<SEC-DOCUMENT>0001279569-19-000690.txt : 20190325
<SEC-HEADER>0001279569-19-000690.hdr.sgml : 20190325
<ACCEPTANCE-DATETIME>20190325124853
ACCESSION NUMBER:		0001279569-19-000690
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20190325
FILED AS OF DATE:		20190325
DATE AS OF CHANGE:		20190325

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:		19701998

	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>
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<DESCRIPTION>FORM 6-K
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<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 14pt 0 0; text-align: center">&nbsp;UNITED STATES</P>

<P STYLE="font: bold 16pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center"><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: bold 18pt Times New Roman, Times, Serif; margin: 10pt 0 6pt; text-align: center">FORM 6-K</P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center">REPORT OF FOREIGN PRIVATE ISSUER<BR>
PURSUANT TO RULE&nbsp;13a-16 OR 15d-16<BR>
UNDER THE SECURITIES EXCHANGE ACT OF 1934</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: center"><B>For the month of March, 2019</B><BR>
<B>Commission File Number 001-15214</B></P>

<P STYLE="font: bold 16pt Times New Roman, Times, Serif; margin: 10pt 0 6pt; text-align: center"><FONT STYLE="font-size: 20pt">TRANSALTA
CORPORATION</FONT><BR>
<FONT STYLE="font-size: 10pt; font-weight: normal">(Translation of registrant's name into English)</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: center"><B>110-12th Avenue S.W., Box 1900, Station
&ldquo;M&rdquo;, Calgary, Alberta, Canada, T2P 2M1</B><BR>
(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center"><FONT STYLE="font-weight: normal">Form&nbsp;20-F&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Form&nbsp;40-F&nbsp;<FONT STYLE="font-family: Wingdings">&#254;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(1). _____</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify">Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(7). _____</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: left">Signatures</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in">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.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 24pt 0 0 3in"><B>&nbsp;</B></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%">By:</TD>
    <TD STYLE="width: 87%; border-bottom: Black 1pt solid">/s/ Christophe Dehout</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Name: Christophe Dehout</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Title: Chief Financial Officer</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0">Date: March 25, 2019</P>

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

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


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

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 1pt solid"><B>Exhibit Number</B></P></TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 81%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; border-bottom: Black 1pt solid"><B>Description of Document</B></P></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><A HREF="ex991.htm">99.1</A></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><A HREF="ex991.htm">TransAlta Announces Strategic Investment by Brookfield Renewable Partners</A></TD></TR>
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<DESCRIPTION>NEWS RELEASE DATED MARCH 25, 2019
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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">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"></P>

