Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

April 21, 2009 09:00 ET

Sierra Geothermal Proposes to Re-Price and Extend Warrants

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2009) -

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Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP") today announced a proposal to amend the 20 million warrants issued in a brokered private placement of units that closed on May 29, 2007. As 16 million of these warrants are held by an investor owning more than 10 percent of the Company's outstanding shares, TSX Venture Exchange regulations consider this investor to be an insider of the Company. Regulations limit the number of warrants held by an insider that may be re-priced to 10 percent of the total number of warrants.

SGP proposes to reduce the exercise price of two million insider warrants plus four million warrants held by minority shareholders from $0.70 to yesterday's closing market price of $0.17 per common share, and extend the term of all 20 million warrants by three years to May 29, 2012. The proposal to re-price the six million warrants and extend the terms is subject to the approval of all warrant holders and the TSX Venture Exchange. The extension of the expiry date is conditional upon a holder exercising at least 12.5 percent of its re-priced warrants by May 29, 2009. Under TSX Venture Exchange regulations, broker warrants are not eligible for amendment.

The six million re-priced warrants will contain an acceleration provision such that if, for a period of ten consecutive trading days (the "Premium Trading Days"), the closing price of SGP's common shares on the TSX Venture Exchange exceeds $0.23 per share, the warrant exercise period will be reduced to 30 days. This 30-day period would commence seven calendar days after the tenth Premium Trading Day.

"We value our long-term shareholders and in consideration of the recent market turmoil, we believe we have proposed very favourable terms within the regulations to allow these warrant holders to benefit from exercising at market price and extending the term of their warrants another three years," said President and CEO, Gary Thompson.

SGP proposes to use the proceeds from any of the warrants that are exercised to advance exploration on its geothermal projects.

About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp. is a renewable energy company focused on the exploration and development of clean, sustainable geothermal power. It is based in Vancouver, British Columbia and listed on the TSX Venture Exchange under the symbol SRA. Its portfolio of geothermal projects located in Nevada and California exceeds 365 square kilometres (90,000 acres) and has a combined total estimated capacity of greater than 500 MW. The company intends to finance development by utilizing a combination of corporate equity, joint venture partnerships and project debt, with the support of U.S. government grants and loan guarantees. 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, P.Geo, President, Chief Executive Officer and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plans and objectives for future operations. In some cases you can identify forward-looking statements by the use of terminology such as "may", "should", "anticipates", "believes", "expects", "intends", "forecasts", "plans", "future", "strategy", or words of similar meaning. Forward-looking statements in this press release include statements about the Company's proposal to use the proceeds from any of the warrants that are exercised to advance exploration on its geothermal projects, and the Company's intent to finance the development of its projects through a combination of corporate equity, joint venture partnerships and project debt with the support of U.S. government grants and loan guarantees. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks inherent in our industry, the poor capital markets and other risks identified by us in our periodic filings on SEDAR (which can be viewed at www.sedar.com). Any of these risks could cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements and any assumptions upon which they are based are made in good faith and reflect our current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this press release. Except as required by applicable law, including the securities laws of Canada, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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