Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

March 22, 2010 09:00 ET

Sierra Geothermal Provides Update on Two Prong Strategy

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2010) - Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP" or the "Company") is pleased to provide an update on its recent efforts to enhance shareholder value. These efforts remain focused primarily on two strategies. The first of these is a structured process to find a suitable merger or joint venture partner or a purchaser for the Company, assisted by its financial advisor, Jacob Securities Inc. This effort was originally announced in a January 26, 2010 news release, and is being managed by Sierra's Special Committee. The second strategy remains focused on adding value by developing projects to the power production stage.

Merger, Joint Venture or Sale

In February 2010, Jacob Securities circulated a detailed Confidential Information Memorandum to select parties, inviting them to engage Sierra in a formal process. Groups have shown active interest, and have initiated due diligence reviews in SGP's data room.

Exploration and Development Update

SGP is currently drilling a well at Alum and has recently completed a well at Silver Peak. Both wells are drilled as part of the US Department of Energy's Geothermal Technologies Program grant award on a 50/50 cost share basis between SGP and the US government.

Silver Peak Project

Drilling of the core well 38-11 on the Silver Peak project has been completed to a total depth of 1,649 meters (5,409 feet). The primary targeted structure, a major fault zone, was encountered in the interval from 1,515 meters to 1,631 meters (4,970 feet to 5,350 feet). SGP plans to complete the well with casing to allow for ongoing fluid testing and temperature measurements.

Alum Project

While drilling the coil tube slim-well 26-19 at Alum a zone of high permeability was encountered at 1,187 meters (3,895 feet) to 1,341 meters (4,400 feet). The coiled tube rig was released and the core rig from Silver Peak will be moved to Alum to resume drilling at 26-19. SGP plans to use the core rig to install a second liner to the bottom of the well, which should allow for temperature measurements to be made, in particular within the permeable zone. Once the preliminary temperatures are logged possible next steps include a flow test of the permeable zone and coring the well deeper.

"We are encouraged by the level of permeability that was encountered in these two exploration wells. We are eager to see the stable temperature results as soon as they can be obtained as this is the key element, combined with permeability (flow rate), for commercial production," said Gary Thompson, SGP's President and Chief Executive Officer.

Reese River Project

Temperature measurements were recently taken from Reese River temperature gradient wells. Of the 10 wells drilled from 30 meters (100 feet) to 304 meters (1000 feet), gradients ranged from 100 to 200 degrees Celsius per kilometre. This data is encouraging, indicating economic temperatures, and warrants a future extension of the thermal gradient program at Reese River.

In collaboration with the University of Nevada, Reno and the University of British Columbia, SGP's geologists are working on a novel approach synthesizing geological and geophysical data (magnetotelluric inversion data along with Z-TEM data) to create a conceptual 3D project model, helping us better understand Reese River's subsurface geology. Results of this collaboration are expected shortly.

Barren Hills Project

The Environmental Assessment is still in progress with the Bureau of Land Management and the US Forestry Service. Completing this is the first step before we can undertake significant exploration work on the project.

About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp is a Vancouver-based geothermal energy company focused on the exploration and development of clean, sustainable power in the Western USA. SGP has 100% control over 365 square kilometres (90,000 acres) of geothermal properties in Nevada and California. SGP's projects have a combined total estimated capacity of almost 400MW. The 400MW of power potential is comprised of 130MW on Tier One projects that has been independently estimated by GeothermEx Inc., with a probability of 90 per cent. SGP's geologists estimate capacity of 249MW on Tier Two projects, with a probability of 90 per cent. Both estimates are based on previous work including geothermometry, geophysics, temperature gradient and slim-well drilling as well as assumptions using a Monte Carlo simulation model. One megawatt (MW) is enough to power 800 homes. In the absence of a merger, joint venture or sale (discussed above), SGP intends to finance the ongoing development of its portfolio of projects by utilizing a combination of corporate equity, joint venture partnerships and project debt, with the support of US government grants, tax credits and loan guarantees. For more information visit www.sierrageopower.com.

On behalf of the Board of Directors

Gary Thompson, Chief Executive Officer, President and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release may contain forward-looking statements. All statements, other than statements of historical fact, included or incorporated by reference in this news release are forward-looking statements, including, without limitation, statements regarding activities, events or developments that Sierra expects or anticipates may occur in the future. Forward-looking statements can be identified by the use of forward-looking words such as "may", "would", "could", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or similar words or the negative thereof. Forward-looking statements in this news release include statements about SGP plans to complete well 38-11 with casing to allow for ongoing fluid testing and temperature measurements, SGP plans to use the core rig to install a second liner to the bottom of the Alum well, which should allow for temperature measurements to be made, in particular within the permeable zone, once the preliminary temperatures are logged possible next steps include a flow test of the permeable zone and coring the well deeper, results of this collaboration with the University of Nevada are expected shortly and SGP intends to finance the ongoing development of its portfolio of projects by utilizing a combination of corporate equity, joint venture partnerships and project debt, with the support of US government grants, tax credits and loan guarantees.

There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include general economic and market conditions, changes in the law, actions of competitors, drill results and other changes in circumstance, and Sierra's ability to implement business strategies and pursue its business plan. In addition, all forward-looking statements involve risks and uncertainties, including the risks and uncertainties detailed in SGP's filings with the applicable Canadian securities commissions, copies of which are available at www.sedar.com. We urge you to carefully consider these factors.

All of the forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and Sierra undertakes no obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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