1</B></FONT></TD>
    <TD STYLE="width: 86%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Name and Address of Company</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">TransAlta Corporation (&ldquo;<B>TransAlta</B>&rdquo; or the
        &ldquo;<B>Company</B>&rdquo;)</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">110 &ndash; 12<SUP>th</SUP> Avenue SW</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Calgary, Alberta T2P 2M1</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 2</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Date of Material Change</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">December 6, 2017</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 3</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>News Release</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">News release disseminated via Market News Publishing on December
        6, 2017.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 4</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Summary of Material Change</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Board of Directors of TransAlta approved
        additional elements in the Company's strategy to accelerate its transition to gas and renewables generation. These elements include:</P>
        <P STYLE="font: 5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">entering into a letter of intent with Tidewater
        Midstream and Infrastructure Ltd. (&quot;Tidewater&quot;) to construct a 120 kilometre natural gas pipeline from Tidewater's Brazeau
        River Complex to TransAlta's generating units at Sundance and Keephills to eventually supply the Company with up to 340 million
        cubic feet of gas per day; </FONT></P>
        <P STYLE="font: 5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">accelerating the conversion of Sundance Units 3
        to 6 and Keephills Units 1 and 2 from coal-fired generation to gas-fired generation in the 2021 to 2022 timeframe, a year earlier
        than originally planned. The coal-fired plants operated by TransAlta, once converted to gas, are anticipated to be able to run
        through to 2031 to 2039 - a significant lengthening of their asset lives; and</FONT></P>
        <P STYLE="font: 5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">mothballing temporarily a combination of Sundance
        Units 3, 4 and 5 in 2018 and 2019 to ensure that two Sundance coal units can operate at high capacity utilizations with lower costs
        through the period to 2020 when additional power will be needed in the Alberta market. Sundance Units 3 to 6 will re-enter the
        market starting in 2020 as the demand for electricity rises.</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 5.1</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Full Description of Material Change</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For a full description of the
material change, see the news release attached as Schedule A hereto.</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P></TD></TR>
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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 5.2</B></FONT></TD>
    <TD STYLE="width: 86%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>Disclosure for Restructuring Transactions</B></P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Not applicable.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 6</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Reliance on Section 7.1(2) of National Instrument 51-102</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Not applicable.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 7</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Omitted Information</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Not applicable.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 8</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Executive Officer</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">The name and business number of the executive officer who
        is knowledgeable about the material change and this report is:</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Donald Tremblay</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Chief Financial Officer</P>
        <P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Telephone: (403) 267-2060</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Item 9</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Date of Report</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">December 15, 2017</FONT></TD></TR>
</TABLE>
<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0"><B><I>Forward-Looking Statements</I></B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: justify"><I>This material change report, including
the schedule attached hereto, contains forward-looking statements and forward-looking information within the meaning of applicable
securities laws. The use of any of the words &ldquo;expect&rdquo;, &ldquo;anticipate&rdquo;, &ldquo;continue&rdquo;, &ldquo;estimate&rdquo;,
&ldquo;may&rdquo;, &ldquo;will&rdquo;, &ldquo;project&rdquo;, &ldquo;should&rdquo;, &ldquo;propose&rdquo;, &ldquo;plans&rdquo;,
&ldquo;intends&rdquo; and similar expressions are intended to identify forward-looking information or statements. More particularly,
and without limitation, this material change report contains forward-looking statements and information relating to: the mothballing
of Sundance Units 3, 4 and 5; the expected value of dispatchable renewable resources, such as the Brazeau Pumped Storage project;
carbon emitting plants that are expected to primarily provide back up to low cost intermittent renewable resources in the future;
the expectation that mothballing a combination of Sundance units in 2018 and 2019 will allow the two operating Sundance coal units
to operate at high capacity utilizations to 2020, when additional power is expected to be needed in the Alberta market; the conversion
