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Sierra Geothermal Power Corp.: Sierra Geothermal Power Announces Private Placement of $3.78 Million

^{Published on 2009-08-05 12:14:20, Last Modified on 2009-08-05 12:14:28 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2009) - Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) is pleased to announce that on August 5, 2009, it completed a brokered private placement in which it sold 18,930,800 units at a price of $0.20 per unit for gross proceeds of $3,786,160 (a "Unit"). Each Unit consists of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.27 until August 5, 2011.

SGP has utilized a group of agents to arrange a brokered private placement. These agents collectively received an aggregate cash commission equal to 7 percent of the amount raised and 1,325,156 agents' warrants. Each agents' warrant is exercisable at a price of $0.27 per share until August 5, 2011.

All of the securities issued in this brokered private placement are subject to a four-month hold period and may not be traded until December 5, 2009.

SGP proposes to use the net proceeds of this financing to fund power purchase agreements and related transmission studies, drilling and geophysical activities at its Silver Peak and Reese River projects, and for general corporate and administrative expenses.

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 90,000 acres and has a combined total estimated capacity of greater than 500 MW. SGP 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 SGP proposal to use the net proceeds of the financing to fund power purchase agreements and related transmission studies, drilling and geophysical activities at its Silver Peak and Reese River 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 challenging 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.