Sierra Geothermal Demands That the Dissident Set the Record Straight

Sierra Geothermal Power Corp. (TSX VENTURE:SRA) has sent a letter to the
dissident shareholder to demand a correction of errors, deficiencies and
misrepresentations in the dissident's proxy circular and accompanying materials.



Sierra shareholders should not allow themselves to be manipulated by the
dissident's materials and claims. Sierra urged shareholders to vote the GREEN
Proxy in support of Sierra's board and management, as recommended last week by
the independent proxy advisor RiskMetrics Group. 


"The dissident's materials are rife with errors, deficiencies and
misrepresentations," said Gary Thompson, Sierra's president and Chief Executive
Officer. "We believe the dissident has an obligation to set the record straight,
correct its circular and disseminate new materials to shareholders."


The problems with the dissident's circular

Sierra believes the dissident's circular and accompanying materials have
significant errors, deficiencies and misrepresentations including the following:




 - The circular misrepresents Sierra's position regarding a takeover.
 - The circular misrepresents Sierra's financings.
 - The circular omits required disclosure about the background of three
   of the nominees put forward by the dissident for election to the board.
 - The dissident's proxy does not conform with securities regulations.



If the dissident does not correct these significant errors and deficiencies,
Sierra believes it has legal remedies available and reserves the right to
exercise them.


Misrepresenting Sierra's position on a takeover 

The dissident's circular incorrectly states that Sierra "refused to consider"
the discount price takeover proposal last July from Ram Power, Corp. In fact,
Sierra did not refuse to consider the proposal. Rather, Sierra's board acted in
the best interests of the company and all shareholders by questioning the
discount valuation. Instead of explaining the valuation, Ram Power withdrew the
proposal.


The dissident, which styles itself as a "concerned shareholder" makes this
further comment: "The Management Information Circular incorrectly implies that
the Concerned Shareholder wishes to buy Sierra at a discount." Sierra believes
that the dissident is taking out of context a sub-heading from the Management
Information Circular. In context, the Management Information Circular as a
whole, and all other Sierra communications, clearly state that the dissident
wishes to orchestrate a sale of Sierra. 


The dissident's errors regarding Sierra's financings

The dissident fails to provide the proper context in describing Sierra's August
2009 financing. In its circular, the dissident claims the financing "was
completed at a net price to Sierra of $0.179 per share, a DISCOUNT from the
apparent $0.186 valuation implicit in the Ram Power, Corp. proposal." The
dissident should have supplied the price per share of the financing, which was
$0.20. Further, the dissident should have provided appropriate context, which is
that the price per share of a financing would be expected to be less than the
price to be paid for all shares of a company in a takeover or merger.


The dissident also misrepresents Sierra's 2009 financings as "an inappropriate
and defensive response to a perceived threat of shareholder action." In fact,
the financings were to fund the legitimate and necessary business expenses of
Sierra and were required after the dissident's principal, or those associated
with him, withdrew an offer of financing.


The dissident's omissions regarding nominees and proxy form

Sierra believes the dissident's circular omitted material facts regarding the
background of three dissident nominees and the dissident's proxy form has
numerous deficiencies. Sierra's letter to the dissident provides particulars
with regard to these omissions and deficiencies.


Among the omissions, the dissident's circular failed to disclose that Skyberry
Holdings Ltd. is a principal holder of Sierra's shares. More importantly, the
dissident's circular failed to disclose the relationship between Skyberry and
the dissident nominee Antony Mitchell.


Among the proxy deficiencies, the form does not provide a manner for
shareholders to specify for whom among the nominees he/she would like to vote.
This omission, which is important for those shareholders who might support some
but not all of the dissident nominees, is contrary to BC securities regulations.



"We urge our shareholders to look beyond the dissident's rhetoric and question
the real motive for initiating a proxy fight," said Mr. Thompson. "We believe
the errors in the dissident's circular may help to conceal the ultimate plan of
facilitating a sale of Sierra at a discount. To prevent this from happening
Sierra shareholders must vote their GREEN proxies as soon as possible." 


How to cast your vote 

A special meeting of Sierra shareholders has been scheduled for January 26,
2010. The Management Circular and related proxy materials, including the GREEN
proxy, have been mailed to persons who were shareholders of record as of the
close of business on December 15, 2009. Investors and security holders may
obtain a free copy of these documents on our website at
www.sierrageopower.com/proxy, or the Canadian securities regulator's web site
www.sedar.com, or by mail. 


You can request the materials by contacting Anthony Srdanovic, Sierra Geothermal
Power Corp., Suite 500 - 666 Burrard Street, Vancouver, B.C., Canada, V6C 3P6,
or by telephone: [phone], or by email [e-mail] or
follow the web link http://www.sierrageopower.com/index.php/proxy. 


Sierra and its directors, executive officers and other members of its management
and employees may be deemed to be participants in the solicitation of proxies
from Sierra shareholders in connection with the proposed acquisition.
Information concerning the interests of Sierra's management who are
participating in the solicitation is set forth in the Management Circular. 


If you have any questions or need assistance in completing your GREEN proxy,
please call Laurel Hill Advisory Group at toll free 1-888-534-1149 or by email
at [e-mail] and they will be happy to help. 


About Sierra Geothermal Power Corp. 

Sierra Geothermal Power Corp. is a renewable energy company focused on the
exploration and development of clean, sustainable geothermal power. It is based
in Vancouver, British Columbia and listed on the TSX Venture Exchange under the
symbol SRA. Its portfolio of geothermal projects located in Nevada and
California exceeds 365 square kilometres (90,000 acres) and has a combined total
estimated capacity of greater than 500 MW. Sierra intends to finance development
by utilizing a combination of corporate equity, joint venture partnerships and
project debt, with the support of US government grants and loan guarantees. To
find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA) visit our
website at www.sierrageopower.com. 


On behalf of the Board of Directors

Gary Thompson, P.Geo, President, Chief Executive Officer and Director

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 

This news release may contain forward-looking statements. All statements, other
than statements of historical fact, included or incorporated by reference in
this news release are forward-looking statements, including, without limitation,
statements regarding activities, events or developments that Sierra expects or
anticipates may occur in the future. Forward-looking statements can be
identified by the use of forward-looking words such as "may", "would", "could",
"expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or
similar words or the negative thereof. Forward-looking statements in this news
release include statements that Sierra's project portfolio has combined total
estimated capacity of greater than 500 MW and that Sierra intends to finance
development by utilizing a combination of corporate equity, joint venture
partnerships and project debt, with the support of US government grants and loan
guarantees. 


There can be no assurance that the plans, intentions or expectations upon which
these forward-looking statements are based will occur. Readers are cautioned not
to place undue reliance on these forward-looking statements, which are not a
guarantee of performance and are subject to a number of uncertainties and other
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. These factors include
general economic and market conditions, changes in the law, actions of
competitors, drill results and other changes in circumstance, and Sierra's
ability to implement business strategies and pursue its business plan. In
addition, all forward-looking statements involve risks and uncertainties,
including the risks and uncertainties detailed in Sierra's filings with the
applicable Canadian securities commissions, copies of which are available at
www.sedar.com. We urge you to carefully consider these factors.


All of the forward-looking statements contained in this news release are
expressly qualified in their entirety by this cautionary statement. The
forward-looking statements included in this news release are made as of the date
of this news release and Sierra undertakes no obligation to publicly update such
forward-looking statements to reflect new information, subsequent events or
otherwise, except as required by law.