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   <TITLE>U.S. Geothermal Inc.: Form S-1 - Filed by newsfilecorp.com</TITLE>

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<br>
As filed with the Securities and Exchange Commission on March 26, 2010&nbsp;&nbsp;
Registration Statement No. 333- </P>

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<B><font size="5">UNITED STATES <br>
SECURITIES AND EXCHANGE COMMISSION </font><br>
Washington, D.C. 20549 </B></P>
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__________________ </P>
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<B><font size="5">FORM S-1 <br>
</font>REGISTRATION STATEMENT <br>
UNDER <br>
THE SECURITIES ACT OF 1933 <br>
</B>__________________ </P>
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<b><font size="6">U.S. Geothermal Inc. <br>
</font></b>(Exact name of Registrant as specified in its charter) </P>
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<B>Delaware</B>
	</TD>
	<TD width="33%" nowrap align=center>
<B>4911</B>
	</TD>
	<TD width="33%" nowrap align=center>
<B>84-1472231</B>
	</TD>
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(State or jurisdiction of
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(Primary Standard Industrial
	</TD>
	<TD width="33%" nowrap align=center>
(I.R.S. Employee Identification
No.)</TD>
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<TR valign="top">
	<TD nowrap align=center width="33%">
incorporation or organization)
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	<TD width="33%" nowrap align=center>
Classification Code Number)
	</TD>
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&nbsp;</TD>
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<TR>
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&nbsp;
	</TD>
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&nbsp;
	</TD>
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&nbsp;
	</TD>
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<B>1505 Tyrell Lane</B>
	</TD>
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&nbsp;
	</TD>
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<B>(208) 424-1027</B>
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<B>Boise, Idaho 83706</B>
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&nbsp;
	</TD>
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(Registrant&#146;s telephone number,
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(Address of principal executive
offices)</TD>
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&nbsp;
	</TD>
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including area code)
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&nbsp;</TD>
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&nbsp;
	</TD>
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&nbsp;
	</TD>
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<B>Daniel J. Kunz <br>
Chief Executive Officer <br>
1505 Tyrell Lane <br>
Boise, Idaho 83706 <br>
(208) 424-1027 <br>
</B>(Name, address and telephone number of agent for service) </P>
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__________________ </P>
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<I>Copy to</I>: </P>
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<B> Christopher J. Barry <br>
Kimberley R. Anderson <br>
Dorsey &amp; Whitney LLP <br>
701 Fifth Avenue, Suite 6100 <br>
Seattle, WA 98104 <br>
(206) 903-8800 <br>
</B>__________________ </P>
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<B>Approximate date of commencement of proposed sale to the public</B>: From time to time after the effective date of this Registration Statement. </P>
<P align="justify">
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following box.
[X]</P>

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<P align=justify>If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. [&nbsp;&nbsp; ]</P>
<P align=justify>If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [&nbsp;&nbsp; ]</P>
<P align=justify>If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [&nbsp;&nbsp; ]</P>
<P align=justify>Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of &#147;large accelerated filer,&#148;
&#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the
Exchange Act. </P>
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  <TR vAlign=top>
    <TD noWrap align=center width="50%">Large accelerated filer [&nbsp;&nbsp; ]</TD>
    <TD noWrap align=center width="50%">Accelerated filer&nbsp; [X]</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center width="50%">&nbsp;</TD>
    <TD noWrap align=center width="50%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center width="50%">Non-accelerated filer <font size="1">&nbsp;</font>[&nbsp;&nbsp;
    ]<br>
    <font size="1">(Do not check if a smaller
      reporting company)</font></TD>
    <TD noWrap align=center width="50%">Smaller reporting company [&nbsp;&nbsp;
    ]</TD></TR></TABLE>
<P align=center><B>CALCULATION OF REGISTRATION FEE </B></P>
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style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
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    <TD noWrap align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
    <p style="text-indent: -15; margin-left: 25"><FONT size="2">&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%" style="border-top-style: solid; border-top-width: 1">
    <FONT size="2"><B>Amount to</B>
    </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%" style="border-top-style: solid; border-top-width: 1">
    <FONT size="2">&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%" style="border-top-style: solid; border-top-width: 1">
    <FONT size="2">&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%" style="border-top-style: solid; border-top-width: 1">
    <FONT size="2"><B>Amount of</B>
    </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD></TR>
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    <TD noWrap align=center style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="text-indent: -15; margin-left: 25"><FONT size="2"><B>Title of Each Class of</B>
    </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%"><FONT size="2"><B>be</B> </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%"><FONT size="2"><B>Proposed Maximum</B>
      </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%"><FONT size="2"><B>Proposed Maximum</B>
      </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="10%"><FONT size="2"><B>Registration</B>
      </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center>
    <p style="text-indent: -15; margin-left: 25"><FONT size="2"><B>Securities to be Registered</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="10%"><FONT size="2"><B>Registered</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="10%"><FONT size="2"><B>Offering Price Per Share&nbsp;</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center width="10%"
    ><STRONG><FONT size="2">Aggregate Offering
    Price</FONT></STRONG></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="10%"><FONT size="2"><B>Fee</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD></TR>
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    <TD align=left bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style:solid; border-bottom-width:1" valign="bottom">
    <p style="margin-left: 15"><FONT size=2>Common stock to be offered for
      resale by the selling securityholders, $0.001 par value </FONT></TD>
    <TD align=left width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>8,209,519 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff valign="bottom" style="border-right-style: solid; border-right-width: 1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $ 1.00 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff valign="bottom" style="border-right-style: solid; border-right-width: 1; border-bottom-style:solid; border-bottom-width:1"><SUP>(1)</SUP> </TD>
    <TD align=right width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $ 8,209,519 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff valign="bottom" style="border-right-style: solid; border-right-width: 1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $ 585.34 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left style="border-style:solid; border-width:1; " valign="bottom">
    <p style="margin-left: 15"><FONT size=2>Common stock acquirable upon the exercise of
      warrants </FONT></TD>
    <TD align=left width="1%" valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" >&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>4,104,757 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" >&nbsp;</TD>
    <TD align=right width="1%" valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" >&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $ 1.25 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" ><SUP>(2)</SUP> </TD>
    <TD align=right width="1%" valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" >&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $ 5,130,946 </FONT></TD>
    <TD align=left width="2%" valign="bottom" style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" >&nbsp;</TD>
    <TD align=right width="1%" valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" >&nbsp;</TD>
    <TD align=right width="10%" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $ 365.84 </FONT></TD>
    <TD align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-style:solid; border-width:1; " valign="bottom">
    <p style="margin-left: 15"><FONT size=2>Common stock acquirable upon
      the exercise of compensation warrants </FONT></TD>
    <TD align=left width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>246,285 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff valign="bottom" style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $ 1.25 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff valign="bottom" style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1"><SUP>(3)</SUP> </TD>
    <TD align=right width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $&nbsp;&nbsp; 307,856 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff valign="bottom" style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="1%"  bgColor=#e6efff valign="bottom" style="border-left-style: solid; border-left-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>
    $&nbsp;&nbsp; 21.95 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-top-style:solid; border-top-width:1; border-bottom-style:solid; border-bottom-width:1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left valign="bottom">
    <p style="margin-left: 15"><FONT
      size=2><B>Total</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=left width="1%" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=right
      width="10%" valign="bottom"><FONT size=2>12,560,561 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left width="2%" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=right width="1%" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=left
      width="10%" valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left width="2%" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=right width="1%" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=left
      width="10%" valign="bottom"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left width="2%" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=right width="1%" valign="bottom"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=right
      width="10%" valign="bottom"><FONT size=2>$ 973.13 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
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  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>Estimated solely for the purpose of calculating the amount of the
      registration fee pursuant to Rule 457(c) under the Securities Act of 1933,
      as amended. The price per share is based on the average of the high and
      low prices reported on the NYSE Amex for shares of the registrant&#146;s common
      stock on March 23, 2010. </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>Consisting of up to 4,104,757 shares of common stock issuable upon the
      exercise of warrants issued in a private placement that closed on March
      16, 2010. Each whole warrant is exercisable at an exercise price of
      US$1.25 per share for a period beginning 6 months after March 16, 2010 and
      ending 66 months after March 16, 2010. Estimated pursuant to Rule 457(g)
      under the Securities Act of 1933, as amended, solely for the purposes of
      calculating the registration fee, based on the exercise price of US$1.25
      per share. </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>Consisting of up to 246,285 shares of common stock issuable upon the
      exercise of compensation warrants granted to the placement agents in a
      private placement that closed on March 16, 2010. Each whole compensation
      warrant is exercisable at an exercise price of US$1.25 per share for a
      period beginning 6 months after March 16, 2010 and ending 66 months after
      March 16, 2010. Estimated pursuant to Rule 457(g) under the U.S.
      Securities Act of 1933, as amended, solely for the purposes of calculating
      the registration fee, based on the exercise price of US$1.25 per share.
  </TD></TR></TABLE>
<P align=center>__________________ </P>
<P align=justify><B>The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically states that this
Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933, as amended, or until this
Registration Statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.</B></P>
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<A name="page_3"></A>

<font FACE="Times New Roman" SIZE="2" color="#FF0000">
<p ALIGN="JUSTIFY">The information in this prospectus is not complete and may be
changed. We may not sell these securities until the Securities and Exchange
Commission declares our registration statement effective. This prospectus is not
an offer to sell these securities and is not soliciting an offer to buy these
securities in any state where the offer or sale is not permitted. </p>
</font>
<P align="justify">
<font color="#FF0000">
<B>Subject to completion, dated March 26, 2010 </B></font></P>
<P align="justify">
<font color="#FF0000">
<B>Preliminary Prospectus </B></font></P>
<P align="center">
<IMG src="part1x3x1.jpg" border=0 width="331" height="83">
<B><font size="5"><br>
U.S. GEOTHERMAL INC. </font> </B>
</P>
<P align="center">
<B><font size="5">12,560,561 shares of Common Stock </font> </B></P>
<P align="justify" style="text-indent: 5%">
 This is a public offering of up to 12,560,561 shares of the common stock, par value &#36;0.001 per share, of U.S. Geothermal Inc., (&#147;we,&#148; &#147;us,&#148; or &#147;our company&#148;), by selling stockholders listed beginning on page 11 of
this prospectus. All of the shares being offered, when sold, will be sold by selling stockholders. The shares of common stock registered for resale under this registration statement includes:</P>
<UL>
<LI>
<p align="justify">up to 8,209,519 shares of common stock held by the selling stockholders described herein;</LI>
<LI>
<p align="justify">up to 4,104,757 shares of our common stock acquirable upon the exercise of common stock purchase warrants at the exercise price of &#36;1.25 per share for a period beginning 6 months after the date of issuance and ending 66 months after the date of
issuance; and</LI>
<LI>
<p align="justify">up to 246,285 shares of our common stock issuable to the underwriters pursuant to compensation warrants granted by the Company in the private placement at the exercise price of &#36;1.25 per share for a period beginning 6 months after the date of
issuance and ending 66 months after the date of issuance.</LI>
</UL>
<P align="justify" style="text-indent: 5%">
 The shares of common stock and common stock purchase warrants were sold by us in a private placement in March 2010. We will not receive any proceeds from the sale of the shares by the selling stockholders, however, if the warrants are exercised on
a cash basis we will receive the exercise price of the warrants, if exercised at all. We will pay the expenses of registering the shares sold by the selling stockholders. See &#147;Selling Stockholders&#148; beginning on page 11 for a list of the
selling stockholders. </P>
<P align="justify" style="text-indent: 5%">
 These shares of common stock were registered to permit the selling stockholders to sell the shares from time to time, in amounts and at prices and on terms determined at the time of the offering. The selling stockholders may sell the shares of our
common stock covered by this prospectus in a number of different ways and at prevailing market prices or privately negotiated transactions. We provide more information about how the selling stockholders may sell the shares in the section entitled
&#147;Plan of Distribution&#148; beginning on page 16 of this prospectus. </P>
<P align="justify" style="text-indent: 5%">
 You should read this prospectus and any prospectus supplement, as well as the documents incorporated or deemed to be incorporated by reference in this prospectus, carefully before you invest. </P>
<P align="justify" style="text-indent: 5%">
 Our common stock is quoted on the NYSE Amex under the symbol &#147;HTM&#148; and on the Toronto Stock Exchange under the symbol &#147;GTH.&#148; On March 25, 2010 the last reported sale price for our common stock on each exchange was &#36;0.99
and CDN&#36;1.00 per share, respectively. </P>
<P align="justify" style="text-indent: 5%">
<B> Investing in our common stock involves a high degree of risk. See &#147;Risk Factors&#148; beginning on page
4 of this prospectus.</B></P>
<P align="justify" style="text-indent: 5%">
<B> Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal
offense. </B></P>
<P align="center">
<B>The date of this prospectus is ________, 2010 </B></P>

<P align="center">
&nbsp;</P>

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<P align=center><B>TABLE OF CONTENTS </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left>&nbsp; </TD>
    <TD noWrap align=right width="15%"><B>Page</B> </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>SUMMARY INFORMATION </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>1 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>RISK FACTORS </TD>
    <TD noWrap align=right width="15%">4</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>SPECIAL NOTE REGARDING
      FORWARD-LOOKING STATEMENTS </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>10 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>USE OF PROCEEDS </TD>
    <TD noWrap align=right width="15%">11 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>SELLING STOCKHOLDERS </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>11 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>PLAN OF DISTRIBUTION </TD>
    <TD noWrap align=right width="15%">16 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>DESCRIPTION OF SECURITIES TO BE
      REGISTERED </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>18 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>MARKET FOR COMMON EQUITY AND RELATED SECURITYHOLDER
      MATTERS </TD>
    <TD noWrap align=right width="15%">19 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>LEGAL MATTERS </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>20 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>EXPERTS </TD>
    <TD noWrap align=right width="15%">20 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>INCORPORATION BY REFERENCE </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>20 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>WHERE YOU CAN FIND MORE INFORMATION </TD>
    <TD noWrap align=right width="15%">22 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>DISCLOSURE OF COMMISSION POSITION ON
      INDEMNIFICATION FOR SECURITIES ACT LIABILITIES </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>22 </TD></TR></TABLE>
<P align=justify>&nbsp;</P>
<P align=justify>You should rely only on the information contained in this
prospectus. We have not authorized anyone to provide you with information
different from that contained in this prospectus. The distribution or possession
of this prospectus in or from certain jurisdictions may be restricted by law.
This prospectus is not an offer to sell these securities and is not soliciting
an offer to buy these securities in any jurisdiction where the offer or sale is
not permitted or where the person making the offer or sale is not qualified to
do so or to any person to whom it is not permitted to make such offer or sale.
