Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

June 04, 2007 09:00 ET

Sierra Geothermal Power Corp. Closes $10,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sierra Geothermal Power Corp. ("Sierra") (TSX VENTURE:SRA) is pleased to announce that on May 29, 2007 it closed the $10,000,000 brokered private placement announced on March 01, 2007. The placement consisted of 20,000,000 units offered at the price of $0.50 per unit. Each unit consisted of one common share and one share purchase warrant exercisable at a price of $0.70 to purchase one additional common share of Sierra for a period of 24 months from the date of Closing.

Pursuant to the terms of the private placement Jacob & Company Securities Inc. received a commission of 8% of the gross proceeds of the Offering plus 1,600,000 Agent's Warrants exercisable at a price of $0.50 to purchase a unit of Sierra consisting of one share and one share purchase warrant exercisable at the price of $0.70 for each warrant issued. The warrants issued to the Agent are exercisable for a period of two years from the date of Closing.

All securities issued pursuant to the private placement were issued subject to hold periods expiring September 30, 2007.

The proceeds will be used by Sierra for anticipated exploration and development expenses to be incurred on the Reese River and Pumpernickel Geothermal Projects and for general working capital.

About Jacob & Company Securities Inc.

Jacob & Company Securities is an independent investment bank with a leading underwriting and financial advisory business focused in the renewable power and infrastructure sectors. The firm's CEO, Sasha Jacob, brings more than a decade of experience in the power and infrastructure sectors, including founding and leading the power and infrastructure practice at a leading Canadian investment bank. In the previous two years Jacob & Company principals have managed and structured over 25 transactions in the renewable power sector and have participated in renewable financings valued at more than $1 billion.

About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp. is a Vancouver-based renewable energy company focused on the exploration and development of clean, sustainable geothermal power. Geothermal plants produce long-term revenues and provide continuous base-load power. Sierra Geothermal Power controls a large portfolio of geothermal projects located in Nevada and California. The company intends to advance the development of its portfolio of projects through a combination of equity and/or joint ventures, while continuing to evaluate additional acquisitions.

On behalf of the Board of Directors,

Gary R. Thompson, President & CEO

Any failure to comply with this restriction may constitute a violation of United States securities law. The information provided in this news release contains forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, including statements regarding potential energy resources and project development possibilities. These statements are based on Sierra Geothermal's current expectations and beliefs, and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described in forward-looking statements, including the risks that the resource potential of any one of our projects may be uneconomic due to the lack of a high temperature water supply, or financing will not be available for construction of the power plants, and the revenues generated will not prove sufficient to fund operations and/or service debt, among others. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. Sierra Geothermal Power Corp. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change. This news release does not constitute an offer or a solicitation of an offer to sell any securities in the United States.

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