Nevada Geothermal Power Inc.
TSX VENTURE : NGP
OTC Bulletin Board : NGLPF

Nevada Geothermal Power Inc.

September 15, 2005 08:00 ET

Nevada Geothermal Power Inc. Announces $10,000,000 Cdn Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 15, 2005) - Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF), today announced that it will proceed with a brokered private placement for up to 11,111,111 units at a price of Cdn. $0.90 per unit to raise gross proceeds of up to Cdn. $10,000,000 (the "Offering").

Each unit will consist of one common share and one-half of one share purchase warrant (a "Unit"). Each whole share purchase warrant will entitle the holder to purchase one additional common share for a period of 24 months at a price of $1.40 per warrant share. Subject to an exercise acceleration provision such that if any time after the closing of the Offering, the closing price per NGP share on a Canadian Stock Exchange is $2.00 or higher, for twenty consecutive business days, then NGP will give the investors notice that the warrants must be exercised or they will expire within 30 days.

NGP has appointed Dundee Securities Corporation ("Dundee") to act as its exclusive agent for the Offering. Dundee will receive a 7% commission and will be granted an option (the "Compensation Option") to acquire that number of Units equal to 8% of the number of Units issued under the Offering. The Compensation Option shall be exercisable at the offering price of the Units for a period of 24 months following closing of the Offering. Dundee shall also have the right of first refusal to lead and manage all equity offerings by NGP and to act as its financial advisor in the event of a sale, merger, amalgamation, arrangement, reorganization or other similar transaction for a period of 24 months following closing of the Offering.

If all of the Units are sold the net proceeds to be realized by NGP from the private placement will be Cdn. $9,225,000 which shall be used to fund further development at the Blue Mountain, Black Warrior, Pumpernickel, Crump Geyser geothermal projects and for general working capital. The securities to be issued under the Offering will be subject to a four month hold period, and the Offering is subject to the acceptance of the TSX Venture Exchange.

Nevada Geothermal Power Inc. is a renewable energy company 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 four properties: Blue Mountain, Pumpernickel, Black Warrior, all of which are ideally situated in Nevada and Crump Geyser in Oregon. An initial 30 MW power plant is planned to begin generating power at the Blue Mountain site in 2007 subject to further resource drilling and feasibility studies.

Brian D. Fairbank, P. Eng, CEO & President is a Qualified Person under National Instrument 43-101.

Nevada Geothermal Power Inc.

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

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

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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