The information contained in this prospectus is accurate only as of the date of
this prospectus, regardless of the time of delivery of this prospectus or of any
sale of our common stock. Our business, financial condition, results of
operations and prospects may have changed since that date. </P>
<P align=center>i </P>
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<P align=center><B>SUMMARY INFORMATION</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left width="50%"><B>The Offering</B> </TD>
    <TD align=left width="50%" style="text-align: justify">This is an offering of up to 12,560,561 shares
      of our common stock by certain selling stockholders. </TD></TR>
  <TR>
    <TD width="50%">&nbsp; </TD>
    <TD width="50%" style="text-align: justify">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="50%"><B>Shares Offered By the Selling Stockholders</B>
</TD>
    <TD noWrap align=left width="50%" style="text-align: justify">12,560,561 shares of common stock,
      $0.001 par value per&nbsp;share.<SUP>(1)</SUP> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="50%"></TD>
    <TD align=center width="50%" style="text-align: justify" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="50%"><B>Offering Price</B> </TD>
    <TD noWrap align=left width="50%" style="text-align: justify">Determined at the time of sale by the
      selling stockholders </TD></TR>
  <TR>
    <TD width="50%">&nbsp; </TD>
    <TD width="50%" style="text-align: justify">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left width="50%"><B>Common Stock Outstanding</B> <B>as of March 18, 2010</B>
    </TD>
    <TD align=left width="50%" style="text-align: justify">78,647,776<SUP>(2)</SUP> </TD></TR>
  <TR>
    <TD width="50%">&nbsp; </TD>
    <TD width="50%" style="text-align: justify">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left width="50%"><B>Use of Proceeds</B> </TD>
    <TD align=left width="50%" style="text-align: justify">We will not receive any of the proceeds of the
      shares offered by the selling stockholders. We may receive proceeds from
      the exercise of the warrants upon exercise, if they are exercised. The
      shares that will be resold under this prospectus were sold by us, or were
      issued upon the exercise of warrants granted by us. The funds that we
      raised through the sale of those shares were used for general working
      capital. </TD></TR>
  <TR>
    <TD width="50%">&nbsp; </TD>
    <TD width="50%" style="text-align: justify">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left width="50%"><B>Dividend Policy</B> </TD>
    <TD align=left width="50%" style="text-align: justify">We currently intend to retain any future
      earnings to fund the development and growth of our business. Therefore, we
      do not currently anticipate paying cash dividends. </TD></TR>
  <TR>
    <TD width="50%">&nbsp; </TD>
    <TD width="50%" style="text-align: justify">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left width="50%"><B>Trading Symbols</B> </TD>
    <TD noWrap align=left width="50%" style="text-align: justify">NYSE AMEX: HTM; TSX: GTH
</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD style="text-align: justify">In connection with the private placement, we agreed to file a
      registration statement with the Securities and Exchange Commission no
      later than 30 days after closing of the private placement and use best
      efforts to cause it to become effective and remain effective until all
      securities covered by the registration statement either have been sold,
      under the registration statement or pursuant to Rule 144 under the
      Securities Act of 1933, as amended, or may be sold without volume or
      manner-of-sale restrictions pursuant to Rule 144, and without the
      requirement for the Company to be in compliance with the current public
      information requirement under Rule 144 or the Company is in compliance
      with the current public information requirement under Rule 144. </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD style="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD style="text-align: justify">Outstanding common stock excludes approximately 5,729,875 shares of
      common stock acquirable upon exercise of options at exercise prices
      ranging from $0.90 to $2.41 per share and 12,026,767 shares of common
      stock acquirable upon exercise of common stock purchase warrants at
      exercise prices ranging from $1.22 to $3.00. </TD></TR></TABLE>
<P align=justify><B>Summary of Our Business </B></P>
<P align=justify>U.S. Geothermal Inc. (&#147;our Company&#148; or &#147;we&#148; or &#147;us&#148; or similar
references) is in the renewable &#147;green&#148; energy business. Through our subsidiary,
U.S. Geothermal Inc., an Idaho corporation (&#147;Geo-Idaho,&#148; although references to
our Company include and refer to our operations through Geo-Idaho), we are
engaged in the acquisition, development and utilization of geothermal resources
in the Western Region of the United States of America. Geothermal energy is the
natural heat energy stored within the earth&#146;s crust. In some areas of the earth,
economic concentrations of heat energy result from a combination of geological
conditions that allow water to penetrate into hot rocks at depth, become heated,
and then circulate to a near surface environment. In these settings,
commercially viable extraction of the geothermal energy and its conversion to
electricity become possible and a &#147;geothermal resource&#148; is present.</P>
<P align=justify>Please carefully read both this prospectus and any prospectus
supplement together with the additional information described below under &#147;Where
You Can Find More Information.&#148; Our principal corporate and executive offices
are located at 1505 Tyrell Lane, Boise, Idaho 83706. Our telephone number is
208-424-1027. We maintain a website at www.usgeothermal.com. Information
contained on our website is not part of this prospectus.</P>
<P align=center>1 </P>
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<A name="page_6"></A>

<P align="justify">
<B>The Offering </B></P>
<P align="justify">
We are registering for resale shares of our common stock held by the selling stockholders listed in this prospectus. The selling stockholders acquired the securities in the following transaction. </P>
<P align="justify">
On March 16, 2010, we completed a private placement of 8,209,519 shares of common stock at a price of &#36;1.05 per share and common stock purchase warrants to acquire 4,104,757 shares of common stock, for gross proceeds of &#36;8,619,995. Each
common stock purchase warrant entitles the holder to acquire one common share of the Company at the exercise price of &#36;1.25 per share for a period beginning 6 months after the date of issuance and ending 66 months after the date of issuance.
Under the terms of the registration rights agreement entered into as part of the offering, we agreed to file a registration statement with the Securities and Exchange Commission and use best efforts to cause it to become effective no later than 30
days following closing and to remain effective until all securities covered by the registration statement either have been sold, under the registration statement or pursuant to Rule 144 under the Securities Act of 1933, as amended, or may be sold
without volume or manner-of-sale restrictions pursuant to Rule 144, and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144 or the Company is in compliance with the current
public information requirement under Rule 144. The registration statement of which this prospectus is a part registers 12,560,561 of our shares of common stock of which 8,209,519 are currently outstanding and 4,351,042 shares of common stock
acquirable upon the exercise of the warrants and the compensation warrants issued in connection with the offering for a period beginning 6 months after the date of issuance and ending 66 months after the date of issuance. In the event the
registration statement is not effective by July 14, 2010, the purchasers are entitled to receive as liquidated damages an amount in cash equal to 1% of the aggregate purchase price paid by each purchaser upon the failure to be so effective and upon
the monthly anniversary of the failure to be so effective until the registration statement is effective.</P>
<P align="justify">
We paid RBC Capital Markets Corporation, Clarus Securities Inc., Dundee Securities Corporation and Robert W. Baird &amp; Co. (collectively, the &#147;Placement Agents&#148;) a cash commission of &#36;517,200, representing 6% of the gross proceeds of
the offering and compensation warrants entitling the Placement Agents to purchase 246,285 shares of common stock of the Company at &#36;1.25 exercisable for a period beginning 6 months after the date of issuance and ending 66 months after the date
of issuance. We also agreed to reimburse the Placement Agents for certain legal fees and out-of-pocket expenses. </P>
<P align="justify">
The net proceeds of the private placement will be used to further develop its Neal Hot Springs geothermal project and for general working capital purposes. </P>
<P align="center">
2 </P>

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<P align=justify><B>Summary Financial Information </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left style="border-style: solid; border-width: 1">
    <p style="text-indent: -15; margin-left: 25"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:solid; border-top-width:1" noWrap align=center width="47%"
    colSpan=13><FONT size=2><B>For the Fiscal Years Ended
      March 31,</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 25"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=center
      width="7%" valign="bottom"><FONT size=2><B>2009</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=center
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=center
      width="7%" valign="bottom"><FONT size=2><B>2008</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=center
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=center
      width="7%" valign="bottom"><FONT size=2>&nbsp; &nbsp;<B>2007</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=center
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=center
      width="7%" valign="bottom"><FONT size=2><B>2006</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=center
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=center
      width="7%" valign="bottom"><FONT size=2><B>2005</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15; margin-left: 25"><FONT size=2>Operating Revenues </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=right width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>2,336,202 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>190,721 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>117,809 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>0 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium" noWrap align=right width="1%"
    bgColor=#e6efff valign="bottom"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>0 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 25"><FONT
      size=2>Operating Expenses </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>7,660,868 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>4,568,871 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>3,035,833 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>1,663,069 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
    width="2%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>1,751,530 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
    width="2%" valign="bottom">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
    bgColor=#e6efff valign="bottom">
    <p style="text-indent: -15; margin-left: 25"><FONT size=2>Loss from Continuing Operations </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>(5,187,754</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>(3,314,473</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>(1,812,945</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>(1,490,593</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=left width="1%"
    bgColor=#e6efff valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right width="7%"
    bgColor=#e6efff valign="bottom"><FONT size=2>(1,830,421</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left width="2%"
    bgColor=#e6efff valign="bottom">) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left valign="bottom">
    <p style="text-indent: -15; margin-left: 25"><FONT
      size=2>Loss per share from Continuing Operations </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>(0.08</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
      width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>(0.06</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
      width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>(0.04</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
      width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>(0.09</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
      width="2%" valign="bottom">) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=left
    width="1%" valign="bottom">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium" noWrap align=right
      width="7%" valign="bottom"><FONT size=2>(0.12</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:none; border-left-width:medium; border-right-style:solid; border-right-width:1; border-top-style:none; border-top-width:medium" noWrap align=left
      width="2%" valign="bottom">) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">
    <p style="text-indent: -15; margin-left: 25"><FONT size=2>Cash dividends declared and
      paid per common share </FONT></TD>
    <TD align=right width="1%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><FONT size=2>0 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><FONT size=2>0 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><FONT size=2>0 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><FONT size=2>0 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=left width="1%" bgColor=#e6efff style="border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom"><FONT size=2>0 </FONT></TD>
    <TD align=left width="2%" bgColor=#e6efff style="border-left-style: none; border-left-width: medium; border-right-style: solid; border-right-width: 1; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" valign="bottom">&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left style="border-style: solid; border-width: 1">
    <p style="text-indent: -15; margin-left: 25"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=center width="47%"
    colSpan=13><FONT size=2><B>As of March 31,</B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left>
    <p style="text-indent: -15; margin-left: 25"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="7%"><FONT size=2>&nbsp; &nbsp; &nbsp;<B>2009</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=center
      width="7%"><FONT size=2>&nbsp; &nbsp; &nbsp;<B>2008</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=center
      width="7%"><FONT size=2><B>2007</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=center
      width="7%"><FONT size=2>&nbsp; &nbsp; &nbsp;<B>2006</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-top-style:solid; border-top-width:1" noWrap align=center
      width="7%"><FONT size=2><B>2005</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="text-indent: -15; margin-left: 25"><FONT size=2>Total Assets </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>52,451,343 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>40,731,585 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>22,673,340 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>21,895,933 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>2,584,970 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="text-indent: -15; margin-left: 25"><FONT
      size=2>Total Long-term Obligations (1) </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>1,972,200 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>1,975,672 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2,533,858 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>1,707,548 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>0 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%">&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
    <p align="justify">Long-term obligations represent the fair value of stock options to be
      exercised by officers, directors, employees and consultants of the
      Company. These obligations were recorded as a liability since the option
      exercise price was stated in Canadian dollars, subjecting the Company and
      the employee to foreign currency exchange risk in addition to the normal
      market price fluctuation risk. In addition, beginning in the year ended
      March 31, 2009, the long-term portion of an equipment lease is included in
      long-term obligations. </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2><B>Loss per</B> </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>&nbsp;<B>Net Loss</B>
      </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT size=2><B>share from
    </B></FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%">&nbsp;</TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT size=2>&nbsp;</FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT size=2>&nbsp;</FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT size=2><B>from</B> </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT size=2><B>Continuing&nbsp;</B>
      </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><STRONG><FONT
      size=2>Operating</FONT></STRONG>&nbsp;</TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT
      size=2><STRONG>Gross</STRONG></FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT size=2><B>Loss from&nbsp;</B>
      </FONT></TD>
    <TD noWrap align=center width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="1%" style="border-left-style: solid; border-left-width: 1" >&nbsp;</TD>
    <TD noWrap align=center width="7%" ><STRONG><FONT
      size=2>Continued</FONT></STRONG>&nbsp;</TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="7%"><FONT size=2><B>Operations</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="7%"><FONT size=2>&nbsp; <STRONG>Revenues</STRONG></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="7%"><FONT size=2>&nbsp; <STRONG>Profit</STRONG> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="7%"><FONT size=2>&nbsp; <STRONG>Operations</STRONG></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=center width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center
      width="7%"><FONT size=2><B>Operations</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2><B>Fiscal Year Ended March 31, 2007</B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;1<SUP>st </SUP>Quarter
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.01</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>0 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>0 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(961,777</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    ><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(372,486</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.01</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>206 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>206 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(746,292</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(680,021</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;3<SUP>rd </SUP>Quarter
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.01</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>90,000 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>90,000 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(610,310</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(338,278</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;4<SUP>th </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.01</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>27,603 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>27,603 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(599,645</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(422,160</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2><B>Fiscal Year Ended March 31, 2008</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;1<SUP>st </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.01</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>0 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>0 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(607,501</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(323,415</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;2<SUP>nd </SUP>Quarter
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.02</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>28 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>28 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,348,069</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,016,462</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;3<SUP>rd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.01</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>1,103 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>1,103 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,123,605</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(826,907</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;4<SUP>th </SUP>Quarter
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.02</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>189,590 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>189,590 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,298,975</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,147,689</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2><B>Fiscal Year Ended March 31, 2009</B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;1<SUP>st </SUP>Quarter
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.03</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>461,712 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>461,712 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,793,720</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,736,263</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.02</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>827,610 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>827,610 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,322,529</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,272,182</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;3<SUP>rd </SUP>Quarter
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.01</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>545,224 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>545,224 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(930,305</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(904,848</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;4<SUP>th </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.02</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>501,656 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>501,656 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,278,112</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,274,461</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2><B>Fiscal Year End March 31, 2010</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=left
      width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;1<SUP>st </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.03</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>394,567 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>394,567 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,834,075</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,809,175</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left><FONT
      size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;2<SUP>nd </SUP>Quarter
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.02</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>734,622 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>734,622 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,156,554</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(1,125,681</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;3rd
      Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(0.02</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>731,315 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>731,315 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,449,421</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=right width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,399,946</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
     bgColor=#e6efff>) </TD></TR></TABLE>
<P align=center>3 </P>
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<P align="center">
<B>RISK FACTORS </B></P>

<P align="justify">
<B>General Business Risks</B></P>

<P align="justify">
<B>Our future performance depends on our ability to establish that the geothermal resource is economically sustainable. </B> Geothermal resource exploration and development involves a high degree of risk. The recovery of the amounts shown for
geothermal properties and related deferred costs on our financial statements, as well as the execution of our business plan generally, is dependent upon the existence of economically recoverable and sustainable reserves. Expansion of the production
of power from our interests is not certain and depends on successful drilling and discovery of additional geothermal hydrothermal resources in quantities and containing sufficient heat necessary to economically fuel future plants.</P>
<P align="justify">
<B>We have a need for substantial additional financing and will have to significantly delay, curtail or cease operations if we are unable to secure such financing.</B> The Company requires substantial additional financing to fund the cost of
continued development of the Neal Hot Springs (Oregon), San Emidio, Gerlach, and Granite Creek Ranch (Nevada) projects and the repower of Raft River Unit I. Also, the Company requires funds for other operating activities, and to finance the growth
of our business, including the construction and commissioning of power generation facilities. We may not be able to obtain the needed funds on terms acceptable to us or at all. Further, if additional funds are raised by issuing equity securities,
significant dilution to our current stockholders may occur and new investors may get rights that are preferential to current stockholders. Alternatively, we may have to bring in joint venture partners to fund further development work, which would
result in reducing our interests in the projects.</P>
<P align="justify">
<B>We may be unable to obtain the financing we need to pursue our growth strategy in the geothermal power production segment, which may adversely affect our ability to expand our operations.</B> When we identify a geothermal property that we may
seek to acquire or to develop, a substantial capital investment will be required. Our continued access to capital, through project financing or through a partnership or other arrangements with acceptable terms is necessary for the success of our
growth strategy. Our attempts to secure the necessary capital may not be successful on favorable terms, or at all. </P>
<P align="justify">
Market conditions and other factors may not permit future project and acquisition financings on terms favorable to us. Our ability to arrange for financing on favorable terms, and the costs of such financing, are dependent on numerous factors,
including general economic and capital market conditions, investor confidence, the continued success of current projects, the credit quality of the projects being financed, the political situation in the state in which the project is located and the
continued existence of tax laws which are conducive to raising capital. If we are unable to secure capital through partnership or other arrangements, we may have to finance the projects using equity financing which will have a dilutive effect on our
common stock. Also, in the absence of favorable financing or other capital options, we may decide not to build new plants or acquire facilities from third parties. Any of these alternatives could have a material adverse effect on our growth
prospects and financial condition. </P>
<P align="justify">
<B>We may not be able to fully develop the geothermal resource within the Raft River Unit I joint venture boundaries which would increase development costs for Raft River Unit II and result in delays.</B> Raft River Unit II is currently anticipated
to be located within the Raft River Unit I joint venture boundaries. Without the agreement and consent of our Raft River Unit I joint-venture partner, Raft River Holdings, we cannot fully develop the geothermal resource within the Raft River Unit I
joint venture boundaries without incurring increased development costs and delays. </P>
<P align="justify">
<B>It is very costly to place geothermal resources into commercial production. </B>Before the sale of any power can occur, it will be necessary to construct a gathering and disposal system, a power plant, and a transmission line, and considerable
administrative costs would be incurred, together with the drilling of additional wells. For Raft River Energy Unit I, capital contributions of approximately &#36;52.1 million were needed. Future expansion of power production at Raft River, Idaho and
San Emidio, Nevada and development of new power production capability at Neal Hot Springs may result in significantly increased capital costs related to increased production and injection well drilling and higher costs for labor and materials. To
fund expenditures of this magnitude, we may have to find a joint venture participant with substantial financial resources. There can be no assurance that a participant can be found and, if found, it would result in us having to substantially reduce
our interest in the project.</P>
<P align="justify">
<B>We may be unable to realize our strategy of utilizing the tax and other incentives available for developing geothermal power projects to attract strategic alliance partners, which may adversely affect our ability to complete these projects.</B>
Part of our business strategy is to utilize the tax and other incentives available to developers of geothermal power generating plants to attract strategic alliance partners with the capital sufficient to complete these projects. Many of the
incentives available for these projects are new and highly complex. There can be no assurance that we will be successful in structuring agreements that are attractive to potential strategic alliance
partners. If we are unable to do so, we may be unable to complete the development of our geothermal power projects and our business could be harmed. </P>
<P align="center">
4 </P>

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<P align="justify">
<B>Our participation in the joint venture is subject to risks relating to working with a co-venturer.</B> Raft River Energy I LLC is the Unit I project joint venture company with Raft River I Holdings, LLC, a subsidiary of The Goldman Sachs Group
Inc. Raft River I Holdings, LLC has contributed a total of &#36;34.2 million in cash and we have contributed over &#36;16.4 million in cash and approximately &#36;1.5 million in production and injection wells and geothermal leases to Raft River
Energy I LLC. We are subject to risks in working with a co-venturer that could adversely impact Unit I of the Raft River project as well as anticipated development of Raft River Unit II. We anticipate that the Raft River Unit II power plant may
utilize the geothermal resource within the Raft River Unit I joint venture boundaries. Further, our contribution to the joint venture may exceed returns from the joint venture, if any.</P>
<P align="justify">
<B>We are a holding company and our revenues depend substantially on the performance of our subsidiaries and the projects they operate.</B> We are a holding company whose primary assets are our ownership of the equity interests in our subsidiaries.
