Update on Projected Availability of Geothermal Resource for the Blue Mountain Geothermal Field

VANCOUVER, Sept. 25, 2012 /CNW/ - Nevada Geothermal Power Inc.  (NGP) (TSX.V: NGP) reports that an updated resource report describing a completely recalibrated numerical simulation model and outlook projection prepared by independent consultant GeothermEx Inc. for the Blue Mountain geothermal field predicts significantly lower power output, as compared to projections outlined in an October 2011 report, also prepared by GeothermEx. Base case projections assume the current configuration of production and injection wells operating at their current flow rates without further investment. Updated resource reports are required annually under the Company's loan agreements.

Base case temperature declines are projected to be on the order of 8ºF/yr in the near-term rather than declines of around 3ºF/yr as projected in the 2011 GeothermEx report, and power output is projected to fall below the currently nominated average supply amount of  34 MW this year decreasing to about 15 MW by 2020.

NGP has proposed locations for up to three additional wells: two injectors that would shift injection further to the northeast and northwest and one producer that would target the inferred zone of deep western heat after injection in this area has been relocated. The reservoir simulation does not provide support for new wells; however, GeothermEx notes that its reservoir simulation models are unreliable in predicting the outcome of wells that have not been drilled.

The Company is in discussions with its lenders in an attempt to resolve potential loan issues that may arise as a result of the projections contained in the report. These discussions are geared to facilitate transferring the Blue Mountain assets to the mezzanine lender.

About Nevada Geothermal Power Inc.:

Nevada Geothermal Power Inc. is a renewable energy developer focused on producing clean, efficient and sustainable geothermal electric power from high temperature geothermal resources in the United States.  NGP currently owns leasehold interests in five properties: Blue Mountain, Pumpernickel Valley, and North Valley in Nevada, New Truckhaven in California, and Crump Geyser, in Oregon. These properties are at different levels of exploration and development.

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions.  These statements reflect our current belief and are based upon currently available information.  Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements.  We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Nevada Geothermal Power Inc.

For further information:

Nevada Geothermal Power Inc. 
Brian D. Fairbank, P. Eng.
President & CEO
http://www.nevadageothermal.com

Investor Inquiries:
Nevada Geothermal Power Inc.
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email: info@nevadageothermal.com

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Nevada Geothermal Power Inc.

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