U.S. Geothermal Announces Receipt of Drilling Permits for San Emidio Project

BOISE, IDAHO, Jul 22 (MARKET WIRE) --
U.S. Geothermal Inc. ("U.S. Geothermal") (TSX: GTH)(AMEX: HTM), a
renewable energy company focused on the production of electricity from
geothermal energy, announced today that a Project Area Permit was issued
by the State of Nevada, Division of Minerals on July 7, 2008 for the San
Emidio project in northwestern Nevada. In conjunction with the Project
Area Permit, the Division of Minerals also issued individual drilling
permits for the first three new production wells. These wells are
intended to provide geothermal fluid for the planned 27 megawatt, new
development at the San Emidio project.

The Project Area Permit provides notification that allows the drilling of
up to 14 wells on private property within the designated San Emidio
project area. In addition to the project area permit, Geothermal Resource
Development Permit Applications must be submitted for each individual
well within the permit area.

Drill pad construction at the site began during the week of July 7.
Drilling operations are expected to begin near the end of July or in
early August.

The San Emidio Project, formerly know as Empire, was acquired by U.S.
Geothermal on April 30, 2008. It includes a binary cycle, geothermal
power plant that has been operating since l987 with an installed capacity
of 3.6 megawatts. Plant production averaged 3.1 net megawatts for 2007
and is sold to Sierra Pacific Power. The project is comprised of 22,944
acres (35.9 square miles) of private and federal geothermal leases
located approximately 100 miles north of Reno, Nevada. Black Mountain
Technology, an independent geothermal consulting firm, has estimated a
resource potential of 44 megawatts at the San Emidio project using a 90%
probability factor.

About U.S. Geothermal:

U.S. Geothermal is a renewable energy development company that is
operating geothermal power plants at Raft River, Idaho and at the San
Emidio Desert in Nevada. The Neal Hot Springs project in eastern Oregon
is being explored for a commercial reservoir. U.S. Geothermal holds,
through ownership or lease, geothermal rights of lands that comprise the
Raft River project in Idaho, San Emidio, Granite Ranch, and Gerlach in
Nevada, and the Neal Hot Springs project in Oregon.

Please visit our Website at: www.usgeothermal.com.

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 drilling plans, or development possibilities at San Emidio.
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.

The American Stock Exchange and the TSX do not accept
responsibility for the adequacy of this release.

Contacts:
U.S. Geothermal Inc.
Saf Dhillon
Investor Relations
1-866-687-7059
(604) 688-9895 (FAX)
Email: saf@usgeothermal.com
Website: www.usgeothermal.com

Scott Peyron & Associates, Inc.
Melinda Keckler
Media Relations
(208) 388-3800
(208) 388-8898 (FAX)
Email: mkeckler@peyron.com

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