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

Nevada Geothermal Power Inc.

June 27, 2005 09:25 ET

Nevada Geothermal Resource Expansion and Development Plans

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 27, 2005) - Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) announced today its resource expansion program aimed to increasing the resources base at Blue Mountain by exploring for the deeper-hotter resource. At the same time, the Company is continuing plans to develop the 30 MW moderate-temperature resource.

According to an April 14, 2005 report by Susan Petty, P.E., an independent geothermal reservoir engineer, the thermal water chemistry from flow test results at DB-2 "showed consistent indication of high temperature, possibly as high as 250 degrees C (480 degrees F), parent reservoir temperature supplying the moderate temperature zone in DB-2 via a very direct connection with little mixing with other fluids." Petty's conclusions support an earlier finding by Thermochem (February 19, 2004), indicated a likely reservoir temperature of 250 degrees C (480 degrees F).

A large volume of hot water intersected in widespread drill holes suggests that there is a large volume of high temperature fluid flowing up along high angle fractures feeding the moderate temperature (150 degrees C) reservoir. Management considers that the potential to confirm and develop this high quality 220-250 degrees C resource is high. Available thermal gradient and geological/structural information indicates that the "deeper hotter" source waters probably originate from 5000-8000 feet below ground over a large area west of the shallow thermal anomaly, migrating upward in a series of well known, north-south and northeasterly trending faults.

A string of four holes will be drilled in the valley west of DB-1 to intermediate depths and cased with cemented steel casing in order that they can be fitted with blow out prevention equipment for well control and extended into high temperatures. One or more of the holes will be extended to explore for the high temperature zone. The program will produce a wealth of new data on both the moderate temperature and high temperature zones. The recently extended DB-2 has provided new data on the geometry of important permeable fault structures and the thermal system. The company is well funded to complete the Blue Mountain Resource Expansion Program.

Concurrently, NGP is proceeding with further feasibility and engineering work on the 30 MW moderate temperature resource. Production well productivity, permeability, and well drawdown have been estimated from the DB-2 injection tests. Production well field, pipeline gathering system, fluid re-injection, fresh water supply, plant engineering and costing studies have been initiated with a consortium of consultants including Power Engineers. Power Engineers, headquartered in Idaho, has offices throughout the United States and is a world leader in geothermal power plant design. An interconnection study has been completed by Sierra Pacific Power Company Regional Planning which identifies the Winnemucca 120 kV Substation as the preferred connection point into the northern Nevada Power Grid.

NGP has recently submitted a power bid based on the 30 MW plant to Sierra Pacific and Nevada Power in response to a Request for Proposal issued on May 4, 2005. The utilities must increase their percentage of renewable power under new Nevada Portfolio Standards. State requirements for renewables, power shortages and limited supply options have created a new market and strong demand for geothermal power northern Nevada.

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 three properties: Blue Mountain, Pumpernickel and Black Warrior, all of which are ideally situated in Nevada. 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 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.


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