We conduct no other business and, as a result, we depend entirely upon our subsidiaries&#146; earnings and cash flow. Our subsidiaries and projects may be restricted in their ability to pay dividends, make distributions or otherwise transfer funds
to us prior to the satisfaction of other obligations, including the payment of operating expenses or debt service. </P>
<P align="justify">
<B>We may have to pay liquidated damages to our investors in the March 2010 private placement if the registration is not effective by July 14, 2010 or under certain other circumstances.</B> In connection with the March 2010 private placement
described above, we entered into a Registration Rights Agreement. Under the terms of the Registration Rights Agreement, if a registration statement relating to the shares covered by this prospectus is not declared effective by the SEC within the
time periods specified in the Registration Rights Agreement or, after having been declared effective, is not available (with certain limited exceptions), then we are required to pay the investors, as liquidated damages, 1.0% of the amount invested
for each 30-day period during which such failure continues until the shares are sold or can be sold without restriction under Rule 144. As of the date of this prospectus, no liquidated damages have accrued. There can be no assurance that the
registration statement of which this prospectus is a part will be declared or will remain effective by the SEC for the time periods necessary to avoid payment of liquidated damages.</P>
<P align="justify">
<B>We may not be able to manage our growth due to the commencement of operations of the Raft River and San Emidio power plants and exploration activities in Neal Hot Springs which could negatively impact our operations and financial condition.</B>
Significant growth in our operations will place demands on our operational, administrative and financial resources, and the increased scope of our operations will present challenges to us due to increased management time and resources required and
our existing limited staff. Our future performance and profitability will depend in part on our ability to successfully integrate the operational, financial and administrative functions of Raft River and San Emidio and other acquired properties into
our operations, to hire additional personnel and to implement necessary enhancements to our management systems to respond to changes in our business. There can be no assurance that we will be successful in these efforts. Our inability to manage the
increased scope of operations, to integrate acquired properties, to hire additional personnel or to enhance our management systems could have a material adverse effect on our results of operations. </P>
<P align="justify">
<B>If we incur material debt to fund our business, we could face significant risks associated with such debt levels.</B> We will need to procure significant additional financing to construct, commission and operate our power plants in order to
generate and sell electricity. If this financing includes the issuance of material amounts of debt, this would expose the Company to risks including, among others, the following:</P>
<UL>
<LI>
<p style="margin-top: 0; margin-bottom: 12" align="justify">a portion of our cash flow from operations would be used for the payment of principal and interest on such indebtedness and would not be available for financing capital expenditures or other purposes;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12" align="justify">a significant level of indebtedness and the covenants governing such indebtedness could limit our flexibility in planning for, or reacting to, changes in our business because certain activities or financing options may be limited or prohibited under
the terms of agreements relating to such indebtedness;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12" align="justify">a significant level of indebtedness may make us more vulnerable to defaults by the purchasers of electricity or in the event of a downturn in our business because of fixed debt service obligations; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12" align="justify">the terms of agreements may require us to make interest and principal payments and to remain in compliance with stated financial covenants and ratios. If the requirements of such agreements were not
satisfied, the lenders could be entitled to accelerate the payment of all outstanding indebtedness and foreclose on the collateral securing payment of that indebtedness, which would likely include our interest in the project.</LI>
</UL>
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<P align="justify">
In such event, we cannot assure you that we would have sufficient funds available or could obtain the financing required to meet our obligations, including the repayment of outstanding principal and interest on such indebtedness.</P>
<P align="justify">
<B>We may not be able to successfully integrate companies that we may acquire in the future, which could materially and adversely affect our business, financial condition, future results and cash flow.</B> Our strategy is to continue to expand in
the future, including through acquisitions. Integrating acquisitions is often costly, and we may not be able to successfully integrate our acquired companies with our existing operations without substantial costs, delays or other adverse operational
or financial consequences. Integrating our acquired companies involves a number of risks that could materially and adversely affect our business, including:</P>
<UL>
<LI>
<p style="margin-top: 0; margin-bottom: 12">failure of the acquired companies to achieve the results we expect;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">inability to retain key personnel of the acquired companies;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">risks associated with unanticipated events or liabilities; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">the difficulty of establishing and maintaining uniform standards, controls, procedures and policies, including accounting controls and procedures.</LI>
</UL>
<P align="justify">
If any of our acquired companies suffers performance problems, the same could adversely affect the reputation of our group of companies and could materially and adversely affect our business, financial condition, future results and cash flow.</P>
<P align="justify">
<B>The success of our business relies on retaining our key personnel. </B>We are dependent upon the services of our President and Chief Executive Officer, Daniel J. Kunz, our Chief Financial Officer, Kerry D. Hawkley, our Chief Operating Officer,
Douglas J. Glaspey, and Kevin R. Kitz, our Vice President &#150; Project Development. The loss of any of their services could have a material adverse effect upon us. As of the date of this report, there are no employment agreements with these
persons, and the Company does not have key-man insurance on any of them. </P>
<P align="justify">
<B>Our development activities are inherently very risky.</B> The high risks involved in the development of a geothermal resource cannot be over-stated. The development of
geothermal resources at our Raft River, Idaho; San Emidio, Nevada and Neal Hot Springs, Oregon projects are such that there cannot be any assurance of success. Exploration costs are high and are not fixed. The geothermal resource cannot be relied
upon until substantial development, including drilling, has taken place. The costs of development drilling are subject to numerous variables such as unforeseen geologic conditions underground which could result in substantial cost overruns. Drilling
for geothermal resource at Raft River is relatively deep with the average depth of wells some 6,000 feet. Drilling at Neal Hot Springs, Raft River and San Emidio
may involve unprofitable efforts, not only from dry wells, but from wells that
are productive but do not produce sufficient net revenues to return a profit
after drilling, operating and other costs. </P>
<P align="justify">
Our drilling operations may be curtailed, delayed or cancelled as a result of
numerous factors, many of which are beyond our control, including economic
conditions, mechanical problems, title problems, weather conditions, compliance
with governmental requirements and shortages or delays of equipment and
services. If our drilling activities are not successful, we could experience a
material adverse effect on our future results of operations and financial
condition.</P>
<P align="justify">
In addition to the substantial risk that wells drilled will not be productive, or may decline in productivity after commencement of production, hazards such as unusual or unexpected geologic formations, pressures, downhole conditions, mechanical
failures, blowouts, cratering, explosions, uncontrollable flows of well fluids, pollution and other physical and environmental risks are inherent in geothermal exploration and production. These hazards could result in substantial losses to us due to
injury and loss of life, severe damage to and destruction of property and equipment, pollution and other environmental damage and suspension of operations. </P>
<P align="justify">
<B>The impact of governmental regulation could adversely affect our business by increasing costs for financing or development of power plants.</B> Our business is subject to certain federal, state and local laws and regulations, including laws and
regulations on taxation, the exploration for and development, production and distribution of electricity, and environmental and safety matters. On a Federal level, the most important tax rule that affects our business is the Production Tax Credit
(&#147;PTC&#148;), which was extended to December 31, 2012. Recent legislation enacted as part of the stimulus funding has also provided an election to take 30% investment tax credit in lieu of the
PTC for certain qualified investments being initiated before the end of 2010 and being placed in service before the end of 2014. The loss of the PTC or ITC is a risk that could result in making future expansions at Raft River, San Emidio and at Neal
Hot Springs uneconomic. New rules recently adopted by the Bureau of Land Management, as directed by the Energy Policy Act of 2005, require competitive auction of all geothermal leases on Federal lands. Competitive leasing is significantly increasing
the cost of obtaining leases on Federal land, is adding to the capital costs needed to develop geothermal projects, is increasing the total electrical power prices needed to make a geothermal project viable and is making it more difficult to acquire
additional adjacent lands for reservoir protection and exploration. </P>
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If Federal lands or any Federal involvement are included in any geothermal development, requirements of the National Environmental Policy Act (&#147;NEPA&#148;) will be triggered. Most of the geothermal resource in the United States is located in
the western states, where the Federal Government often is the largest landowner. If a NEPA action is triggered, such as an Environmental Impact Statement or Environmental Assessment, a project delay of one to two years and a cost of &#36;1,000,000
to &#36;2,000,000 or more may be incurred while the environmental permitting process is completed. NEPA not only can impact the property where the geothermal resource is located, but includes the siting and construction of transmission lines.
Environmental legislation is evolving in a manner that means stricter standards, and enforcement, fines and penalties for non-compliance are more stringent. Environmental assessments of proposed projects carry a heightened degree of responsibility
for companies and directors, officers and employees. The cost of compliance with changes in governmental regulations has a potential to reduce the profitability of operations.</P>
<P align="justify">
In the states of Idaho, Nevada and Oregon, drilling for geothermal resources is governed by specific rules. In Nevada drilling operations are governed by the Division of Minerals (Nevada Administrative Code Chapter 534A); in Idaho by the Idaho
Department of Water Resources (IDAPA 37 Title 03 Chapter 04); and in Oregon by the Division of Oil, Gas and Mineral Industries (Division 20 Geothermal Regulation). These rules require drilling permits and govern the spacing of wells, rates of
production, prevention of waste and other matters, and, may not allow or may restrict drilling activity, or may require that a geothermal resource be unitized (shared) with adjoining land owners. Such laws and regulations may increase the costs of
planning, designing, drilling, installing, operating and abandoning our geothermal wells, the power plant and other facilities. State environmental requirements and permits, such as the Idaho Department of Environmental Quality, Air Quality Permit
to Construct, include public disclosure and comment. It is possible that a legal protest could be triggered through one of the permitting processes that would delay construction and increase cost for one of our projects. The state of Oregon has an
Energy Facility Siting Council that must issue a site certificate for any geothermal energy facilities of 35 megawatts or higher which could affect the Neal Hot Spring project by adding additional cost and delay construction.</P>
<P align="justify">
Because of these state and federal regulations, we could incur liability to governments or third parties for any unlawful discharge of pollutants into the air, soil or water, including responsibility for remediation costs. We could potentially
discharge such materials into the environment: </P>
<UL>
<LI>
<p style="margin-top: 0; margin-bottom: 12">from a well or drilling equipment at a drill site;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">leakage of fluids or airborne pollutants from gathering systems, pipelines, power plant and storage tanks;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">damage to geothermal wells resulting from accidents during normal operations; and</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 12">blowouts, cratering and explosions.</LI>
</UL>
<P align="justify">
Because the requirements imposed by such laws and regulations are frequently changed, we cannot assure you that laws and regulations enacted in the future, including changes to existing laws and regulations, will not adversely affect our business by
increasing cost and the time required to explore and develop geothermal projects. In addition, because the Vulcan Property at Raft River was previously operated by others, we may be liable for environmental damage caused by such former
operators.</P>
<P align="justify">
<B>Industry competition may impede our growth and ability to enter into power purchase agreements on terms favorable to us, or at all, which would negatively impact our revenue.</B> The electrical power generation industry, of which geothermal power
is a sub-component, is highly competitive and we may not be able to compete successfully or grow our business. We compete in areas of pricing, grid access and markets. The industry in the Western United States, in which the Raft River and San Emidio
projects are located, is complex as it is composed of public utility districts, cooperatives and investor-owned power companies. Many of the participants produce and distribute electricity. Their willingness to purchase electricity from an
independent producer may be based on a number of factors and not solely on pricing and surety of supply. If we cannot enter into power purchase agreements
on terms favorable to us, or at all, it would negatively impact our revenue and our decisions regarding development of additional properties.</P>
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<B>Some of our leases will terminate if we do not achieve commercial production during the primary term of the lease, thus requiring us to enter into new leases or secure rights to alternate geothermal resources, none of which may be available on
terms as favorable to us as any such terminated lease, if at all. </B>Most of our geothermal resource leases are for a fixed primary term, and then continue for so long as we achieve commercial production or pursuant to other terms of extension. The
land covered by some of our leases is undeveloped and has not yet achieved commercial production of the geothermal resources. Leases that cover land which remains undeveloped and does not achieve commercial production and leases that we allow to
expire, will terminate. In the event that a lease is terminated and we determine that we will need that lease once the applicable project is operating, we would need to enter into one or more new leases with the owner(s) of the premises that are the
subject of the terminated lease(s) in order to develop geothermal resources from, or inject geothermal resources into, such premises or secure rights to alternate geothermal resources or lands suitable for injection, all of which may not be possible
or could result in increased cost to us, which could materially and adversely affect our business, financial condition, future results and cash flow.</P>
<P align="justify">
<B>Claims have been made that some geothermal plants cause seismic activity and related property damage.</B> There are approximately two-dozen geothermal plants operating within a fifty-square-mile region in the area of Anderson Springs, in Northern
California, and there is general agreement that the operation of these plants causes a generally low level of seismic activity. Some residents in the Anderson Springs area have asserted property damage claims against those plant operators. There are
significant issues whether the plant operators are liable, and to date no court has found in favor of such claimants. While we do not believe the areas of the Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon will present the same
geological or seismic risks, there can be no assurance that we would not be subject to similar claims and litigation, which may adversely impact our operations and financial condition. </P>
<P align="justify">
<B>Actual costs of construction or operation of a power plant may exceed estimates used in negotiation of power purchase and power financing agreements.</B> The Company&#146;s initial power purchase contract is under rates established by the Idaho
Public Utility Commission, using an &#147;avoided-cost&#148; model for cost of construction and operating costs of power plants. If the actual costs of construction or operations exceed the model costs, the Company may not be able to build the
contemplated power plants, or if constructed, may not be able to operate profitably. The Company&#146;s financing agreements provide for a priority payback to our partner. If the actual costs of construction or operations exceed the model costs, we
may not be able to operate profitably or receive the planned share of cash flow and proceeds from the project. The actual costs of operating the Raft River power project are higher than the original estimate due to several factors including the need
to filter the ground water for cooling to remove harmful and unanticipated chloride levels in the water, the need to purchase production pump power from a third party to provide maximum plant output, and increased general costs related to labor and
management.</P>
<P align="justify">
<B>Payments under our initial power purchase agreement may be reduced if we are unable to forecast our production adequately.</B> Under the terms of our initial power purchase agreement, and starting with the third year of operation, if we do not
deliver electricity output within 90% to 110% of our forecasted amount, which requires us to submit a forecast every three months, payments for the amount delivered will be reduced, possibly significantly. For example if the plant produces more than
110% of the power as forecasted then we would not receive any revenue for the amount over the forecast figure. If the plant produces less than 90% of the forecast amount for unexcused reasons, such as normal plant breakdowns and maintenance, then we
may be subject to a reduced power price, depending on the prevailing power market conditions. The agreement moves the power price to the market price instead of contracted price. We currently expect to forecast 9 megawatts of delivery on a
10-megawatt plant and the damages would then result if the actual delivery was only 8.1 megawatts or less. All 8.1 megawatts would be subject to a reduced price that is not possible to predict at this time. The total average revenue per megawatt
hour is approximately &#36;62.40 and the reduction in revenue could be perhaps 30 percent of that amount. As a risk mitigation element, we are not subject to this adjustment until year three of the contract and then we are able to submit a new
forecast every three months thereby limiting this exposure.<B> </B></P>
<P align="justify">
<B>There are some risks for which we do not or cannot carry insurance. </B>Because our current operations are limited in scope, the Company carries property, public liability insurance and directors&#146; and officers&#146; liability coverage, but
does not currently insure against any other risks. </P>
<P align="center">
8 </P>

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<P align=justify>As its operations progress, the Company will acquire additional
coverage consistent with its operational needs, but the Company may become
subject to liability for pollution or other hazards against which it cannot
insure or cannot insure at sufficient levels or against which it may elect not
to insure because of high premium costs or other reasons. In particular,
coverage is not available for environmental liability or earthquake damage. </P>
<P align=justify><B>Our officers and directors may have conflicts of interests
arising out of their relationships with other companies. </B>Several of our
directors and officers serve (or may agree to serve) as directors or officers of
other companies or have significant shareholdings in other companies. To the
extent that such other companies may participate in ventures in which the
Company may participate, the directors may have a conflict of interest in
negotiating and concluding terms respecting the extent of such participation.
