Sierra Geothermal Power Corporation (Sierra Geothermal Power), a Canada-based geothermal exploration and development company, has signed a memorandum of understanding (MoU) with the Danaxdaxw/Awaetlala nation on April 17, 2009. The MoU is to develop geothermal power projects on their traditional lands, covering about 800,000 hectares (2 million acres) in the Knight Inlet area of British Columbia, Canada.

Under the terms of the MoU, the Danaxdaxw/Awaetlala nation has granted Sierra Geothermal Power the exclusive right to develop geothermal resources within their territory for a ten year period. The MoU may be replaced by a definitive long-term agreement at Sierra Geothermal Power’s election.

The Danaxdaxw/Awaetlala nation may benefit from Sierra Geothermal Power’s activities through the provision of, among other things, employment opportunities through construction and operation of any generation facilities, and financial support of the Danaxdaxw/Awaetlala Nation’s educational and lodge resort development initiatives by way of a revenue sharing arrangement.

“We are elated that the Danaxdaxw/Awaetlala Nation chose SGP as a trusted partner to develop their natural geothermal resources,” said Gary Thompson, president and chief executive officer of Sierra Geothermal Power. “We recognize and understand the importance of a working partnership directly with the Danaxdaxw/Awaetlala Nation and are pleased to have the opportunity to create a mutually beneficial relationship.”

Fred Glendale, resource manager for the Danaxdaxw/Awaetlala Nation, said, “Hereditary Chief William Glendale was very pleased to sign this agreement with SGP. He and the entire Danaxdaxw/Awaetlala Nation look forward to the opportunities this could bring our people for generations to come.”

Sierra Geothermal Power conducted a preliminary assessment of the geothermal potential of Western Canada during its 2007 flow-through expenditures program. As a result of this field work and analysis, the Knight Inlet area is on Sierra Geothermal Power’s short-list of areas in British Columbia that could have the potential to generate power from geothermal resources.