U.S. Geothermal Updates Status of New San Emidio Power Plant

BOISE, IDAHO--(Marketwire - March 12, 2012) - U.S. Geothermal Inc. (TSX:GTH)(NYSE Amex:HTM), a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced that its engineering, procurement and construction (EPC) contractor successfully repaired the process pump that experienced a mechanical failure, as reported in our February 22, 2012 news release, at the new 8.6 net megawatt San Emidio, Nevada power plant.

Engineering analysis determined that the addition of both a vent line and a recirculation line are required for safe operation of the process pump. These lines have been engineered and are currently being installed. The EPC contractor is scheduled to restart commissioning activities on Friday, March 16 with a possible first roll of the turbine on Friday, March 23.

The EPC contractor is providing its services under a fixed price contract that includes financial guarantees for the original completion date and power output of the plant.

Please visit our website at: http://www.usgeothermal.com.

About U.S. Geothermal Inc.:

U.S. Geothermal Inc. is a leading renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project, located in eastern Oregon, is currently under construction and will be the company's third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects.

The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.'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, including but not limited to, the results from the exploration, production and injection well drilling at San Emidio. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.