U.S. Geothermal Announces Completion of Well RRG-7 Repair at Raft River Project

BOISE, IDAHO--(Marketwire - July 6, 2011) - U.S. Geothermal Inc. (TSX:GTH)(NYSE Amex:HTM), a renewable energy development company focused on the production and sale of electricity from geothermal energy, announced today that it has successfully completed the repair of production well RRG-7 at the Raft River geothermal power project in southeast Idaho. The repair work was completed by U.S. Geothermal Services Inc., a wholly owned subsidiary, according to plan and budget. Previously well RRG-7 experienced a leak between two overlapping casing strings that allowed cooler geothermal fluid to flow into the well. The repair involved removing the production pump and then completing a "squeeze" job whereby grout was injected into the leaking lap joint.

After the squeeze job successfully sealed off the leak, the overhauled production pump was installed and production well RRG-7 was placed back into service on July 2nd. The well is currently producing 1,300 gallons per minute of 297°F fluid. The repair program also includes restoring production at well RRG-2 and those repairs are underway and ongoing.

About U.S. Geothermal:

U.S. Geothermal Inc. is a leading renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project, which is currently under construction, will be the company's third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects. The San Emidio project is currently undergoing construction of a new 8.6 net MW binary cycle power plant.

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. 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, including but not limited to, the results, timing and cost of the repairs at Raft River. 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.