<P STYLE="font: bold 24pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">&nbsp;TransAlta Announces Strategic Investment
by Brookfield Renewable Partners</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; text-align: center; margin-right: 0; margin-left: 0"><B>Brookfield Makes $750
Million Investment to Advance TransAlta's Transition to Clean Energy</B></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; text-align: center; margin-right: 0; margin-left: 0"><B>TransAlta to host Investor
Conference Call at 7:00 AM MDT</B></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I>All figures in Canadian dollars</I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">CALGARY, March 25, 2019 /CNW/ -&nbsp;TransAlta
Corporation (&quot;TransAlta&quot; or &quot;the Company&quot;) (TSX: TA) (NYSE: TAC) announced today an investment by Brookfield
Renewable Partners and its institutional partners (collectively &quot;Brookfield&quot;) that crystalizes the value of its Hydro
Assets, enhances its financial position to execute its strategy, and accelerates the opportunity to return capital to shareholders.
This investment will ensure TransAlta will transition to 100% clean energy by 2025.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Under the terms of the agreement, Brookfield
will invest $750 million in TransAlta (the &quot;Investment&quot;) through the purchase of exchangeable securities (described below),
which will be convertible into an equity ownership interest in TransAlta's Alberta Hydro Assets in the future at a value based
on a multiple of the future Hydro Assets' EBITDA. In addition, Brookfield has committed to purchase TransAlta common shares on
the open market to increase its share ownership in TransAlta to 9%. TransAlta will include two experienced Brookfield nominees,
Harry Goldgut and Richard Legault, on its slate of directors for election at the upcoming 2019 Annual and Special Meeting of shareholders
(the &quot;2019 Meeting&quot;). TransAlta and Brookfield intend to work together to complete TransAlta's transition to clean energy,
maximize the value of the Hydro Assets, and create long-term shareholder value.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">TransAlta also announced today that Robert
Flexon, former CEO of Dynegy, has agreed to stand for election at the 2019 Meeting, bringing with him critical leadership skills
and experience from the independent power-producing industry in the US.&nbsp;</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>Investment Highlights</B></P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0"><B>Significant $750 million
capital injection </B>&ndash; TransAlta will direct $350 million to advance the Company's coal to gas transition strategy, up to
$250 million to buy back shares over three years, and the remainder to advance the development of existing and new growth projects
and for general corporate purposes. This funding, combined with internally generated cash flow, allows TransAlta to advance its
coal-to-gas strategy, continue to grow, return some capital to shareholders, and meet its target of repaying the $400 million medium
term notes due in November 2020.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0"><B>Recognizes the future
value of TransAlta's Alberta Hydro Assets </B>by valuing the company's Hydro operations based on the higher cash flows expected
to be generated following expiry of the Alberta power purchase arrangement in 2020, while still maintaining a majority ownership
position and future upside for TransAlta and its shareholders.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0"><B>Creates a long-term
cornerstone shareholder </B>&ndash; Brookfield's long-term investment in exchangeable securities, combined with its share ownership
in the Company, provides TransAlta with increased stability and support to execute on its strategy for the benefit of all shareholders.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0"><B>Strengthens operating
capabilities </B>with the creation of a joint TransAlta/Brookfield operating committee with representatives from both companies
to provide advice in connection with hydro operations to maximize the value of the Company's Hydro Assets.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0"><B>Accelerates return
of capital to shareholders </B>through the Company's commitment to return up to $250 million to shareholders through share purchases
within three years by way of a substantial issuer bid (&quot;SIB&quot;) or through the normal course issuer bid program.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt"><B>Adds extensive renewables experience and expertise to
the TransAlta Board of Directors</B> &ndash; the addition of Harry Goldgut and Richard Legault will enhance and complement the
current mix of skills, experience and tenure on the TransAlta Board.</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">RBC Global Asset Management Inc., TransAlta's
largest shareholder at 12.4%, is supportive of the strategic Investment and has committed to supporting TransAlta's slate of director
nominees at the upcoming 2019 Meeting.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">&quot;Brookfield's investment is a strong endorsement
of TransAlta's strategy and future value,&quot; said Dawn Farrell, President and Chief Executive Officer. &quot;By crystallizing
the value of our Hydro Assets, we can accelerate the return of capital to shareholders and invest in coal to gas conversions and
strategic gas and renewable developments, while still meeting our goal to reduce senior indebtedness to $1.2 billion by the end
of 2020. With Brookfield as a cornerstone shareholder, we are well positioned to invest in our business and increase value for
shareholders.&quot;</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">&quot;We are pleased to partner with TransAlta
to accelerate its transition to clean energy and support value creation for all shareholders,&quot; said Sachin Shah, CEO, Brookfield
Renewable Partners.&nbsp; &quot;We look forward to contributing our capabilities, particularly our long-term expertise in the hydro
sector, to enable the company's growth over the long-term.&quot;</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Ambassador Gordon Giffin, Chair of the Board
of TransAlta, said, &quot;In addition to capital and operating expertise, we are adding deep industry experience, expertise and
fresh perspectives to our Board. Mr. Goldgut, Mr. Legault and Mr. Flexon have impressive track records in renewable energy, thermal
energy, infrastructure and value creation in rapidly evolving electricity markets. Together, we will work to ensure TransAlta's
success as we transform the company into a clean energy leader.&quot;</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Harry Goldgut is a Vice Chair in Brookfield's
Renewable Power and Infrastructure Groups. Mr. Goldgut has played a key role in the acquisition of the majority of Brookfield's
renewable power assets and has been involved in the restructuring of the electricity market in Ontario as a member of the Electricity
Market Design Committee and the Clean Energy Task Force.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Richard Legault is a Vice Chair in Brookfield's
Renewable Power Group and served as the CEO of Brookfield Renewable Partners until August 2015. During his 28 years at Brookfield,
Mr. Legault led the development and expansion of Brookfield's renewable business in North and South America, and Europe. He also
served as CFO at Brookfield Asset Management from 2000 to 2001.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Robert Flexon was the President and Chief Executive
Officer of Dynegy Inc. from 2011 until its acquisition by Vistra Energy Corp. in April 2018. Dynegy was a U.S. independent power
producer engaged in the operation of power generating facilities and was previously listed on the NYSE.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>Investment Details &amp; Use of Proceeds
</B></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">In concluding that the Investment is in the
best interests of the Company and its shareholders, the TransAlta board of directors received the recommendation of its independent
special committee formed to evaluate and oversee the negotiations of the transaction and the analysis and advice from its financial
advisor, CIBC World Markets Inc., and its legal advisor, Davies Ward Phillips &amp; Vineberg LLP.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">Key terms of the agreement include:</P>

