Sierra Geothermal Power updates in annual report 2008

Alexander Richter 14 May 2009

In its recently released annual report for the year 2008, Sierra Geothermal Power gave an update on its activities and its financials for the year.

Financially, the company did not have revenues for 2008 and reported a net loss of CAD 3.9 million, about CAD 1 million more than the previous year.

The following gives an overview of the company’s main activities as given in the release:

• A report prepared by GeothermEx Inc. shows that the existing resource estimate for our Barren Hills project increased by 500%.  GeothermEx estimates a 90% probability (confidence level) of generating at least 55 megawatts and a 50% probability that the reserve can support a plant of 117 megawatts for 20 years.
• A report prepared by GeothermEx Inc. shows that the existing resource estimate at our Reese River project increased by 200%.  GeothermEx estimates a 90% probability (confidence level) of generating at least 26 megawatts (net) for 20 years and a 50% probability that the reserve can support a plant of at least 58 megawatts for 20 years.
• Drill results were obtained in May 2008 from our Reese River project on three temperature gradient wells.  Wells 88-5, 62-4 and 18-33 were drilled to depths of between 488 – 610 meters (1,600 – 2,000 feet).  Bottom hole temperatures recorded were between 96 – 125 degrees °C (194 – 257 degrees °F).
• We received an Environmental Assessment decision with a Finding of No Significant Impact on April 25, 2008, from the United States Bureau of Land Management for our Silver Peak Project;  We strengthened our board of directors, management and technical team.
• During the Bureau of Land Management sale we acquired 640 acres of land adjacent to our Silver Peak Project and a 3,097 acre project called the “Pearl Lands”.
• We entered into an option agreement with Ram Power, Inc., a Delaware corporation, to purchase a 50% interest in additional lands adjacent to the Pearl and north of our Alum property.  We received notice from Western Geothermal Partners, LLC that we have satisfied all requirements to earn a 100% interest in the Reese River geothermal power project in Lander County, Nevada.  Western Geothermal Partners has retained a one percent (1%) gross royalty, which we have the option to purchase.

Source: Company Annual Report 2008