Nevada Geothermal Power Inc. Provides Update on Blue Mountain Geothermal Power Project

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Wed Aug 27, 2008 9:17am EDT

  VANCOUVER, BRITISH COLUMBIA, Aug 27 (MARKET WIRE) -- 
Nevada Geothermal Power Inc. (NGP) (TSX VENTURE: NGP)(OTCBB: NGLPF) is
pleased to provide the following update on Phase 1 development activities
at its Blue Mountain, Faulkner I, 49.5 MW (gross) renewable energy
geothermal power project.

    A financing facility for the construction of the 49.5 MW Blue Mountain
Faulkner I project in Nevada is expected to close shortly. NGP continues
to maintain project timelines and terms with Ormat Technologies.

    NGP has all the necessary permits for initial construction work, which is
scheduled to commence in September 2008. NGP's wholly owned subsidiary,
NGP Blue Mountain I LLC (NGP I), was issued a Limited Permit to Construct
from the Public Utilities Commission of Nevada (PUC) at the Blue Mountain
geothermal project on July 11, 2008. The grant of permit under the
Utility Environmental Protection Act (UEPA) allows NGP I to grade the
site and complete the foundations for the geothermal power plant.

    Step-out Well 58-15, located 4,600 feet (1,402 meters) west of earlier
production wells and originally planned for geothermal fluid
re-injection, will be completed as a high-temperature production well.
Production and injection tests conducted by GeothermEx indicate that Well
58-15 encountered reservoir fluid at 415 degrees F (213 degrees C), the
highest temperatures yet measured at Blue Mountain, in a highly permeable
zone at 5,600 feet (1,707 metres). The new production well location opens
up the possibility of several fill-in production wells between Well 58-15
and other production wells already drilled by NGP.

    The capacity of Well 58-15 flowing unassisted (unpumped) is estimated by
GeothermEx at approximately 5.5 MW, net of parasitic power required for
the power plant. Pumping was not considered by GeothermEx because of the
higher temperature fluids. However, NGP is working with specialist
consultants to assess the viability of pumping Well 58-15 utilizing
line-shaft pumps equipped for high temperature service. If pumping proves
feasible, Well 58-15 could produce approximately 10 MW (gross) or 7.5 MW
(net) of power plant and pump loads.

    During drilling, Well 58-15 identified shallow injection potential (the
zone has been cased) in the interval between 1200 - 1600 feet (366 - 488
meters). The shallow permeable zone for injection contains much lower
fluid temperatures and is separated from the deep production zone by a
3,000 foot thickness of impermeable rock. The shallow zone will be a
primary target for future shallow injection wells to be drilled in the
"West Injection Area".

    The acid stimulation testing for Well 44-14 has been successfully
completed. Well 44-14 will be re-entered and deepened to possibly tap the
same deeper fault structure that was intersected in Well 58-14.

    Injection Well 13-11 has been drilled to a depth of 7,162 feet (2,183
meters); however, the target fault was not found. A sidetrack well, or
second leg, will be drilled at an angle to the west from below the casing
shoe (2,025 feet, 617 meters) to intersect the projected target.

    NGP has temporarily suspended drilling at Blue Mountain, having completed
its equity contribution for the power project budget. The ThermaSource
rig remains at the site, with drilling to resume in September. NGP is on
track to complete the project, including resource drilling, transmission
line installation, and pipeline and power plant construction by December
31, 2009.

    About Nevada Geothermal Power Inc.: Nevada Geothermal Power Inc. is a
renewable energy company 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, Black Warrior, all located in Nevada and Crump Geyser in
Oregon. These properties are at different levels of exploration and
development. NGP estimates a potential of approximately 150 MW to over
200 MW from the current leaseholds.

    Nevada Geothermal Power Inc. 

    Brian D. Fairbank, P. Eng., President & CEO

    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.
Shelley Kirk
Investor Inquiries
(604) 638-8784 or Toll Free: 1-866-688-0808 X118
Website: www.nevadageothermal.com

Pro-Edge Consultants Inc.
Tracy Weslosky or Fred Cowans
Managing Partners
(416) 581-0177 or Toll Free: 1-866-544-9622
Email: info@pro-edge.com
Website: www.pro-edge.com

Copyright 2008, Market Wire, All rights reserved.

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