Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

October 09, 2009 20:11 ET

Sierra Geothermal Power Closes First Tranche of $7.0 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES.

Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) is pleased to announce that on October 9, 2009, it completed the first of two closings in its previously announced private placement offering of up to 31,818,182 units. In this first closing Sierra Geothermal sold 29,115,770 units at a price of $0.22 per unit for gross proceeds of $6,405,469. As announced previously, 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 9, 2011. The balance of the financing is anticipated to close by October 16th, 2009.

Jacob Securities Inc. acted as agent in the private placement. The agent received a cash commission of $382,654.89 and Sierra Geothermal issued 1,656,448 non-transferable agents' warrants. Each agents' warrant entitles the holder to purchase one Sierra Geothermal Power Corp. common share at a price of $0.22 per share until October 9, 2011.

All of the securities issued in this brokered private placement are subject to a four-month hold period and may not be traded until February 9, 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.

In addition to the above, Sierra Geothermal Power Corp. has entered into a six-month advisory agreement with Jacob Securities Inc. whereby Jacob Securities has agreed to advise Sierra Geothermal Power in respect of mergers and acquisitions in the geothermal space and assist it in seeking opportunities to expand its business. As consideration for these services, Sierra Geothermal has agreed to pay to Jacob Securities a cash fee in the amount of $50,000 and to issue to Jacob Securities 700,000 non-transferable unit warrants. Each unit warrant entitles the holder to purchase a unit at a price of $0.22 per unit until October 9, 2011. Each unit will consist of one Sierra Geothermal Power common share and one non-transferable common share purchase warrant (each, a "Unit Warrant"). Each Unit Warrant will entitle Jacob to purchase one Sierra Geothermal common share at a price of $0.30 until October 9, 2011.

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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