Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

December 21, 2009 19:46 ET

Sierra Geothermal Establishes Special Committee to Explore Strategic Alternatives and Oversee Proxy Solicitation Process

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2009) - Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP") today announced that it has established a special committee of independent directors to consider and evaluate strategic alternatives for SGP, and make recommendations thereon to the Board.

The special committee, which consists of non-executive board members of SGP include, Rita Theil (chair), Jerry Evans, Alfred Sorensen, and Jack Carthy, will also oversee SGP's process of proxy solicitation and external communications involving a requistioned meeting of shareholders scheduled to take place on January 26, 2010 (the "Meeting").

The special committee has engaged Jacob Securities Inc. to provide financial advisory services and has retained Ogilvy Renault LLP as its legal advisor.

Further details on the Meeting will be contained in a Management Information Circular that will be mailed to shareholders of SGP in due course. The formal Meeting notice is available on SEDAR at www.sedar.com. SGP is not yet soliciting proxies in respect of the Meeting and nothing in this press release should be regarded as a solicitation or request for a proxy or a recommendation as to how shareholders of SGP should vote at the Meeting.

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 such as, "established a special committee of independent directors to consider and evaluate strategic alternatives for the Company, and make recommendations thereon to the Board, special committee will also oversee the Company's process of proxy solicitation and external communications involving a requistioned meeting of shareholders scheduled to take place on January 26, 2010, further details on the Meeting will be contained in a Management Information Circular that will be mailed to shareholders of SGP in due course 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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