Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

December 04, 2007 09:00 ET

Sierra Geothermal Gains $4.9 Million Through Exercise of Warrants

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 4, 2007) -

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

Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) today announced that 12,292,000 warrants were recently exercised at the price of $0.40 per share for total proceeds of $4,916,800.

The warrants were issued as part of a private placement in November 2006 that consisted of 16,893,542 units. The proceeds will be used to advance exploration and development of the Company's Tier I projects and for working capital.

"This cash injection will be well utilized in our next phase of exploration and adds to our already healthy financial position," said Gary R. Thompson, President and CEO of SGP.

Other Updates

SGP has made the final USD$100,000 purchase payment for 100% interest on its Alum project located in Esmeralda County, Nevada. Previous work at Alum was conducted by Amax Exploration, which drilled 20 temperature gradient wells in the 1980's. The deepest well to date is 650 metres (2,133 feet) and the highest recorded temperature is 118 degrees celsius (245 degrees Fahrenheit). The work by Amax demonstrates a large shallow heat flow anomaly. Geothermometry indicates resource temperatures of 150 degrees celsius (302 degrees Fahrenheit) to 255 degrees celsius (491 degrees Fahrenheit). Using a Monte Carlo simulation, Alum has a 90% probability of generating 41 megawatts and a 50% probability of generating 90 megawatts. A 40 megawatt power plant generates enough electricity to power 32,000 homes.

About Sierra Geothermal Power Corp.

SGP is a Vancouver-based renewable energy company focused on the exploration and development of clean, sustainable geothermal power. Geothermal power plants produce long-term revenues and provide continuous base-load power, often at or above 95% capacity. SGP's 17 projects comprise a total of 88,000 acres of geothermal land assets in Nevada and California. The company intends to advance the development of its portfolio of projects through a combination of equity and/or joint ventures, while continuing to evaluate additional acquisitions.

Not for distribution to United States newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of United States securities law. This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

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

Contact Information

  • Sierra Geothermal Power Corp.
    Gary R. Thompson, P.Geo.
    President & CEO
    (604) 683-0332 or 1-800-563-5631
    or
    Sierra Geothermal Power Corp.
    Patrick Moodie, BA Economics
    Investor Relations
    (604) 683-0332 or 1-800-563-5631
    Email: info@sierrageopower.com
    Website: www.sierrageopower.com