Newberry Volcano, Oregon. Davenport Power, LLC on behalf of Northwest Geothermal Company signed a 20-year power sales agreement with Pacific Gas & Electric Company, a major west coast utility, in July 2006. The agreement involves selling between 60 and 120 MW of electricity from a proposed geothermal power project on the western side of the Newberry Volcano in central Oregon. Davenport Power is the Project Operator and a co-owner of this world class geothermal project.

Drilling preparation and environmental work began in 2006 and the first 30 MW of the project is scheduled to achieve operating status in late 2009. The second 30 MW is scheduled to begin operating in 2010 and, provided that expected resource and transmission service are available, the remaining 60 MW of the project is scheduled for 2011.

At left, a view of the Company's extensive lease position on the western flank of Newberry Volcano, 25 miles south of Bend, Oregon. The field is expected to contain resources for one or more power plants, each with its dedicated well field.

Newberry Volcano is considered one of the premier geothermal fields in the world. The geothermal leases have been extensively drilled and explored. Hot temperature gradient holes and a superheated steam well suggest the potential for hundreds of megawatts of geothermal power. Each MW generates sufficient electric capacity for the needs of 1000 people.

For more project information, please go to www.newberrygeothermal.com

Geothermal Steam at Newberry Volcano, Oregon. The well is approximately 1000 meters from Company owned leases.