<UL STYLE="list-style-type: disc">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">The Investment will occur
in two tranches, $350 million at closing, expected in May 2019, in the form of Exchangeable Debentures, and $400 million at a second
closing in October 2020 in the form of Redeemable Preferred Shares (together, the &quot;Exchangeable Securities&quot;). Both securities
will have an annual coupon rate of 7.0% and will be convertible into an equity interest in an entity holding the hydro assets after
December 31, 2024.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">After December 31, 2024,
Brookfield has the right to exchange the Exchangeable Securities into an equity ownership interest in an entity to be formed that
will hold the Company's Alberta Hydro Assets, as follows:</LI>

<UL STYLE="list-style-type: circle">

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">The value of the Hydro
Assets will be calculated based on a multiple of 13 times the average annual EBITDA generated by the Hydro Assets less $10 million
per year of sustaining capex over the most recent three fiscal years prior to conversion, less an adjustment for tax, calculated
in the manner specified in the exchangeable security provisions (&quot;Hydro Assets' EBITDA&quot;). The maximum equity interest
Brookfield can own with respect to the Hydro Assets is 49%. Based on the Company's estimates of the Hydro Assets' future EBITDA,
Brookfield's $750 million is expected to convert into an approximately 30 &ndash; 35% interest in the entity holding the Hydro
Assets.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">If Brookfield's ownership
interest is less than 49% at conversion, Brookfield has a one-time option payable in cash to increase its ownership to up to 49%,
exercisable up until December 31, 2028, and provided Brookfield holds at least 8.5% of TransAlta's common shares. Under this top-up
option, Brookfield will be able to acquire an additional 10% interest in the entity holding the Hydro Assets, provided the 20-day
volume-weighted average price (&quot;VWAP&quot;) of TransAlta's common shares is not less than $14 per share prior to the exercise
of the option, and up to the full 49% if the 20-day VWAP of TransAlta's common shares at that time is not less than $17 per share.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">To the extent the value
of the Investment would exceed a 49% equity interest, Brookfield will be entitled to receive the balance of the redemption price
in cash.</LI>