to gas-fired generation of Sundance Units 3 to 6 and Keephills Units 1 to 2, including the timing thereof; the lengthening of the
coal-fired plants lives, once converted to gas, to 2031 to 2039;&nbsp;the expected gas supply required for converted units and
the construction by Tidewater of a 120 kilometre pipeline to TransAlta&rsquo;s Sundance and Keephills facilities with a capacity
of 130 million cubic feet of gas per day by 2020 and expansion capability of up to 340 million cubic feet of gas per day; the terms
of any definitive agreement with Tidewater, including the option to invest up to 50 percent in the pipeline; the anticipated benefits
of converting coal units to gas; the Government of Canada&rsquo;s proposed coal-to-gas conversion rules expected to extend the
life of TransAlta&rsquo;s coal units by five-to-ten years past their federal end of coal life, depending on their emissions profile;
the life of TransAlta&rsquo;s coal-fired fleet to be extended by an aggregate of approximately 75-years;&nbsp;the benefits of converting
coal-fired generating units to gas-fired generating units; the construction and development of the Brazeau Pumped Storage project,
including that such project would create up to 900 MW of additional hydro and storage capability, the timing for when such project
could come on-line, the competitiveness of such project, and the anticipated Alberta provincial requirement to replace baseload
thermal generation with dispatchable renewable resources; the 2018 outlook, including 2017 expected annual free cash flow and 2018
financial targets; amounts to be received from the Balancing Pool in connection with the termination of the Sundance B and Sundance
C power purchase arrangements; increased asset optimization; reductions in operating costs and sustaining and productivity capital
in the range of $215 to $235 million; and the 2018 dividend amounts and payout ratio. These statements are based on TransAlta&rsquo;s
belief and assumptions based on information available at the time the assumptions were made. These statements are subject to a
number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking
statements. Some of the factors that could cause such differences include: legislative or regulatory developments, including as
it pertains to the Alberta capacity market; the Federal and/or Provincial governments not implementing legislation or regulations
facilitating the conversion from coal generation to gas generation; the Federal and/or Provincial governments adopting different
carbon prices rules; changes in economic and competitive conditions; inability to secure natural gas supply and the construction
of a natural gas pipeline on terms satisfactory to the Company; the introduction of disruptive sources of energy or capacity; changes
in the price for natural gas and electricity, including expected pricing in Alberta and Mid-C; decreased demand for energy or capacity;
Canadian coal capacity factors and hydro and wind resources being lower than expected; availability of financing; and other risk
factors contained in the Company&rsquo;s annual information form and management&rsquo;s discussion and analysis. Readers are cautioned
not to place undue reliance on these forward-looking statements or forward-looking information, which reflect TransAlta&rsquo;s
expectations only as at December 6, 2017. The purpose of the financial outlooks contained in Schedule A of this material change
report are to give the reader information about management&rsquo;s current expectations and plans and readers are cautioned that
such information may not be appropriate for other purposes. TransAlta disclaims any intention or obligation to update or revise
such forward-looking statements and forward-looking information, whether as a result of new information, future events or otherwise,
except as required by law.</I></P>

<P STYLE="font: 9pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: justify"><I>&nbsp;</I></P>


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<P STYLE="font: 9pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt"><I>&nbsp;</I></P>

<P STYLE="font: 14pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><B>Schedule A</B></P>

<P STYLE="font: 12pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: center">Press Release</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 15pt 0 7.5pt; text-align: center"><IMG SRC="image_001.jpg" ALT=""></P>

<P STYLE="font: 14pt/normal Arial, Helvetica, Sans-Serif; margin: 15pt 0 7.5pt; text-align: center"><B>TransAlta Announces Accelerated
Transition to Clean Energy</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">CALGARY,&nbsp;Dec. 6, 2017&nbsp;/CNW/ - TransAlta Corporation
(&quot;TransAlta&quot; or the &quot;Company&quot;) (TSX: TA; NYSE:&nbsp;TAC) announced today that its Board of Directors has approved
additional elements in the Company's strategy to accelerate its transition to gas and renewables generation.&nbsp; These elements
include:</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">Entering into a letter
of intent with Tidewater Midstream and Infrastructure Ltd. (&quot;Tidewater&quot;) to construct a 120 kilometre natural gas pipeline
from Tidewater's Brazeau River Complex to TransAlta's generating units at&nbsp;Sundance and&nbsp;Keephills&nbsp;to eventually supply
the Company with up to 340 million cubic feet of gas per day;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">Accelerating the conversion
of Sundance Units 3 to 6 and Keephills Units 1 and 2 from coal-fired generation to gas-fired generation in the 2021 to 2022 timeframe,
a year earlier than originally planned.&nbsp; The coal-fired plants operated by TransAlta, once converted to gas, are anticipated
to be able to run through to 2031 to 2039 &ndash; a significant lengthening of their asset lives; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">Mothballing temporarily
a combination of&nbsp;Sundance&nbsp;units in 2018 and 2019 to ensure that two&nbsp;Sundance&nbsp;coal units can operate at high
