Polaris Geothermal Inc.
TSX : GEO

Polaris Geothermal Inc.

August 21, 2009 16:05 ET

Agreement on New Construction Timetable for San Jacinto Project

TORONTO, ONTARIO--(Marketwire - Aug. 21, 2009) - Polaris Geothermal Inc. (TSX:GEO) ("Polaris Geothermal" or the "Company") is pleased to announce that it has reached agreement with the Ministry of Energy and Mines of Nicaragua to establish new dates for commencement of construction and completion of its Phase I - MCT (24MW) expansion to 34MW and its subsequent Phase II - MCT Expansion to 72MW at its San Jacinto-Tizate geothermal power project located near Leon, Nicaragua.

Construction of the Phase I-MCT steamfield and power plant installations will now start by October 31st, 2009 with completion scheduled to occur 18 months thereafter. The Phase II expansion will start with drilling scheduled to commence at the end of June, 2010 with commercial operation scheduled to commence at the end of March, 2012.

NICARAGUAN STOCK EXCHANGE LISTING

A private business sector milestone has been set in Nicaragua with approval this past week by the Superintendent of Banks and Financial Institutions for the listing of Polaris Geothermal class A common shares on the Nicaraguan Stock Exchange in Managua. A strong interest has been evident for sometime from Nicaraguans wishing to actively support and invest in Polaris Geothermal's renewable energy projects. The geothermal power projects being developed by Polaris Geothermal have the potential to dramatically change the electrical generating matrix of the country. At present Nicaragua depends on generating over 70% of its power from petroleum derived products.

Mr. Raul Lacayo, President of the Nicaraguan Stock Exchange, stated: "The move by Polaris Geothermal to list its shares for trading on our exchange represents a first for a foreign company which is greatly appreciated by all Nicaraguans who shall now be able to invest in the future of their country together with the improvement in the standard of living for all its citizens. We wish to thank Polaris for its confidence and perseverance and as well the Toronto Stock Exchange for its encouragement and advice."

About Polaris Geothermal Inc.

Polaris is a Canadian company, focused on the generation of renewable energy projects in Latin America and other parts of the world. It is presently engaged in merger negotiations with two other North American developers aimed towards creating the largest geothermal renewable energy producer currently listed on the Toronto Stock Exchange and internationally. For more information about Polaris visit www.polarisgeothermal.com

FORWARD-LOOKING INFORMATION

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information in this press release includes the expected date of commencement and completion of construction of Phase I expansion at the San Jacinto-Tizate geothermal project in Nicaragua, commencement of drilling and commencement of commercial operation for Phase II of the project and the potential impact by Polaris on Nicaragua's electrical generating matrix. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including lack of cash flow and requirements for additional capital, uncertainty in generating future cash flows, uncertainty of political stability in Nicaragua, uncertainty of the ability of Nicaragua to sell power to neighbouring countries, economic insecurity in Nicaragua, lack of geothermal resources, failure to obtain and maintain licenses, foreign currency fluctuations, commodity price fluctuations as well as those factors discussed under the heading "Risk Factors" and elsewhere in Polaris documents filed from time to time with the Toronto Stock Exchange and other regulatory authorities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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