</UL>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">If Brookfield chooses
not to exercise its right to exchange its Investment as outlined above, TransAlta has the right after December 31, 2028 to redeem
for cash all or any portion of the Exchangeable Securities for the original subscription price, plus any accrued but unpaid interest
or dividends payable, provided the minimum proceeds to Brookfield for each redemption (other than the final redemption) is not
less than $100 million and provided all Exchangeable Securities must be redeemed within 36 months of the first optional redemption.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">Brookfield has agreed
to increase its equity ownership in TransAlta from its current position of approximately 4.9% of the outstanding common shares,
to 9% on the open market over two years following closing of the transaction, provided Brookfield is not obliged to purchase common
shares of TransAlta at a price of more than $10 per share.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">TransAlta has paid a
non-refundable structuring fee of $7.5 million (1%) of the Investment to Brookfield on signing of the investment agreement. TransAlta
has also agreed to pay an additional $15 million (2%) commitment (the &quot;Commitment Fee&quot;) upon closing of the first tranche
of the Investment.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">While Brookfield owns
the Exchangeable Securities, it has the right to nominate two members for election to the TransAlta Board at each annual meeting
of shareholders. If Brookfield's nominees to the Board are not elected at the 2019 Meeting or any subsequent meeting, Brookfield's
obligation to increase and maintain its holding of common shares at 9% and its standstill and lock-up obligations (described below)
will be suspended until the date that its nominees are elected or appointed to the Board.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">Brookfield has agreed
to standstill commitments for a three-year period from the date the first tranche is funded, with customary exceptions. It has
also agreed to vote in favour of the Company's director nominees and in accordance with any recommendations of the Board at any
meeting of the shareholders of the Company, for a minimum of three years and subject to extension for so long as it has nominees
on the Board.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">Brookfield has also agreed
to a lock-up which prohibits the sale of common shares or Exchangeable Securities, subject to certain exclusions, until December
31, 2023.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">The Redeemable Preferred
Shares are perpetual and will rank on equal footing with respect to all existing series of first preferred shares of the Company
with respect to distributions and liquidation preference. The Exchangeable Debentures have a 20-year term, are unsecured and will
rank subordinate to all existing and future secured and senior unsecured indebtedness of the Company, including the Company's existing
credit facility. The Company's obligations under the Exchangeable Securities will not be guaranteed by any of its subsidiaries.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">TransAlta and Brookfield
will form a joint operating committee, for a period of six years, focused on optimizing the operations and maximizing the value
of the Hydro Assets. The committee will consist of two Brookfield members, who are not nominees to the Board, with expertise in
hydro facility management and two TransAlta members. Brookfield will receive a management fee of $1.5 million per year for six
years as compensation for its work on the committee. TransAlta has the option to extend this arrangement for an additional two
years.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">The Investment is expected
to close three business days after TransAlta's 2019 Meeting, scheduled for April 26, 2019. The transaction is subject to certain
customary closing conditions. In addition, if two or more directors (excluding the Brookfield nominees) are elected as directors
at the 2019 Meeting who are not among the Company's nominees recommended in the Company's proxy circular for election to the Board
at the 2019 Meeting, then the Company may elect to delay the first funding to a date that is not later than the 30th day following
the date of the 2019 Meeting. If the Company elects to not proceed with the Investment, upon payment of the Commitment Fee, the
agreement automatically terminates, and no party will have any liability to the other.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-bottom: 15pt; margin-left: 0">In accordance with good
governance practices, the Board established a special committee of independent directors, comprised of Ambassador Gordon Giffin,
Alan Fohrer and Beverlee Park (the &quot;Special Committee&quot;), to review, consider, and evaluate the proposed Investment, and
make recommendations to the Board. The Special Committee and, ultimately, the full Board, unanimously concluded that the Investment
is in the best interests of the Company and its shareholders.</LI>

<LI STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0pt 0 12pt">In connection with evaluating and negotiating the proposed
Investment and determining that the Investment is in the best interests of the Company and its shareholders, the Special Committee
and the Board considered a number of factors and received and relied on analysis and advice provided by CIBC World Markets Inc.
and Davies Ward Phillips &amp; Vineberg LLP. CIBC's advice included an analysis of (i) the material financial terms of the proposed
Investment, taking into account recent precedent transactions and comparable financings, securities or other transactions having
features similar to the Investment, the implied value attributable to the equity interests in the Hydro Assets entity upon exchange
of the Exchangeable Securities in certain circumstances, and the pro forma impact of a potential substantial issuer bid, (ii) TransAlta's
funding options and capital needs, (iii) specific alternatives for the Company's coal to gas conversion strategy, (iv) other broader
funding requirements, and (v) pro forma credit metrics arising from the financing alternatives considered and credit rating considerations.</LI>

