U.S. Geothermal Announces Completion Of Well RRG-2 Repair at Raft River Project

BOISE, IDAHO--(Marketwire -01/25/12)- U.S. Geothermal Inc. (TSX: GTH.TO - News)(AMEX: HTM - News), a renewable energy development company focused on the production and sale of electricity from geothermal energy, announced today that it successfully completed the repair of production well RRG-2 at the Raft River geothermal power project in southeast Idaho. The repair work was completed by U.S. Geothermal Services Inc. under the terms of a Repair Services Agreement with Raft River Energy I LLC.

Final repair operations recommenced in early December after a 4 month break to allow for design of the repair program and to schedule the specialized drilling equipment that was required to complete the repair. The 13 3/8" steel production casing was removed and replaced from 585 feet deep in the well back up to surface, in order to repair a separation in the casing that prevented installation of the production pump. RRG-2 returned to production on January 6, and after balancing the well field, the power plant is running at over 10 megawatts under current conditions. The well is producing brine at 277 degrees F and continues to heat up.

About U.S. Geothermal:

U.S. Geothermal Inc. is a leading renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project, which is currently under construction, will be the company's third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects. The San Emidio project is currently undergoing commissioning of a new 8.6 net MW binary cycle power plant.

Please visit our Website at: www.usgeothermal.com

The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.'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, including but not limited to, the results from the exploration drilling at San Emidio and Neal Hot Springs. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.

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