Polaris Geothermal Completes First 10 MW

[] Polaris Geothermal, currently developing a 66 MW project on its San Jacinto-Tizate (SJT) concession in Nicaragua, announces that Stage 1’s construction of the first 10 MW of production was completed in July 2005. Based on results of a recent geophysical exploration completed at San Jacinto-Tizate by geoscientific consultants, Sinclair Knight Merz Ltd., of Auckland, New Zealand (SKM), SJT increased its resource size. The San Jacinto-Tizate resource is now estimated at 90 percent probability to have the capacity for providing 203 MW and at 50 percent probability of providing 274 MW, which opens up possibilities for expanding the size of the planned 66 MW San Jacinto-Tizate power plant. Spot prices for power in Nicaragua are currently in excess of USD $0.10 per kWh, which is attractive when compared to the USD $ 0.0595 per kWh currently agreed to for the first 66 MW. While there can be no assurance that the company will be able to sell additional power at these rates, management is evaluating all possibilities including entering into additional power purchase agreements with qualified buyers.