RENO, NV--(Marketwire - August 15, 2011) - Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to announce that it has satisfied the resource requirements to have full access to the $160 million credit facility for the 36 MW San Jacinto-Tizate project Phase II expansion (the "Phase II Credit Facility"). The Company has met all conditions precedent to borrow under the Phase II Credit Facility and submitted an initial draw request for $104 million with approximately $35 million of such amount being distributed to the Company as a reimbursement of a portion of its equity investment and the remainder being used for future project costs for the next four months and required contingency reserves.

In conjunction with the Company's access to the Phase II Credit Facility, management's estimate (previously announced in a news release dated June 9, 2011) of the initial steam production capacity of the San Jacinto-Tizate project has been confirmed by GeothermEx, Inc. (a Schlumberger Company) ("GeothermEx"), the independent resource consultant for the lenders under the Phase II Credit Facility. The GeothermEx report concludes that existing production wells have sufficient capacity to run the Phase I and II expansions at full output. The report confirmed a resource capacity of 610 tons/hr of steam for the 72 MW net combined Phase I and II expansion at San Jacinto-Tizate. 

The Company has now met the required injection capacity for both Phase I and Phase II of the San Jacinto project. Combining the recently completed injection well SJ 11-1, (certified at 650 tons/hr of injection capacity) with the conversion of well SJ 12-1 to an injection well (certified at 350 tons/hr of injection capacity), allows the Company to satisfy the injection requirement of the San Jacinto Project. Phase I construction is now 85% complete. 

The Company expects mechanical completion of Phase I to occur in October 2011, with configuration and the subsequent commercial operation date of Phase I occurring by the end of the year. The Company will provide an updated Phase II timetable in future releases.

The Company has also successfully amended the $77 million Phase I credit facility for the 36 MW Phase I San Jacinto-Tizate project expansion (the "Phase I Credit Facility"). The amended Phase I Credit Facility allows access to the remaining $9 million available under the senior loan facility to be used to fund a portion of the remaining budgeted costs of the Phase I expansion, and provides an additional $8 million under the subordinated loan facility, which will be used to fund contingencies for Phase I and Phase II. The amended facility now totals $85 million.

"The confirmation of the resource capacity of our steam field at San Jacinto-Tizate is a major milestone," said Antony Mitchell, Executive Chairman of Ram Power. "We would especially like to thank our geothermal resource consultant, Sinclair Knight Merz (SKM), the Phase II lending syndicate led by the International Finance Corporation, a member of the World Bank Group and the consortium of lenders including the Inter-American Development Bank ("IDB"), Central American Bank for Economic Integration ("CABEI"), Deutsche Investitions- und Entwicklungsgesellschaft mbH ("DEG"), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. ("FMO"), Oesterreichische Entwicklungsbank AG ("OeEB") and Société de Promotion et Participation pour la Coopération Economique ("PROPARCO"). In addition, we would like to thank the geothermal resource consultant for the lending syndicate, GeothermEx, and their independent engineer, The Shaw Group, who have continually supported our efforts during this period. Access to the Phase II Credit Facility will provide the remaining funds needed for the completion of the Phase II expansion and return a portion of the Company's equity to allow it to invest in other geothermal development projects. In addition, we would like to thank our Phase I lending syndicate for its cooperation and help to insure the successful completion of the Phase I project expansion."

About Ram Power

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

Cautionary Statements

This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram Power. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward-looking information, other than as required by law, or comment on analyses, expectations or statements made by third parties in respect of Ram Power, or its financial or operating results or its securities.