May 29, 2012
In the U. S.: NYSE MKT: HTM and in Canada: TSX: GTH

U.S. GEOTHERMAL ANNOUNCES MECHANICAL COMPLETION OF FIRST POWER MODULE AT NEAL HOT SPRINGS BOISE, Idaho - May 29, 2012 (NYSE MKT: HTM; TSX: GTH) U.S. Geothermal Inc., a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, today announced that its construction contractor has provided a notice of mechanical completion for the first of three 7.3 net megawatt, air cooled power plant modules at the Company's Neal Hot Springs project, located in Malheur County, Oregon. The total project is about 90 percent complete with some 65% of the U.S. Dept of Energy project loan already drawn down to fund construction.

Mechanical completion of the first module marks the initiation of commissioning activities on various individual power plant components, controls and the related production and injection wellfield. Once these commissioning activities are complete, the power module will undergo acceptance testing, leading up to full module startup and continuous operation. The second power plant module is expected to achieve mechanical completion around June
7, 2012 and the third module is slated to achieve mechanical completion by the end of June,
2012. The 22 megawatt net power plant is expected to achieve full commercial operation late in the third quarter of 2012.
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About U.S. Geothermal Inc.:

U.S. Geothermal Inc. is a leading renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project, which is currently under construction, will be the company's third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects. The San Emidio project is currently undergoing construction of a new 8.6 net MW binary cycle power plant.

Website : www.usgeothermal.comNYSE MKT: HTM TSX: GTH


Saf Dhillon - Investor Relations
U.S. Geothermal Inc. Tel: 866-687-7059
Fax: 208-424-1030

The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described, including but not limited to, the results from the ongoing injection well drilling at Neal Hot Springs. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.

The NYSE MKT and the TSX do not accept responsibility for the adequacy of this release.

U.S. Geothermal Inc. 1505 Tyrell Lane, Boise, ID 83706 208-424-1027

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