From time to time several companies may participate in the acquisition,
exploration and development of natural resource properties thereby allowing for
their participation in larger programs, permitting involvement in a greater
number of programs and reducing financial exposure in respect of any one
program. It may also occur that a particular company will assign all or a
portion of its interest in a particular program to another of these companies
due to the financial position of the company making the assignment. </P>
<P align=justify><B>Failure to maintain effective disclosure controls and
procedures could result in the loss of investor confidence. </B>For the period ended March 31, 2009, the Company determined
that its disclosure controls and procedures were not effective due the Company&#146;s
inadvertent failure to file the financials statements of its subsidiary Raft
River Energy I LLC as required by SEC rules and forms. The Company may in the
future fail to achieve and maintain the adequacy of its disclosure controls and
procedures, as such standards are modified, supplemented or amended from time to
time. The Company&#146;s failure to maintain effective disclosure controls and
procedures could result in the loss of investor confidence in the Company&#146;s
reports, which in turn could harm the Company&#146;s business and negatively impact
the trading price of its common shares. In addition, any failure to implement
required new or improved controls, or difficulties encountered in their
implementation, could harm the Company&#146;s operating results or cause it to fail
to meet its reporting obligations.</P>
<P align=justify><B>Failure to comply with regulatory requirements may adversely
affect our stock price and business.</B> As a public company, we are subject to
numerous governmental and stock exchange requirements, with which we believe we
are in compliance. The Sarbanes-Oxley Act of 2002 and the Securities and
Exchange Commission have requirements that we may fail to meet by the required
deadlines or we may fall out of compliance with, such as the internal controls
assessment, reporting and auditor attestation required under Section 404 of the
Sarbanes-Oxley Act of 2002. The Company has documented and tested its internal
control procedures in order to satisfy the requirements of Section 404 of the
Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act of 2002 requires an annual
assessment by management of the effectiveness of the Company&#146;s internal control
over financial reporting and an attestation report by the Company&#146;s independent
auditors on internal controls over financial reporting. We may incur additional
costs in order to comply with Section 404. In addition, if we fail to achieve
and maintain the adequacy of our internal controls, as such standards are
modified, supplemented or amended from time to time, we may not be able to
ensure that we can conclude on an ongoing basis that we have effective internal
controls over financial reporting in accordance with Section 404 of the
Sarbanes-Oxley Act of 2002. Moreover, effective internal controls are necessary
for us to produce reliable financial reports and are important to help prevent
financial fraud. If we cannot provide reliable financial reports or prevent
fraud, our business and operating results could be harmed, investors could lose
confidence in our reported financial information, and the trading price of our
stock could drop significantly. Our failure to meet regulatory requirements and
exchange listing standards may result in actions such as the delisting of our
stock impacting our stock&#146;s liquidity; Securities and Exchange Commission
enforcement actions; and securities claims and litigation. </P>
<P align=justify><B>Risks Relating To the Market for Our Securities </B></P>
<P align=justify><B>A significant number of shares of our common stock are
eligible for public resale. If a significant number of shares are resold on the
public market, the share price could be reduced and could adversely affect our
ability to raise needed capital.</B> The market price for our common stock could
decrease significantly and our ability to raise capital through the issuance of
additional equity could be adversely affected by the availability and resale of
such a large number of shares in a short period of time. If we cannot raise
additional capital on terms favorable to us, or at all, it may delay our
exploration or development of existing properties or limit our ability to
acquire new properties, which would be detrimental to our business.</P>
<P align=justify><B>Because the public market for shares of our common stock is
limited, investors may be unable to resell their shares of common stock.</B>
There is currently only a limited public market for our common stock on the
Toronto Stock Exchange in Canada and on the NYSE Amex in the United
States, and investors may be unable to resell their shares of common stock. The
development of an active public trading market depends upon the existence of
willing buyers and sellers that are able to sell their shares and market makers
that are willing to make a market in the shares. Under these circumstances, the
market bid and ask prices for the shares may be significantly influenced by the
decisions of the market makers to buy or sell the shares for their own account,
which may be critical for the establishment and maintenance of a liquid public
market in our common stock. We cannot give you any assurance that an active
public trading market for the shares will develop or be sustained.</P>
<P align=center>9 </P>
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<P align=justify><B>The price of our common stock is volatile, which may cause
investment losses for our stockholders. </B>The market for our common stock is
highly volatile, having ranged in the last fiscal year ended March 31, 2009,
from a low of Cdn$0.46 to a high of Cdn$3.02 on the Toronto Stock Exchange and
from a low of $0.39 to a high of $2.95 on the NYSE Amex. Since March 31, 2009,
our common stock has ranged from a low of Cdn$0.93 to a high of Cdn$2.39 on the
Toronto Stock Exchange and from a low of $0.71 to a high of $2.09 on the NYSE
Amex. The trading price of our common stock on the Toronto Stock Exchange and on
the NYSE Amex is subject to wide fluctuations in response to, among other
things, quarterly variations in operating and financial results, and general
economic and market conditions. In addition, statements or changes in opinions,
ratings, or earnings estimates made by brokerage firms or industry analysts
relating to our market or relating to our company could result in an immediate
and adverse effect on the market price of our common stock. The highly volatile
nature of our stock price may cause investment losses for our stockholders.</P>
<P align=justify><B>We do not intend to pay any cash dividends in the
foreseeable future.</B> We intend to reinvest any earnings in the development of
our projects. Payments of future dividends, if any, will be at the discretion of
our board of directors after taking into account various factors, including our
business, operating results and financial condition, current and anticipated
cash needs, plans for expansion and any legal or contractual limitations on our
ability to pay dividends. </P>
<P align=justify><B>Provisions in our bylaws and under Delaware law could
discourage a takeover that stockholders may consider favorable. </B>Our bylaws
contain provisions that could depress the trading price of our common stock by
acting to discourage, delay or prevent a change of control of our company or
changes in our management that the stockholders of our company may deem
advantageous. These provisions prohibit stockholders from calling special
meetings, which may deter a takeover attempt. Additionally, we are subject to
Section 203 of the Delaware General Corporation Law, which generally prohibits a
Delaware corporation from engaging in any of a broad range of business
combinations with any holder of 15% or more of our capital stock for a period of
three years following the date on which the stockholders acquired such ownership
percentage, unless, among other things, our Board of Directors has approved the
transaction. This statute likewise may discourage, delay or prevent a change of
control. </P>
<P align=center><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></P>
<P align=justify>This registration statement contains forward-looking
statements, including, but not limited to, our statements on strategy, operating
forecasts, and our working capital requirements and availability. In addition,
from time to time, our company or our representatives have made or may make
forward-looking statements, orally or in writing. Such forward-looking
statements may be included in, but are not limited to, various filings made by
our company with the Securities and Exchange Commission, press releases or oral
statements made by or with the approval of an authorized executive officer of
our company. Forward-looking statements consist of any statement other than a
recitation of historical fact and can be identified by the use of
forward-looking terminology such as &#147;may&#148;, &#147;expect&#148;, &#147;anticipate&#148;, &#147;estimate&#148;,
or &#147;continue&#148; or the negative thereof or other variations thereon or comparable
terminology. Actual results could differ materially from those projected or
suggested in any forward-looking statements as a result of a wide variety of
factors and conditions, including, but not limited to, the factors and
conditions described in the discussions of &#147;Risk Factors&#148; in this registration
statement and in other documents our company files from time to time with the
Securities and Exchange Commission. The reader is cautioned that our company
does not have a policy of updating or revising forward-looking statements and
thus the reader should not assume that silence by management of our company over
time means that actual events are bearing out as estimated in such
forward-looking statements. </P>
<P align=justify>All references to &#147;dollars&#148; or &#147;$&#148; are to United States dollars
and all references to &#147;Cdn$&#148; are to Canadian dollars. United States dollar
equivalents of Canadian dollar figures are based on the noon buying rate for
Canadian dollars for the Federal Reserve Bank of New York on the applicable
date. </P>
<P align=center>10 </P>
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<P align=center><B>USE OF PROCEEDS </B></P>
<P align=justify>We will not receive any of the proceeds from the sale of shares
of our common stock by the selling stockholders. The selling stockholders will
receive all of the net proceeds from the sales of common stock offered by them
under this prospectus. If, and when, the warrants and compensation warrants are
exercised by the selling stockholders, the proceeds from the exercise of the
warrants and broker warrants will be used by us for<B> </B>drilling and
exploration at Neal Hot Springs, the San Emidio project, and general working
capital purposes.</P>
<P align=center><B>SELLING STOCKHOLDERS </B></P>
<P align=justify>This prospectus covers the offering of up to 12,560,561 shares
of our common stock by selling stockholders. We will not receive any proceeds
from the sale of the shares by the selling stockholders.</P>
<P align=justify>The shares issued to the selling stockholders are &#147;restricted
securities&#148; under applicable federal and state securities laws and are being
registered to give the selling stockholders the opportunity to sell their
shares. The registration of such shares does not necessarily mean, however, that
any of these shares will be offered or sold by the selling stockholders. The
selling stockholders may from time to time offer and sell all or a portion of
their shares in the over-the-counter market, in negotiated transactions, or
otherwise, at market prices prevailing at the time of sale or at negotiated
prices.</P>
<P align=justify>The registered shares may be sold directly or through brokers
or dealers, or in a distribution by one or more underwriters on a firm
commitment or best efforts basis. To the extent required, the names of any agent
or broker-dealer and applicable commissions or discounts and any other required
information with respect to any particular offer will be set forth in an
accompanying prospectus supplement. See &#147;Plan of Distribution&#148; beginning on page
16 of this prospectus. Each of the selling stockholders reserves the sole right
to accept or reject, in whole or in part, any proposed purchase of the
registered shares to be made directly or through agents. The selling
stockholders and any agents or broker-dealers that participate with the selling
stockholders in the distribution of their registered shares may be deemed to be
&#147;underwriters&#148; within the meaning of the Securities Act of 1933, as amended, and
any commissions received by them and any profit on the resale of the registered
shares may be deemed to be underwriting commissions or discounts under the
Securities Act.</P>
<P align=justify>We will receive no proceeds from the sale of the registered
shares, and we have agreed to bear the expenses of registration of the shares,
other than commissions and discounts of agents or broker-dealers and transfer
taxes, if any.</P>
<P align=justify><B>Selling Stockholders Information</B></P>
<P align=justify>The following table sets forth the number of shares of common
stock beneficially owned by the selling stockholders as of March 16, 2010, the
number of shares of common stock covered by this prospectus on behalf of the
stockholders and the total number of shares of common stock that the
stockholders will beneficially own upon completion of the offering. This table
assumes that the stockholders will offer for sale all of the shares of common
stock covered by this prospectus. At March 18, 2010, we had 78,647,776 shares of
common stock issued and outstanding. </P>
<P align=justify>The common stock may be offered under this prospectus from time
to time by the selling stockholders, or by any of their respective pledgees,
donees, transferees or other successors in interest. The amounts set forth below
are based upon information provided to us by the stockholders, or on our
records, as of March 16, 2010, and are accurate to the best of our knowledge. It
is possible, however, that the selling stockholders may acquire or dispose of
additional shares of common stock from time to time after the date of this
prospectus. </P>
<P align=justify>The warrants issued in the March 2010 financing may not be
exercised until September 16, 2010 and are subject to certain beneficial
ownership limitations. A holder of a warrant received in the March 2010
financing may not exercise such warrant to the extent that the holder and its
affiliates would beneficially own in excess of 4.99% of our common stock
outstanding immediately after giving effect to such exercise. For purposes of
this 4.99% limitation, beneficial ownership is calculated as set forth in
Exchange Act Rule 13d-3, except that the aggregate number of shares of common
stock beneficially owned by such holder and its affiliates will exclude shares
of common stock which would be issuable upon (i) exercise of any remaining,
unexercised portion of the warrant issued to such holder and its affiliates in
the March 2010 financing and (ii) exercise or conversion of the unexercised or
unconverted portion of any other securities of our company beneficially owned by
the holder and its affiliates which are subject to a limitation on conversion or
exercise analogous to the 4.99% limitation contained in the warrants issued in
the March 2010 financing. By written notice to us, a holder may from time to
time increase or decrease the 4.99% limitation to any other percentage not in
excess of 9.99%; provided that any such change will not be effective until the
61st day after such notice is delivered to us. The 4.99% and 9.99% ownership
limitations do not prevent a stockholder from selling some of its holdings and
then receiving additional shares. In this way, a stockholder could sell more
than the 4.99% and 9.99% ownership limitation while never holding more than this
limit. For purposes of this table, the &#147;Before Offering&#148;, &#147;Total Number of
Shares Beneficially Owned&#148; includes the shares underlying the warrants issued in
the March 2010 financing, despite the fact that all or a portion of such
warrants, following September 16, 2010, may not be exercisable until the 61st
day following delivery of prior written notice by a holder of such warrants if
the exercise of such warrants would cause the holder and its affiliates to
exceed the 4.99% ownership limitation (and thus all or a portion of such shares
technically may not be deemed to be &#147;beneficially owned&#148; under Exchange Act Rule
13d-3 until one day after such notice is given). </P>
<P align=center>11 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_4></A>
<P align=justify>The selling stockholders will pay any underwriting discounts
and commissions and expenses incurred by the stockholder for brokerage,
accounting, tax or legal services or any other expenses incurred by the
stockholder in disposing of the shares. We will bear all other costs, fees and
expenses incurred in effecting the registration of the shares covered by this
prospectus, including, without limitation, fees and expenses of our counsel and
our accountants. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center width="20%"
    colSpan=2><FONT size=2><B>Before Offering</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center width="30%"
    colSpan=3><FONT size=2><B>After Offering</B>
      </FONT></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 10"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>
    Total Number </B>&nbsp;</FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2>&nbsp; <B>
    Shares</B></FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2>&nbsp; <B>
    Percentage</B></FONT></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 10">&nbsp;</TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>
    of Shares</B>
      </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>Percentage</B></FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>Number of</B>
    </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>&nbsp;Owned</B></FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>&nbsp;of
    Shares</B></FONT></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=center style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 10"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>Beneficially</B>
      </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>of Shares</B>
    </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>
    Shares</B></FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>After</B> </FONT></TD>
    <TD noWrap align=center width="10%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><FONT size=2><B>&nbsp;owned</B> <B>
    After</B></FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center>
    <p align="left" style="margin-left: 10"><FONT
      size=2><B>Name</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="10%"><FONT size=2><B>Owned</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="10%"><FONT size=2><B>Owned<SUP>(1)</SUP></B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="10%"><FONT size=2><B>&nbsp;Offered</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="10%"><FONT size=2><B>Offering<SUP>(2)</SUP></B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="10%"><FONT size=2><B>&nbsp;Offering</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>AGF Canada Class<SUP>(3)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>231,870 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>75,720 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>156,150 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>AGF Canada Fund<SUP>(4)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>1,083 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>483 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>600 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>AGF Canadian Stock Fund<SUP>(5)</SUP>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>6,244,966 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>7.94% </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>1,553,466 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>4,691,500 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>5.97% </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Baird Financial Corporation<SUP>(6)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>12,314 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>12,314 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>Clarus Securities Inc.<SUP>(7)</SUP>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>303,054 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>43,100 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>259,954 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Cranshire Capital LP<SUP>(8)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>468,571 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>428,571 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>40,000 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>Dundee Securities Corporation<SUP>(9)</SUP>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>140,300 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>43,100 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>97,200 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Empery Asset Master LTD<SUP>(10)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>357,143 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>357,143 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-left: 10"><FONT size=2>Exploration Capital Partners
      2005 Limited Partnership<SUP>(11)</SUP> </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 3"><FONT size=2>6,285,000
      </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 3"><FONT size=2>7.99%
      </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 3"><FONT size=2>3,000,000
      </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 3"><FONT size=2>3,285,000
      </FONT></TD>
    <TD align=right width="10%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">
    <p style="margin-right: 3"><FONT size=2>4.18%
      </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Front Street Investment Management Inc.<SUP>(12)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>2,746,770 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>3.49% </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>1,428,570 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>1,318,200 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>1.68% </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>Glacier Partners<SUP>(13)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>714,285 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>714,285 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Hartz Capital Investments LLC<SUP>(14)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>357,142 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>357,142 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>Hudson Bay Overseas Fund LTD<SUP>(15)</SUP>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>210,713 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>210,713 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Hudson Bay Fund LP<SUP>(16)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>146,429 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>146,429 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>IG AGF Canadian Growth Class<SUP>(17)</SUP>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>79,733 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>23,133 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>56,600 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>IG AGF Canadian Growth Fund<SUP>(18)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>1,788,453 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>2.27% </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>446,053 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>1,342,400 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>1.71% </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>Iroquois Master Fund Ltd.<SUP>(19)</SUP>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>357,142 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>357,142 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Keystone Equity Fund<SUP>(20)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>186,751 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>44,001 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>142,750 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>Orphan Fund, L.P.<SUP>(21)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>1,071,427 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>1.36% </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>1,071,427 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Praesidis Master Fund, LP<SUP>(22)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>622,600 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>600,000 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>22,600 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>Ramius Enterprise Master Fund
      Ltd<SUP>(23)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>357,143 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>357,143 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>Ramius Navigation Master Fund Ltd<SUP>(24)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>357,142 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>357,142 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right
      width="10%">
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>RBC Capital Markets
      Corporation<SUP>(25)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>147,771 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>* </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>147,771 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#e6efff>
    <p style="margin-right: 3"><FONT size=2>- </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>SIM Green Tech Fund, L.P.<SUP>(26)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3"><FONT size=2>
    71,428</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3"><FONT size=2>*</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3"><FONT size=2>
    71,428</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3"><FONT size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3"><FONT size=2>-</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#E6EFFF>
    <p style="margin-left: 10"><FONT
      size=2>ZLP Master Opportunity Fund, Ltd.<SUP>(27)</SUP> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#E6EFFF>
    <p style="margin-right: 3"><FONT size=2>714,285</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#E6EFFF>
    <p style="margin-right: 3"><FONT size=2>*</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#E6EFFF>
    <p style="margin-right: 3"><FONT size=2>714,285</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#E6EFFF>
    <p style="margin-right: 3"><FONT size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%"
    bgColor=#E6EFFF>
    <p style="margin-right: 3"><FONT size=2>-</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2><B>TOTAL</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3"><FONT size=2><B>
    12,560,561</B></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=right width="10%">
    <p style="margin-right: 3">&nbsp;</TD></TR></TABLE>
<P align=center>12 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left >* </TD>
    <TD noWrap align=left width="95%">
      <P align=justify>Represents less than one percent of the outstanding
      common stock. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left >(1) </TD>
    <TD noWrap align=left width="95%">
      <P align=justify>All percentages are based on 78,647,776 shares of common
      stock issued and outstanding on March 18, 2010. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(2) </TD>
    <TD align=left width="95%">
      <P align=justify>This table assumes that each shareholder will sell all of
      its shares available for sale during the effectiveness of the registration
      statement that includes this prospectus. Shareholders are not required to
      sell their shares. See &#147;Plan of Distribution&#148; beginning on page 16.
