Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

May 12, 2008 09:00 ET

Sierra Geothermal Power Receives Environmental Approval for the Silver Peak Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2008) -

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Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) has announced that it has received an Environmental Assessment (EA) decision with a Finding of No Significant Impact (FONSI) on April 25, 2008, from the U.S. Bureau of Land Management (BLM) for its Silver Peak Project.

The FONSI was reached after SGP's proposed project plan for Silver Peak was reviewed and the anticipated environmental impact was determined to be non-significant. This determination represents the final stage in the federal environmental review process.

With this EA process now complete, SGP may continue with Notices of Intent for drilling temperature gradient holes and seek Geothermal Drill Permits for production assessment wells at Silver Peak.

"Receipt of this positive environmental decision is a major milestone in the development of the Silver Peak project," said Gary R. Thompson, President and CEO. "We are pleased our plans for the project are in full compliance with all regulatory requirements. We are currently reviewing the locations for potential drill sites for our 2008-2009 drilling program."

About Silver Peak

Silver Peak is located in Esmeralda County, 240 kilometers (150 miles) northwest from Las Vegas, Nevada, and covers 7,233 acres. An independent analysis has given an estimated resource capacity of 15-40 megawatts of power. The Silver Peak property has two 55 kV transmission lines connecting to the Nevada and California power grids and a substation located on the leased property. Many geothermal features are visible on the property including geothermal vents, silica sinter deposits and algae mats. Also present are shallow warm to hot wells with temperatures of up to 75 degrees Celsius (167 degrees Fahrenheit) at depths less than 21 meters (70 feet). Chemical geothermometers that have been applied to the thermal waters suggest that temperatures may reach 200-230 degrees Celsius (400-440 degrees Fahrenheit) at depth.

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 stable 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. To find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA), visit our website at www.sierrageopower.com.

On behalf of the Board of Directors

GARY THOMPSON, President & CEO

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-harbour" 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.

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