FOR IMMEDIATE RELEASE

GRADIENT RESOURCES ANNOUNCES COMPLETION OF $155M FINANCING THROUGH LENDING GROUP

RENO, NV December 18, 2012 – Gradient Resources Inc., a privately held corporation headquartered in Reno, Nevada, recently completed a $155M financing for construction of the first phase of its Patua Geothermal Project. Initial work at the Patua site, located near Fernley, Nevada, began in 2011.

The lending group, led by Union Bank, N.A., included Canadian Imperial Bank (CIBC), ING Capital LLC, and Siemens Financial Services.

The Patua Project will proceed in phases, the first being 30 MW, under a Power Purchase Agreement (PPA) with Sacramento Municipal Utility District (SMUD).  Gradient’s Patua plant will become operational and is set to deliver power to the grid in September of 2013.

ABOUT GRADIENT

Gradient Resources is a geothermal developer founded in 1991 that holds an extensive property portfolio of geothermal leases and applications covering more than 170,000 acres in Nevada, California, Oregon, Washington and Arizona. Gradient has a signed 20-year Power Purchase Agreement (“PPA”) with Sacramento Municipal Utility District (SMUD), and is currently negotiating additional PPAs with other regional utilities. Gradient is a vertically integrated company that wholly owns the subsidiary companies that provide its drill rigs and cementing services.  Investors include an affiliate of Denham Capital and a principal investing division of Bank of America Merrill Lynch. For additional information on Gradient Resources and geothermal power, go to www.gradient.com.

Media contact for Gradient:

Christa Wicks-Morris, Communications Manager

(775) 284-8842   email:  pr@gradient.com

RENO, NV  August 16, 2011 – Gradient Resources Inc., a privately held corporation headquartered in Reno, Nevada, held a ground-breaking event at the site of its 60 MW geothermal power plant located within Churchill County, near Fernley, Nevada.  Present were representatives of federal, state and local government and elected officials, SAIC Constructors LLC., the primary contractor for the new power plant, representatives from Sacramento Municipal Utility District (SMUD) and NV Energy as well as the Gradient Resources Board of Directors and Gradient investors.

Gradient Resources CEO Craig Mataczynski described the new power plant; referring to artist renderings of the new generating station, “When this project is complete, we will have erected approximately $300 million in steel, concrete and equipment, including the cost of labor.  Of this $300 million, approximately $50 to $60 million will be filtered back into the local economy. This is, in my view, a big deal and will have a positive impact on the City of Fernley, Churchill County and surrounding areas.”

Nevada State Assemblyman Tom Grady congratulated Gradient Resources on bringing the project to its construction phase.  Siting a 17.3% unemployment rate in nearby Lyon County, Grady said “We are anxiously waiting and will welcome the jobs this project will be providing in the state of Nevada”.

Others addressing the 165 guests, authorities, and Gradient employees, included Ryan Cherry, representing U.S. Senator Dean Heller’s office, who presented a certificate commemorating the event, Gary Johnson from the Nevada BLM division of minerals, Gary Lawson of SMUD and Mike Gwyn, President SAIC Constructors, LLC. A letter from U.S. Senator Harry Reid, read by CEO Craig Mataczynski, stated “I am confident that together we can power Nevada and the United States with clean renewable energy, bolster a growing local industry, and create thousands of new jobs if we invest in our geothermal energy resources….”

The Patua Project will proceed in phases, the first being 60 MW, with a goal of up to 120 MW, to be delivered to SMUD.  The process for developing the Patua Project was the result of a collaborative effort of Gradient’s development team together with investors, lenders, governmental agencies, and elected officials.

ABOUT GRADIENT

Gradient Resources is a geothermal developer founded in 1991 that holds an extensive property portfolio of geothermal leases and applications covering more than 170,000 acres in Nevada, California, Oregon, Washington and Arizona. Gradient has a signed 20-year Power Purchase Agreements (“PPA”) with Sacramento Municipal Utility District (SMUD), and is currently negotiating additional PPAs with other regional utilities. Gradient is a vertically integrated company that wholly owns the subsidiary companies that provide its drilling and cementing services. Investors include an affiliate of Denham Capital and a principal investing division of Bank of America Merrill Lynch. For additional information on Gradient Resources and geothermal power, go to www.gradient.com.

