Vancouver, B.C. (September 7, 2010), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) is pleased to announce that it has closed a US $98.5 million loan with John Hancock Financial Services as lead lender and the U.S. Department of Energy (DOE) as loan guarantor for 80 percent of the loan amount or US $78.8 million. The blended interest rate for the loan has been determined at 4.14%.

NGP is the first renewable power development company to complete a loan guarantee through the DOE's Financial Institution Partnership Program (FIPP), an important initiative for clean energy supported by the 2009 American Recovery and Reinvestment Act. The loan was assigned a BB+ credit rating by Fitch Ratings Ltd., of New York.

"I'm pleased that Recovery Act financing is helping Nevada Geothermal Power to create jobs in northern Nevada and bringing us closer to energy independence," said Senator Harry Reid.

Nevada Governor Jim Gibbons commented, "With Nevada's goal of becoming a leader in geothermal energy production, it's promising to see a company like NGP accelerate success through a strong relationships with senior financial institutions such as John Hancock and the Department of Energy Loan Programs Office. We know that they have a bright future ahead of them as they exhibit momentum and leadership in the development of renewable base load energy."

The Faulkner 1 geothermal plant is currently producing 36-38 MW (net) and has a 20-year power purchase agreement with NV Energy. Humboldt County Administrator Bill Deist stated , "The Blue Mountain project has had a positive impact on our local economy and has been an excellent fit within the Winnemucca region. It has created important, long-term employment opportunities and is a win-win for everybody."

NGP continues development work on the Faulkner 1 project in order to achieve its full power output capacity. "Closing the loan is a huge step for NGP, as it represents a major milestone in the development of the Blue Mountain project and of the company as a whole. NGP provides significant employment in Nevada and the Winnemucca area and we believe the Faulkner 1 project will provide a stable base for expanding employment opportunities as the Company embarks on additional development projects, " said NGP