U.S. Geothermal Inc., Gerlach Green Energy Announce Joint Venture

Energy Resource, May 21, 2008

ENERGY RESOURCE-21 May 2008-U.S. Geothermal Inc., Gerlach Green Energy Announce Joint Venture(C)2008 JeraOne - http://www.jeraone.com

U.S. Geothermal Inc. has entered into a joint venture agreement with Gerlach Green Energy LLC of Nevada to explore the Gerlach geothermal system located in the town of Gerlach in northwestern Nevada.

The joint venture is located near U.S. Geothermal 's Granite Creek leases recently acquired as part of the Empire geothermal power plant arrangement.

"Gerlach is a great exploration target in an area of known geothermal activity that includes our producing San Emidio project 14 miles to the south, and our Granite Ranch project 5 miles to the north," said U.S. Geothermal President and CEO Daniel Kunz.

The agreement establishes a limited liability company named Gerlach Geothermal LLC and provides for a 60 percent U.S. Geothermal ownership interest in the joint venture by a subsidiary of the company and a 40 percent ownership interest by GGE, with the company expending $2,000,000 toward the project, of which $300,000 is a property contribution in the form of a BLM geothermal lease.

GGE has contributed one BLM geothermal lease and one private geothermal lease. These leases have all had previous work including geophysical studies and drilling. The agreement gives GGE an option to maintain its 40% ownership interest as additional capital contributions are required. If GGE dilutes to below a 10 percent interest, their ownership position in the joint venture would be converted to a 10 percent net profits interest. U.S. Geothermal will serve as the JV manager for the joint venture's development activities.

The combined property totals 3,615 acres (5.6 square miles) with 3,415 acres of BLM leases and 200 acres in a private property lease that contains the Great Boiling Springs thermal feature.

For more information, visit www.usgeothermal.com.

((Comments on this story may be sent to newsdesk@jeraone.com))

((Distributed via M2 Communications Ltd - http://www.m2.com))