Raser Technologies Begins Drilling on Its Lightning Dock, New Mexico Project

PROVO, Utah--(EON: Enhanced Online News)--The Renewables Energy Group of Raser Technologies, Inc. (NYSE: RZ), an energy and technology company, announced today that it recently began drilling on its Lightning Dock project in New Mexico. The drilling is being performed by Barbour Well, Inc. of Henderson, Nevada under the direction of Raser’s Vice President of Resource Management, Ben Barker.

“The drilling has been going very well”

“The drilling has been going very well,” said Mr. Barker. “We began drilling a few days ago and expect this initial operation to last approximately ten days after which we will run a series of tests to determine water flow and temperature.”

Raser is re-entering a well (TFD 55-7) that was drilled in 1984 and was later abandoned because the water was not hot enough for traditional flash geothermal plants. Since then, new technology has made it feasible to economically develop lower temperature geothermal resources using a binary power system. Surveys of TFD 55-7 have shown temperatures in excess of 320 degrees Fahrenheit. GeothermEx, an independent consulting firm, estimated that TFD 55-7 had the potential to produce between 3-7 MW.

“We believe we are on track with the Lightning Dock project and are looking forward to positive test results,” said Nick Goodman, Raser CEO. “Once those results are in, we intend to proceed with efforts to finalize financing to fund additional drilling to develop the well field for the project. We’ve placed a high priority on moving this project forward, allowing us to qualify for a 30% U.S. Treasury grant under the American Recovery and Reinvestment Act of 2009. Earlier this year, we received a $33 million U.S. Treasury grant for our Thermo No. 1, Utah project.”

Mr. Barker added, “This project has been a coordinated effort between Raser, the Bureau of Land Management, New Mexico’s Oil Conservation Division and the Office of the State Engineer working together to bring this important renewable energy on line.”

When complete, the Lightning Dock project is expected to deliver up to 15 MW of geothermal power.

About Raser Technologies

Raser (NYSE: RZ) is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment develops clean, renewable geothermal electric power plants with one operating plant in southern Utah and eight active and early stage projects in four western United States: Utah, New Mexico, Nevada and Oregon, as well as a concession for 100,000 acres in Indonesia. Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. Further information on Raser may be found at: www.rasertech.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding; our beliefs about the proposed Lightning Dock geothermal power project; our beliefs about the strength and enforceability of our agreements; our belief about our ability to obtain financing and develop future geothermal projects and the geothermal industry in general. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to attract, train and retain key personnel; and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended March 31, 2010, as filed with the Securities and Exchange Commission, and all subsequent filings.

All forward-looking statements in this press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.