Media contact for Gradient:

Christa Wicks-Morris, Communications Manager

(775) 284-8842 email: publicrelations@gradient.com

(RENO, Nev.) – March 10, 2011 – Gradient Resources (“Gradient”), a vertically integrated developer of geothermal energy projects, announced today that it has executed an engineering, procurement and construction (“EPC”) contract with Science Applications International Corporation’s (SAIC) [NYSE: SAI] wholly-owned, design-build subsidiary, Benham Constructors LLC, for the delivery of a new 60 (net) megawatt (“MW”) modular binary cycle power plant at its Patua project in northern Nevada. SAIC’s technology partner for this project is TAS Energy Inc. (TAS), of Houston, Texas.

Gradient’s Patua site, near Fernley NV, is the company’s first geothermal power plant. Drilling at Patua recommenced in February 2010. Physical construction of the first 60 MW phase of the power plant will begin in the second quarter of 2011; and the anticipated date for commercial operations is the 3rd quarter of 2012.

“Gradient is pleased to achieve this significant milestone in the development of its Patua project,” said Craig Mataczynski, CEO. “The opportunity to partner with strong companies like SAIC and TAS will help make the project successful and support continued development of the geothermal industry.”

“SAIC is committed to developing renewable, economically attractive energy resources nationwide,” said J.T. Grumski, senior vice president and business unit general manager. “We look forward to working with Gradient and TAS to deliver the new plant, which will help tackle the growing need for a clean, reliable and secure energy supply.”

“TAS is excited to partner with SAIC and Gradient to build the largest binary plant that has ever been constructed,” said Craig Hurlbert, Chairman and CEO of TAS Energy Inc. “This is an opportunity for TAS to showcase our Advanced Supercritical Organic Rankine Cycle and improved air cooled design technology.”

About SAIC

SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company’s approximately 43,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $10.8 billion for its fiscal year ended Jan. 31, 2010. For more information, visit SAIC: From Science to Solutions®.

About TAS Energy Inc.

TAS Energy Inc. is a technology company providing clean economic power solutions by focusing on the energy efficiency and renewable energy markets. TAS designs and manufactures modular energy conversion and cooling systems for the power generation industry; district, commercial and industrial process cooling; mission critical; and the renewable energy sector. TAS specializes in high efficiency standard product designs optimized for high life cycle return performance. Its product capabilities include geothermal and industrial waste heat power generation solutions, gas fired generation augmentation, chilled water systems, modular data centers and clean heat and power on‐site energy systems. More can be learned at http://www.tas.com/.

Contact:

Christa Wicks
Gradient Resources
(775) 284-8842
publicrelations@gradient.com

Melissa Koskovich
SAIC
703-676-6762
koskovichm@saic.com

Yana Brye
TAS Energy Inc.
(713) 877-8700
ybrye@tas.com

RENO, Nev. – August 27, 2010 – Gradient Resources (“Gradient”), formerly Vulcan Power Company, a vertically-integrated developer of geothermal energy projects, unveiled its new name and logo at the inauguration of its corporate headquarters in Reno, Nevada.  The Honorable Harry Reid, United States Senator from Nevada and Majority Leader of the Senate welcomed the developer of clean energy and thanked management for bringing ‘green’ jobs to the state of Nevada.

Gradient’s properties cover approximately 170,000 acres of private and federal land – one of the largest geothermal property portfolios in the country. The company was founded in Bend, Oregon where its headquarters were based since its inception in 1991.  In addition to its Reno headquarters, the company has six geothermal power projects in advanced development near the towns of Fernley, Fallon, Hawthorne and Lovelock, Nevada and presently employs a total of 101 in the state.

“The state of Nevada has a tremendous geothermal resource and access to attractive energy markets where there is a strong demand for electricity produced from geothermal resources” said Craig Mataczynski, CEO of Gradient Resources.  “Its leaders and communities have taken great steps to encourage the industry’s growth.  Over the next five years, Gradient will bring some 300 megawatts (MW) of clean geothermal energy and create more than 1,000 construction and drilling jobs and an additional 80 permanent jobs.  As a company dedicated to developing a clean and reliable energy source for the country, Nevada is the right place for us to call home.”

The state of Nevada is considered to have the greatest geothermal potential in the U.S.  Its current operating capacity is second only to that of California and includes 20 power plants with approximately 430 megawatts (MW) of installed capacity.  The state’s 86 projects under development could potentially boost capacity anywhere from an extra 2,120 MW to 3,686 MW allowing it to surpass California in actual geothermal capacity.

“Projects like this are exactly what we had in mind when we passed the Economic Recovery Act,” said Nevada Senator Harry Reid. “I applaud Gradient’s move to Nevada and look forward to working with them as we continue to take advantage of tax incentives that are helping us put Nevadans back to work and diversify the economy.”

