RENO, NV--(Marketwire - March 30, 2012) - Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), today reported its financial and operating results for the fiscal year ended December 31, 2011. This earnings release should be read in conjunction with Ram Power's consolidated financial statements, MD&A and Annual Information Form, which are available on the Company's website at www.ram-power.com and have been posted on SEDAR at www.sedar.com.

2011 HIGHLIGHTS

The San Jacinto project, which is our significant driver of shareholder value, has achieved the following:

• Phase I achieved commercial operation and is running well
• All financing was secured for Phase II construction
• Completed necessary drilling to complete construction of Phase II

The Company's Casita and the Geysers projects provide the Company with strong revenue opportunities for the future:

• Geysers Project - successfully re-negotiated PPA and LOI with EPC contractor for the construction of the project
• Casita - 85 MW confirmed resource

Existing capital structure and expected cash flow generation supports the Company's strategic plan:

• Raised $77 million of equity in May 2011
• Restructured $50 million credit facility in December 2011 and extended the term to September 2013
• Significant cash flow from San Jacinto to cover operations and corporate debt service

FINANCIAL OVERVIEW

The financial results of Ram Power for the year ended December 31, 2011 and 2010 are summarized below:

For the fiscal year ended December 31, 2011, the Company reported revenue of $4.5 million and a total loss and comprehensive loss of $147.7 million, or $0.62 per share. For the same period, the Company had a net operating cash outflow of $14.3 million, a net investing cash outflow of $190.3 million and a net financing cash inflow of $232.3 million, for a combined net increase in cash of $27.7 million. The Company expended $190.3 million for additions to geothermal properties, including $165.7 million for the Phase I and II San Jacinto-Tizate expansions. At December 31, 2011, the Company had unrestricted cash of $57.2 million, of which $38.8 million was held for current use in the Phase I and Phase II San Jacinto expansions, $56 million in additional available Phase II financing, and long-term debt of $239 million.

For the three months ended December 31, 2011, the Company reported revenue of $1.1 million and recognized a loss on impairment of long-lived assets and goodwill of $151.5 million, resulting in a total loss and comprehensive loss of $143.7 million.

Impairment of Long Lived Assets and Goodwill

As a result of several conditions affecting the renewable energy market, and specific project development results in 2011, the Company measured the fair value of each of its projects and properties at December 31, 2011, resulting in the loss on impairment. 

For assets that are currently being developed or have a high likelihood of development, the fair value was estimated using income-based valuation models, which included San Jacinto Phase I and Phase II, Geysers, Orita, Casita and Clayton Valley. For all remaining projects and properties, the fair value was estimated as fair value less costs to sell, which included Reese River, Barren Hills, South Meager and all U.S., Latin American and Canadian pre-exploration properties. 

The fair values of the Company's San Jacinto and Casita projects exceeded their respective carrying values as at December 31, 2011. Accordingly, no impairment loss was recognized for these projects for the year ended December 31, 2011.

For each of the following projects and properties, the estimated fair value was less than the carrying value as at December 31, 2011, and the Company recognized a total long-lived asset impairment loss of $136.9 million and associated goodwill impairment loss of $14.6 million for the year ended December 31, 2011.

OUTLOOK

Shuman Moore, Ram Power's Chief Executive Officer, commented, "Since the equity raise in May of 2011, the Company has executed on its business plan for the development of the San Jacinto Project and solidified a plan for near term pipeline projects. We expect the Phase I 36 MW expansion at San Jacinto, in combination with the existing 10 MW backpressure units, will substantially increase production, revenue and EBITDA for 2012. Based on the current cash position of the Company, and the near term project development advances in Nicaragua and the Geysers, Ram Power is in the position of being able to develop and operate these geothermal power facilities now and into the future."

"Since the inception of the Company, Ram Power has been focused on the creation of shareholder value through the development of geothermal power projects," said Antony Mitchell, Executive Chairman of Ram Power. "Along with our strong pipeline of projects, we now have an experienced management team to execute the Company's plans to become a leading geothermal company. I look forward to watching the Company continue its growth in 2012."

Ram Power, Corp. will hold its earnings call to discuss the year end 2011 financial and operating results on Monday, April 2, 2012 at 10:00 am EDT (7:00 am PDT). To listen to the call, please dial 866-696-5910 with participant pass code 4611034, or on the web at http://www.bellwebcasting.ca/event_admin/index.asp?eventid=75973146.

About Ram Power, Corp.

Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties and has interests in geothermal projects in the United States, Canada, and Latin America. 

Cautionary Statements 

This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenues, requirements for additional capital, production costs and revenue, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities, and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Such forward-looking information is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power, Corp. assumes no obligation to update or revise such forward-looking information to reflect new events or circumstances.