U.S. Department of Energy - Energy Efficiency and Renewable Energy

Geothermal Technologies Office

Drilling Resumes at Blue Mountain Geothermal Site

May 11, 2005

VANCOUVER, B.C. (May 9, 2005) -- Nevada Geothermal Power Inc. (NGP) today reported that the next phase of development is underway at its Blue Mountain Geothermal site, with drilling to deepen the Deep Blue 2 (DB2) well by an additional 700 metres (2,300 feet). "We are investigating a potential deep -- hotter production zone that would make Blue Mountain's economics extremely robust," said Brian Fairbank President and CEO.

"A deep high temperature resource would allow us to use more efficient and cost effective 'dual-flash' technology similar to the 60MW power plant at the Dixie Valley high temperature field in Nevada. A Monte Carlo simulation by Susan Petty of Black Mountain Technology infers a minimum resource capacity of 110MW if temperatures between 220° - 250°C can be confirmed."

According to Thermochem (February 19, 2005), Na-K and Ca-Mg water chemistry data from the latest flow test of DB-2 predicts a "likely reservoir temperature of 250°C (480°F)." With continued flow testing, DB-2 has cleaned itself out of drill fluid contamination producing "more pristine representatives of the parent reservoir water". Correspondingly high silica geothermometers indicate that the parent geothermal reservoir water is in reasonably close proximity to the sample location.

NGP will continue feasibility work including large diameter production test well drilling of both the indicated moderate temperature resource and the deeper high temperature target. Thirteen production well sites have been surveyed and the permitting process is underway for the first three production holes. Initial l transmission line studies have been initiated.

Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in three properties: Blue Mountain, Pumpernickel and Black Warrior, all of which are ideally situated in Nevada. An initial 30 MW power plant is planned to begin generating power at the Blue Mountain site in 2007 subject to further resource drilling and feasibility studies.

Press release at: www.nevadageothermal.com/s/News.asp?ReportID=106897&_Type=News&_Title=Drilling-Resumes-at-Blue-Mountain-Geothermal-Site