Gradient’s Patua site, near Fernley, is expected to be the company’s first geothermal power plant.  Phase I drilling recommenced in February 2010 and construction of a 60 MW power plant is projected to begin in the first quarter of 2011. The project will produce electricity around the clock with power deliveries projected to occur as early as the second quarter of 2012, continuing through 2033. The project initially will provide 500 gigawatt hours (GWh) per year, eventually ramping up to 1,000 GWh per year.

Geothermal energy is a renewable power source by which naturally occurring hot water reservoirs are drilled, producing geothermal fluids that can be used as a clean alternative to fossil fuels burned to generate electricity. Geothermal reservoirs are replenished by injecting the produced water back into the reservoir, establishing a long-term renewable energy resource without any emissions of greenhouse gases.

About Gradient Resources Inc.

Gradient Resources is a geothermal developer founded in 1991 that accumulated significant land leases during an industry downturn. The company holds an extensive property portfolio of geothermal leases and applications covering more than 170,000 acres in Nevada, California, Oregon, and Arizona. Gradient has signed 20-year term Power Purchase Agreements (“PPAs”) with Nevada Power Company and Sacramento Municipal Utility District, and is currently negotiating additional PPAs with other utilities. Gradient is a vertically integrated company and wholly owns the subsidiary companies that provide its drilling related services.  Investors include an affiliate of Denham Capital and a principal investing division of Bank of America Merrill Lynch. For additional information on Gradient Resources and geothermal power, go to www.gradient.com.

Contact:

Christa Wicks
Gradient Resources
(775) 284-8842
publicrelations@gradient.com

BEND, Ore. – May 25, 2010 – Vulcan Power Company (“Vulcan”), a developer of geothermal energy projects, announced today that Richard Atkinson has been appointed chief financial officer and Joseph Lessard has been appointed senior vice president of development. Both hires will report to Vulcan’s Chief Executive Officer Craig Mataczynski.

“Richard and Joe both possess deep knowledge of the energy sector with hands-on experience to back it up,” said Mataczynski. “With the additions of Richard and Joe, Vulcan now has a world-class executive team with the credentials to enable the Company to meet its operational and financial goals.”

Mr. Atkinson has 30 years of public company, corporate finance experience. Prior to Vulcan, he spent over 23 years with Sierra Pacific Power Resources, currently known as NV Energy. As vice president and CFO, he was responsible for regulatory issues and capital market activities including funding ongoing operations, refinancing maturing obligations, and monitoring construction expenditures for Nevada Power Company and Sierra Pacific Power Company, two of the fastest growing utilities in the US.

More recently, Mr. Atkinson served as CFO for US BioEnergy, a major ethanol producer. While there, he played an instrumental role in the initial public offering of US BioEnergy’s common stock, as well as the completion of $477 million of project financing to fund the construction of new ethanol plants. In addition to his role as CFO at Vulcan, Mr. Atkinson is a member of the Board of Directors of Capstone Turbine Corporation, a leading producer of low-emission micro turbine systems. Mr. Atkinson holds a Bachelor of Science degree from the University of Oregon, as well as a Masters of Business Administration degree from the University of Nevada, Reno.

Mr. Lessard has worked in power plant operations and energy sector development for 21 years. Prior to joining Vulcan, he served as vice president, Americas for Globeleq, Inc., a power provider in emerging markets, where he led business development activities in Latin America. Under his direction, Globeleq successfully entered the power markets in Peru, Chile, Bolivia and Argentina. Mr. Lessard was directly responsible for originating, negotiating and closing five greenfield and merger and acquisition transactions representing over $300 million, as well as several bond and bank financings. Most recently, he served as the chief financial officer and vice president, Americas for EnDevCo, Inc.

Contact:

Christa Wicks
Gradient Resources
(775) 284-8842
publicrelations@gradient.com

Seasoned renewable energy developer previously served as CEO of RES Americas and NRG Energy

BEND, Ore. – April 20, 2010 – Vulcan Power Company (“Vulcan”), a developer of geothermal energy projects, announced today that Craig Mataczynski has been named the company’s new Chief Executive Officer. He replaces Robert Warburton who has served as acting CEO while the search for a permanent CEO was conducted. Mr. Mataczynski, who will join Vulcan once his obligations to RES Americas have ended, will also serve on the company’s board of directors.

