Polaris Geothermal Inc. Reports Major Production Well Drilled at San Jacinto-Tizate

TORONTO, ONTARIO–(EMWNews – July 15, 2008) – Polaris Geothermal Inc. (“Polaris” or the “Company”), (TSX:GEO) a renewable energy producer is pleased to announce that it has drilled a significant production well SJ6-2 which has production capacity of 22.8 MW. This production well forms part of Polaris’ Phase I Drilling Program, which consisted of 2 production and 2 reinjection wells, for its 24 MW expansion program at its San Jacinto – Tizate geothermal power project in Nicaragua.

Successful Completion of Phase I Drilling Program

SKM’s report concludes that the project now has over 75% of the required total steam capacity for its full 72 MW, Phase I and II development. The report further concludes that when considering the Phase I development alone (2 x 5 MW back pressure units plus 1 x 24 MW MCT), there is more than sufficient steam production using a combination of SJ4-1, SJ6-2 and SJ9-1, and additionally injection requirements can be fully satisfied using SJ1-1, SJ10-1 and SJ9-2, temporarily supplemented by SJ5-1 and SJ6-1, if needed.

Impressive Results for SJ6-2

The most recent production well SJ6-2, has been confirmed to have a production capacity of 22.8 MW. SJ6-2 was discharged under the supervision of the project’s independent consulting company Sinclair Knight Merz, (SKM). They have now released their summary report with the results. Calculations indicate that SJ6-2 has a total mass flow of 552 tons per hour and a steam flow of 215 tons per hour (based on production well head pressure of 6 barg and MCT steam consumption of 9.42tph/MWe net). With this flow rate, the well provides sufficient steam to produce an estimated 22.8 MW of energy. The SJ6-2 well temperature of 303 degrees C is the highest recorded to date on the San Jacinto – Tizate concession.

Tom Ogryzlo, President & CEO, said, “We are very pleased with the results reported by SKM. These results, which are in accordance with the predictions made by SKM, reinforce their conclusions that the San Jacinto – Tizate concession hosts at least 200 MW of commercial production. Our two new production wells, SJ9-1 at 16.1 MW and SJ6-2 at 22.8 MW respectively, confirm our belief that the San Jacinto -Tizate resource is world class. These results, together with the strong support we are receiving from the Nicaraguan Government, provide us with confidence that we will be able to proceed as quickly as possible to attain a production level of 72 MW in the eastern sector of our concession”.

About Sinclair Knight Merz

Sinclair Knight Merz (SKM) is recognized as a world leader in engineering and scientific consulting to the geothermal industry. SKM’s range of technical and management skills enable them to take a geothermal development from initial exploration through to project development and long-term management. As a fully integrated multi-discipline consultancy, they are the only company able to provide a ‘total package’ of services.

About Polaris Geothermal Inc.

Polaris is a Canadian company, focused on the generation of renewable energy projects in Latin America and other parts of the world. For more information about Polaris visit www.polarisgeothermal.com

FORWARD-LOOKING STATEMENTS

This press release includes certain “forward-looking statements”. Statements respecting the ability of the Company to successfully attain an increased production rate to 72 MW are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are “forward-looking statements”. There is no assurance that the anticipated increase in production to 72 MW will be achieved. We caution you that such “forward looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include unpredictable results of exploration activities, uncertainties inherent in the estimation of geothermal resources, fluctuations in the costs of goods and services, problems associated with production operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with Canadian securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements.