U.S. Geothermal Closes CAN $10.9M Placement

U.S. Geothermal Inc. has closed a private placement of 8,100,000 Subscription Receipts, at CAN $1.35 per Subscription Receipt, for gross proceeds of more than CAN $10.9 million [US $10.14 million]. Each Subscription Receipt will be automatically exchanged, without additional consideration on the exchange date for one Unit of the company.

Each Unit consists of one share of common stock of the company and one half of one common stock purchase warrant. Each Warrant will entitle the holder thereof to acquire one additional share of common stock of the company for a period of 24 months following the closing of the offering for US $1.75 per share of common stock.

The net proceeds of the offering will be used by U.S. Geothermal for drilling wells at the Neal Hot Springs geothermal project and for general working capital purposes. The proceeds will not be subject to escrow.

The offering was co-led by Dundee Securities Corporation and Clarus Securities Inc. and included Toll Cross Securities Inc. These firms received a commission of six percent of the gross proceeds of the offering and compensation options giving them the right to acquire, for 24 months following closing, an aggregate of 243,000 shares of common stock at a purchase price of the U.S. dollar equivalent on the closing date of CAN $1.35 per share.

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