capacity utilizations with lower costs through the period to 2020 when additional power will be needed in the&nbsp;Alberta&nbsp;market.&nbsp;
Sundance Units 3 to 6 will re-enter the market starting in 2020 as the demand for electricity rises.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 0 61.85pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Details on the Company's Brazeau Pumped
Storage Project, which is a key cornerstone of its gas and renewables strategy, are also provided. The Company expects dispatchable
renewable resources to be valuable in a future where carbon emitting plants will mostly provide back up to low cost intermittent
renewable resources.&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Company also provided its 2018 annual
guidance today, which is discussed below. &nbsp;&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&quot;We continue to position TransAlta
as a leader in clean power generation and our strategy dramatically improves our competitive position and our ability to generate
strong cash flow over the long term,&quot; said&nbsp;Dawn Farrell, President and Chief Executive Officer. &quot;Our asset base
in&nbsp;Alberta&nbsp;is poised to ensure that we can provide low cost, clean, reliable and firm electricity to customers.&quot;&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>Gas Supply for Conversions and Accelerated Coal-to-Gas
Conversion Schedule</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">As announced earlier today, TransAlta
has entered into a letter of intent with Tidewater for the construction of a 120 kilometre pipeline from their Brazeau River Complex
to TransAlta's&nbsp;Sundance&nbsp;and&nbsp;Keephills&nbsp;facilities.&nbsp;&nbsp; The pipeline will provide initial capacity of
130 million cubic feet of gas per day by 2020, and have expansion capability to 340 million cubic feet of gas per day.&nbsp; The
initial capacity will support fuel blending, using a fuel combination of coal and gas for generation, which will reduce the marginal
cost as well as emissions.&nbsp; TransAlta will have the option to invest up to 50 percent in the pipeline, which, if exercised,
would reduce the costs associated with the tolling agreement.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The decision to work with Tidewater advances
the timeframe for the construction of a pipeline and permits the acceleration of plant conversions.&nbsp; As a result, and given
the clarity provided by the draft coal-to-gas conversion rules proposed by the Government of&nbsp;Canada, the Company has determined
to accelerate the conversion of Sundance Units 3 to 6 and Keephills Units 1 and 2 from coal-fired generation to gas-fired in the
2021 to 2022 timeframe, a year earlier than originally planned.&nbsp; TransAlta remains of the view that having at least two pipelines
supplying natural gas would reduce operational risks and continues to advance discussions with other parties to construct additional
pipelines to meet the remaining gas supply requirements for the facilities.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Although not yet finalized, the Government
of&nbsp;Canada&nbsp;has proposed coal-to-gas conversion rules that would extend the life of TransAlta's gas conversion units by
five-to-ten years past their federal end of coal life, depending on their CO2emissions profile.&nbsp; The proposed rules would
see the life of TransAlta's entire coal-fired fleet extended by an aggregate of approximately 75 years.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">In addition to the extending of their
operating lives, the benefits of converting units to gas generation include: (i) significantly lowering carbon intensities, emissions,
and costs; (ii) significantly lowering operating and sustaining capital costs; and (iii) increasing operating flexibility.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>Sundance Operations in the 2018 to 2020 Timeframe</B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Board of Directors have approved
the following;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">Sundance Unit 3, will
be temporarily mothballed on&nbsp;April 1, 2018&nbsp;for a period of up to two years;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">Sundance Unit 5, will
be temporarily mothballed on&nbsp;April 1, 2018&nbsp;for a period of up to one year; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 11pt">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 11pt">Sundance Unit 4, will
be temporarily mothballed on&nbsp;April 1, 2019&nbsp;for a period of up to two years.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The decision to mothball selected units
ensures that the remaining units operate at strong capacity utilization factors which ensure competitive cost structures.&nbsp;
Sundance Unit 3, Sundance Unit 4 and Sundance Unit 5 comprise 368 MW, 406 MW and 406 MW, respectively, of the 2,141 MW Sundance
power plant.&nbsp; TransAlta maintains the flexibility to return mothballed units to service when market fundamentals support the
addition of their generation.&nbsp; The mothballing of the units will also assist TransAlta in its preparations for converting
the units to gas.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">On&nbsp;April 19, 2017, the Company announced
that it would retire Sundance Unit 1 and mothball Sundance Unit 2, effective&nbsp;January 1, 2018.&nbsp; Sundance Unit 2 will also
be available to return to service in 2020.&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>Brazeau Pumped Storage</B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Brazeau Hydro is an existing power station
on the North Saskatchewan River location north-west of Edmonton.&nbsp; The facility currently produces 355 MW of power under a
power purchase arrangement (&quot;PPA&quot;) with the Balancing Pool. The PPA expires at the end of 2020.&nbsp; Brazeau Pumped
Storage is a development project, at Brazeau Hydro, that would create up to 900 MW of additional generation and storage capability.
