US Geothermal Completes CAN $10.9M Private Placement Deal

U.S. Geothermal Inc. has entered into an agreement with a syndicate of Canadian investment dealers, pursuant to which the syndicate, as placement agents, have agreed to privately place approximately 8,100,000 subscription receipts, at CAN $1.35 per subscription receipt, for gross proceeds of approximately CAN $10.93 million.

Each subscription receipt will be automatically exchanged, without additional consideration on the exchange date, for one unit of U.S. Geothermal. 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 the company 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 is scheduled to close on or about August 12, 2009.

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