Nevada Geothermal Begins Mapping of Deep Geothermal Source Waters at Pumpernickel Site

VANCOUVER, British Columbia, Jun 23, 2005 -- BUSINESS WIRE

Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) today reported that exploration work at the Pumpernickel Geothermal Project (5710 acres/8.92 square miles) is underway. In Phase I - 3D "E-SCAN", resistivity survey methods will be utilized to map the deep geothermal source waters feeding surface hot springs. Results are expected in four weeks. Subsequently a series of six 250-meter (820 foot) gradient wells will be drilled to test the interpretation of the E-SCAN survey.

"I am very excited about starting the exploration work on a second geothermal property," said Brian Fairbank President and CEO. "This fits into NGP's resource expansion plan to become a significant player in the robust renewable geothermal power sector in the Western United States."

The US Department of Energy (DOE) will fund 80% (through NGP's wholly-owned subsidiary Noramex Corp.) of the initial field evaluation program at the Pumpernickel Project. The DOE cost share is US$592,272 of the total budget of US$740,340. Inovision Solutions Inc. (IVS) will cover Noramex's cost share obligation of US$148,068 out of their first year work commitment.

Inovision Solutions Inc., a TSX-V listed company, has an option to earn a 50% joint venture interest by completing C$5,000,000 in project expenditures and by paying C$120,000 in cash and 600,000 shares of IVS to NGP over a five year period. In the first year, IVS must fund a C$400,000 work program, issue 100,000 shares and make a C$10,000 cash payment to maintain its option. Noramex (NGP) will manage the work. Combined funding to come from IVS and DOE for the 2005 Pumpernickel Project work totals C$1,300,000 or US$1,060,000.

Negotiations are ongoing to acquire the geothermal rights to 320 acres on the Tipton Ranch lands located immediately east of the hot springs on NGP's geothermal leases. The Magma well referred to in previous news releases is located on the Tipton Ranch lands.

Planned for 2006, Phase II

A deep core hole will be drilled to a nominal depth of 1200 meters (3900 feet) to confirm the resource and perform flow and injection tests.

A near-boiling hot spring occurs on the Pumpernickel leases. The chemistry of several hot springs, which occur along a one-mile interval of a prominent fault, predicts geothermal source-water temperature of 170 degreesC (340 degreesF). Geothermal fluids at 140 degreesC - 180 degreesC (280 degreesF - 355 degreesF) are currently used to produce electricity on a commercial basis at other locations in Nevada such as Steamboat, Brady's Hot Springs, Beowawe and Desert Peak.

Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in three properties: Blue Mountain, Pumpernickel and Black Warrior, all of which are ideally situated in Nevada. An initial 30 MW power plant is planned to begin generating power at the Blue Mountain site in 2007 subject to further resource drilling and feasibility studies.

Brian D. Fairbank, P. Eng, CEO & President is a Qualified Person under National Instrument 43-101.

Nevada Geothermal Power Inc.

Brian D. Fairbank, P. Eng., President & CEO

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.

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Nevada Geothermal Power Inc. (TSX VENTURE:NGP) (OTC Bulletin Board:NGLPF)

SOURCE: Nevada Geothermal Power Inc.

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