The facility would utilize the existing footprint to generate power under conditions of strong demand and store power when supply
resources outpace demand. It is particularly competitive for ensuring that low cost, intermittent wind and solar generation resources
can be stored for use in high demand periods.&nbsp; The Company is developing the project in anticipation of a requirement over
time to replace baseload thermal resources with dispatchable renewable resources in the&nbsp;Alberta&nbsp;market.&nbsp; The project,
if it were to win a long-term contract in a future competitive call, could be ready for service as early as 2025.&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>2018 Outlook</B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">For 2018, we expect our annual free cash
flow (&quot;FCF&quot;) to be in-line with our 2017 expected annual FCF, despite the expiry of the Sundance A PPA, the early termination
of the Sundance B PPA and Sundance C PPA, and the termination of our Solomon contract in&nbsp;Australia. We have already received
approximately&nbsp;$400 million&nbsp;for the early termination of the Solomon contract and we are expecting to receive in excess
of&nbsp;$200 million&nbsp;from the Balancing Pool for the early termination of the Sundance B PPA and Sundance C PPA.&nbsp; As
a result, we have accelerated our debt reduction plan and will have additional financial flexibility over the next three years.&nbsp;
The PPA terminations have provided increased operational flexibility and enables optimization of the&nbsp;Sundance&nbsp;power plant.&nbsp;
This optimization results in significant reductions in operating costs as well as sustaining and productivity capital, which we
expect will be in the range of&nbsp;$215to&nbsp;$235 million.&nbsp;&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The outlook assumes an average price
of&nbsp;$50-60/MWh in&nbsp;Alberta&nbsp;and that the Sundance merchant units will run between 65% to 75% in 2018.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The following table outlines TransAlta's
financial targets for 2018:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt"><B>Measure</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt"><B>Target</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Comparable EBITDA<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$950 million to $1,050 million</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">FFO<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$725 million to $800 million</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">FCF&nbsp;<SUP>(1)</SUP>&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$275 million to $350 million</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Dividend</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$0.16 per share, 13 to 17 per cent payout of Comparable FCF</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><I><U>Range of key power price assumptions</U></I>:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt"><B>Market</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt"><B>Power Prices ($/MWh)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Alberta Spot</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$50 to $60</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Alberta Contracted</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$35 to $40</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Mid-C Spot (US$)</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$20 to $25</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Mid-C Contracted (US$)</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$47 to $53</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><I><U>Other assumptions relevant to 2018 outlook:</U></I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Sustaining Capital</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">$215 million to $235 million</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Canadian Coal Capacity Factor</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">65% to 75%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Hydro/Wind Resource</FONT></TD>
    <TD STYLE="padding-right: 6pt; padding-left: 6pt; line-height: 115%"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 9pt">Long term average</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="padding-right: 6pt; padding-left: 6pt">
        <P STYLE="font: 9pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 8.5pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">(1)&nbsp; These items are not defined
        under IFRS. Presenting these items provides management and investors with the ability to evaluate earnings trends more readily
        in comparison with prior periods' results. Refer to the Funds from Operations and Free Cash Flow, Discussion of Segmented Comparable
        Results, and Earnings and Other Measures on a Comparable Basis sections of TransAlta's 2017 third quarter management discussion
        and analysis for additional information.</P></TD></TR>
</TABLE>
<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B>Investor Day</B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">TransAlta will be hosting an
Investor Day at&nbsp;9:30am ET on Wednesday, December 6th, 2017 during which our executive team will discuss the
announcements above.&nbsp; A link to the presentation and live webcast will be available on the Investors section of
TransAlta's website at&nbsp;http://www.transalta.com/investors/events-and-presentations.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B><I>About TransAlta Corporation:</I></B>&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>TransAlta owns, operates and develops
a diverse fleet of electrical power generation assets in&nbsp;Canada,&nbsp;the United States&nbsp;and&nbsp;Australia&nbsp;with
a focus on long-term shareholder value. We provide municipalities, medium and large industries, businesses and utility customers
clean, affordable, energy efficient, and reliable power. Today, we are one of&nbsp;Canada's&nbsp;largest producers of wind power
and&nbsp;Alberta's&nbsp;largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator
and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the&nbsp;UN Sustainable