</UL>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>Further Information</B><BR>
Additional details about the proposed Investment by, and TransAlta's strategic arrangement with, Brookfield will be available in
the Company's material change report, available on www.sedar.com and www.sec.gov by March 26, 2019. A copy of the Investment Agreement
will be included with the material change report. This press release is only a summary of certain principal terms of the Investment
and is qualified in its entirety by reference to the more detailed information contained in our material change report and the
Investment Agreement. Shareholders are urged to read those materials carefully.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">As previously announced, the Company's annual
general and special meeting of shareholders is scheduled to be held at 10:30 a.m. (Calgary time) on April 26, 2019 at the TELUS
Convention Centre in Calgary, Alberta. Shareholders are not being asked to take any action with respect to the 2019 Meeting at
this time. The Company anticipates filing and mailing its Notice of Annual and Special Meeting and Management Proxy Circular for
the 2019 Meeting by April 1, 2019, which will include full information concerning management's proposed nominees for election to
the TransAlta Board.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>Conference Call Details</B><BR>
TransAlta will hold a conference call and webcast at 7:00 a.m. MDT (9:00 a.m. EDT) today, March 25, 2019, to discuss the strategic
investment.&nbsp; The call will begin with a short address by Dawn Farrell, President and CEO, followed by a question and answer
period for investment analysts and investors.&nbsp; Please contact the conference operator five minutes prior to the call, noting
&quot;TransAlta Corporation&quot; as the company and &quot;Sally Taylor&quot; as moderator.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; text-align: center; margin-right: 0; margin-left: 0"><B>Dial-in numbers:<BR>
Toll-free North American participants call: 1-888-231-8191<BR>
Outside of Canada &amp; USA call: 1-647-427-7450</B></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">A link to the live webcast will be available
on the Investor Centre section of TransAlta's website at <U>http://www.transalta.com/powering-investors/events-and-presentations</U>.
If you are unable to participate in the call, the instant replay is accessible at 1-855-859-2056 (Canada and USA toll free) with
TransAlta pass code 3238069 followed by the # sign. A transcript of the broadcast will be posted on TransAlta's website once it
becomes available.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>About TransAlta Corporation:</B><BR>
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia
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 Canada's largest producers of wind power and Alberta's
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 <U>UN Sustainable Development Goals</U>&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 <U>Silver level PAR (Progressive Aboriginal Relations)</U>&nbsp;designation by the Canadian Council
for Aboriginal Business.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">For more information about TransAlta, visit
our web site at <U>transalta.com</U>.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><B>Forward Looking Disclaimer </B><BR>
<I>This News Release includes &quot;forward-looking information&quot;, within the meaning of applicable Canadian securities laws,
and &quot;forward-looking statements&quot;, within the meaning of applicable United States securities laws, including the United
States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as &quot;forward-looking statements&quot;).
All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption
was made and on management's experience and perception of historical trends, current conditions, results and expected future developments,
as well as other factors deemed appropriate in the circumstances. Forward-looking statements are not facts, but only predictions
and generally can be identified by the use of statements that include phrases such as &quot;may&quot;, &quot;will&quot;, &quot;can&quot;;
&quot;could&quot;, &quot;would&quot;, &quot;shall&quot;, &quot;believe&quot;, &quot;expect&quot;, &quot;estimate&quot;, &quot;anticipate&quot;,
&quot;intend&quot;, &quot;plan&quot;, &quot;forecast&quot; &quot;foresee&quot;, &quot;potential&quot;, &quot;enable&quot;, &quot;continue&quot;
or other comparable terminology.&nbsp; These statements are not guarantees of our future performance, events or results and are
subject to a number of significant risks, uncertainties and other important factors that could cause our actual performance, events
or results to be materially different from that set out in the forward-looking statements. </I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I>In particular, this News Release contains
forward-looking statements including, but not limited to, statements relating to the strategic Investment by and partnership with
Brookfield, or its affiliated entities; the timing and probability for completing the proposed Investment; the expected benefits
to the Company and its shareholders following the completion of the Investment; the Company's future ownership levels in or level
of control over the Alberta hydro assets; the anticipated timing, costs and benefits of TransAlta's coal-to-gas conversion strategy;
