Polaris Geothermal Inc.
TSX VENTURE : GEO

Polaris Geothermal Inc.

June 03, 2005 12:48 ET

Polaris Announces Grid Connection at San Jacinto Project

TORONTO, ONTARIO--(CCNMatthews - June 3, 2005) -

- Switchyard and Transmission Line energized -

Polaris Geothermal Inc. ("Polaris Geothermal"), (TSX VENTURE:GEO) an emerging renewable energy generator, announced today that a second critical stage of the commissioning process for the San Jacinto-Tizate Geothermal Power Project (SJT) in Nicaragua has been completed with the successful energizing of the switchyard and transmission line.

The energizing process involved connection of the SJT transmission line to the existing 138 kV national grid line running between the Santa Barbara hydroelectric plant and the city of Leon, and enables the turbines to deliver power into the grid. The connection work was undertaken by the Nicaraguan national grid operator, Entresa, and was successfully completed in one day with minimal impact on electricity consumers. Commissioning and protection testing of the switchyard will continue over the weekend, with first steam to the turbines being scheduled for early next week and synchronising later in the week. Reliability testing of the first generating unit will begin the following week.

Polaris Geothermal is a renewable energy resource company focused on the development of geothermal projects. Polaris Geothermal Inc. has 34,365,701 Class A common shares issued and outstanding.

FORWARD-LOOKING STATEMENTS

This press release includes certain forward-looking statements. All statements regarding potential estimated capacity, reserves and future plans and objectives of Polaris, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from these forward-looking statements include: the ability to extract sufficient geothermal fluid of usable quality from the resource, in a cost-effective manner, and other factors disclosed under the heading "Risk Factors" in Polaris' Management Information Circular revised, for filing purposes July 7, 2004 and elsewhere in Polaris documents filed from time to time with regulatory authorities.

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

Contact Information