Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

October 21, 2009 18:06 ET

Sierra Geothermal Power Closes Final Tranche of $7.0 Million Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2009) -

Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) is pleased to announce that on October 20 and 21, 2009, it completed the second of two closings in its previously announced private placement offering of up to 31,818,182 units. In this final closing, Sierra Geothermal sold 2,736,504 units at a price of $0.22 per unit for gross proceeds of $602,030. As previously announced, each unit consists of one common share and one non-transferable common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of $0.30 until October 20, 2011. Total units sold in this private placement offering were 31,852,274 for gross proceeds of $7,007,500. After adjustment for the common shares issued in this private placement, Sierra Geothermal now has 128,232,124 common shares issued and outstanding.

Jacob Securities Inc., assisted by a selling group, acted as agent in both the first and second tranches of this private placement. For its services in the second closing, Jacob Securities Inc. and the selling group received an aggregate cash commission of $33,077 and Jacob Securities Inc. received 143,350 non-transferable agent's warrants. Each agent's warrant entitles the holder to purchase one Sierra Geothermal Power common share at a price of $0.22 per share until October 20, 2011. Over the course of the offering, the selling group included Wellington West Capital Markets Inc., Canaccord Capital Corporation, Haywood Securities Inc., Auburn Capital Corp., Penson Financial Services Canada, Bolder Investment Partners Ltd., PI Financial Corp. and Jones, Gable & Company Limited. Collectively, the agent and the selling group received an aggregate cash commission of $415,732 and an aggregate of 1,799,798 non-transferable agents' warrants.

All of the securities issued in this final tranche of the brokered private placement are subject to a four-month hold period and may not be traded until February 20, 2010.

Sierra Geothermal Power proposes to use the net proceeds of this financing to advance its tier one geothermal properties located in Nevada and for general corporate and administrative expenses.

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 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 about SGP intent to use the net proceeds of the financing to advance its tier one projects; 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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