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Polaris Geothermal Inc.

TICKER: TSX:GEO
DESCRIPTION: Polaris Geothermal Inc. (PGI) is a renewable energy producer, currently developing the San Jacinto Tizate geothermal power project in Nicaragua and is assessing geothermal resources in other countries. PGI was the first geothermal company listed on the TSX.Commenced operation in June 2005. Currently operating at 10MW, expanding to 34MW, then to 72MW.

As of April 8th, 2006, PGI was registered with the UNFCCC to sell Carbon Credits. Key points:

First Geothermal Project to be registered

Project number 157 to be registered

16th largest to be registered

As of Nov 1st , 1192 projects have been registered

Polaris has a 66 MW take or pay Power Purchase Agreement (“PPA”) with two subsidiaries of Union Fenosa.

WEBSITE: http://www.polarisgeothermal.com/eng/index.php
Q2 2008 MD&A Q1 2008 MD&A

The information below is based on the most recent information we have received from analysts and the companies participating in The Energy Report. We encourage you to visit the company's web site for updates.

The Uranium Report "Only two of these are generating, Polaris Geothermal (TSX:GEO) and U.S. Geothermal (AMEX:HTM), at 10 and 17 megawatts, respectively. However, they have the capacity for 500 megawatts and 250 megawatts. The others have pipelines ranging from 200 to 400 megawatts. This gives them a locked-in growth profile for a good ten years after they get going. So this bad market has not hurt the fundamentals.

What’s attractive about these geothermals is their 20-year Power Purchase Agreements (PPA). This is an agreement with the local utility or the grid operator so you know your price and quantity, and you keep it for 20 years. There are no surprises. That means you have a predictable cash flow for 20 years at IRRs in the mid teens if you’re not counting any subsidies or incentives such as the PTCs. The long-term average of the market is in the 10 to 12% range. So, if you pick the right project, it could be a perfect hedge with a superior return and none of the volatility."
- The Energy Report Interview with John McIlveen, Jacob & Company (11/20/08)

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