the timing, terms and probability of returning capital to shareholders; the ongoing objectives and strategies of the Company, including
as it pertains to reducing debt, growing the renewables business, maintaining, realizing and maximizing the value of the hydro
assets and converting coal-fired units to natural gas fired units; Brookfield increasing and maintaining its share ownership in
the Company; the appointment of two Brookfield nominees and Mr. Robert Flexon to the Board of Directors of the Company at the 2019
Meeting and the expected benefits to be realized from such appointments or any replacement directors; the use of proceeds from
the Investment, including directing $350 million to advance the Company's coal to gas transition strategy and up to $250 million
to buy back shares; the expected higher cash flow and anticipated adjusted EBITDA to be generated by the Alberta Hydro Assets following
expiry of the power purchase arrangement in 2020 or upon conversion of the Exchangeable Securities; the expected benefits of Brookfield
being a cornerstone shareholder; the Company's ongoing objectives, strategies and outlook for 2019 and subsequent periods; changes
to our relationship with or the ownership of securities by Brookfield or its affiliates or other shareholders; legislative, regulatory
and political uncertainty in the jurisdictions in which we operate; and the filing and mailing date of the Management Proxy Circular,
the date of the 2019 Meeting and its outcome. The forward-looking statements contained in this News Release are based on many assumptions
including, but not limited to, the following material assumptions: no significant changes to applicable laws, including any tax
and regulatory changes in the markets in which we operate; the anticipated structure and framework of an Alberta capacity market
in the future; no material adverse impacts to the investment, securities and credit markets; assumptions referenced in our 2019
guidance; the closing of the Investment occurring following the Meeting and the outcome of the 2019 Meeting; our Alberta hydro
assets achieving their anticipated value, cash flows and EBITDA once the applicable power purchase arrangement has expired; no
material decline in the dividends expected to be received from TransAlta Renewables Inc.; the expected life extension of the coal
fleet and anticipated financial results generated on conversion; assumptions regarding the ability of the converted units to successfully
compete in the expected Alberta capacity market; assumptions regarding our current strategy and priorities, including as it pertains
to our coal-to-gas conversions, growing TransAlta Renewables Inc., maintaining and realizing the value of our hydro assets and
being able to realize the full economic benefit from the capacity, energy and ancillary services from our Alberta Hydro Assets
once the applicable power purchase arrangement has expired; and assumptions relating to the completion of the strategic partnership
with and Investment by Brookfield and proposed substantial or normal course issuer bids.</I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I>The material factors and assumptions used
in the preparation of the forward-looking statements contained herein, which may prove to be incorrect, include, but are not limited
to, the assumptions set forth herein and in management's discussion and analysis and the Company's annual information form dated
as of February 26, 2019. By their nature, forward-looking statements are not guarantees of future performance, events, results
or actions and are subject to a number of significant risks, uncertainties, assumptions and factors that could cause our actual
plans, performance, results or outcomes to differ materially from the forward-looking statement. Factors that may adversely impact
what is expressed or implied by forward-looking statements contained in this News Release include, but are not limited to, risks
relating to: fluctuations in demand, market prices and the availability of fuel supplies required to generate electricity; changes
in demand for electricity and capacity and our ability to contract our generation for prices that will provide expected returns
and replace contracts as they expire; changes in the current or anticipated legislative, regulatory and political environments
in the jurisdictions in which we operate; environmental requirements and changes in, or liabilities under, these requirements;
risks to our ability to close the Investment by Brookfield, including the Company exercising its rights to terminate the transaction
following the 2019 Meeting; and the failure of the conditions precedent to the investment to be satisfied; potential legal disputes
or proceedings, including as it pertains to the Investment; the inability to complete the share buy-backs within the timeline or
on the terms anticipated or at all, including the conditions to any bid, any bid not having the effects or benefits anticipated,
the extent to which shareholders tender shares to any bid and the price or prices at which any shares are tendered; risks associated
with the calculation of the Hydro Assets' EBITDA, including non-financial measures included in the calculation of the Hydro Assets'
EBITDA, for purposes of valuing the Investment and upon the exchange of Exchangeable Securities; the anticipated benefits of the
hydro assets operating committee not materializing; the timing and value of Brookfield's exchange of Exchangeable Securities and
