Nevada Geothermal Power Inc.
OTC Bulletin Board : NGLPF

Nevada Geothermal Power Inc.

January 16, 2007 09:40 ET

Nevada Geothermal Power Inc. Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - Nevada Geothermal Power Inc. (NGP)(TSX VENTURE:NGP)(OTCBB:NGLPF) announced that it will be proceeding with a brokered private placement, on a bought deal basis, consisting of 3,850,000 units ("Units") at C$.65 per Unit for gross proceeds of approximately C$2,502,500. NGP has also agreed to grant the underwriters an over-allotment option exercisable for up to 30 days following the Closing Date (expected to be January 23, 2007) to increase the size of the Offering by up to 7,700,000 units at C$0.65 or C$5,005,000.

Each unit will consist of one common share and one share purchase warrant (a "Unit"). One warrant will entitle the holder to purchase one additional common share for a period of 24 months at a price of C$1.10 per warrant share, subject to an acceleration provision such that if at any time six months after the closing the price per NGP share on the TSX Venture Exchange is C$1.65 or higher for ten (10) consecutive business days, then NGP shall give the investors notice that the warrants must be exercised or they will expire within 30 days.

Dundee Securities Corporation ("Dundee") will manage the Offering. The underwriters will receive a 7% cash commission and will be granted an option (the "Compensation Option") to acquire that number of Units that is equal to 8% of the number of Units issued under the Offering. The Compensation Option shall entitle the underwriters to purchase Units, exercisable at the offering price of the Units for a period of 24 months following closing of the Offering.

If all of the Units are sold, including the over-allotment option, the net proceeds to be realized by NGP from the private placement will be approximately C$6,941,975 which shall be used to fund further development at the Blue Mountain Geothermal Site and for general working capital. The securities to be issued under the Offering shall be subject to a four month hold period, and the Offering is subject to the acceptance of the TSX Venture Exchange.

Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all of which are ideally situated in Nevada and Crump Geyser in Oregon. An initial up to 35 MW gross (31.5 MW net) power plant is planned to begin generating power at the Blue Mountain site subject to further resource drilling and feasibility studies.

Nevada Geothermal Power Inc.

Brian D. Fairbank, P. Eng., President & CEO

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information