Polaris Geothermal Inc.
TSX VENTURE : GEO

Polaris Geothermal Inc.

June 08, 2005 09:01 ET

Polaris Geothermal Announces Inauguration Date for the San Jacinto Power Plant

TORONTO, ONTARIO--(CCNMatthews - June 8, 2005) - Polaris Geothermal Inc. ("Polaris Geothermal" or the "Company"), (TSX VENTURE:GEO) an emerging renewable energy generator, announced that the official inauguration ceremony for the San Jacinto-Tizate Geothermal Power Plant will be on June 20, 2005. The inauguration will be held at the plant site in Nicaragua, and attended by senior government officials including members of the energy, economics, and foreign investment ministries. The inauguration ceremony will be presided over by Enrique Bolanos Geyer, President of the Republic of Nicaragua.

The inauguration will acknowledge the successful completion of the initial 10 MW phase of development of the San Jacinto Tizate resource. As previously announced, Polaris Geothermal expects to begin reliability testing of the generating unit during the week of June 13, 2005. During the reliability testing period, the Company can sell all power produced. Polaris Geothermal has in-place a 20-year power purchase agreement for 66 MW, which is expected to generate in excess of $US25 million in annual cash flow once the 66 MW is attained. Beyond the 66 MW, Polaris Geothermal can sell additional power produced in the open market. Sinclair Knight Merz, world leading independent geo-scientific consultants, have assigned a 90 percent probability that the entire resource contains energy sufficient to support production of 200 MW of power over a 20-year period.

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 Geothermal, 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 Geothermal's 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.

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