the amount of equity interest in the Hydro Assets resulting therefrom, including as a result of the top-up option; risks associated
with the impact of the Investment on the Company's shareholders and debtholders or its credit ratings; the Company's inability
to redeem the Exchangeable Securities after December 31, 2018 due to changing circumstances or otherwise; the costs of the Investment
exceeding its anticipated value; changes in general economic conditions including interest rates; operational risks involving our
facilities, including unplanned outages at such facilities and our ability to return these facilities to service in a timely manner;
our ability to conduct the repair and maintenance to our facilities, either directly or through a third party, in a timely and
cost efficient manner; disruptions in the transmission and distribution of electricity; the effects of weather and other climate-change
related risks; unexpected increases in cost structure; disruptions in the source of fuels, including solar, water or wind resources
required to operate our facilities; failure to meet financial expectations; natural or man-made disasters, including those resulting
in dam or dyke failures; the threat of domestic terrorism and cyber-attacks; equipment failure and our ability to carry out or
have completed the repairs in a cost-effective manner or timely manner; commodity risk management and energy trading risks; industry
risk and competition; the need to engage or rely on certain stakeholder groups and third parties; fluctuations in the value of
foreign currencies and foreign political risks; the need for and availability of additional financing and our ability to obtain
such financing at competitive rates or at all; structural subordination of securities; counterparty credit risk; changes in credit
and market conditions; changes to our relationship with, or ownership of, TransAlta Renewables Inc.; changes to our relationship
with, or the securities ownership held by, Brookfield or its affiliates or other shareholders; risks associated with development
projects and acquisitions, including capital costs, permitting, labour and engineering risks; increased costs or delays in the
construction or commissioning of pipelines to converted units; changes in expectations in the payment of future dividends, including
from TransAlta Renewables Inc.; inadequacy or unavailability of insurance coverage; the effect of a credit rating downgrade on
our energy marketing business and the impact on our financing costs; our provision for income taxes; legal, regulatory and contractual
disputes and proceedings involving the Company; outcomes of investigations and disputes; reliance on key personnel; labour relations
matters; and development projects and acquisitions.</I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I>Readers are urged to consider these factors
carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on them, which reflect the
Company's expectations only as of the date hereof.&nbsp;The forward-looking statements included in this News Release are made only
as of the date hereof and we do not undertake to publicly update these forward-looking statements to reflect new information, future
events or otherwise, except as required by applicable laws.&nbsp;In light of these risks, uncertainties and assumptions, the forward-looking
statements might occur to a different extent or at a different time than we have described or might not occur at all. We cannot
assure that projected results or events will be achieved. </I></P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><I>Certain financial information contained
in this News Release, including EBITDA, may not be standard measures defined under International Financial Reporting Standards
(&quot;IFRS&quot;) and may not be comparable to similar measures presented by other entities. For further information on the calculation
of EBITDA in respect of the Investment and how it is calculated with regard to the Exchangeable Securities, reference can be made
to the Material Change Report and the Investment Agreement, to be filed with the Canadian securities regulators on </I>www.sedar.com<I>&nbsp;and
furnished with the Securities and Exchange Commission on </I>www.edgar.com.</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"><IMG SRC="image_001.jpg" ALT="Cision" STYLE="height: 12px; width: 12px">View
original content:http://www.prnewswire.com/news-releases/transalta-announces-strategic-investment-by-brookfield-renewable-partners-300817502.html</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">SOURCE TransAlta Corporation</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">View original content: http://www.newswire.ca/en/releases/archive/March2019/25/c8114.html</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">%CIK: 0001144800</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin: 0"><B>For further information: </B>Investor Inquiries: Sally Taylor,
Manager, Investor Relations, Phone: 1-800-387-3598 in Canada and U.S., Email: investor_relations@transalta.com; Media Inquiries:
Phone: 1-855-255-9184, Email: ta_media_relations@transalta.com</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">CO: TransAlta Corporation</P>

<P STYLE="font: 15pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0">CNW 07:00e 25-MAR-19</P>



<P STYLE="font: bold 24pt Arial, Helvetica, Sans-Serif; margin-right: 0; margin-left: 0"></P>

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