Polaris Geothermal Inc.
TSX VENTURE : GEO

Polaris Geothermal Inc.

November 10, 2006 17:06 ET

Polaris Geothermal Update

TORONTO, ONTARIO--(CCNMatthews - Nov. 10, 2006) -

Not For Distribution to US Newswire Services or for Dissemination in the United States

Polaris Geothermal Inc. ("Polaris Geothermal" or the "Company") (TSX VENTURE:GEO) announces that it expects to close within the next few weeks its previously announced $12 million private placement offering (the "Offering") (see press releases dated August 28, 2006 and October 11, 2006). The Offering will be conducted on a best efforts agency basis of up to 9,600,000 units ("Units") at a price of $1.25 per Unit for gross proceeds of up to Cdn.$12,000,000. Each Unit will consist of one class A common share and one-half of one share purchase warrant. Each whole share purchase warrant will entitle the holder to acquire one class A common share of Polaris Geothermal at an exercise price of $1.65 for a period of 18 months from the date of issuance.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. All dollars in this release are in Canadian funds.

FORWARD-LOOKING STATEMENTS

This press release includes certain "forward-looking statements". All statements regarding the ability of the Company to successfully arrange for financing 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 results of exploration activities, uncertainties inherent in the estimation of geothermal resources, fluctuations in the costs of goods and services, problems associated with production operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, 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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