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Press release from Marketwire

U.S. Geothermal Provides 2012 Review and Milestones for 2013; Power Plants Currently Delivering Nearly 50 MWs Net

Tuesday, January 22, 2013

U.S. Geothermal Provides 2012 Review and Milestones for 2013; Power Plants Currently Delivering Nearly 50 MWs Net09:00 EST Tuesday, January 22, 2013BOISE, IDAHO--(Marketwire - Jan. 22, 2013) - U.S. Geothermal Inc. (TSX:GTH)(NYSE Amex:HTM)(NYSE MKT:HTM), a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to provide this 2012 review and planned milestones moving forward thru 2013. During 2012, the Company's management and operating teams were focused on improving operations at Raft River, Idaho and advancing both the San Emidio, Nevada and Neal Hot Springs, Oregon projects into commercial operations. Commercial operations were successfully achieved at San Emidio in May 2012 and at Neal Hot Springs in November 2012.To view photos of "Neal Hot Springs, Oregon, and San Emidio, Nevada", please click on the following link: http://media3.marketwire.com/docs/gth122i.pdfBoth development projects experienced construction delays due to the innovative use of existing technology in a novel configuration. These innovations have successfully produced the geothermal power industry's first commercial, supercritical organic rankine cycle binary power plant using R134a as a motive fluid. R134a is a non-flammable, non-toxic compound used in the power cycle. The two projects have successfully moved non-commercial, significantly enhanced technology to commercial viability and are now generating electricity. The performance tests of the innovative plants showed that they produce significantly more electrical power than originally forecast. Due primarily to the colder winter temperatures, current total output of net base load power to our customers recently was 49 MW with San Emidio at 9.4 MW, Neal Hot Springs at 29.7 MW and Raft River at 9.9 MW.Daniel Kunz, CEO and Director, said, "With one of the best development and operating teams in the business, we overcame a number of bureaucratic, capital market, and technical obstacles to successfully achieve our goals for 2012. In addition to achieving sustainable cash flows, revenues and earnings from the three operating power projects, we have ambitious technical and development goals for 2013." 2012 Notable Achievements:Approval of a 19.9 Megawatt power purchase agreement ("PPA") for San EmidioSuccessful completion of well and pump repairs at Raft RiverMechanical completion of module 1 at Neal Hot SpringsStrategic investment by Lincoln Park CapitalAchieved commercial operations at San EmidioMechanical completion of module 2 at Neal Hot SpringsSigned a binding 50 MW Memorandum of Understanding for 15 year PPA for El Ceibillo, GuatemalaIncreased power output rating from 8.6MW to 9.0MW at San Emidio$10.7 Million Cash Grant received at San Emidio, $1.0 million pendingAchieved commercial operations at Neal Hot SpringsStrategic institutional investors buy $4.37 million stake Operating and Development Goals for 2013:Close long term financing for takeout construction loan for San EmidioExpand San Emidio to 10 MW net output with transmission upgrade and existing higher temperature wellClose construction loan for Neal Hot SpringsApply for and receive the 30% ITC cash grant at Neal Hot SpringsComplete the sale of and receive $7.4 million Oregon tax credit at Neal Hot SpringsReceive $1.0 million remaining ITC cash grant at San EmidioComplete equity calculations for Enbridge at Neal Hot SpringsEvaluate installation of solar power for parasitic load at Neal Hot SpringsReceive 10% ITC cash grant for well improvements at Raft RiverDrill production wells to complete exploration grant at San EmidioMake a go or no go construction decision for second unit at San EmidioComplete PPA for El CeibilloClose equity partner arrangement for El CeibilloReceive environmental permits for El CeibilloComplete geophysical surveys and reservoir confirmation drilling for El CeibilloPlease visit our Website at: http://www.usgeothermal.comAbout U.S. Geothermal:U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon. The company is developing El Ceibillo, an advanced stage steam geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, including statements regarding the ability to complete the offering and the use of proceeds of the anticipated offering. These statements are based on U.S. Geothermal Inc.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.FOR FURTHER INFORMATION PLEASE CONTACT: The NYSE MKT and the Toronto Stock Exchange do not accept responsibility for the adequacy of this release. Contact Information: U.S. Geothermal Inc.Saf DhillonInvestor Relations866-687-7059208-424-1030 (FAX)saf@usgeothermal.comwww.usgeothermal.com