Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

November 23, 2009 16:27 ET

SGP Reports Third Quarter 2009 Results

Enlarges estimated minimum megawatt capacity for Silver Peak

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 23, 2009) -

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Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP") today disclosed results for its third quarter ended September 30, 2009 and announced that is has enlarged its estimated minimum megawatt capacity for its Silver Peak geothermal project located in Nevada.

"Based on internal analysis of our recent exploration activity at Silver Peak, we now can state with 90% probability that the project could support at minimum a 25 megawatt power plant," said Gary Thompson, President and Chief Executive Officer of Sierra Geothermal. "This represents an increase of two-thirds from the prior estimate of 15 megawatts and strengthens our confidence for further upside at Silver Peak."

Q3 2009 and Subsequent Period Highlights

  • Doubled the estimated minimum area of the Silver Peak thermal anomaly to 3.5 square kilometres from the previous estimate of 1.7 square kilometres. This increase, and the related two-thirds increase in the minimum megawatt estimate, followed the successful completion of ten shallow temperature gradient holes at Silver Peak, in our Paymaster District.
  • Continued to advance exploration activity to move three additional Tier One projects towards bankable feasibility.
  • Received a favourable environmental assessment decision at our Alum geothermal power project, also in our Paymaster District.
  • Awarded US$10 million in US Government grants, consisting of US$5 million for Silver Peak and US$5 million for Alum.
  • Completed $10.79 million in financings, including $7.01 million subsequent to the quarter end.
  • Current cash on hand of approximately $10 million (excluding grant awards).

Continued Mr. Thompson, "With our positive exploration results, our recent financings and our US Government grants, we are confident that we will achieve our goal of having 50 megawatts of total capacity at the bankable feasibility stage by the end of next year."

Financial Results

  3 months ended3 months ended9 months ended9 months ended
  September 30, 2009September 30, 2008September 30, 2009September 30, 2008
 Loss($566,070) ($571,949) ($1,636,701) ($2,244,528)
 Loss per share($0.01) ($0.01) ($0.02) ($0.03)
 Weighted average88,972,420 68,228,788 79,751,790 68,219,103
 common shares       
 outstanding       

The decrease in the net loss in the first nine months of 2009 compared with a year earlier was mainly due to a decrease in stock-based compensation expense and the company's efforts to reduce expenses.

As of November 23, 2009, the Company had approximately $10 million in cash on hand.

Cash used in the third quarter of 2009 increased to $520,453 from $229,414 in the third quarter of 2008 and decreased to $1,305,871 from $1,488,155 in the nine months ended September 30, 2009. The increase in SGP's use of cash in the third quarter of 2009 resulted primarily from changes in non-cash working capital. The decrease in the nine months ended September 30, 2009 resulted from focussing only on non-drilling exploration activities, including permitting, power purchase agreement negotiations and related transmission studies.

During Q3-2009 and in the nine months ended September 30, 2009, we capitalized exploration expenditures of $312,685 and $635,135 respectively on our geothermal interests, compared to $748,931 and $4,545,390 in Q3-2008 and in the nine months ended September 30, 2008. With more cash in the treasury as a result of our recent financings and our $10 million DOE grant awards, we have ramped up exploration activities in our fourth quarter.

The full text of SGP's Q3 2009 financial statements and Management Discussion and Analysis is available on the SEDAR website at www.sedar.com or directly at www.sierrageopower.com/index.php/investors/financial-reports.

About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp. is a renewable energy company focused on the exploration and development of clean, sustainable geothermal power. The Company is based in Vancouver, British Columbia and listed on the TSX Venture Exchange under the symbol SRA. Its portfolio of geothermal projects located in Nevada and California exceeds 365 square kilometres (90,000 acres) and has a combined total estimated capacity of greater than 500 MW. SGP intends to finance development by utilizing a combination of corporate equity, joint venture partnerships and project debt, with the support of US government grants and loan guarantees. To find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA) visit our website at www.sierrageopower.com.

On behalf of the Board of Directors

Gary Thompson, P.Geo., President, Chief Executive Officer and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plans and objectives for future operations. In some cases you can identify forward-looking statements by the use of terminology such as "may", "should", "anticipates", "believes", "expects", "intends", "forecasts", "plans", "future", "strategy", or words of similar meaning. Forward-looking statements in this press release include statements that with our positive exploration results, our recent financings and our US government grants, we are confident that we will achieve our goal of having 50 megawatts of total capacity at the bankable feasibility stage by the end of next year and the Company's intent to finance the development of its projects through a combination of corporate equity, joint venture partnerships and project debt with the support of U.S. government grants and loan guarantees. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks inherent in our industry, the poor capital markets and other risks identified by us in our periodic filings on SEDAR (which can be viewed at www.sedar.com). Any of these risks could cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements and any assumptions upon which they are based are made in good faith and reflect our current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this press release. Except as required by applicable law, including the securities laws of Canada, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

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