  </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(3) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 154,580
      shares of common stock and 77,290 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Bershaw &amp;
      Co., which holds such securities in trust for this securityholder.
  </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(4) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 722
      shares of common stock and 361 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Bershaw &amp;
      Co., which holds such securities in trust for this securityholder.
  </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(5) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes
      4,504,144 shares of common stock and 1,740,822 shares of common stock
      acquirable upon exercise of warrants. The registered holder of the
      securities issued to this securityholder in the March 2010 private
      placement is Bershaw &amp; Co., which holds such securities in trust for
      this securityholder. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(6) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Paul Carbone is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder. This selling
      securityholder acquired the securities as compensation for activities
      relating to acting as a placement agent in the March 2010 private
      placement and is affiliated with a registered broker-dealer. Includes
      12,314 shares of common stock acquirable upon exercise of warrants.
  </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(7) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Tom Monahas is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder. This selling
      securityholder acquired the securities as compensation for activities
      relating to acting as a placement agent in the March 2010 private
      placement. In connection
      with the private placement, this securityholder only conducted activities
      relating to acting as a placement agent outside of the United States;
      activities relating to acting as a placement agent in the United States in
      the March 2010 private placement were conducted by registered
      broker-dealers. Includes 303,054 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued in
      the March 2010 private placement to this securityholder is NBCN INC.,
      which holds such securities in trust for this securityholder. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(8) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Downsview Capital, Inc. (&#147;Downsview&#148;) is the general partner of
      Cranshire Capital, L.P. (&#147;Cranshire&#148;) and consequently has voting control
      and investment discretion over securities held by Cranshire. Mitchell P.
      Kopin (&#147;Mr. Kopin&#148;), President of Downsview, has voting control over
      Downsview. As a result of the foregoing, each of Mr. Kopin and Downsview
      may be deemed to have beneficial ownership (as determined under Section
      13(d) of the Securities Exchange Act of 1934, as amended) of the shares of
      common stock beneficially owned by Cranshire. Includes 285,714 shares of
      common stock and 182,857 shares of common stock acquirable upon exercise
      of warrants. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(9) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Joanne Ferstman and Harold Wolkin are the natural persons with voting
      and dispositive power with respect to the common stock held by this securityholder. This selling securityholder acquired the securities as
      compensation for activities relating to acting as a placement agent in the
      March 2010 private placement and is a registered broker-dealer. In
      connection with the private placement, this securityholder only conducted
      activities relating to acting as a placement agent outside of the United
      States; activities relating to acting as a placement agent in the United
      States in the March 2010 private placement were conducted by registered
      broker-dealers. Includes 140,300 shares of common stock acquirable upon
      exercise of warrants. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(10) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Empery Asset Management LP, the authorized agent of Empery Asset
      Master Ltd (&#147;EAM&#148;), has discretionary authority to vote and dispose of the
      shares held by EAM and may be deemed to be the beneficial owner of these
      shares. Martin Hoe and Ryan Lane, in their capacity as investment managers
      of Empery Asset Management LP, may also be deemed to have investment
      discretion and voting power over the shares held by EAM. Mr. Hoe and Mr.
      Lane disclaim any beneficial ownership of these shares. Includes 238,095
      shares of common stock and 119,048 shares of common stock acquirable upon
      exercise of warrants. </P></TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="95%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >(11) </TD>
    <TD align=left width="95%">
      <P align=justify>Representatives of this securityholder have advised us
      that Arthur Richards Rule and Gretchen Carter are the natural persons with
      voting and dispositive power with respect to the common stock held by this
      securityholder. Representatives of this securityholder have advised us that this securityholder is an affiliate of a U.S.
      registered broker-dealer; however, this securityholder acquired the
      securities issued in the March 2010 private placement in the ordinary
      course of business and, at the time of the acquisition, had no agreements
      or understandings, directly or indirectly, with any person to distribute
      the securities. Includes 4,190,000 shares of common stock and 2,095,000
      shares of common stock acquirable upon exercise of warrants.
    </P></TD></TR></TABLE>
<P align=center>13 </P>
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style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(12) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Frank L. Mersch is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder.
      Includes 1,792,280 shares of common stock and 954,490 shares of common
      stock acquirable upon exercise of warrants. The registered holder of the
      securities issued in the March 2010 private placement to this
      securityholder is NBCN INC., which holds such securities in trust for this
      securityholder. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(13) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Peter Castellanos is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder.
      Includes 476,190 shares of common stock and 238,095 shares of common stock
      acquirable upon exercise of warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(14) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Empery Asset Management LP, the authorized agent of Hartz Capital
      Investments, LLC (&#147;HCI&#148;), has discretionary authority to vote and dispose
      of the shares held by HCI and may be deemed to be the beneficial owner of
      these shares. Martin Hoe and Ryan Lane, in their capacity as investment
      managers of Empery Asset Management LP, may also be deemed to have
      investment discretion and voting power over the shares held by HCI. Mr.
      Hoe and Mr. Lane disclaim any beneficial ownership of these shares.
      Includes 238,095 shares of common stock and 119,047 shares of common stock
      acquirable upon exercise of warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(15) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Sander Gerber shares voting and investment power over these
      securities. Sander Gerber disclaims beneficial ownership over the
      securities held by Hudson Bay Overseas Fund LTD. Includes 140,476 shares
      of common stock and 70,237 shares of common stock acquirable upon exercise
      of warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(16) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Sander Gerber shares voting and investment power over these
      securities. Sander Gerber disclaims beneficial ownership over the
      securities held by Hudson Bay Fund LP. Includes 97,619 shares of common
      stock and 48,810 shares of common stock acquirable upon exercise of
      warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(17) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 55,622
      shares of common stock and 24,111 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Jayvee &amp;
      Co., which holds such securities in trust for this securityholder.
  </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(18) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes
      1,292,669 shares of common stock and 495,784 shares of common stock
      acquirable upon exercise of warrants. The registered holder of the
      securities issued to this securityholder in the March 2010 private
      placement is Jayvee &amp; Co., which holds such securities in trust for
      this securityholder. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(19) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Joshua Silverman has voting and investment control over the shares
      held by Iroquois Master Fund Ltd. Mr. Silverman disclaims beneficial
      ownership of these shares. Includes 238,095 shares of common stock and
      119,047 shares of common stock acquirable upon exercise of warrants.
    </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(20) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 135,134
      shares of common stock and 51,617 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Jayvee &amp;
      Co., which holds such securities in trust for this securityholder.
  </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(21) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Paul H. Stephens, P. Bart Stephens and W. Bradford Stephens are the
      natural persons with voting and dispositive power with respect to the
      common stock held by this securityholder. Includes 714,285 shares of
      common stock and 357,142 shares of common stock acquirable upon exercise
      of warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(22) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Kyle D. Henderson is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder.
      Includes 422,600 shares of common stock and 200,000 shares of common stock
      acquirable upon exercise of warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(23) </TD>
    <TD>
      <P align=justify>Representatives of this securityholder have advised us
      that Ramius Advisors, LLC (&#147;Ramius Advisors&#148;) is the investment manager of
      Ramius Enterprise Master Fund Ltd (&#147;Ramius Enterprise&#148;) and consequently
      has voting control and investment discretion over securities held by
      Ramius Enterprise. Ramius Advisors disclaims beneficial ownership of these
      securities. Ramius LLC (&#147;Ramius&#148;) is the managing member of Ramius
      Advisors and may be considered the beneficial owner of any securities
      deemed to be beneficially owned by Ramius Advisors. Ramius disclaims
      beneficial ownership of these securities. Cowen Group, Inc. (&#147;Cowen&#148;) is
      the managing member of Ramius and may be considered the beneficial owner
      of any securities deemed to be beneficially owned by Ramius. Cowen
      disclaims beneficial ownership of these securities. RCG Holdings LLC (&#147;RCG
      Holdings&#148;) is a significant shareholder of Cowen and may be considered the
      beneficial owner of any securities deemed to be beneficially owned by
      Cowen. RCG Holdings disclaims beneficial ownership of these securities.
      C4S &amp; Co., L.L.C. (&#147;C4S&#148;) is the managing member of RCG Holdings and
      may be considered the beneficial owner of any securities deemed to be beneficially owned by RCG
      Holdings. C4S disclaims beneficial ownership of these securities. Peter A.
      Cohen, Morgan B. Stark, Thomas W. Strauss and Jeffrey M. Solomon are the
      sole managing members of C4S and may be considered beneficial owners of
      any securities deemed to be beneficially owned by C4S. Messrs. Cohen,
      Stark, Strauss and Solomon disclaim beneficial ownership of these
      securities. Representatives of Ramius Enterprise have advised us that
      Ramius Enterprise is an affiliate of a U.S. registered broker-dealer;
      however, Ramius Enterprise acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 238,095
      shares of common stock and 119,048 shares of common stock acquirable upon
      exercise of warrants. </P></TD></TR></TABLE>
<P align=center>14 </P>
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</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(24) </TD>
    <TD colSpan=2>
      <P align=justify>Representatives of this securityholder have advised us
      that RCG PB, Ltd (&#147;RCG PB&#148;) is the sole shareholder of Ramius Navigation
      Master Fund Ltd (&#147;Ramius Navigation&#148;) and may be considered the beneficial
      owner of any securities deemed to be beneficially owned by Ramius
      Navigation. RCG PB disclaims beneficial ownership of these securities.
      Ramius Advisors, LLC (&#147;Ramius Advisors&#148;) is the investment manager of
      Ramius Navigation and RCG PB and consequently has voting control and
      investment discretion over securities held by Ramius Navigation. Ramius
      Advisors disclaims beneficial ownership of these securities. Ramius LLC
      (&#147;Ramius&#148;) is the managing member of Ramius Advisors and may be considered
      the beneficial owner of any securities deemed to be beneficially owned by
      Ramium Advisors. Ramius disclaims beneficial ownership of these
      securities. Cowen Group, Inc. (&#147;Cowen&#148;) is the managing member of Ramius
      and may be considered the beneficial owner of any securities deemed to be
      beneficially owned by Ramius. Cowen disclaims beneficial ownership of
      these securities. RCG Holdings LLC (&#147;RCG Holdings&#148;) is a significant
      shareholder of Cowen and may be considered the beneficial owner of any
      securities deemed to be beneficially owned by Cowen. RCG Holdings
      disclaims beneficial ownership of these securities. C4S &amp; Co., L. L.C.
      (&#147;C4S&#148;) is the managing member of RCG Holdings and may be considered the
      beneficial owner of any securities deemed to be beneficially owned by RCG
      Holdings. C4S disclaims beneficial ownership of these securities. Peter A.
      Cohen, Morgan B. Stark, Thomas W. Strauss and Jeffrey M. Solomon are the
      sole managing members of C4S and may be considered beneficial owners of
      any securities deemed to be beneficially owned by C4S. Messrs. Cohen,
      Stark, Strauss and Solomon disclaim beneficial ownership of these
      securities. Representatives of Ramius Navigation have advised us that
      Ramius Navigation is an affiliate of a U.S. registered broker-dealer;
      however, Ramius Navigation acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 238,095
      shares of common stock and 119,047 shares of common stock acquirable upon
      exercise of warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(25) </TD>
    <TD colSpan=2>
      <P align=justify>Representatives of this securityholder have advised us
      that Eric J. Hansen is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder. This
      selling securityholder acquired the securities as compensation for
      activities relating to acting as a placement agent in the March 2010
      private placement and is a registered broker-dealer. Includes 147,771
      shares of common stock acquirable upon exercise of warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(26) </TD>
    <TD colSpan=2>
      <P align=justify>Representatives of this securityholder have advised us
      that Paul H. Stephens, P. Bart Stephens and W. Bradford Stephens are the
      natural persons with voting and dispositive power with respect to the
      common stock held by this securityholder. Includes 47,619 shares of common
      stock and 23,809 shares of common stock acquirable upon exercise of
      warrants. </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">
      <P align=justify>&nbsp;</P></TD>
    <TD>
      <P align=justify>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(27) </TD>
    <TD colSpan=2>
      <P align=justify>Representatives of this securityholder have advised us
      that Stuart Zimmer is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder. Includes
      476,190 shares of common stock and 238,095 shares of common stock
      acquirable upon exercise of warrants. </P></TD></TR></TABLE>
<P align=justify>Each of the selling stockholders, other than Dundee Securities
Corporation and RBC Capital Markets Corporation, has represented to us that it
is not a broker-dealer. Further, each of the selling stockholders has
represented to us that it is not affiliated with any broker-dealer in the United
States, other than AGF Canada Class, AGF Canada Fund, AGF Canadian Stock Fund,
Baird Financial Corporation, Exploration Capital
Partners 2005 Limited Partnership, IG AGF Canadian Growth Class, IG AGF Canadian
Growth Fund, Keystone Equity Fund, Ramius Enterprise Master Fund Ltd and Ramius
Navigation Master Fund Ltd, each of which is affiliated with a registered
broker-dealer in the United States. Except as otherwise provided in this
prospectus, none of the selling stockholders are affiliated or have been
affiliated with us, any of our predecessors or affiliates during the past three
years. </P>
<P align=justify><B>Transactions with Selling Stockholders </B></P>
<P align=justify>On March 16, 2010, we completed a private placement of
8,209,519 shares of common stock at a price of $1.05 per share and common stock
purchase warrants to acquire 4,104,757 shares of common stock, for gross
proceeds of $8,619,995. Each common stock purchase warrant entitles the holder
to acquire one common share of the Company at the exercise price of $1.25 per
share for a period beginning 6 months after the date of issuance and ending 66
months after the date of issuance. The sale of shares and warrant was pursuant
to the exemption from registration provided by Rule 506 of Regulation D
promulgated under the Securities Act of 1933, as amended. Upon completion of the
placement, the company had 78,647,776 shares issued and outstanding. </P>
<P align=justify>The Placement Agents were paid an aggregate cash fee of
$517,200 representing 6% of the aggregate gross proceeds from the offering, and
have been issued broker warrants to purchase up to 246,285 common shares of the
Company at $1.25 exercisable for a period beginning 6 months after the date of
issuance and ending 66 months after the date of issuance. We also agreed to
reimburse the Placement Agents for certain legal fees and out-of-pocket
expenses. </P>
<P align=center>15 </P>
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<P align=justify>In connection with the offering, we agreed to file a
registration statement with the Securities and Exchange Commission as soon as
practicable after closing and use best efforts to cause it to become effective
and remain effective until all securities covered by the registration statement
either have been sold, under the registration statement or pursuant to Rule 144
under the Securities Act of 1933, as amended, or may be sold without volume or
manner-of-sale restrictions pursuant to Rule 144, and without the requirement
for the Company to be in compliance with the current public information
requirement under Rule 144 or the Company is in compliance with the current
public information requirement under Rule 144. In the event the registration
statement is not effective by July 14, 2010, the purchasers are entitled to
receive as liquidated damages an amount in cash equal to 1% of the aggregate
purchase price paid by each purchaser upon the failure to be so effective and
upon the monthly anniversary of the failure to be so effective until the
registration statement is effective. </P>
<P align=justify>The net proceeds of the private placement will be used to
further develop its Neal Hot Springs geothermal project and for general working
capital purposes. </P>
<P align=justify>Clarus Securities Inc. and Dundee Securities Corporation acted
as two of the three agents in the August 2009 private placement. Collectively,
the agents in the August 2009 private placement were paid an aggregate cash fee
of Cdn$656,100 and were granted compensation options exchangeable on the
exchange date for broker warrants, which entitle the agents to purchase up to
243,000 shares of our common stock at $1.22 (the U.S. dollar equivalent of
Cdn$1.35 on August 17, 2009) exercisable for 24 months from the closing of the
August 2009 private placement. </P>
<P align=justify>Clarus Securities Inc. acted as one of the three underwriters
in the April 2008 private placement. Collectively, the underwriters in the April
2008 private placement were paid an aggregate cash fee of Cdn$854,932 and were
issued broker warrants to purchase up to 191,475 shares of common stock of the
Company at $2.34 exercisable for 24 months from the closing of the April 2008
private placement. </P>
<P align=justify>Dundee Securities Corporation acted as one of the three
underwriters in the June 2007 private placement. Collectively, the underwriters
in the June 2007 private placement were paid an aggregate cash fee of
Cdn$999,999 and were issued broker warrants to purchase up to 454,545 common
shares of the Company at $2.08 exercisable for 18 months. </P>
<P align=center><B>PLAN OF DISTRIBUTION </B></P>
<P align=justify>Each selling stockholder and any of their pledgees, assignees
and successors-in-interest may, from time to time, sell any or all of their
shares of common stock covered hereby on NYSE Amex or any other stock exchange,
market or trading facility on which the shares are traded or in private
transactions. These sales may be at fixed or negotiated prices. A selling
stockholder may use any one or more of the following methods when selling
shares:</P>
<UL>
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">ordinary brokerage transactions and transactions in which the
  broker-dealer solicits purchasers;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">block trades in which the broker-dealer will attempt to sell the shares as
  agent but may position and resell a portion of the block as principal to
  facilitate the transaction;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">purchases by a broker-dealer as principal and resale by the broker-dealer
  for its account;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">an exchange distribution in accordance with the rules of the applicable
  exchange;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">privately negotiated transactions;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">settlement of short sales entered into after the effective date of the
  registration statement of which this prospectus is a part;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">in transactions through broker-dealers that agree with the selling
  stockholders to sell a specified number of such shares at a stipulated price
  per share;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">through the writing or settlement of options or other hedging
  transactions, whether through an options exchange or otherwise;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">a combination of any such methods of sale; or
  <LI>
  <p style="margin-top: 0; margin-bottom: 12">any other method permitted pursuant to applicable law. </LI></UL>
<P align=center>16 </P>
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<P align=justify>The selling stockholders may also sell shares under Rule 144
under the Securities Act of 1933, as amended, if available, rather than under
this prospectus.</P>
<P align=justify>Broker-dealers engaged by the selling stockholders may arrange
for other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the selling stockholders (or, if any broker-dealer
acts as agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated, but, except as set forth in a supplement to this prospectus, in the
case of an agency transaction not in excess of a customary brokerage commission
in compliance with Rule 2440 of the Financial Industry Regulatory Authority,
Inc.; and in the case of a principal transaction a markup or markdown in
compliance with IM-2440 of the Financial Industry Regulatory Authority, Inc.