Development Goals&nbsp;and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate
Change Management. We are also proud to have achieved the&nbsp;Silver level PAR (Progressive Aboriginal Relations)&nbsp;designation
by the Canadian Council for Aboriginal Business.</I></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>For more information about TransAlta,
visit our web site at&nbsp;transalta.com.</I></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0"><B><I>Forward-Looking Statements&nbsp;</I></B></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>This news release contains forward-looking
statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words &quot;expect&quot;,
&quot;anticipate&quot;, &quot;continue&quot;, &quot;estimate&quot;, &quot;may&quot;, &quot;will&quot;, &quot;project&quot;, &quot;should&quot;,
&quot;propose&quot;, &quot;plans&quot;, &quot;intends&quot; and similar expressions are intended to identify forward-looking information
or statements. More particularly, and without limitation, this news release contains forward-looking statements and information
relating to: the mothballing of Sundance Units 3, 4 and 5; the expected value of dispatchable renewable resources, such as the
Brazeau Pumped Storage project; that carbon emitting plants are expected to primarily provide back up to low cost intermittent
renewable resources in the future; the expectation that mothballing a combination of&nbsp;Sundance&nbsp;units in 2018 and 2019
will allow the two operating&nbsp;Sundance&nbsp;coal units to operate at high capacity utilizations to 2020, when additional power
is expected to be needed in the&nbsp;Alberta&nbsp;market; the conversion to gas-fired generation of Sundance Units 3 to 6 and Keephills
Units 1 to 2, including the timing thereof; the lengthening of the coal-fired plants lives, once converted to gas, to 2031 to 2039;</I>&nbsp;<I>the
expected gas supply required for converted units and the construction by Tidewater of a 120 kilometre pipeline to TransAlta's&nbsp;Sundance
and&nbsp;Keephills&nbsp;facilities with a capacity of 130 million cubic feet of gas per day by 2020 and expansion capability to
340 million cubic feet of gas per day; the terms of any definitive agreement with Tidewater, including the option to invest up
to 50 percent in the pipeline; the anticipated benefits of converting units to gas; the Government of Canada's&nbsp;proposed coal-to-gas
conversion rules expected to extend the life of TransAlta's coal units by five-to-ten years past their federal end of coal life,
depending on their emissions profile; the life of TransAlta's coal-fired fleet to be extended by an aggregate of approximately
75-years;</I>&nbsp;<I>the benefits of converting coal-fired generating units to gas-fired generating units; the construction and
development of the Brazeau Pumped Storage project, including that such project &nbsp;would create up to 900 MW of additional hydro
and storage capability, the timing for when such project could come on-line, the competitiveness of such project, and the anticipated&nbsp;Alberta&nbsp;provincial
requirement to replace baseload thermal generation with dispatchable renewable resources; the 2018 outlook, including 2017 expected
annual FCF and 2018 financial targets; amounts to be received from the Balancing Pool in connection with the termination of the
Sundance B and Sundance C PPAs; increased asset optimization; reductions in operating costs and sustaining and productivity capital
in the range of&nbsp;$215&nbsp;to&nbsp;$235 million; and the 2018 dividend amounts and payout ratio. These statements are based
on TransAlta's belief and assumptions based on information available at the time the assumptions were made. These statements are
subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the
forward-looking statements. Some of the factors that could cause such differences include: legislative or regulatory developments,
including as it pertains to the&nbsp;Alberta&nbsp;capacity market; the Federal and/or Provincial governments not implementing legislation
or regulations facilitating the conversion from coal generation to gas generation; the Federal and/or Provincial governments adopting
different carbon prices rules; changes in economic and competitive conditions; inability to secure natural gas supply and the construction
of a natural gas pipeline on terms satisfactory to the Company; the introduction of disruptive sources of energy or capacity; changes
in the price for natural gas and electricity, including expected pricing in&nbsp;Alberta&nbsp;and Mid-C; decreased demand for energy
or capacity; Canadian coal capacity factors and hydro and wind resources being lower than expected; availability of financing;
and other risk factors contained in the Company's annual information form and management's discussion and analysis. Readers are
cautioned not to place undue reliance on these forward-looking statements or forward-looking information, which reflect TransAlta's
expectations only as of the date of this news release. The purpose of the financial outlooks contained in this news release are
to give the reader information about management's current expectations and plans and readers are cautioned that such information
may not be appropriate for other purposes. TransAlta disclaims any intention or obligation to update or revise these forward-looking
statements, whether as a result of new information, future events or otherwise, except as required by law.</I></P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 26.25pt">Note: All financial figures are in Canadian dollars
unless otherwise indicated.</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0 0 26.25pt">For further information: Investor Inquiries: Sally
Taylor, Manager, Investor Relations, Phone: 1-800-387-3598 in Canada and U.S., Email: investor_relations@transalta.com;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">Media Inquiries: Amber Goulard, Senior Advisor,
Communications, Phone: Toll-free media number: 1-855-255-9184, Email: ta_media_relations@transalta.com</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 9pt/115% Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-align: center">&nbsp;</P>



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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
