Nevada Geothermal Power Inc.
OTC Bulletin Board : NGLPF

Nevada Geothermal Power Inc.

June 09, 2006 09:15 ET

Nevada Geothermal Power Inc. Acquires Geothermal Lease from Ormat at Pumpernickel Geothermal Site

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 8, 2006) -

Nevada Geothermal and Ormat Establish Strategic Relationship

Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) announced today that it has acquired BLM lease #N74855 located in the Pumpernickel Valley, Nevada from Ormat Technologies, Inc. ("Ormat"), covering 933.50 acres of key federal land. Separately, NGP has been granted BLM Lease #N78124 totaling 1920 acres, effective on June 1, 2006. The new leases combined with NGP's existing geothermal lands at Pumpernickel form a contiguous land package, significantly enhancing NGP's overall control of the geothermal development area.

NGP has entered into an agreement with Ormat Technologies, Inc. for the provision of an electrical power plant at NGP's Pumpernickel Geothermal Site. Ormat will provide a "most favored customer" price on a first offer basis for the manufacture and construction of a binary geothermal power plant using Ormat proprietary technology.

Mr. Fairbank, President of Nevada Geothermal Power Inc., stated, "The strategic relationship between NGP and Ormat will allow us to expedite the development of a potential 20-30 MW geothermal resource at Pumpernickel. Ormat is an acknowledged global leader in binary power conversion technology and can supply state-of-the-art binary power plants such as will be needed for the Pumpernickel project. Ormat built the first generation of binary power plants in Nevada nearly 20 years ago and has re-asserted its leadership position with recent project acquisitions and plant construction. Ormat's Galena 1 plant at Steamboat near Reno, Nevada, commissioned earlier this year, sets the standard for efficiency for today's generation of binary geothermal power plants. NGP is positioned to move quickly in the development of Pumpernickel."

Phase II of the Pumpernickel exploration program will include a series of up to three 250-meter (820 foot) gradient wells to further define the geothermal anomaly, followed by a deep reservoir test well to confirm the presence of a commercially viable geothermal resource.

About Pumpernickel Geothermal Project

Nevada Geothermal Power Inc. has a 100% leasehold interest in 6720 acres (10.5 mi2) of geothermal lands. Sierra Geothermal Power Corp., a TSX Venture listed company (TSX VENTURE:SRA) (formerly Inovision Solutions Inc.), has an option to earn a 50-per-cent joint venture interest in the Pumpernickel geothermal land under lease to NGP. Under this option, Sierra Geothermal is required to make certain cash payments and to issue common shares to NGP as well as to undertake C$5-million in project expenditures over a 5 year period.

About Ormat Nevada, Inc.

Ormat Nevada Inc. develops supplies and constructs geothermal power plants. ORMAT Nevada is a subsidiary of Ormat Technologies, Inc., a New York Stock Exchange listed company (NYSE:ORA), is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, supplies, owns and operates geothermal power plants.

About Nevada Geothermal Power Inc.

Nevada Geothermal Power Inc. is a renewable energy company exploring and developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in the Blue Mountain, Pumpernickel, Black Warrior projects in Nevada and the Crump Geyser Project in southern Oregon.

Nevada Geothermal Power Inc.

Brian D. Fairbank, P. Eng., President & CEO

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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