</P>
<P align=justify>In connection with the sale of the common stock or interests
therein, the selling stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the common stock in the course of hedging the positions they
assume. The selling stockholders may also sell shares of the common stock short
and deliver these securities to close out their short positions, or loan or
pledge the common stock to broker-dealers that in turn may sell these
securities. The selling stockholders may also enter into option or other
transactions with broker-dealers or other financial institutions or create one
or more derivative securities which require the delivery to such broker-dealer
or other financial institution of shares offered by this prospectus, which
shares such broker-dealer or other financial institution may resell pursuant to
this prospectus (as supplemented or amended to reflect such transaction).</P>
<P align=justify>The selling stockholders and any broker-dealers or agents that
are involved in selling the shares may be deemed to be &#147;underwriters&#148; within the
meaning of the Securities Act of 1933, as amended, in connection with such
sales. In such event, any commissions received by such broker-dealers or agents
and any profit on the resale of the shares purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act of 1933, as
amended. Each selling stockholder has informed the Company that it does not have
any written or oral agreement or understanding, directly or indirectly, with any
person to distribute their shares of common stock. In no event shall any
broker-dealer receive fees, commissions and markups which, in the aggregate,
would exceed eight percent (8%). </P>
<P align=justify>The Company is required to pay certain fees and expenses
incurred by the Company incident to the registration of the shares. The Company
has agreed to indemnify the selling stockholders against certain losses, claims,
damages and liabilities, including liabilities under the Securities Act of 1933,
as amended. </P>
<P align=justify>Because selling stockholders may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act of 1933, as amended, they will be
subject to the prospectus delivery requirements of the Securities Act of 1933,
as amended, including Rule 172 thereunder. The selling stockholders have advised
us that there is no underwriter or coordinating broker acting in connection with
the proposed sale of the resale shares by the selling stockholders.</P>
<P align=justify>We agreed to keep this prospectus effective until the earlier
of (i) the date on which the shares may be resold by the selling stockholders
without registration and without regard to any volume or manner-of-sale
limitations by reason of Rule 144, without the requirement for the Company to be
in compliance with the current public information under Rule 144 under the
Securities Act of 1933, as amended, or any other rule of similar effect
(assuming that the shares were at no time held by any affiliate of ours, and all
warrants are exercised by &#147;cashless exercise&#148; as provided in each of the
warrants) or (ii) all of the shares have been sold pursuant to this prospectus
or Rule 144 under the Securities Act of 1933, as amended, or any other rule of
similar effect. The resale shares will be sold only through registered or
licensed brokers or dealers if required under applicable state securities laws.
In addition, in certain states, the resale shares of common stock covered hereby
may not be sold unless they have been registered or qualified for sale in the
applicable state or an exemption from the registration or qualification
requirement is available and is complied with.</P>
<P align=justify>Under applicable rules and regulations under the Securities
Exchange Act of 1934, as amended, any person engaged in the distribution of the
resale shares may not simultaneously engage in market making activities with
respect to the common stock for the applicable restricted period, as defined in
Regulation M, prior to the commencement of the distribution. In addition, the
selling stockholders will be subject to applicable provisions of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder,
including Regulation M, which may limit the timing of purchases and sales of
shares of the common stock by the selling stockholders or any other person. We
will make copies of this prospectus available to the selling stockholders and
have informed them of the need to deliver a copy of this prospectus to each
purchaser at or prior to the time of the sale (including by compliance with Rule
172 under the Securities Act of 1933, as amended).</P>
<P align=center>17 </P>
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<P align=center><B>DESCRIPTION OF SECURITIES TO BE REGISTERED </B></P>
<P align=justify><B>Capital Stock</B></P>
<P align=justify>Under our Certificate of Incorporation, the total number of
shares of all classes of stock that we have authority to issue is 250,000,000,
consisting of 250,000,000 shares of common stock, with a par value of $0.001 per
share. As of December 31, 2009, there were 70,363,257 shares of our common stock
issued and outstanding. As of March 18, 2010, there were 78,647,776 shares of
our common stock issued and outstanding. Our common stock is traded on the
Toronto Stock Exchange under the symbol &#147;GTH&#148; and on the NYSE Amex under the
symbol &#147;HTM&#148;. The holders of common stock:</P>
<UL>
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">are entitled to one vote per share on each matter submitted to a vote of
  stockholders;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">have no cumulative voting rights, and, accordingly, the holders of a
  majority of the outstanding shares have the ability to elect all of the
  directors;
  <LI>
  <p style="margin-bottom: 12; margin-top:0" align="justify">have no preemptive or other rights to subscribe for shares; and
  <LI>
  <p align="justify" style="margin-top: 0; margin-bottom: 12">are entitled to such distributions as may be declared from time to time by
  the board of directors from funds legally available therefore, and upon
  liquidation are entitled to share ratably in the distribution of assets
  remaining after payment of liabilities. </LI></UL>
<P align=justify><B>Warrants</B></P>
<P align=justify>This registration statement does not register the resale of the
warrants, but does register for resale the shares of common stock issuable upon
exercise of the warrants including (i) up to 4,104,757 shares of our common
stock issuable upon the exercise of warrants at the exercise price of $1.25 per
share from September 16, 2010 until September 16, 2015, and (ii) up to 246,285
shares of our common stock issuable upon the exercise of compensation warrants
at the exercise price of $1.25 per share from September 16, 2010 until September
16, 2015.</P>
<P align=justify>The warrant provides that the warrant exercise price is subject
to adjustment from time to time if we (i) pay a stock dividend or otherwise make
a distribution or distributions on shares of our common stock or any other
equity or equity equivalent securities payable in shares of common stock, (ii)
subdivide outstanding shares of common stock into a larger number of shares,
(iii) combine (including by way of reverse stock split) outstanding shares of
common stock into a smaller number of shares or (iv) issue by reclassification
of shares of the common stock any shares of our capital stock. For example, if
we were to conduct a 4-for-1 stock split such that each outstanding share became
four shares of common stock, the exercise price of the warrant would be reduced
to one-quarter of the exercise price in effect immediately prior to the stock
split and the number of shares acquirable upon a subsequent exercise of the
warrant shall be multiplied by four. </P>
<P align=justify>If (i) we effect any merger or consolidation with or into
another person, (ii) we effect any sale, lease, license, assignment, transfer,
conveyance or other disposition of all or substantially all of our assets, (iii)
any purchase offer, tender offer or exchange offer is completed pursuant to
which holders of common stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted by the
holders of 50% or more of the outstanding common stock, (iv) we effect any
reclassification, reorganization or recapitalization of the common stock or any
compulsory share exchange pursuant to which the common stock is effectively
converted into or exchanged for other securities, cash or property, (v) we
consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) with another person whereby such other person acquires
more than 50% of the outstanding shares of common stock (not including any
shares of common stock held by the other person(s) making or party to, or
associated or affiliated with the other persons making or party to, such stock
or share purchase agreement or other business combination) (each a &#147;Fundamental
Transaction&#148;), then any warrant holder that exercises warrants after a
Fundamental Transaction will be entitled to receive, in lieu of the number of
shares of common stock to which the holder was previously entitled upon exercise
of the warrant, the aggregate number of shares that the holder would have been
entitled to receive as a result of the Fundamental Transaction as if the warrant
holder had been the holder of the number of shares of common stock to which the
warrant holder was entitled on the effective date of the Fundamental
Transaction. We are obligated to cause any successor entity in a Fundamental
Transaction in which we are not the survivor to assume in writing all of our
obligations under the terms of the warrants. </P>
<P align=center>18 </P>
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<P align=center><B>MARKET FOR COMMON EQUITY AND RELATED SECURITYHOLDER MATTERS
</B></P>
<P align=justify><B>Market Information and Holders </B></P>
<P align=justify>As of March 18, 2010, there were 78,647,776 shares of our
common stock issued and outstanding and 12,026,767 shares issuable upon exercise
of outstanding share purchase and broker warrants. On that date, there were
approximately 20,200 holders of record of shares of our common stock.</P>
<P align=justify>Our common stock is listed on the NYSE Amex under the symbol
&#147;HTM&#148; and the Toronto Stock Exchange under the symbol &#147;GTH&#148;. </P>
<P align=justify>The following table sets forth the high and low closing bid
prices for our common stock for the fiscal quarters indicated as reported on the
NYSE Amex and the Toronto Stock Exchange.</P>
<P align=justify><B>Period </B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1">
    <p style="margin-left: 10"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=center width="26%" colSpan=2 style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1"><FONT
      size=2><B>NYSE Amex</B> </FONT></TD>
    <TD noWrap align=center width="26%" colSpan=2 style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1"><FONT size=2><B>Toronto
      Stock Exchange</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="26%"
    colSpan=2><FONT size=2><B>(formerly the American Stock Exchange)</B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="26%"
    colSpan=2><FONT size=2><B>Cdn$</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2><B>High</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2><B>Low</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2><B>High</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2><B>Low</B> </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2><B>Fiscal year end March 31,
      2010</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    &nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left width="13%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left width="13%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="13%"
    bgColor=#e6efff><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>1<SUP>st </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>1.93 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>0.74 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>2.16 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>0.93 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
    bgColor=#e6efff>
    <p style="margin-left: 10"><FONT size=2>2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"
    bgColor=#e6efff><FONT size=2>1.75 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"
    bgColor=#e6efff><FONT size=2>1.14 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"
    bgColor=#e6efff><FONT size=2>1.87 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"
    bgColor=#e6efff><FONT size=2>1.34 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT
      size=2>3<SUP>rd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>1.74 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>1.45 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>1.91 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%"><FONT size=2>1.55 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=left bgcolor="#E6EFFF">
    <p style="margin-left: 10"><FONT size=2>4<SUP>th </SUP>Quarter
      (through March 18, 2010) </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>1.65 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>0.95 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>1.69 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1; border-top-style:solid; border-top-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>1.00 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT size=2><B>Fiscal year ended March 31,
      2009</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    &nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left width="13%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left width="13%"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="13%"><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left bgcolor="#E6EFFF">
    <p style="margin-left: 10"><FONT
      size=2>1<SUP>st </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>3.04 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>2.12 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>3.05 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>2.15 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT size=2>2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>2.95 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>1.30 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>2.81 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>1.45 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left bgcolor="#E6EFFF">
    <p style="margin-left: 10"><FONT
      size=2>3<SUP>rd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>1.82 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>0.33 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>1.92 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>0.46 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT size=2>4<SUP>th </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>1.16 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>0.60 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>1.40 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>0.76 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left bgcolor="#E6EFFF">
    <p style="margin-left: 10"><FONT size=2><B>Fiscal year ended March 31, 2008</B> </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left bgcolor="#E6EFFF">
    &nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
      width="13%" bgcolor="#E6EFFF"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left
      width="13%" bgcolor="#E6EFFF"><FONT size=2>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
      width="13%" bgcolor="#E6EFFF"><FONT size=2>&nbsp; </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT size=2>1<SUP>st </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>2.70 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>1.36 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>2.85 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>1.57 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left bgcolor="#E6EFFF">
    <p style="margin-left: 10"><FONT
      size=2>2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>3.10 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>1.85 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>3.27 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>1.99 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left>
    <p style="margin-left: 10"><FONT size=2>3<SUP>rd </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>4.78 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>2.56 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>4.75 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center width="13%"><FONT size=2>2.49 </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=left bgcolor="#E6EFFF">
    <p style="margin-left: 10"><FONT
      size=2>4<SUP>th </SUP>Quarter </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>4.09 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>2.07 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>4.05 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" noWrap align=center
      width="13%" bgcolor="#E6EFFF"><FONT size=2>2.00 </FONT></TD></TR></TABLE>
<P align=justify><B>Dividends </B></P>
<P align=justify>We have never declared any cash dividends with respect to our
common stock. Future payment of dividends is within the discretion of our Board
of Directors and will depend on our earnings, capital requirements, financial
condition and other relevant factors. Although there are no material
restrictions limiting, or that are likely to limit, our ability to pay dividends
on our common stock, we presently intend to retain future earnings, if any, for
use in our business and have no present intention to pay cash dividends on our
common stock. </P>
<P align=center>19 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_12></A>
<P align=center><B>LEGAL MATTERS </B></P>
<P align=justify>Certain legal matters in connection with the offering and the
validity of the common stock offered by this prospectus was passed upon for us
by Dorsey &amp; Whitney LLP.</P>
<P align=center><B>EXPERTS </B></P>
<P align=justify>The financial statements as of March 31, 2009, 2008 and 2007
incorporated by reference into this prospectus have been so included in reliance
on the report of BehlerMick PS, independent accountants, given on the authority
of said firm as experts in auditing and accounting.</P>
<P align=justify>The financial statements of Raft River Energy I, LLC as of
November 28, 2008 and November 30, 2007, and the results of its operations and
cash flows for the three years in the period ended November 28, 2008
incorporated in this prospectus by reference to U.S. Geothermal Inc.&#146;s Annual
Report on Form 10-K (Amendment No. 1) for the year ended March 31, 2009 have
been so incorporated in reliance on the report of PricewaterhouseCoopers LLP,
independent accountants, given on the authority of said firm as experts in
auditing and accounting.</P>
<P align=justify>Much of the information with respect to the geothermal resource
at the Raft River, Empire and Neal Hot Springs projects incorporated by
reference into this prospectus is derived from the reports of GeothermEx, Inc.,
Black Mountain Technology, and Teplow Geologic, respectively and has been
included in this prospectus upon the authority of that company as experts with
respect to the matters covered by the reports.</P>
<P align=center><B>INCORPORATION BY REFERENCE </B></P>
<P align=justify>The Securities and Exchange Commission allows us to
&#147;incorporate by reference&#148; information we file with it. This means that we can
disclose important information to you by referring you to those documents. Any
information we reference in this manner is considered part of this prospectus.
Information contained in this prospectus supersedes information incorporated by
reference that we have filed with the Securities and Exchange Commission prior
to the date of this prospectus.</P>
<P align=justify>We incorporate by reference the documents listed below, except
to the extent that any information contained in any such document is deemed
&#147;furnished&#148; in accordance with the rules of the Securities and Exchange
Commission: </P>
<UL>
  <LI>
  <p align="justify" style="margin-bottom: 12; margin-top:0">Our Annual Report on Form 10-K for the year ended March 31, 2009 filed on
  June 15, 2009 and as amended on October 23, 2009 and further amended on
  November 24, 2009;
  <LI>
  <p align="justify" style="margin-bottom: 12; margin-top:0">Our Quarterly Reports on Form 10-Q for the quarterly period ended June 30,
  2009 filed on August 10, 2009 and as amended on October 23, 2009, for the
  quarterly period ended September 30, 2009 filed on November 10, 2009, and for
  the quarterly period ended December 31, 2009 filed on February 9, 2010 and as
  amended on March 3, 2010;
  <LI>
  <p align="justify" style="margin-bottom: 12; margin-top:0">Our Current Reports on Form 8-K filed June 15, 2009, July 2, 2009, July
  31, 2009, August 17, 2009, October 21, 2009, November 4, 2009 (both 8-Ks filed
  on this date), December 16, 2009, December 21, 2009, and March 9, 2010 (as
  amended March 17, 2010);
  <LI>
  <p align="justify" style="margin-bottom: 12; margin-top:0">Our definitive proxy statement on Schedule 14A for our 2009 Annual Meeting
  of Stockholders filed with the Securities and Exchange Commission on November
  6, 2009, and the definitive additional materials on Schedule 14A filed on
  November 9, 2009 and November 13, 2009; and
  <LI>
  <p align="justify" style="margin-top: 0; margin-bottom: 12">The description of our common stock contained in our registration
  statement on Form 8-A filed on April 15, 2008 with the Securities and Exchange
  Commission under Section 12 of the Securities Exchange Act of 1934, as
  amended, including any amendment or report filed for purposes of updating such
  description. </LI></UL>
<P align=justify>We will provide to each person, including any beneficial owner,
to whom a prospectus is delivered, a copy of any or all of the reports or
documents that we incorporate by reference in this prospectus contained in the
registration statement (except exhibits to the documents that are not
specifically incorporated by reference) at no cost to you, by writing or calling
us at: </P>
<P align=center>U.S. Geothermal Inc. <BR>1505 Tyrell Lane <BR>Boise, ID 83706
<BR>208-424-1027 </P>
<P align=center>20 </P>
<HR align=center width="100%" color=black noShade SIZE=5>

<P align=center>Information about us is also available at our website at
http://www.usgeothermal.com. However, the information in our website is not a
part of this prospectus and is not incorporated by reference into this
prospectus. </P>
<P align=center>&nbsp;</P>
<P align=center>21 </P>
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<P align=center><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>
<P align=justify>We file annual, quarterly and current reports, proxy statements
and other information with the Securities and Exchange Commission. Our
Securities and Exchange Commission filings are available to the public over the
Internet at the Securities and Exchange Commission&#146;s web site at
http://www.sec.gov. You may also read and copy any document we file with the
Securities and Exchange Commission at its public reference rooms at: </P>
<P align=center>100 F Street, N.E. <BR>Room 1580 <BR>Washington, D.C. 20549 </P>
<P align=justify>You may call the Securities and Exchange Commission at
1-800-SEC-0330 for more information on the public reference rooms and their copy
charges. This prospectus is part of a registration statement and, as permitted
by Securities and Exchange Commission rules, does not contain all of the
information included in the registration statement. Whenever a reference is made
in this prospectus to any of our contracts or other documents, the reference may
not be complete and, for a copy of the contract or document, you should refer to
the exhibits that are part of the registration statement.</P>
<P align=center><B>DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR
SECURITIES ACT LIABILITIES </B></P>
<P align=justify>Section 145 of the Delaware General Corporation Law (the
&#147;Delaware Law&#148;) authorizes a court to award, or a corporation&#146;s board of
directors to grant, indemnity to directors and officers in terms sufficiently
broad to permit such indemnification under certain circumstances for
liabilities, (including reimbursement for expenses incurred) arising under the
Securities Act of 1933. Article XII of the Certificate of Incorporation of U.S.
