Sierra Geothermal Power Corp. Announces a Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2007) - Sierra Geothermal Power Corp. ("Sierra") (TSX VENTURE: SRA.V) is pleased to announce that it has signed an engagement letter with Jacob & Company Securities Inc. acting as agent (the "Agent") pursuant to which the Agent has guaranteed to place 20,000,000 units of Sierra at a price of $0.50 per unit for gross proceeds of $10,000,000 subject to final documentation acceptable to the Agent and the subscriber.

Pursuant to the terms of the engagement letter the Agent will receive a commission of 8% of the gross proceeds of the Offering and broker warrants exercisable for a number of units equal to 8% of the units sold. The units to be paid to the Agent have the same terms and conditions as the units placed in the Offering.

Each unit consists of one common share and one share purchase warrant exercisable at a price of $0.70 to purchase one additional common share of Sierra for a period of 24 months from the date of Closing of the placement.

The offering will be subject to Sierra receiving the consent of shareholders to a possible change in control either in writing by 51% of the registered or unregistered shareholders holding shares through depositories or at a meeting of shareholders duly convened in accordance with the requirements of the British Columbia and Alberta Securities Acts if any one subscriber purchases more than 20% of the shares of Sierra that will be issued and outstanding at closing. The placement is further subject to TSX Venture Exchange approval.

The proceeds of the offering will be applied by Sierra for the purpose of exploring and advancing its portfolio of geothermal properties held either directly or indirectly through its subsidiary corporation, Cayley Geothermal Corp., and for general working capital.

On behalf of the Board of Directors,

Gary R. Thompson

Sierra Geothermal Power Corp.

The information provided in this news release contains forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, including statements regarding potential energy resources and project development possibilities. These statements are based on Sierra Geothermal'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 in forward-looking statements, including the risks that the resource potential of any one of our projects may be uneconomic due to the lack of a high temperature water supply, or financing will not be available for construction of the power plants, and the revenues generated will not prove sufficient to fund operations and/or service debt, among others. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. Sierra Geothermal Power Corp. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts

Mr. Gary R. Thompson, P.Geo
Sierra Geothermal Power Corp.
President & CEO
(403) 870-1166 or Toll Free: 1-800-563-5631
Email: gthompson@sierrageopower.com

Ed Muir
Sierra Geothermal Power Corp.
Investor Communications
Toll Free: 1-800-563-5631
Email: emuir@sierrageopower.com
Website: www.sierrageopower.com