Nevada Geothermal Power Inc. Commences Blue Mountain Development Drilling

Market Wire, May, 2006

Nevada Geothermal Power Inc. ("NGP") (TSX VENTURE:NGP)(OTCBB: NGLPF), a renewable energy company developing geothermal power projects in the United States, today announced that it has initiated development drilling at Blue Mountain Nevada. Production test data from the wells will be used to complete a feasibility study for an initial 30 MW geothermal power plant.

In the initial program, four 13-inch diameter production wells will be drilled to 4000 feet (1200 metres) into the moderate temperature (300-330 degrees C) geothermal resource intersected in previous test holes. Permits have been obtained and drill pads are under construction. A water well rig will be used to drill the top 800 feet of each well and to set surface casing. A production drilling rig with a substructure to accommodate blow-out-prevention-equipment will then complete the holes to total depth. A suitable rig has been identified and is expected to be on site by the end of May. NGP expects to complete initial development drilling over the next six months.

At least one well will be extended to 6500 feet (2000 metres) to explore for a much hotter, 450 degrees F (230 degrees C) geothermal reservoir at depth. A super heated resource is predicted from the chemistry of shallow geothermal fluid samples obtained from in flow tests at DB-2. The high temperature resource, if confirmed, would have higher potential power output (i.e. greater than 100 MW).

Project infrastructure work, power engineering studies are on-going. The company has sufficient funds on hand to complete the resource development program and project feasibility work.

NGP has increased the size of the leasehold at Blue Mountain to 15 square miles or approximately 9600 acres, including land to the southeast where shallow gradient drilling has indicated that the geothermal resource is open to significant expansion. Two separate shallow water wells located three miles south of the central development area on new private leases produce geothermal fluids mixed with normal groundwater. Further work is required to determine if the geothermal reservoir extends south on to the new leases.

Nevada Geothermal Power Inc. is a renewable energy company exploring and 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 four properties: Blue Mountain, Pumpernickel and Black Warrior, in Nevada and Crump Geyser in Oregon.

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts: Nevada Geothermal Power Inc. Brian D. Fairbank, P. Eng. President & CEO (604) 688-1553 Nevada Geothermal Power Inc. Shelley Kirk Investor Inquiries (604) 688-1553X118 or Toll Free: 1-866-688-0808 X118 sfkirk@nevadageothermal.com www.nevadageothermal.com Pro-Edge Consultants Inc. Tracy Weslosky or Fred Cowans Managing Partners (416) 581-0177 or Toll Free: 1-866-544-9622 www.pro-edge.com ">info@pro-edge.com www.pro-edge.com