SGP Reports Second Quarter 2009 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2009) -

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Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP") today disclosed results for its second quarter ended June 30, 2009.

Q2 2009 and Subsequent Highlights

- Applied for approximately US$46.1 million in US Government grants

- Ended the second quarter of 2009 with $2.9 million of working capital

- Completed a $3.78 million financing subsequent to the end of the quarter

- Received a favorable environmental assessment decision and drilling permits for its Alum geothermal power project in Nevada

- Completed the acquisition of Cayley Geothermal Power Corp.

- Strengthened the Board of Directors with the addition of Jerry Evans, Managing Partner at Aurion Infrastructure Inc., a company investing in North American mid-market infrastructure opportunities

"During and subsequent to the second quarter, investor interest in our company and the geothermal industry accelerated," said Gary Thompson, President and Chief Executive Officer of Sierra Geothermal. "We believe we are well-positioned to benefit from this renewed interest, especially given the potential for significant US government grants to be awarded later this year, and available tax incentives and loan guarantees for geothermal projects. With our $3.78 million financing completed earlier this month, we are ramping up to complete power purchase agreements and related transmission studies, along with drilling and geophysical activities at our two most advanced projects, Silver Peak and Reese River."

DOE Grant Applications

SGP has applied under the American Recovery and Reinvestment Act 2009 for seven US Government cost-sharing geothermal exploration and drilling grants of which we may be awarded up to US$46.1 million. Any grants awarded would require SGP to contribute roughly equivalent matching funds. The DOE has indicated that it intends to give notification of awards to these grant applicants between September 2009 and November 15, 2009. For further details on SGP's grant applications, please refer to its Q2 2009 Management Discussion and Analysis which has been filed on SEDAR at www.sedar.com.

Financial Results

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3 months 3 months 6 months 6 months
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
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Loss $642,400 $955,676 $1,070,631 $1,672,579
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Loss per share $0.01 $0.01 $0.01 $0.02
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Weighted average
common shares
outstanding 75,910,625 68,318,978 75,065,061 68,307,557
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The decrease in the net loss in the second quarter of 2009 and the first half of 2009 compared with a year earlier was mainly due to a decrease in stock-based compensation expense and the company's efforts to reduce expenses.

As at June 30, 2009, SGP had working capital of $2,926,064 compared to working capital of $4,039,809 as at December 31, 2008. However, cash reserves were increased by SGP's August 5, 2009 $3.78 million financing.

Cash used in the second quarter of 2009 and in the six months ended June 30, 2009 decreased to $546,838 and $1,115,400 respectively from $2,085,379 and $5,248,573 in the second quarter of 2008 and in the six months ended June 30, 2008. The decrease in SGP's use of cash primarily resulted from focussing only on non-drilling exploration activities, including permitting, power purchase agreement negotiations and related transmission studies.

The full text of SGP's Q2 2009 financial statements and Management Discussion and Analysis is available on the SEDAR website at www.sedar.com.

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. The Company 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. 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 accelerated investor interest in SGP and the geothermal industry, and the Company's belief that it is well-positioned to benefit from this renewed interest, especially given the potential for significant US government grant awards to be awarded later this year, and tax incentives and loan guarantees for geothermal 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 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.