| U.S. Geothermal Completes Acquisition of
Producing Geothermal Power Plant and Energy Rights in Nevada
May 01 - MARKET WIRE
U.S. Geothermal Inc. ("U.S. Geothermal") (TSX: GTH)(AMEX: HTM), a renewable
energy company focused on the production of electricity from geothermal
energy, announced that it completed a transaction with Michael B. Stewart
individually and Empire Geothermal Power LLC ("Empire") (together "Seller"),
and acquired a 3.6-megawatt operating geothermal power plant and
approximately 28,358 acres (44.3 square miles) of geothermal energy leases
and certain ground water rights all located north of Reno, Nevada.
The asset purchase transaction (the "Transaction") was structured with an
initial closing on April 1, 2008 and the final closing on April 30, 2008.
The total Transaction purchase price was US$16.62 million. The Transaction
assets are comprised of two locations: the San Emidio assets and the Granite
Creek assets. The San Emidio assets are located in the San Emidio Desert,
Washoe County, Nevada and include the geothermal power plant project,
approximately 22,944 acres (35.9 square miles) of geothermal leases, and
ground water rights used for cooling water. The Granite Creek assets are
comprised of approximately 5,414 acres (8.5 square miles) of BLM geothermal
leases located about 6 miles north of Gerlach, Nevada along a geologic
structure known to host geothermal features including the Great Boiling
Spring and the Fly Ranch Geyser.
The 3.6-megawatt geothermal power plant has been producing power since 1987
and sells electricity to Sierra Pacific Power Corp. ("Sierra") under an
existing power purchase agreement that extends through 2017. A March 2008
resource assessment of the San Emidio geothermal leases by independent
experts Susan Petty and Dennis Trexler of Black Mountain Technology shows a
total resource potential of 44 megawatts with a 90% probability factor.
About U.S. Geothermal:
U.S. Geothermal is a renewable energy development company that is operating
geothermal power projects at Raft River, Idaho and San Emidio, Nevada and is
exploring the Neal Hot Springs project in eastern Oregon.
Forward Looking Statements
The information provided in this news release may contain forward-looking
statements within the definition of the Safe Harbor provisions of the US
Private Securities Litigation Reform Act of 1995, including statements
regarding the second closing of the assets, potential energy resources and
projects, the potential benefits of the acquisition and performance
estimates and development possibilities for Empire and Granite Creek. These
statements are based on U.S. Geothermal Inc.'s current expectations and
beliefs and are subject to a number of risks and uncertainties that can
cause actual results to differ materially from those described, the need for
additional financing, the uncertainties as to estimates and assumptions
relied upon in the Petty/Trexler report and by management in assessing the
potential of the Empire project, and the risks related to the exploration
and development of geothermal resources. Readers are also cautioned to
review the risk factors identified by the company in its filings with
Canadian and US securities agencies. Forward-looking statements are based on
management's expectations, beliefs and opinions on the date the statements
are made. U.S. Geothermal Inc. assumes no obligation to update
forward-looking statements if management's expectations, beliefs, or
opinions, or other factors, should change.
The TSX and American Stock Exchanges do not accept responsibility for the
adequacy of this release.
Contacts: U.S. Geothermal Inc. Saf Dhillon Investor Relations 1-866-687-7059
(604) 688-9895 (FAX) Email: email@example.com Website:
www.usgeothermal.com Scott Peyron & Associates, Inc. Melinda Keckler Media
Relations (208) 388-3800 (208) 388-8898 (FAX) Email: firstname.lastname@example.org
SOURCE: U.S. Geothermal Inc.