Raser Makes US $20M Private Placement

At the initial closing, scheduled for November 14, 2008, the investor will purchase 2 million shares of Raser's common stock for an aggregate purchase price of US $10 million, or US $5.00 per share, representing a premium of 43% over the closing price of Raser's common stock on November 12, 2008.

At a second closing, scheduled for December 12, 2008, the investor will purchase an additional US $10 million of Raser's common stock at a purchase price to be determined pursuant to a formula based on the average daily market prices of Raser's common stock prior to the second closing, plus a premium.

Raser estimates that the aggregate net proceeds from the private placement transactions, excluding any potential proceeds associated with the exercise of the warrant, will be approximately US $18.7 million after deducting estimated fees and expenses. Raser said that it plans to use the net proceeds from the private placement to further its geothermal development program and for general corporate purposes.

In connection with the private placement transactions, Raser has also granted the purchaser a warrant to purchase up to US $20 million of additional shares of Raser's common stock at a price per share equal to the lesser of US $6.00) or a price determined pursuant to a formula based on the average daily market prices of Raser's common stock prior to the exercise of the warrant, less a discount.