Nevada Geothermal Power Inc. Announces Termination of Option Agreement With Sierra Geothermal Power Inc. for the Pumpernickel Geothermal Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2008) - Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) today announced that NGP has terminated the option agreement with Sierra Geothermal Power Inc. (Sierra) whereby Sierra had the right to earn a 50-per-cent interest in Nevada Geothermal Power Inc.'s Pumpernickel project in Nevada.

Under the terms of the option, Sierra was to provide funding for the Pumpernickel work program, make a final cash option payment and issue a final tranche of common shares of Sierra to NGP by December 15, 2008. With the current state of the economy and volatile capital markets, Sierra was unable to meet its option commitments.

Brian Fairbank, President and CEO of NGP, stated, "With the value of geothermal projects having increased in value dramatically over the past few years, we are pleased to retain 100% interest in the Pumpernickel project. Significant exploration has been completed at Pumpernickel from 2003 to 2008. NGP will prepare to drill an initial development test well as a next step. NGP will announce further plans for the Pumpernickel project in 2009."