U.S. Geothermal Announces Acquisition of Earth Power Resources

BOISE, IDAHO--(Marketwired - Oct. 16, 2014) - U.S. Geothermal Inc. (TSX:GTH)(NYSE MKT:HTM) (the "Company"), a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that it has signed an Agreement and Plan of Merger (the "Agreement") to acquire Earth Power Resources ("EPR"). Under the terms of the Agreement, EPR will be merged with and into U.S. Geothermal. EPR shareholders will receive a total of six hundred ninety-two thousand seven hundred sixty-nine (692,769) shares of U.S. Geothermal stock in exchange for all outstanding shares of EPR stock. EPR will have no outstanding debts or unpaid obligations at the time the transaction closes. The transaction is expected to close by the end November 2014 following shareholder approval by EPR Shareholders.

The assets acquired from EPR include geothermal leases covering 26,017 acres in Nevada representing three projects, as well as EPR's complete geothermal resource database of new project opportunities located throughout the western United States. EPR's management evaluated and compiled the database over its nearly 40 years of geothermal exploration experience.

Resource reports prepared for EPR over the past several years by GeothermEx Inc., a consulting geothermal engineering firm, provide estimates that the energy potential contained within the three projects is in the range of 158 to 359 megawatts.

The exploration projects acquired are:

Property		Acres		Megawatts (90% probability)		Megawatts (Most Likely)		Megawatts (50% probability)
Crescent Valley		21,316		71		127		186
Ruby Valley (lease pending)		2,141		67		92		132
Lee Hot Springs		2,560		20		29		41
Total		26,017		158		248		359

The megawatt estimates contained in these independent reports represent the potential energy, or heat-in-place contained within the project boundary, which demonstrates that these prospects are very attractive development targets with identified geothermal resources. The actual, producible power generation may be significantly different than the heat-in-place calculations, and will depend upon the discovery of commercial temperatures and permeability.