Geothermal Inc. (&#147;we&#148;, &#147;us&#148; or &#147;our company&#148;) provides for indemnification of
officers, directors and other employees of U.S. Geothermal to the fullest extent
permitted by Delaware Law. Article XIII of the Certificate of Incorporation
provides that directors shall not be personally liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except (i) for any breach of a director&#146;s duty of loyalty to our company or our
stockholders, (ii) acts and omissions that are not in good faith or that involve
intentional misconduct or knowing violation of law, (iii) under Section 174 of
the Delaware Law, or (iv) for any transaction from which the director derived
any improper benefit. </P>
<P align=justify>Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant
has been information that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.</P>
<P align=center>22 </P>
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<P align=center><B>U.S. GEOTHERMAL INC. <BR>12,560,561 shares of <BR>Common
Stock </B></P>
<p align="center"><IMG src="part3x3x1.jpg" border=0 width="564" height="134"> <BR>
</p>
<P align=center><B>________________________<BR><BR>PROSPECTUS
<BR>________________________</B></P>
<P align=center>&nbsp;&nbsp;</P>
<P align=center><B>The date of this prospectus is , 2010 </B></P>
<P align=center>&nbsp;</P>
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<P align=center><B>PART II <BR>INFORMATION NOT REQUIRED IN PROSPECTUS </B></P>
<P align=justify><B>Item 13. Other Expenses of Issuance and
Distribution.</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Securities and Exchange Commission
      Registration Fee* </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;973.13 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Legal Fees and Expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">75,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accounting Fees and Expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>20,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Miscellaneous Expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">4,000
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;99,973.13 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=justify>* All expenses other than the registration fee and filing fee
are estimates. </P>
<P align=justify><B>Item 14. Indemnification of Directors and Officers</B></P>
<P align=justify>Section 145 of the Delaware General Corporation Law (the
&#147;Delaware Law&#148;) authorizes a court to award, or a corporation&#146;s board of
directors to grant, indemnity to directors and officers in terms sufficiently
broad to permit such indemnification under certain circumstances for
liabilities, (including reimbursement for expenses incurred) arising under the
Securities Act of 1933. Article XII of the Certificate of Incorporation of U.S.
Geothermal Inc. (&#147;we&#148;, &#147;us&#148; or &#147;our company&#148;) provides for indemnification of
officers, directors and other employees of U.S. Geothermal to the fullest extent
permitted by Delaware Law. Article XIII of the Certificate of Incorporation
provides that directors shall not be personally liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except (i) for any breach of a director&#146;s duty of loyalty to our company or our
stockholders, (ii) acts and omissions that are not in good faith or that involve
intentional misconduct or knowing violation of law, (iii) under Section 174 of
the Delaware Law, or (iv) for any transaction from which the director derived
any improper benefit. </P>
<P align=justify>Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended, may be permitted to our directors, officers
or controlling persons pursuant to the foregoing provisions, or otherwise, we
have been advised that in the opinion of the Securities and Exchange Commission
this indemnification is against public policy as expressed in the Securities Act
of 1933, as amended, and is, therefore, unenforceable. </P>
<P align=justify><B>Item 15. Recent Sales of Unregistered Securities </B></P>
<P align=justify>A. On March 16, 2010, we completed a private placement of
securities issued pursuant to a securities purchase agreement entered into with
several institutional investors, pursuant to which the Company issued 8,209,519
shares of common stock at a price of $1.05 per share for gross proceeds of
approximately $8.6 million. Pursuant to the terms of the private placement, each
investor was also issued a common share purchase warrant exercisable for 50% of
the number of shares of common stock purchased by the investor. After deducting
for fees and expenses, the net proceeds are approximately $8.0 million. The
securities were issued in reliance on exemptions from registration pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;),
and Rule 506 of Regulation D thereunder. Each of the investors has represented
to the Company that it is an &#147;accredited investor&#148; as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act.</P>
<P align=justify>RBC Capital Markets Corporation served as lead placement agent
and Clarus Securities Inc., Dundee Securities Corporation and Baird acted as
co-agents. The Company paid commissions to agents in connection with the private
placement in the amount of approximately $517,200 and issued warrants to
purchase up to 246,285 shares of common stock on the same terms as the warrants
issued to the investors. The Company also agreed to reimburse the agents for
certain legal fees and out-of-pocket expenses. </P>
<P align=justify>Each warrant is exercisable at $1.25 per share for a period of
five years beginning six months after the closing of the private placement.
However, under certain specified circumstances, the warrants may be exercised by
means of a &#147;cashless exercise.&#148; The warrants have customary provisions for the
adjustment to the exercise price based on certain stock dividends, stock splits
and certain types of fundamental transactions such as mergers and asset sales.
</P>
<P align=justify>In connection with the private placement, we also entered into
a registration rights agreement with the investors. </P>
<P align=justify>Pursuant to the registration rights agreement, the Company has
agreed to file a registration statement covering the resale of the shares of
common stock issued to investors in the private placement, including the shares
of common stock issuable upon exercise of the warrants. The registration rights
agreement also extends to the shares of common stock issuable upon the exercise
of the warrants issued to the agents as a portion of their commissions in the
private placement. Pursuant to the registration rights agreement, the Company
has agreed to file an initial registration statement with the Securities and Exchange Commission within 30
calendar days of the closing of the private placement and to use its best
efforts to cause such registration statement to become effective within 120 days
of the closing, or it will be subject to certain liquidated damages provisions
(described below). The Company has also agreed to file and keep continuously
effective the resale registration statement or any additional registration
statements until all of the shares of common stock and the shares of common
stock issuable upon exercise of the warrants registered thereunder have been
sold or may be sold without volume restrictions pursuant to Rule 144 of the
Securities Act.</P>
<P align=center>II-1 </P>
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<P align=justify>If, among other things, (i) the Company fails to file the
initial registration statement within the prescribed period or (ii) any
registration statement that we file is not declared effective within 120
calendar days of the required filing date or (iii) upon the occurrence of
certain other specified events, the Company has agreed to pay to each investor,
as partial liquidated damages, an amount in cash equal to 1% of the aggregate
purchase price paid by each such investor upon the occurrence of such event and
upon the monthly anniversary of the event date until cured. The maximum
aggregate liquidated damages payable to an investor will not exceed 10% of the
aggregate purchase price paid by such investor. Notwithstanding the foregoing,
liquidated damages shall not be payable for any period during which the shares
of commons stock may be sold without volume restrictions pursuant to Rule 144 of
the Securities Act.</P>
<P align=justify>B. On August 17, 2009 we completed a private placement of
8,100,000 subscription receipts at a price of Cdn$1.35 per subscription receipt
for an aggregate gross proceeds of Cdn$10,935,000. On December 17, 2009, each
subscription receipt was automatically exchanged, without additional
consideration, for one unit of our Company. Each unit consists of one share of
our common stock and one-half of a common stock purchase warrant. Each whole
common share purchase warrant entitles the holder to acquire one share of our
common stock for $1.75 for 24 months from the closing of the private placement.
The exchange date for the subscription receipts was the date that was the
earlier of the date on which a receipt for a final prospectus is issued in
Canada qualifying the distribution of the common stock and warrants issuable
upon exercise of the subscription receipts and the date which is four months and
one day after the closing date of the private placement (being December 17,
2009). </P>
<P align=justify>The offer and sale of the subscription receipts was made to a
limited number of &#147;accredited investors&#148; as defined in Rule 501(a) of Regulation
D with no general solicitation or general advertising, and was exempt from
registration under the Securities Act pursuant to Rule 506 of Regulation D.</P>
<P align=justify>Dundee Securities Corporation, Clarus Securities Inc., and Toll
Cross Securities Inc., the agents for the private placement, were paid an
aggregate cash fee of Cdn$656,100, representing 6% of the aggregate gross
proceeds of the private placement. We granted the agents compensation options
exchangeable on the exchange date for broker warrants. The broker warrants
entitle the agents to purchase up to 243,000 shares of our common stock at $1.22
(the U.S. dollar equivalent of Cdn$1.35 on August 17, 2009). The issuance of
these securities was exempt from registration pursuant to Rule 506 of Regulation
D. </P>
<P align=justify>In connection with the private placement, we agreed to file a
resale registration statement with the Securities and Exchange Commission as
soon as practicable following closing of the private placement and to use
commercially reasonable efforts to cause it to become effective and remain
effective until the earlier of two years after the closing date of the private
placement, and the date on which all of the shares of our common stock offered
by this prospectus have been publicly sold by the selling securityholders. If
the registration statement has not become effective by February 17, 2010, or at
any time on or after February 17, 2010 that the registration statement is not
usable, the warrants will be exercisable into common stock pursuant to a net
exercise right until such time as the registration statement is effective or
usable, as applicable. The net exercise right allows the holder to exercise the
warrants on a cashless basis by paying the exercise price in shares of common
stock.</P>
<P align=justify>The proceeds of the private placement will be used for drilling
and exploration at Neal Hot Springs and for general working capital.</P>
<P align=justify>C. On April 28, 2008, the Company completed a private placement
of 6,382,500 units at a price of Cdn$2.35 per unit for aggregate gross proceeds
to the Company of Cdn$14,998,875. Each unit consisted of one share of common
stock of the Company and one-half of a common stock purchase warrant. Each whole
common share purchase warrant entitles the holder to acquire one share of common
stock of the Company for $3.00 for 24 months from closing. The sale of the
shares was pursuant to the exemption from registration provided under Rule 501
of Regulation D, promulgated under the Securities Act.</P>
<P align=center>II-2 </P>
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<P align=justify>Clarus Securities Inc., Toll Cross Securities Inc., and Loewen
Ondaatje McCutcheon Limited, the underwriters for the private placement, were
paid an aggregate cash fee of Cdn$854,932, representing 6% of the aggregate
gross proceeds of the private placement, less $45,000, and were issued broker
warrants to purchase up to 191,475 shares of common stock of the Company at
$2.34 exercisable for 24 months from the closing of the private placement. </P>
<P align=justify>In connection with the private placement, the Company agreed to
file a registration statement with the Securities and Exchange Commission as
soon as practicable following closing and use commercially reasonable efforts to
cause it to become effective and remain effective for two years. The
registration statement became effective on September 11, 2008. The proceeds of
the private placement were used to complete the acquisition of assets from
Empire Geothermal Power LLC, and for working capital and general corporate
purposes. </P>
<P align=justify>D. In April 2008, the Company negotiated to reduce an existing
third party royalty from 12.5% to 1.75% of the gross power plant revenue
associated with the existing production wells under a primary geothermal lease.
In exchange, we issued 290,000 shares of our common stock to the lessor, The
Kosmos Company on May 1, 2008. The shares were not registered under the
Securities Act, in reliance on an exemption from registration provided by
Section 4(2) of the Securities Act.</P>
<P align=justify>E. On June 5, 2007, the Company completed a private placement
of 9,090,900 shares of common stock at a price of Cdn$2.20 per share, for gross
proceeds to the company of Cdn$19,999,980. The sale of shares was pursuant to
the exemption from registration provided under Rule 506 of Regulation D,
promulgated under the Securities Act. </P>
<P align=justify>Cormark Securities Inc., Dundee Securities Corporation, and
Toll Cross Securities Inc., the underwriters for the private placement, were
paid an aggregate cash fee of Cdn$999,999, representing 5% of the aggregate
gross proceeds from the private placement, and were issued broker warrants to
purchase up to 454,545 common shares of the Company at $2.08 exercisable for 18
months.</P>
<P align=justify>The proceeds of the private placement will be used for the
ongoing development and exploration at their Raft River and Neal Hot Springs
projects, and for general corporate working capital purposes.</P>
<P align=center>II-3 </P>
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<P align=justify><B>Item 16. Exhibits and Financial Statement Schedules </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>(a) Exhibits</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left ><B>EXHIBIT</B>
      <BR><B>NUMBER</B> </TD>
    <TD vAlign=bottom noWrap align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >3.1 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Certificate of Incorporation of U.S. Cobalt Inc. (now
      known as U.S. Geothermal Inc.) (Incorporated by reference to Exhibit 3.1
      to the registrant&#146;s Form SB-2 registration statement as filed on July 8,
      2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >3.2 </TD>
    <TD align=left width="90%">
      <P align=justify>Certificate of Domestication of Non-U.S. Corporation
      (Incorporated by reference to Exhibit 3.2 to the registrant&#146;s Form SB-2
      registration statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >3.3 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Certificate of Amendment of Certificate of Incorporation
      (changing name of U.S. Cobalt Inc. to U.S. Geothermal Inc.) (Incorporated
      by reference to Exhibit 3.3 to the registrant&#146;s Form SB-2 registration
      statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >3.4 </TD>
    <TD align=left width="90%">
      <P align=justify>Certificate of Amendment to the Certificate of
      Incorporation of U.S. Geothermal Inc. as filed on August 26, 2008
      (Incorporated by reference to Exhibit 3.1 to the registrant&#146;s Form 8-K as
      filed on August 27, 2008) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >3.5 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>First Amended and Restated Bylaws of U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 3.4 to the registrant&#146;s report on
      Form 8-K as filed on November 4, 2009) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >4.1 </TD>
    <TD align=left width="90%">
      <P align=justify>Form of Stock Certificate (Incorporated by reference to
      Exhibit 4.1 to the registrant&#146;s Form SB-2 registration statement as filed
      on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >4.2 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Provisions Regarding Rights of Stockholders (Incorporated
      by reference to Exhibit 4.3 to the registrant&#146;s Form SB-2 registration
      statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >4.3 </TD>
    <TD align=left width="90%">
      <P align=justify>Form of Securities Purchase Agreement used in private
      placement of March 2010 (Incorporated by reference to Exhibit 10.1 to the
      registrant&#146;s Form 8-K as filed on March 9, 2010) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >4.4 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Form of Registration Rights Agreement used in private
      placement of March 2010 (Incorporated by reference to Exhibit 10.2 to the
      registrant&#146;s Form 8-K as filed on March 9, 2010) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >4.5 </TD>
    <TD align=left width="90%">
      <P align=justify>Form of Warrant used in private placement of March 2010
      (Incorporated by reference to Exhibit 10.3 to the registrant&#146;s Form 8-K as
      filed on March 9, 2010) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><a href="exhibit5-1.htm">5.1 </a> </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify><a href="exhibit5-1.htm">Opinion of Dorsey &amp; Whitney LLP
      </a> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.1 </TD>
    <TD align=left width="90%">
      <P align=justify>Agreement between U.S. Geothermal Inc. and Vulcan Power
      Company dated December 3, 2002 regarding the acquisition of the Vulcan
      interest (Incorporated by reference to Exhibit 10.1 to the registrant&#146;s
      Form SB-2 registration statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.2 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Amendment No. 1 dated November 15, 2003 to Agreement
      between U.S. Geothermal Inc. and Vulcan Power Company (Incorporated by
      reference to Exhibit 10.2 to the registrant&#146;s Form SB-2 registration
      statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.3 </TD>
    <TD align=left width="90%">
      <P align=justify>Amendment No. 2 dated December 30, 2003 to Agreement
      between U.S. Geothermal Inc. and Vulcan Power Company (Incorporated by
      reference to Exhibit 10.3 to the registrant&#146;s Form SB-2 registration
      statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.4 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Geothermal Lease and Agreement dated July 11, 2002,
      between Sergene Jensen, Personal Representative of the Estate of Harlan B.
