Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp.

April 01, 2010 09:00 ET

Sierra Geothermal Power Awarded Knight Inlet Geothermal Parcel

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2010) - Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("Sierra") is pleased to announce that it was the successful bidder in the March 29, 2010, BC Government auction for Crown geothermal rights to an 8,079 hectare parcel of land in the Knight Inlet area of British Columbia. Most of this parcel is located within the Da'naxda'xw/Awaetlala Nation's traditional territory, where Sierra has an exclusive right to explore for geothermal resources pursuant to a memorandum of understanding signed last year.

As the successful bidder at the auction, Sierra has received a one-year permit from the BC government granting it the exclusive right to explore for the Crown's geothermal resources on the parcel covered by the permit. This permit may be renewed annually for up to eight years, after which it can be converted to a lease.

Gary Thompson, President and CEO of Sierra, said, "We are excited to have won the bid for the Knight Inlet lands. We believe that these lands have excellent potential for development of a geothermal resource given geothermometry results of 150 to 200 degrees Celsius. The geothermal rights from the Crown coupled with our earlier memorandum of understanding with the Da'naxda'xw/Awaetlala Nation provides the ideal combination to move a project forward. If we find a geothermal resource on this land that we can develop, we believe that we can provide a benefit to the residents of the region while bringing a clean and renewable form of power to BC's electrical grid."

About the Knight Inlet Project

In 2007 the Knight Inlet prospect was identified by Sierra as a prime area for exploration and possible development of a geothermal power plant. Significant transmission infrastructure (a dual 230 kV transmission interconnection) and improved road access are already under development with run of river power projects in the area.

A geothermal steam zone on the Knight Inlet site sampled by Sierra measured 82.5 degrees Celsius (third hottest spring in Canada) at surface and chemical geothermometry returned 150 to 200 degrees Celsius. Sierra conducted an assessment to determine geothermal energy potential throughout British Columbia during a flow-through expenditure program. Further studies and data analysis continued in 2008. In April 2009 Sierra signed a memorandum of understanding with the Da'naxda'xw/Awaetlala Nation for the exclusive right to develop geothermal projects on traditional lands, consisting of about 800,000 hectares (2 million acres) in the Knight Inlet Area of British Columbia. The potential benefits to the Da'naxda'xw/Awaetlala Nation could include employment opportunities through construction and operation of any generation facilities as well as financial support of educational and lodge resort development initiatives by way of a revenue sharing arrangement.

About Sierra Geothermal Power Corp.

Sierra is a Vancouver-based geothermal energy company focused on the exploration and development of clean, sustainable power in the Western North America. Sierra has 100% control over its portfolio of geothermal properties in Nevada, California and British Columbia. Sierra's projects have a combined total estimated capacity of almost 400MW. One megawatt (MW) is enough to power 800 homes.

On behalf of the Board of Directors

Gary Thompson, Chief Executive Officer, President and Director


This news release may contain forward-looking statements. All statements, other than statements of historical fact, included or incorporated by reference in this news release are forward-looking statements, including, without limitation, statements regarding activities, events or developments that Sierra expects or anticipates may occur in the future. Forward-looking statements can be identified by the use of forward-looking words such as "may", "would", "could", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or similar words or the negative thereof. Forward-looking statements in this news release include statements about Sierra's belief that these lands have excellent potential for development of a geothermal resource, that development of a geothermal resource in the region could benefit the residents of the region, that significant transmission infrastructure in the area will be completed as planned and that the potential benefits to the Da'naxda'xw/Awaetlala Nation could include employment opportunities, educational and lodge resort development initiatives.

There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include general economic and market conditions, changes in the law, actions of competitors, drill results and other changes in circumstance, and Sierra's ability to implement business strategies and pursue its business plan. In addition, all forward-looking statements involve risks and uncertainties, including the risks and uncertainties detailed in Sierra's filings with the applicable Canadian securities commissions, copies of which are available at We urge you to carefully consider these factors.

All of the forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and Sierra undertakes no obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information