Polaris Geothermal Shares Begin Trading on the TSX Venture Exchange Under The Symbol 'GEO'.

TORONTO -- Polaris Geothermal Inc., ("Polaris" or "the Company") a developer of geothermal power projects, is pleased to announce that the Company's Class A common shares will begin trading today on the TSX Venture Exchange (TSX-V) under the symbol "GEO".

Polaris, through its current holdings and rights to acquire up to 67.6 percent interest in Polaris Energy Corporation and San Jacinto Power S.A., controls the San Jacinto-Tizate geothermal power concession in Nicaragua. (A subsidiary of Daimler Chrysler Services Structured Finance owns 30 percent).

Phase I of the San Jacinto-Tizate project is scheduled to commence power production with 10 megawatts (MW) in January of 2005 followed by the addition of a further 10 MW approximately twelve months later. On completion, the San Jacinto-Tizate project is expected to generate up to 66 MW of electrical power annually. Geothermal power is a clean and renewable energy source that is currently used in a number of countries, including the United States  and Japan, to generate in excess of nine thousand MW of electrical power annually.

"With a 40 square kilometer exploration concession and the potential for additional power production from this initial property, the inauguration of trading in "GEO" on the TSX Venture Exchange gives us access to the capital markets that will be important to our future growth and development," noted Polaris Geothermal CEO Tom Ogryzlo.

"On behalf of the Government of the Republic of Nicaragua, I would like to congratulate San Jacinto Power and Polaris Geothermal on achieving this important milestone," noted Dr. Mario Arana, Minister of Economics. "With more than 70 percent of our electrical power requirements now supplied by fossil fuels, promoting the development of sustainable domestic energy sources is an important policy objective for our government. When it starts power production early next year, the San Jacinto-Tizate geothermal power project will begin making a valuable contribution to this objective."

"I am very pleased with the progress that San Jacinto Power and Polaris Geothermal have made in bringing this project to maturity," noted Dr. Erwin Kruger, President of San Jacinto Power S.A. and a Director of Polaris.

As of August 12, 2004, Polaris Geothermal Inc. had 22,119,861 common share issued and outstanding.

Background on Geothermal Energy

- First developed in 1890, Geothermal power is currently produced in more than 23 countries around the world, including the United States and Japan, where geological conditions are most ideal for the economic exploitation of this renewable and environmentally sustainable energy source;

- Installed generating capacity is currently in excess of nine thousand megawatts (MW) worldwide with approximately 44 percent of this capacity located in the Americas and 30 percent located in the United States;

- Improvements in development technologies have increased plant availability and utilization now commonly exceeds 98 percent on an annual basis;

- The geological conditions required for the development of geothermal power 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;

- This geothermal heat interacts with water contained in naturally occurring aquifers to form bodies of hot water with temperatures as high as 350C;

- Drilling into these aquifers allows the heated water and steam to be brought to the surface where it is used to drive conventional turbines that generate electricity. The water is then reinjected back into the ground to preserve the power generating lifespan of the aquifer.

Background on the San Jacinto-Tizate Power Project

- The San Jacinto-Tizate geothermal concession is located near the city of Leon in Nicaragua approximately 56 miles northwest of the capital of Managua;

- The concession contains two known resources, R-1 and R-2. Sinclair Knight Merz Limited (SKM), one of the world's largest geothermal consulting firms, has estimated a 90 percent probability that the capacity at R-1 will exceed 75 MW and a 50 percent probability that it will be greater than 115 MW. Their initial estimate indicates the R-2 resource potential is approximately 50 MW;

- On the advice of SKM, the Company has decided to develop the San Jacinto project in two phases. Phase I is scheduled to commence production in 2005 with 10 MW followed by the addition of a further 10 MW twelve months later;

- Phase II is scheduled for completion by 2007, adding a further 46 MW of power to the concession's output bringing its total production to 66 MW;

- Polaris Geothermal has an agreement with Empresa Nicaraguense de Electricidad (ENEL) and the Nicaraguan government for the development of the San Jacinto-Tizate field and exclusive rights to use all physical assets for a period of 20 years, extendable for an additional 10-year period;

- 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).

For detailed maps outlining background information on the Republic of Nicaragua, please click on the links below:

http://www2.cdn-news.com/database/fax/2000/geomap2.jpg

http://www2.cdn-news.com/database/fax/2000/geomap3.jpg

Polaris Geothermal Inc.: Background on the Republic of Nicaragua

Area:                           129,494 sq km
Population:                     5,359,759
Capital:                        Managua
Head of State:                  President Enrique Bolanos Geyer
GDP (2003 est.):                US$4.13 billion(1)
Major Industries:               Agricultural production (Coffee,
                                Sugar, Peanuts, etc.)
                                Fishing
                                Light manufacturing
                                Food processing
                                Garment manufacturing
                                Tourism
International Trade:            Signatory to the US-Central
                                American Free Trade Agreement
Electricity Production (2003):  2,521 GWh
Electricity Production by
 Source (2003):                 Fossil Fuel        74 %
                                Hydro              12 %
                                Geothermal         10 %
                                Other               4 %
Exports (2003 est.):            US$604 million
Imports (2003 est.):            US$1.720 billion
External Debt (2004 est.)       US$2.5 billion(2) (down from
                                US$13.5 billion in 1990)

(1) 11.4 US billion on PPP basis

(2) On an NPV basis after conclusions of finalizing debt forgiveness approved in January 2004 by the International Monetary Fund and Paris Club

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy of this press release.

Polaris Geothermal Inc. (TSX VENTURE:GEO)