VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2010) - Sierra Geothermal Power Corp. (TSX VENTURE:SRA) ("SGP") today provides an update on the exploration drilling program at its 100% owned Alum project. The Alum project is part of SGP's Paymaster District geothermal area.

SGP has commenced drilling a second deep observation well at its Alum project. This well, called 26-19, follows last year's drilling of deep observation well 25-29. The purpose of well 26-19 is to expand our knowledge of the Alum geothermal resource by exploring for temperature and permeability to depths of several thousand feet. Well 26-19 will utilize cutting-edge coiled-tube drilling technology in an effort to make deep drilling faster and more cost-effective. Coiled-tube drilling has found great success in the oil and gas industry but has never been used at a geothermal well.

Well 26-19 is eligible for reimbursement on a 50:50 cost share basis through the U.S. Department of Energy's (DoE) Geothermal Technologies Program grant which was awarded to SGP in 2009.

SGP has contracted Xtreme Coil Drilling Corp. to drill the well with XTC 200 Rig # 4. The geological information obtained from Well 26-19 will be integrated into SGP's 3D geologic model for Alum. The primary objective of the well is to test temperature and permeability in the subsurface. A secondary objective is to compare coil-tube drilling rates to conventional and core drilling rates in a geothermal field.

"We are excited to be working with Xtreme to demonstrate coiled-tube drilling and would like to thank the DoE for their support of the project. This well is intended to move the Alum project towards feasibility, potentially allowing us to start production well drilling, the next milestone in the plan to bankable feasibility," said President and CEO Gary Thompson.

About Alum Project

The Alum geothermal power project is part of SGP's Paymaster district and located near the Nevada-California border in Esmeralda County, Nevada, 240 kilometres (150 miles) northwest of Las Vegas, and covers 7,198 acres. There is a 55 kV line that runs within a few hundred meters of the lease boundary. GeothermEx's independent analysis of the Alum heat anomaly estimates a resource capacity of 73-150 megawatts of power with a 20 year plant life. Chemical geothermometry analysis has indicated reservoir temperatures up to 225 degrees Celsius may be present. The maximum recorded bottom-hole temperature is 129 degrees Celsius at a depth of 610 meters. The lands containing the Alum heat anomaly have been unitized by the Bureau of Land Management with SGP the designated unit operator.

About The Paymaster District

SGP recognized the area as a district geothermal opportunity many years ago. The projects within the Paymaster District consist of three prospects: Alum, Silver Peak and Pearl, having a combined probability at the 90% level of generating over 100 megawatts of power. A 100 megawatt geothermal plant provides enough power to supply 80,000 homes.

About Sierra Geothermal Power Corp.

Sierra Geothermal Power Corp. is a renewable energy company focused on the exploration and development of clean, sustainable geothermal power. It is based in Vancouver, British Columbia and listed on the TSX Venture Exchange under the symbol SRA. Its portfolio of geothermal projects located in Nevada and California exceeds 365 square kilometres (90,000 acres) and has a combined total estimated capacity of greater than 500 megawatts. SGP intends to finance development by utilizing a combination of corporate equity, joint venture partnerships and project debt, with the support of US government grants and loan guarantees. To find out more about Sierra Geothermal Power Corp. (TSX-V: SRA) visit our website at www.sierrageopower.com.

On behalf of the Board of Directors

Gary Thompson, P.Geo., President, Chief Executive Officer and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plans and objectives for future operations. In some cases you can identify forward-looking statements by the use of terminology such as "may", "should", "anticipates", "believes", "expects", "intends", "forecasts", "plans", "future", "strategy", or words of similar meaning. Forward-looking statements in this press release include statements about well 26-19 will utilize cutting-edge coiled-tube drilling technology in an effort to make deep drilling faster and more cost-effective, well 26-19 being a deep well intended to move the Alum project towards feasibility potentially allowing us to start production well drilling, the next milestone in the plan to bankable feasibility, and the Company's intent to finance the development of its projects through a combination of corporate equity, joint venture partnerships and project debt with the support of U.S. government grants and loan guarantees. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks inherent in our industry, the challenging capital markets and other risks identified by us in our periodic filings on SEDAR (which can be viewed at www.sedar.com). Any of these risks could cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

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