SOURCE: Ram Power, Corp.

Ram Power, Corp.

May 04, 2010 08:00 ET

Ram Power Signs Letter of Intent for the Sale of 150 MW From Nicaragua Geothermal Concession

RENO, NV--(Marketwire - May 4, 2010) - Ram Power, Corp. (TSX: RPG) ("Ram Power"), through its wholly owned subsidiary Polaris Geothermal, Inc., has entered into a Letter of Intent (the "LOI") with Disnorte-Dissur, a Gas Natural Fenosa company ("Disnorte-Dissur") to negotiate a Power Purchase Agreement (the "PPA") for energy that will be produced by a new geothermal power plant under development in Nicaragua. 

Under the LOI, Disnorte-Dissur, an energy provider in Nicaragua, will purchase up to 157 megawatts (MW) of power to be developed from Ram Power's Casita San Cristobal geothermal concession (the "Casita Project"). Both final capacity and power rate figures are subject to approval by the Nicaraguan Ministry of Energy and the electricity regulator. The PPA is expected to be signed in 2010.

The Casita Project is located in northwest Nicaragua in the department of Chinandega. Exploration drilling of the Casita Project is expected to begin later this year. Energy deliveries to Disnorte-Dissur will be in several phases beginning in 2013.

"Ram Power is pleased to expand our development plan by furthering the conversion from oil based power in Nicaragua into a renewable based, cost effective operation," said Mario Arana, Director of Ram Power. "Developing the world class geothermal resources of Casita San Cristobal will not only provide jobs, but will also help reduce the cost of power for the citizens of Nicaragua." 

Mr. Arana went on to say that, "building upon our experience with the San Jacinto-Tizate Project, this agreement demonstrates the strong market demand for clean, renewable energy, as well as Ram Power's commitment to its continued growth as an international supplier of geothermal power." 

About Ram Power, Corp.

Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal power properties. It has interest in geothermal projects in the United States, Canada, and Latin America. 

Cautionary Statements

This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram Power. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward looking information, other than as required by law, or comment on analyses, expectations or statements made by third-parties in respect of Ram Power, or its financial or operating result or its securities. 

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