Polaris Geothermal Inc.

Polaris Geothermal Inc.

April 26, 2007 17:19 ET

Polaris Geothermal Announces Appointment of New Director and Provides Update on Concession Dispute

TORONTO, ONTARIO--(CCNMatthews - April 26, 2007) - Polaris Geothermal Inc. ("Polaris Geothermal" or the "Company"), (TSX:GEO) a renewable energy geothermal power producer, is pleased to announce that the board of directors of the Company has appointed Mario Arana to the board. Mr. Arana carries on a private consultancy business, assisting clients in doing business in Nicaragua. He has held leading positions in the public sector and the government of Nicaragua, serving as the President of the Central Bank of Nicaragua (2006-2007) Nicaragua Minister of Finance (2005 - 2006), Minister of Economic Development, Industry and Trade (2002-2004) in addition to many other senior government positions. He was recognized by the National Business Chamber of Nicaragua in 2006 for his efforts in the successful negotiation and approval of the Central American Free Trade Agreement with the United States.

Polaris Geothermal CEO Thomas Ogryzlo said: "The addition of Mario Arana provides Polaris Geothermal with greater insight and knowledge of Nicaragua. Mr. Arana has had a successful career in the public service of Nicaragua with extensive experience in economic policy and an understanding of Nicaragua's business practices and customs. His expertise is a significant asset for Polaris Geothermal as we continue with our plans to expand production at the San Jacinto-Tizate geothermal project as quickly as possible."

In connection with his appointment, Mr. Arana was awarded 100,000 stock options with an exercise price of $1.00. These options will expire on the fifth anniversary of their issuance.

The Company advises that Dr. Erwin Kruger has stepped down as a director of the Company effective immediately.

The Company also wishes to provide a status report respecting Resolution PGR/HE-05-2007 dated February 23, 2007 (the "Resolution") which was issued by the Office of the Attorney General of the Republic of Nicaragua. Subsequent to the issuance of the Resolution, representatives of Polaris Geothermal met with Nicaraguan government officials on several occasions for the purposes of reaching a satisfactory solution to this matter. In addition, representatives of the Canadian, German and Brazilian government have communicated with their counterparts in Nicaragua in an effort to facilitate a satisfactory solution. The Company has been proactive in organizing a site visit by Nicaraguan politicians of the San Jacinto-Tizate geothermal project to confirm for themselves the production of electrical power at the project. The Company is pursuing this matter in accordance with Nicaraguan law and is hopeful that a satisfactory resolution will soon be achieved.


This press release includes certain "forward-looking statements". Statements respecting the ability of the Company to successfully defend its rights in respect of the San Jacinto-Tizate geothermal concession 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. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include unpredictable actions of the Nicaraguan government, political risk, changes in legal, social or political conditions in Nicaragua, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements.

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