Mr. Mataczynski has 28 years of utility and energy industry experience, for the past five years serving as CEO of Renewable Energy Systems Americas (“RES Americas”), one of the largest developers and constructors of wind projects in North America. He has a proven record of growing profitable businesses, both organically and through mergers and acquisitions, and excels at leading early-stage businesses through intensive growth periods.

“We are excited to add Craig to the team,” said Scott Mackin, chairman of the board for Vulcan. “We believe his extensive hands-on experience in successfully leading teams through the milestones necessary to develop and connect to the grid a total of more than 4,500 renewable and traditional megawatts makes Vulcan unique in the geothermal industry. Vulcan now is positioned for success. We also want to take the opportunity to thank Bob Warburton for his selfless dedication and steady hand in leading the company to the place it is today.”

In February, Vulcan announced that it had raised $108 million from an affiliate of Denham Capital. Other shareholders in the company include a principal investing division of Bank of America Merrill Lynch. Later that month drilling on the company’s Patua project site near Fernley, Nevada recommenced. It is expected to be the company’s first geothermal power plant, capable of producing 60 megawatts (MW) of clean, renewable baseload power. Phase I of the Patua project is expected to be completed over the next 24 months.

“What has attracted me to Vulcan is that it has all the pieces in place to achieve success: 170,000 prime acres in its property portfolio, 20-year Power Purchase Agreements with California and Nevada utilities, the support of private equity firms Denham Capital and Bank of America Merrill Lynch, and a team of the best geologists, engineers, drillers, and constructors in the business,” said Mr. Mataczynski. “I look forward to helping Vulcan translate all its promise into reliable renewable baseload power from clean geothermal resources.”

As CEO and President of RES Americas Mr. Mataczynski built an organization that successfully constructed 30 wind farms which now generate more than 3,500 MW of renewable energy. Before joining RES Americas, Mr. Mataczynski was President and CEO of NRG North America. Mr. Mataczynski serves as Chairman of the Board of Ecologic Analytics, a developer of meter data management software. He also serves on the Board of TransAmerican Strukturoc, a manufacturer of exterior cladding for the pre–fabrication metal building industry. Mr. Mataczynski earned a Bachelor of Science in Nuclear Engineering from the University of Wisconsin in 1982; he also holds a Master of Business Administration from the University of Minnesota, and completed the Advanced Management and International Strategic Managers Program at Harvard Business School.

Geothermal energy is a renewable power source by which naturally occurring hot water reservoirs are drilled, producing geothermal fluids that can be used as a clean alternative to fossil fuels burned to generate electricity. Geothermal reservoirs are replenished by injecting the produced water back into the reservoir, establishing a long-term renewable energy resource without any emissions of greenhouse gases.

Contact:

Christa Wicks
Gradient Resources
(775) 284-8842
publicrelations@gradient.com

BEND, Ore. – March 16, 2010 – Vulcan Power Company (“Vulcan”), a developer of geothermal energy projects, today announced its 2010 Board of Directors following a vote held at the Company’s recent Annual Meeting of Shareholders on March 4, 2010. Vulcan shareholders elected Linda Miller as Independent Director, Michael Hamilton, Rick Rodgers and Barney Rush as Common Directors, as well as Scott Mackin, Todd Bright, Paul Winters, Jim Winters and Steve Jones as Preferred Directors effective immediately.

“Linda, Michael, Rick and Barney will be playing key roles on Vulcan’s Board of Directors. This group brings tremendous experience in successfully building companies in the energy sector and in structured and project finance. We now have in place a high quality board that can successfully guide the company through the rapid expansion of project development work that we are undertaking this year,” stated Vulcan Chairman Scott Mackin.

Linda Miller remains Chairwoman of the Finance Committee, and oversaw the successful closing of Vulcan’s January 2010 $108 million equity funding. She is currently working with a team developing a portfolio of coal- and petroleum coke-fired gasification-related projects in the Midwest and Gulf Coast. Ms. Miller worked for TECO Energy for 22 years, retiring in 2003, with her last position Senior Vice President Finance for TECO’s independent power subsidiary. Her subsidiary and corporate positions over the years also included responsibility for capital raising, accounting, investor relations and funded benefits plans.  While there, she oversaw the issuance of billions of dollars of innovative project, corporate and tax-oriented financings, winning several industry awards for project finance “deals of the year”. In addition to her role as Chairwoman of the Finance Committee, Ms. Miller sits on the Audit and Indemnification Committees.

