Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

January 05, 2007 09:00 ET

Sierra Geothermal Power Corp.: Geothermal Drilling Planned for Pumpernickel Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 5, 2007) - Sierra Geothermal Power Corp (TSX VENTURE:SRA) is pleased to report that three thermal gradient wells (temperature survey) and a seismic survey are planned for the Pumpernickel geothermal power project in Nevada. Work is anticipated to commence upon permitting approval. The drilling and geophysical survey is expected to enhance our understanding of the characteristics of the Pumpernickel geothermal reservoir and is the last stage of exploration required prior to drilling a deep production assessment well.

The exploration program is operated by Nevada Geothermal Power Inc. (TSX VENTURE:NGP)(OTCBB:NGLPF). Sierra Geothermal Power Corp. has an option to acquire a 50% interest in the Pumpernickel Geothermal Project from Nevada Geothermal Power Inc.

Widespread geothermal fluids are being channeled to the surface (hot springs) through range-front faults, which suggests potential for an electricity-grade geothermal resource. Combined data from the previously drilled wells define a field of at least 1.5 by 3.5 km with thermal gradients greater than 100 degrees C/km. The geothermal gradients in both the Magma and PVTG-3 wells increased near the bottom of the holes to 160 degrees C/km and 200 degrees C/km, respectively (Shevenell and Garside, 2003).

David Blackwell, PhD, a well known geothermal heat flow expert and the world's foremost expert in temperature gradient analysis, has identified the Pumpernickel site as one of the top geothermal prospects in Nevada.

Sierra Geothermal is a renewable energy company focused on the exploration and development of clean, sustainable geothermal power projects. Geothermal plants produce long-term revenues and provide continuous, base load power, often at or above 95% capacity thereby being the preferred source of power for many utilities. Sierra Geothermal has secured a portfolio of 15 geothermal projects in various stages of development. Sierra Geothermal intends to advance the development of its portfolio of projects through a combination of equity and/or joint venture partnerships while continuing to evaluate additional acquisitions.

On behalf of the Board of Directors

Gary R. Thompson

The information provided in this news release contains forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, including statements regarding potential energy resources and project development possibilities. These statements are based on Sierra Geothermal's current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described in forward looking statements, including the risks that the resource potential of any one of our projects may be uneconomic due to the lack of a high temperature water supply, or financing will not be available for construction of the power plants, and the revenues generated will not prove sufficient to fund operations and/or service debt, among others. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. Sierra Geothermal Power Corp assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.

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

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