Polaris Geothermal Inc. is a renewable energy company currently focused on the development of geothermal energy projects in Latin America.

Polaris is currently developing the initial project on its San Jacinto-Tizate geothermal concession near Leon, Nicaragua, located 90 km due northwest of the capital, Managua. The Company has a controlling interest in the project, which will produce 66 Megawatts (MW) upon completion in 2009. The San Jacinto-Tizate site has 10 MW of production on stream since 2005. Polaris has assembled a world-class team including Sinclair Knight Merz Ltd. (SKM), one of the world's leading geothermal science and engineering companies, to develop the US$183 million project.

Polaris has entered into a 20 year 66 MW Power Purchase Agreement with the Spanish utility, Union Fenosa, for the sale of power at a price of US$0.0595 per kilowatt hour (kWh). The 20-year PPA is supported by the purchaser´s parent organization and also by a Goverment undertaking which acknowledges the Goverment´s constitutional obligations to provide power to consumers and states that it will continue to honour the PPA in the event that it should need to take over the activities of the distributor. Any power produced in excess of the 66 MW can be sold at market price. A recent report by SKM on the potential of the SJT resource considering the entire resource area, the mean capacity is estimated to be 277 MWe, with a 90% probability that it will be greater than 203 MWe. Within that total, the eastern resource resource is estimated to have a mean capacity of 86 MWe and a 90% probability of being greater than 67 MW.

IIn addition, Polaris also holds the right to develop additional concessions in Nicaragua.

Polaris is focused on geothermal energy because it provides a clean, renewable, indigenous source for electrical power generation. The use of geothermal energy for electricity generation is a mature technology based on more than 50 years operating experience. Skills and human resources for geothermal development are readily available internationally and in Central America. In addition, with the ratification of the Kyoto Protocol, Polaris, through the generation of clean, geothermal power, will derive incremental income from the sale of its Certified Emission Reductions, or carbon credits.

Nicaragua provides the ideal geological conditions required for the development of geothermal power. Commercially viable geothermal resources are most frequently found in areas of strong tectonic activity, where the interaction of the earth's plates creates the friction required to produce geothermal heat. Economically, there is a pressing need for additional indigenous energy development in Nicaragua; a country which is experiencing a growing economy, infrastructure requirements and presently enjoys, political and economic stability with policies in place to provide comfort to foreign investors.

Polaris is a Yukon incorporated company whose shares are listed for trading in Canada on the TSX- Exchange under the symbol "GEO".