Sierra Geothermal Power Corp.
TSX VENTURE : SRA

Sierra Geothermal Power Corp.

April 13, 2009 18:24 ET

Sierra Geothermal Reports Year-End 2008 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13, 2009) -

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Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) today announced the release of its financial results for the year ended December 31, 2008.

"I am pleased to report that although the past year has been very challenging, we have made good progress toward achieving our mission of building SGP into a leading independent producer of geothermal power," said Gary R. Thompson, President, CEO. "However, problems in the credit markets and the deteriorating global economic conditions increased the cost of obtaining capital and limited the availability of funds. As a result, we have and continue to be extremely prudent with our existing cash resources. We are conducting minimal exploration and advancing permitting work on our leading projects. In addition, we are working to position our company to take advantage of the US government's expanded program of incentives for renewable energy projects."

For the year ended December 31, 2008, SGP reported a net loss of $3,930,023 or ($0.06) per share compared to a net loss of $2,852,975 or ($0.06) per share for the 14 months ended December 31, 2007.

As of December 31, 2008, SGP had working capital of $4,039,809 compared to working capital of $10,676,587 as at December 31, 2007.

Highlights during 2008

- GeothermEx reported an increase in the reserve estimates for the Reese River project by 200 percent, up to 26 to 58 MW based on probability factors of 50 percent and 90 percent, respectively.

- GeothermEx reported an increase in the reserve estimates for the Barren Hills project by 500 percent, up to 55 to 117 MW based on probability factors of 50 percent and 90 percent, respectively.

- Received the Environmental Assessment approval with a Finding of No Significant Impact from the Bureau of Land Management for the Silver Peak Project, a key milestone in the project's development.

- Encouraging drill results were obtained in May 2008 from the Reese River project on three temperature gradient wells. Wells 88-5, 62-4 and 18-33 were drilled to depths of between 488 to 610 meters (1,600 to 2,000 feet). Bottom hole temperatures recorded were between 96 to 125 degrees C (194 to 257 degrees F).

- Added strength to the Board of Directors, management and technical team.

- Acquired 640 acres of land adjacent to the Silver Peak project and the 3,097 acre Pearl project to the east of Silver Peak, and entered into an option agreement to purchase a 50 percent interest in additional lands of 14,144 acres adjacent to the Pearl and Alum projects.

- Received notice from Western Geothermal Partners, LLC that SGP has satisfied all requirements to earn a 100 percent interest in the Reese River project.

The full text of the Company's audited financial statements and management's discussion and analysis is available on the SEDAR website at www.sedar.com.

About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp. (SGP) 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 US 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 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.

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