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

BOISE, IDAHO--(Marketwire - Feb. 23, 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 experienced a pump failure at the new 8.6 net megawatt San Emidio, Nevada power plant. The EPC contractor advised that, while they were commissioning the plant, a key process pump used to move R134a working fluid through the binary cycle system experienced a mechanical failure. The contractor removed the pump and shipped it to a repair facility. It is currently scheduled to be back on site for installation Monday, February 27, 2012. After the pump is reinstalled, the EPC contractor will resume power plant commissioning activities. The damaged capacitors discussed in our February 2, 2012 news release have been replaced.

Final programming and commissioning of control, safety and operating systems are currently being completed. The EPC contractor is providing its services under a fixed price contract that guarantees the 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 construction, startup and commissioning of the new power plant 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.