Michael Hamilton is the Chairman and Chief Executive Officer of MMC Energy, Inc., a formerly listed NASDAQ company. He is also the non-executive Chairman of the Board of MXenergy, Inc., a retail gas and electric marketing company with operations in 14 states in the U.S. and two Canadian provinces. Prior to these assignments, he was a senior managing director at FTI Consulting, specializing in the energy industry, which he joined upon his retirement as a partner from PricewaterhouseCoopers LLP in 2003. He has been involved in virtually all of the utility and energy industry restructuring and bankruptcy situations since 1989. He has served as the financial advisor to numerous interest groups where he brings his knowledge of both utility finance and his restructuring skills to maximize recovery for his clients. In this regard, his activities include due diligence, sophisticated computer modeling, creditor committee management and transaction negotiation. Mr. Hamilton has been continuously involved in regulated industry-related activities since 1972. He has worked with numerous regulated industry companies, including companies in the electric, gas, water and telecommunications industries. Mr. Hamilton serves as Chairman of the Audit Committee as well as a member of the Indemnification and Litigation Committees.

Barney Rush was CEO of H2Gen Innovations, Inc. from 2003 through 2009, when the company was sold to Air Liquide and CB&I. H2Gen developed and manufactured hydrogen generators for the industrial gas and hydrogen energy markets, and gas purification and recycling equipment for various industrial and petrochemical applications. Mr. Rush was previously CEO of Mirant Europe and Senior Vice President of Mirant Corporation, a leading electric power generator and energy marketer. While in Europe, Mr. Rush served as Chairman of the Board of two Mirant affiliates: Bewag, the integrated electric utility serving Berlin, Germany; and WPD, an electricity distribution company serving southwest England and southern Wales. Prior to his positions with Mirant, Mr. Rush was Executive Vice President of Oxbow Power Corporation, where he was responsible for acquisition, development and financing of geothermal and gas-fired power projects in the United States and Asia. Previous to that position, Mr. Rush was a Senior Vice President at Lehman Brothers in the project finance, utility and telecommunications group. He has also worked at the U.S. Department of State as a Special Assistant to the Undersecretary of State for Economic Affairs and at the World Bank. Mr. Rush becomes Chairman of the Litigation Committee as well as a member of the Finance Committee.

BEND, Ore., Feb. 24 /PRNewswire/ – Vulcan Power Company (“Vulcan”), a developer of geothermal energy projects, announced today that drilling has recommenced at the Company’s Patua project site near Fernley, Nev., located in the northwestern part of the state. Earlier this month, the Company received a second equity investment of $108 million from Denham Capital.

“Vulcan has assembled a team of some of the most experienced and knowledgeable professionals across the geothermal industry,” stated acting CEO Robert Warburton. “With financing in place, we can continue leveraging their talent and begin capitalizing on the resources available at Patua,” he continued.

Vulcan’s integrated drilling, geo-science, cementing, coring, engineering and construction teams will work over the next 24 months to complete Phase I of Patua, which is expected to be the Company’s first geothermal power plant, capable of producing 60 megawatts (MW) of clean energy. The initial focus will be on geo-science activities, drilling of core holes, and drilling of full size production wells to evaluate the resource reservoir. The Company is also in the process of securing permitting and transmission right-of-way for the project.

“We have welcomed back our drilling crews who previously underwent extensive geothermal training,” said Vice President of Drilling Virgil Welch. “Patua currently has two rigs in operation, drilling the first of our production wells,” concluded Welch.

Once drilling has been completed and project financing obtained, the engineering group will begin construction and commissioning of Vulcan’s first power plant. The Company projects commercial operation to occur in the first quarter of 2012. The output of the Patua plant will be sold under a 20-year term Power Purchase Agreement (“PPAs”) currently in the final stages of negotiation.

According to the Geothermal Energy Association, electricity generation capacity from geothermal energy in the United States is expected to triple within five years, supported by a federal government stimulus allocation of $400 million.  In coming years installed capacity is expected to be nearly 10 gigawatts (GW), enough to supply 10 million homes.

Geothermal energy is a renewable power source by which naturally occurring hot water reservoirs are drilled, producing geothermal fluids that can be used as a clean alternative to fossil fuels burned to generate electricity. Geothermal reservoirs are replenished by injecting the produced water back into the reservoir, establishing a long-term renewable energy resource without any emissions of greenhouse gases.

