U.S. Geothermal Provides Development Update

U.S. Geothermal Inc. (NYSE MKT:HTM)(NYSE Amex:HTM)GTH a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, provides this update of construction work for the new 22 net megawatt ("MW"), air cooled power plant at Neal Hot Springs, located in Malheur County, Oregon and the newly completed 8.6 net MW, water cooled power plant at San Emidio Unit I located in Washoe County, Nevada. Construction work at the Neal Hot Springs power project is approximately 93 percent complete and is scheduled to achieve a commercial operation date ("COD") in the fourth quarter of 2012. To address a specific vibration issue in the turbine gearbox, adjustments to the three generating modules of the power plant are occurring based on similar adjustments that are currently taking place at San Emidio Unit I. The adjustments include replacing a pair of high-speed turbine gearbox shaft bearings with larger ones and adding a "swirl break" behind the turbine wheel. The swirl break is designed to disrupt an unwanted pressure wave identified by the turbine manufacturer. At San Emidio the EPC contractor also discovered a problem with the silencer and has developed a replacement unit that will be installed during the current shutdown. The silencer issue will also be evaluated at Neal Hot Springs.