Sierra Geothermal Power announces annual results 2008

In a company statement, Sierra Geothermal Power (TSX-V:SGP) announces its annual results for the year-end 2008. All amounts are in Canadian dollars.

Gary R. Thompson, President and CEO of SGP: .”…problems in the credit markets and the deteriorating global economic conditions increased the cost of obtaining capital and limited the availability of funds. As a result, we have and continue to be extremely prudent with our existing cash resources. We are conducting minimal exploration and advancing permitting work on our leading projects. In addition, we are working to position our company to take advantage of the US government’s expanded program of incentives for renewable energy projects.”

“For the year ended December 31, 2008, SGP reported a net loss of $3,930,023 or ($0.06) per share compared to a net loss of $2,852,975 or ($0.06) per share for the 14 months ended December 31, 2007.

As of December 31, 2008, SGP had working capital of $4,039,809 compared to working capital of $10,676,587 as at December 31, 2007.

Highlights during 2008

• GeothermEx reported an increase in the reserve estimates for the Reese River project by 200 percent, up to 26 to 58 MW based on probability factors of 50 percent and 90 percent, respectively.
• GeothermEx reported an increase in the reserve estimates for the Barren Hills project by 500 percent, up to 55 to 117 MW based on probability factors of 50 percent and 90 percent, respectively.
• Received the Environmental Assessment approval with a Finding of No Significant Impact from the Bureau of Land Management for the Silver Peak Project, a key milestone in the project’s development.
• Encouraging drill results were obtained in May 2008 from the Reese River project on three temperature gradient wells. Wells 88-5, 62-4 and 18-33 were drilled to depths of between 488 to 610 meters (1,600 to 2,000 feet). Bottom hole temperatures recorded were between 96 to 125 degrees C (194 to 257 degrees F).
• Added strength to the Board of Directors, management and technical team.
• Acquired 640 acres of land adjacent to the Silver Peak project and the 3,097 acre Pearl project to the east of Silver Peak, and entered into an option agreement to purchase a 50 percent interest in additional lands of 14,144 acres adjacent to the Pearl and Alum projects.
• Received notice from Western Geothermal Partners, LLC that SGP has satisfied all requirements to earn a 100 percent interest in the Reese River project.

The full text of the Company’s audited financial statements and management’s discussion and analysis is available on the SEDAR website at www.sedar.com.”

Source: Company announcement via Marketwire.