DENHAM CAPITAL INVESTS AN ADDITIONAL $108 MILLION IN GEOTHERMAL DEVELOPER VULCAN POWER COMPANY

BEND, Ore. and BOSTON – February 2, 2010 – Vulcan Power Company (“Vulcan”), a developer of geothermal energy projects, and Denham Capital, an energy- and commodities-focused private investment firm, announced today that an affiliate of Denham Capital has invested $108 million in preferred and common stock of Vulcan.  This is the second equity investment in Vulcan by such Denham Capital affiliate and brings its total investment in Vulcan to $166 million.  Other shareholders include a principal investing division of Bank of America Merrill Lynch.

Vulcan’s extensive geothermal property portfolio consists of approximately 170,000 acres of prime geothermal properties in Nevada, California, Oregon and Arizona.  The new investment will allow Vulcan to continue its ongoing development of properties representing more than 300 megawatts (MW) of estimated geothermal resources from just half of the company’s total acreage.  This capacity, once operational, will provide baseload renewable energy for up to 300,000 households.  The company has long-term power sales contracts with major California and Nevada utilities and transmission access to northern and southern California already completed or underway.  The permitting process for two of its project sites is also well underway.

Robert Warburton, acting CEO of Vulcan, commented on the financing: “Geothermal development requires greater capital investment upfront compared to other renewable power projects, but once built, geothermal has significantly lower all-in costs making it very competitive with traditional, non-renewable generation sources.  Denham understands both the below ground and above ground dynamics of geothermal development, making them a great resource to Vulcan. This investment ensures Vulcan has the capital to continue the execution of its development program.”

According to the Geothermal Energy Association, electricity generation capacity from geothermal energy in the United States is expected to triple within five years, supported by a federal government stimulus allocation of $400 million.  In coming years installed capacity is expected to be nearly 10 gigawatts, enough to supply 10 million homes.

Scott Mackin, Partner at Denham Capital, said, “Since the initial investment in 2008, Vulcan has progressed its plans to become a premier geothermal power producer which will provide low cost, baseload renewable energy.  Vulcan continues to distinguish itself through its large portfolio of attractive properties, its dedicated employees and geological and drilling management.   With this new investment, Vulcan is well positioned to continue its progress by complementing its management team with extensive, senior renewable generation experience, fully proving up its steam resources, and commencing construction of its first project.  The company also intends to enter into more power purchase and transmission arrangements, and firmly establish itself as a major US-focused, pure play geothermal independent power producer.”

Geothermal energy is a renewable power source by which naturally occurring hot water reservoirs are drilled, producing geothermal fluids that can be used as a clean alternative to fossil fuels burned to generate electricity. Geothermal reservoirs are replenished by injecting condensed water back into the reservoir, establishing a long-term renewable energy resource without any emissions of greenhouse gases.

Contact:

Christa Wicks
Gradient Resources
(775) 284-8842
publicrelations@gradient.com

BEND, Ore. and BOSTON, – July 28, 2008 – Vulcan Power Company (“Vulcan”) and Denham Capital (“Denham”) announced today that Denham will invest $145 million in newly issued preferred equity securities of Vulcan. In addition, Merrill Lynch Commodity Partners (“MLCP”), a principal investment fund of Merrill Lynch, will convert its outstanding notes into Vulcan preferred equity.

Vulcan owns one of the largest geothermal property portfolios in the United States including properties in California, Nevada, Oregon, and Arizona. The Denham investment will allow Vulcan to continue to develop prime geothermal property with potential to generate 900 to 2,000 megawatts (MW) of natural steam fuel – enough to provide baseload renewable energy for up to two million people.

Steve Munson, President and CEO of Vulcan, said that the company is embarking on an ambitious drilling and project construction program: “This investment by Denham allows the company to move forward aggressively with our business plan of developing steam resources and power projects, and supporting existing long term power purchase agreements.  With the strength and energy sector knowledge of our investors, Denham and Merrill Lynch, we stand to become one of the premier independent green energy companies.”

“Vulcan will be a strong addition to our power generation portfolio, providing a low cost, baseload source of significant renewable electricity for Western markets at a time of extreme volatility,” said Scott Mackin, Partner at Denham. “Its highly-valued, long term geothermal leases and seasoned management team put Vulcan in a strong competitive position to serve those markets through its long term power purchase agreements.  Together with Merrill Lynch, we intend to help Vulcan grow quickly into a best in class and significant renewable independent power producer.”

Geothermal energy involves drilling for heated water reservoirs, which produce steam that can be used as a clean alternative to fossil fuels burned to generate electricity. This process avoids the production of emissions including carbon dioxide, a major greenhouse gas. Geothermal reservoirs are replenished by re-injecting condensed water back into the reservoir establishing a long-term renewable energy resource.