Polaris Geothermal Inc.
TSX : GEO

Polaris Geothermal Inc.

March 23, 2009 16:25 ET

Polaris Geothermal Inc. Announces Successful Completion of the First Tranche of a Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - March 23, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Polaris Geothermal Inc. (TSX:GEO) ("Polaris Geothermal" or the "Company") is pleased to announce that it has successfully completed the first tranche of a non-brokered private placement of up to CDN$2,000,000 (the "Offering") in units (the "Units"). Each Unit costs CDN$0.45 and consists of one Class A common share (a "Unit Share") and one Class A common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one Class A Common Share (a "Warrant Share"), subject to adjustment, at an exercise price of CDN$0.45 at any time prior to the second anniversary of closing. The Unit Shares and the Warrant Shares are subject to the requisite 4 month hold period, in addition to such other resale restrictions as may be required under applicable law. The TSX has conditionally approved the listing of the Unit Shares and Warrant Shares.

The closing of the first tranche of the Offering generated gross proceeds of approximately $505,000, which will be used by the Company for general corporate and working capital purposes.

About Polaris Geothermal Inc.

Polaris is a Canadian company, focused on the generation of renewable energy projects in Latin America and other parts of the world. For more information about Polaris visit www.polarisgeothermal.com.

This press release is not an offer of securities for sale in the United States. The securities described herein have not been registered under United States securities laws and may not be offered or sold in the United States absent registration or an exemption from registration. This release shall not constitute an offer to sell or solicitation of an offer, solicitation or sale would be unlawful.

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