Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

October 30, 2009 09:30 ET

Sierra Geothermal Awarded US$10 Million of DOE Grants

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2009) - Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP") today announced that its wholly owned US subsidiary, Sierra Geothermal Power Inc., has been awarded two grants totalling US$10 million by the US Department of Energy ("DOE"). The grant program, specifically targeting new investments in geothermal power, was announced on May 27, 2009 as part of the American Reinvestment and Recovery Act and gives preference to activities that can rapidly assist in economic recovery.

The grants have been awarded under the DOE's Geothermal Technologies Program Funding Opportunity Announcements ("FOAs") and will contribute US$5 million toward drilling and exploration activities on each of SGP's Silver Peak and Alum projects within SGP's Paymaster District, on a 50:50 cost share basis. The grants will provide a portion of the funding required to move these projects to feasibility.

Gary R. Thompson, President and CEO, said, "We are extremely pleased that the DOE has recognised the suitability of our advanced stage Silver Peak and Alum projects as candidates for these FOA awards. As both projects are drill-ready we anticipate quickly utilising this grant funding to bring us closer to our goal of becoming an independent producer of geothermal power by 2012."

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. It 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.

About the Silver Peak Geothermal Power Project

The Silver Peak geothermal power project is located in Esmeralda County, Nevada, 240 kilometres (150 miles) northwest of Las Vegas, and covers 7,233 acres. GeothermEx's independent analysis estimates a resource capacity of 15-40 MW of power. The Silver Peak property has two 55 kV transmission lines connecting to the Nevada and California power grids and a substation located on the lease itself. Many geothermal features are visible on the property including geothermal vents, silica sinter deposits and algae mats. Also present are shallow warm to hot wells with temperatures up to 75 degrees Celsius (167 degrees Fahrenheit) at depths less than 21 metres (70 feet). Chemical geothermometers that have been applied to the thermal waters suggest that temperatures may reach 200-230 degrees Celsius (400-440 degrees Fahrenheit) at depth.

About the Alum Geothermal Power Project

The Alum geothermal power project is located in Esmeralda County, Nevada, 240 kilometres (150 miles) northwest of Las Vegas, and covers 7,198 acres. GeothermEx's 2008 independent report on the Alum anomaly as a whole provided a ninety percent probability of generating 73 MW and a fifty percent probability of generating 150 MW. Exploration to date at Alum includes 48 temperature gradient wells drilled to a maximum depth of 600 metres with bottom-hole temperatures of 120 degrees Celsius. Recent gravity geophysics and detailed structural mapping combined with the gradient drilling data have identified many favorable drilling targets on the Alum property. Chemical geothermometry analysis of boiling water samples on the project indicates commercial resource temperatures of 150 to 225 degrees Celsius. A 70 MW geothermal resource can generate enough power to supply 56,000 homes.

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 about anticipating quickly utilising this grant funding to bring us closer to our goal of becoming an independent producer of geothermal power by 2012, 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 challenging 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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