Pumpernickel Geothermal Project Completes Phase I Drill Program

November 15, 2005

Two wells were drilled to ~305 metres (1000 feet), one well to ~360 metres (1180 feet) and well PVTG-3, the deepest test, was drilled to ~488 metres (1600 feet) and lined with (4 ½") steel casing. This procedure allows for well PVTG-3 to be re-entered and deepened. Phase II program starting in early 2006, will include a deep well intended to drill into the Pumpernickel resource.  

Temperatures in wells continue to be measured with well-bore PVTG-3 providing the highest at 81°C (178°F). Drill cuttings were sent to the Nevada Bureau of Mines and the water samples have been sent to Thermochem Labs for analysis. All the results are currently being collected and compiled with a summary report expected within weeks.  

The drill program completes the first phase of a two-phase exploration program recommended by T. Sadlier-Brown, independent project consultant, in order to establish the presence of a commercially viable geothermal resource.  David Blackwell, geothermal heat flow expert world's the world's foremost expert on temperature gradient analysis, has identified the Pumpernickel site as one of the top geothermal prospects in Nevada.  (Ref: http://www.smu.edu/geothermal/publications/GRC_Forgottenones.htm).  

The Phase I budget was approximately US$926,000 which included direct exploration expenditures of US$740,000 of which 80% is to be funded by the U.S. Department of Energy.