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Pumpernickel Valley Geothermal Project: Inovision to Spend $5,000,000 to Earn 50% Joint Venture Interest.

VANCOUVER, British Columbia -- U.S. Department of Energy Awards Pumpernickel Valley US $692,272 Grant

Nevada Geothermal Power Inc. (NGP) (OTCBB:NGLPF) (TSX VENTURE:NGP) is pleased to announce that Inovision Solutions Inc. (ISI), a TSX-V listed company, will fund up to C$5,000,000 in exploration and development expenditures for the Pumpernickel Geothermal Project under an option agreement to earn a 50% joint venture interest. In order to earn its interest, ISI must complete C$5,000,000 in project expenditures, make C$120,000 in cash payments and issue 600,000 shares to NGP over a five year period. In the first year, ISI must fund a C$400,000 work program, issue 100,000 shares and make a C$10,000 cash payment to maintain its option. NGP will be project manager.

In addition, Noramex Corp., a wholly owned US subsidiary company of NGP, has been awarded a US Department of Energy (DOE) cost sharing contract signed on October 13, 2004 whereby DOE will fund 80% of an initial field evaluation program at the Pumpernickel Project. The Noramex/DOE joint program will include an advanced technology, three-dimensional "E-SCAN" resistivity survey to map the deep geothermal resource waters and six temperature gradient drill holes to 250 metres to test the E-SCAN interpretation. The DOE cost share is US$692,272 of the total budget of US$740,340. ISI will cover Noramex's cost share obligation of US$148,068 out of the first year work commitment. Noramex (NGP) will manage the DOE sponsored work.

Combined funding to come from ISI and DOE for the 2005 Pumpernickel Project work equals C$1,335,000 or US$1,037,000.

The Pumpernickel Project has the potential for the discovery of a high temperature reservoir suitable for electric power generation. Hot springs issue from a 1.6 kilometer interval of the Pumpernickel Fault System. The chemistry of the hot springs indicates probable source water temperatures of 160-200 degreesC. A production test well by Magma Power drilled in 1974 measured 135 degreesC at the maximum depth reached of 920 metres (Note that binary technology enabling production from 135 degreesC geothermal systems was not established in 1974). Temperatures near the bottom of the Magma well are increasing at a rate of 16 degreesC/100 metres of depth; therefore the 160-200 degreesC resource temperatures predicted by spring chemistry could occur within 1100-1320 metres of surface near this location. Such a 160-200 degreesC resource is the target of the current NGP-ISI exploration and development program.

NGP is an alternative renewable energy company developing geothermal projects in the Western United States to provide electrical energy that is clean, efficient and sustainable. In addition to the Pumpernickel Project, NGP holds a 100% interest in 12 square-miles of geothermal leases at Blue Mountain, Nevada where it plans to develop a 30MW generating plant. NGP intends to acquire additional geothermal sites and become a leading geothermal development company.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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Publication:Business Wire
Date:Oct 14, 2004
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