The 675 acre Fallon lease area consists exclusively of privately owned property. The area is located 60 miles east of Reno and is just south of the Fallon Naval Air Station near the Company’s Salt Wells lease area. The Fallon lease area is several hundred feet from a geothermal well drilled on the Navy’s property and is located within 30 miles of six operating geothermal power plants.  The Company is expecting a streamlined permitting and regulatory process.

A recent third party report for the Fallon properties estimated likely geothermal capacity of 32 MW. A geoscience and exploration drilling program was initiated in October 2010 at the Fallon Project site.

A new 230 kV line crossing the Fallon lease area to be built by NV Energy is projected to be completed in 2012 or 2013, for which Gradient has filed an interconnection application.