      Jensen, and U.S. Geothermal Inc. (Incorporated by reference to Exhibit
      10.5 to the registrant&#146;s Form SB-2 registration statement as filed on July
      8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.5 </TD>
    <TD align=left width="90%">
      <P align=justify>Geothermal Lease and Agreement dated June 14, 2002,
      between Jensen Investments Inc. and U.S. Geothermal Inc. (Incorporated by
      reference to Exhibit 10.6 to the registrant&#146;s Form SB-2 registration statement as filed on July 8, 2004)
    </P></TD></TR></TABLE>
<P align=center>II-4 </P>
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<p style="margin-top: 0; margin-bottom: 0"><A name=page_8></A><BR>
</p>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left ><B>EXHIBIT</B>
      <BR><B>NUMBER</B> </TD>
    <TD vAlign=bottom noWrap align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.6 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Geothermal Lease and Agreement dated March 1, 2004,
      between Jay Newbold and U.S. Geothermal Inc. (Incorporated by reference to
      Exhibit 10.7 to the registrant&#146;s Form SB-2 registration statement as filed
      on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.7 </TD>
    <TD align=left width="90%">
      <P align=justify>Geothermal Lease and Agreement dated June 28, 2003,
      between Janice Crank and the children of Paul Crank and U.S. Geothermal Inc. (Incorporated by
      reference to Exhibit 10.8 to the registrant&#146;s Form SB-2 registration
      statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >10.8 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">
      <P align=justify>Geothermal Lease and Agreement dated December 1, 2004,
      between Reid S. Stewart and Ruth O. Stewart and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.9 to the registrant&#146;s Amendment
      No. 2 to Form SB-2 registration statement as filed on January 10, 2005)
      </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.9 </TD>
    <TD align=left width="90%">
      <P align=justify>Geothermal Lease and Agreement dated July 5, 2005,
      between Bighorn Mortgage Corporation and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.11 to the registrant&#146;s Form
      10-QSB quarterly report as filed on February 17, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >10.10 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">
      <P align=justify>Geothermal Lease and Agreement dated June 23, 2005, among
      Dale and Ronda Doman and U.S. Geothermal Inc. (Incorporated by reference
      to Exhibit 10.13 to the registrant&#146;s Form 10-QSB quarterly report as filed
      on February 17, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.11 </TD>
    <TD align=left width="90%">
      <P align=justify>Geothermal Lease and Agreement dated June 23, 2005, among
      Michael and Cleo Griffin, Harlow and Pauline Griffin, Douglas and Margaret
      Griffin, Terry and Sue Griffin, Vincent and Phyllis Jorgensen, and Alice
      Mae Griffin Shorts, and U.S. Geothermal Inc. (Incorporated by reference to
      Exhibit 10.14 to the registrant&#146;s Form 10-QSB quarterly report as filed on
      February 17, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >10.12 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">
      <P align=justify>Geothermal Lease and Agreement dated January 25, 2006,
      between Philip Glover and U.S. Geothermal Inc. (Incorporated by reference
      to Exhibit 10.9 to the registrant&#146;s Form 10-QSB quarterly report as filed
      on February 17, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.13 </TD>
    <TD align=left width="90%">
      <P align=justify>Geothermal Lease and Agreement dated May 24, 2006,
      between JR Land and Livestock Inc. and US Geothermal Inc. (Incorporated by
      reference to Exhibit 10.30 to the registrant&#146;s Form 10-KSB annual report
      as filed on June 29, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >10.14 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">
      <P align=justify>Employment Agreement dated January 1, 2009, with Kerry D.
      Hawkley (Incorporated by reference to Exhibit 10.16 to the registrant&#146;s
      Form 10-K annual report as filed on June 15, 2009) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.15 </TD>
    <TD align=left width="90%">
      <P align=justify>Employment Agreement dated January 1, 2009, with Douglas
      J. Glaspey (Incorporated by reference to Exhibit 10.16 to the registrant&#146;s
      Form 10-K annual report as filed on June 15, 2009) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >10.16 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">
      <P align=justify>Escrow Agreement made December 19, 2003, among U.S.
      Geothermal Inc., Pacific Corporate Trust Company, as escrow agent, and
      certain security holders (Incorporated by reference to Exhibit 10.15 to
      the registrant&#146;s Form SB-2 registration statement as filed on July 8,
      2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.17 </TD>
    <TD align=left width="90%">
      <P align=justify>Escrow Agreement made December 19, 2003, among U. S.
      Geothermal Inc., Pacific Corporate Trust Company, as escrow agent, and
      certain security holders (Incorporated by reference to Exhibit 10.16 to
      the registrant&#146;s Form SB-2 registration statement as filed on July 8,
      2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >10.18 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">
      <P align=justify>First Amended and Restated Merger Agreement dated
      November 30, 2003, among U.S. Cobalt Inc., EverGreen Power Inc., U.S.
      Geothermal Inc., and the stockholders of U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.17 to the registrant&#146;s Form SB-2
      registration statement as filed on July 8, 2004) </P></TD></TR></TABLE>
<P align=center>II-5 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left ><B>EXHIBIT</B>
      <BR><B>NUMBER</B> </TD>
    <TD vAlign=bottom noWrap align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.19 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Agreement with Dundee Securities Corporation dated June
      28, 2004 (Incorporated by reference to Exhibit 10.18 to the registrant&#146;s
      Form SB-2 registration statement as filed on July 8, 2004) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.20 </TD>
    <TD align=left width="90%">
      <P align=justify>Amended and Restated Stock Option Plan of U.S. Geothermal
      Inc. dated September 29, 2006 (Incorporated by reference to Exhibit 10.23
      to the registrant&#146;s Form SB-2 registration statement as filed on October
      2, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.21 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Power Purchase Agreement dated December 29, 2004 between
      U.S. Geothermal Inc. and Idaho Power Company (Incorporated by reference to
      Exhibit 10.19 to the registrant&#146;s Amendment No. 2 to Form SB-2
      registration statement as filed on January 10, 2005) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.22 </TD>
    <TD align=left width="90%">
      <P align=justify>Engineering, Procurement and Construction Agreement dated
      December 5, 2005 between U.S. Geothermal Inc. and Ormat Nevada Inc.
      (Incorporated by reference to Exhibit 10.28 to the registrant&#146;s Form
      10-QSB quarterly report as filed on February 17, 2006) * </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.23 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Amendment to the Engineering, Procurement and
      Construction Agreement dated April 26, 2006 between U.S. Geothermal Inc.
      and Ormat Nevada Inc. (Incorporated by reference to Exhibit 99.1 to the
      registrant&#146;s Form 8-K as filed on May 2, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.24 </TD>
    <TD align=left width="90%">
      <P align=justify>Letter of Intent from Eugene Water and Electric Board to
      U.S. Geothermal Inc. dated February 22, 2006 (Incorporated by reference to
      Exhibit 10.27 to the registrant&#146;s Form SB-2 as filed on September 29,
      2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.25 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Renewable Energy Credits Purchase and Sales Agreement
      dated July 29, 2006, between Holy Cross Energy and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.28 to the registrant&#146;s Form SB-2
      as filed on September 29, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.26 </TD>
    <TD align=left width="90%">
      <P align=justify>Transmission Agreement dated June 24, 2005, between
      Department of Energy&#146;s Bonneville Power Administration - Transmission
      Business Line and U.S. Geothermal Inc. (Incorporated by reference to
      Exhibit 10.27 to the registrant&#146;s Form 10-QSB quarterly report as filed on
      August 12, 2005) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.27 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Interconnection and Wheeling Agreement dated March 9,
      2006, between Raft River Rural Electric Co-op and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.28 to the registrant&#146;s Form
      10-KSB annual report as filed on June 29, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.28 </TD>
    <TD align=left width="90%">
      <P align=justify>Construction Contract dated May 16, 2006, between Raft
      River Rural Electric Co-op and U.S. Geothermal Inc. (Incorporated by
      reference to Exhibit 10.31 to the registrant&#146;s Form SB-2 as filed on
      September 29, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.29 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Membership Admission Agreement dated August 9, 2006,
      among Raft River Energy I LLC, U.S. Geothermal Inc., and Raft River I
      Holdings, LLC (Incorporated by reference to Exhibit 10.1 to the
      registrant&#146;s Form 8-K as filed on August 23, 2006) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.30 </TD>
    <TD align=left width="90%">
      <P align=justify>Amended and Restated Operating Agreement of Raft River
      Energy I LLC, dated as of August 9, 2006, among Raft River Energy I LLC,
      Raft River I Holdings, LLC and U.S. Geothermal Inc (Incorporated by
      reference to Exhibit 10.33 to the registrant&#146;s Form 10-Q as filed on
      August 10, 2009) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.31 </TD>
    <TD align=left width="90%" bgColor=#e6efff>
      <P align=justify>Management Services Agreement dated as of August 9, 2006,
      between Raft River Energy I LLC and U.S. Geothermal Services, LLC
      (Incorporated by reference to Exhibit 10.31 to the registrant&#146;s Form
      10-K/A as filed on October 23, 2009) </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >10.32 </TD>
    <TD align=left width="90%">
      <P align=justify>Construction Contract dated May 22, 2006, between
      Industrial Builders and U.S. Geothermal Inc. (Incorporated by reference to Exhibit 10.31 to
      the registrant&#146;s Form 10-KSB annual report as filed on June 29, 2006) </P></TD></TR></TABLE>
<P align=center>II-6 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left ><B>EXHIBIT</B>
      <BR><B>NUMBER</B> </TD>
    <TD vAlign=bottom noWrap align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.33 </TD>
    <TD align=left width="90%" bgColor=#e6efff>First Amendment to the Amended
      and Restated Operating Agreement of Raft River Energy I LLC dated as of
      November 7, 2006, among Raft River Energy I LLC, Raft River I Holdings,
      LLC and U.S. Geothermal Inc. (Incorporated by reference to Exhibit 10.36
      to the registrant&#146;s Form 10-Q as filed on August 10, 2009) </TD></TR>
  <TR vAlign=top>
    <TD align=left ><a href="exhibit10-34.htm">10.34 </a> </TD>
    <TD align=left width="90%"><a href="exhibit10-34.htm">Geothermal Lease and Agreement dated August 1,
      2007, between Bureau of Land Management and U.S. Geothermal Inc. </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.35 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Asset Purchase Agreement dated
      as of March 31, 2008, between U.S. Geothermal Inc., and Empire Geothermal
      Power LLC and Michael B. Stewart (Incorporated by reference as Exhibit
      99.1 to the registrant&#146;s Form 8-K current report as filed on April 7,
      2008) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.36 </TD>
    <TD align=left width="90%">Underwriting Agreement dated April 28, 2008,
      between U.S. Geothermal Inc. and Clarus Securities Inc., Toll Cross
      Securities Inc. and Loewen Ondaatje McCutcheon Limited (Incorporated by
      reference to Exhibit 10.1 to the registrant&#146;s Form 8-K current report as
      filed on May 2, 2008) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.37 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Agency Agreement dated August
      17, 2009, among U.S. Geothermal Inc., Dundee Securities Corporation,
      Clarus Securities Inc. and Toll Cross Securities Inc. (Incorporated by
      reference to Exhibit 10.42 to the registrant&#146;s Form S-1 registration
      statement as filed on November 27, 2009) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.38 </TD>
    <TD align=left width="90%">Water Rights Purchase Agreement dated March 31,
      2008, between Michael B. Stewart and U.S. Geothermal Inc. (Incorporated by
      reference as Exhibit 99.2 to the registrants Form 8-K current report as
      filed on April 7, 2008) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.39 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Employment Agreement dated
      January 1, 2009 with Daniel J. Kunz (Incorporated by reference to Exhibit
      10.15 to the registrant&#146;s Form 10-Q quarterly report as filed on August
      10, 2009) </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.40 </TD>
    <TD align=left width="90%">2009 Stock Incentive Plan of U.S. Geothermal
      Inc. (Incorporated by reference to Appendix A to the registrant&#146;s Schedule
      14A definitive proxy statement as filed on November 6, 2009) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.41 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Power Purchase Agreement dated
      as of December 11, 2009, between Idaho Power Company and USG Oregon LLC
      (Incorporated by reference to Exhibit 10.43 to the Company&#146;s Form 10-Q
      quarterly report as filed on February 9, 2010) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.42 </TD>
    <TD align=left width="90%">Power Purchase and Sale Agreement, dated as of
      February 2008, between Eugene Water &amp; Electric Board and U.S.
      Geothermal Inc. (Incorporated by reference to Exhibit 10.42 to the
      registrant&#146;s Form 10-Q/A quarterly report as filed on March 3, 2010)
</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.43 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Long Term Agreement For the
      Purchase and Sale of Electricity, dated December 31, 1986, between Sierra
      Pacific Power Company and Empire Farms, as amended (Incorporated by
      reference to Exhibit 10.43 to the registrant&#146;s Form 10-Q/A quarterly
      report as filed on March 3, 2010) </TD></TR>
  <TR vAlign=top>
    <TD align=left >21.1 </TD>
    <TD align=left width="90%">Subsidiaries of the Registrant (Incorporated by
      reference as Exhibit 21.1 to the registrant&#146;s Form 10- K as filed on June
      15, 2009) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><a href="exhibit23-1.htm">23.1 </a> </TD>
    <TD align=left width="90%" bgColor=#e6efff><a href="exhibit23-1.htm">Consent of BehlerMick PS
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left ><a href="exhibit23-2.htm">23.2 </a> </TD>
    <TD align=left width="90%"><a href="exhibit23-2.htm">Consent of PricewaterhouseCoopers LLP</a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><a href="exhibit23-3.htm">23.3 </a> </TD>
    <TD align=left width="90%" bgColor=#e6efff><a href="exhibit23-3.htm">Consent of GeothermEx, Inc.
    </a>
  </TD></TR>
  <TR vAlign=top>
    <TD align=left ><a href="exhibit23-4.htm">23.4 </a> </TD>
    <TD align=left width="90%"><a href="exhibit23-4.htm">Consent of Teplow Geologic
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><a href="exhibit23-5.htm">23.5 </a> </TD>
    <TD align=left width="90%" bgColor=#e6efff><a href="exhibit23-5.htm">Consent of Black Mountain
      Technology </a> </TD></TR></TABLE>
<P align=center>II-7 </P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left ><B>EXHIBIT</B>
      <BR><B>NUMBER</B> </TD>
    <TD vAlign=bottom noWrap align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><a href="exhibit5-1.htm">23.6 </a> </TD>
    <TD align=left width="90%" bgColor=#e6efff><a href="exhibit5-1.htm">Consent of Dorsey &amp; Whitney
      LLP (Included in Exhibit 5.1) </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left ><a href="#POWER OF ATTORNEY">24.1 </a> </TD>
    <TD align=left width="90%"><a href="#POWER OF ATTORNEY">Powers of Attorney (Included in the Signature
      Pages of this Registration Statement) </a> </TD></TR></TABLE>
<P align=justify><B>Item 17. Undertakings. </B></P>
<P align=justify style="text-indent: 2%">(a) The undersigned registrant hereby undertakes:</P>
<P align=justify style="text-indent: 4%">(1) To file, during any period in which offers or sales of
securities are being made, a post-effective amendment to this registration
statement: </P>
<P align=justify style="text-indent: 8%">(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933; </P>
<P align=justify style="text-indent: 8%">(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of
the estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148;
table in the effective registration statement. </P>
<P align=justify style="text-indent: 8%">(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement; </P>
<P align=justify style="text-indent: 4%">(2) That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof. </P>
<P align=justify style="text-indent: 4%">(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering. </P>
<P align=justify style="text-indent: 4%">(4) That, for the purpose of determining liability under the
Securities Act of 1933 to any purchaser, </P>
<P align=justify style="text-indent: 6%">(A) Each prospectus filed by a registrant pursuant to Rule
424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration
statement; and </P>
<P align=justify style="text-indent: 4%">(5) If the registrant is subject to Rule 430C, each prospectus
filed pursuant to Rule 424(b) as part of a registration statement relating to an
offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and
included in the registration statement as of the date it is first used after
effectiveness. <I>Provided, however</I>, that no statement made in a
registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use. </P>
<P align=justify style="text-indent: 2%">(b) The undersigned registrant hereby undertakes to deliver or
cause to be delivered with the prospectus, to each person to whom the prospectus
is sent or given, the latest annual report to security holders that is
incorporated by reference in the prospectus and furnished pursuant to and
meeting the requirements of Rule 14a-3 or Rule 14c-3 under the Securities
Exchange Act of 1934; and, where interim financial information required to be
presented by Article 3 of Regulation S-X are not set forth in the prospectus, to
deliver, or cause to be delivered to each person to whom the prospectus is sent
or given, the latest quarterly report that is specifically incorporated by
reference in the prospectus to provide such interim financial information. </P>
<P align=center>II-8 </P>
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<P align=justify style="text-indent: 2%">(c) Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the Commission
such indemnification is against public policy as expressed in the Securities Act
of 1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the claim has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities
Act of 1933 and will be governed by the final adjudication of such issue. </P>
<P align=center>II-9 </P>
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<P align=center><B>SIGNATURES </B></P>
<P align=justify>Pursuant to the requirements of the Securities Act of 1933, the
registrant has duly caused this registration statement to be signed on its
behalf by the undersigned thereunto duly authorized in the City of Boise, State
of Idaho, on March 26, 2010. </P>
<P style="MARGIN-LEFT: 50%" align=justify><B>U.S. Geothermal Inc.
<BR></B>(Registrant) </P>
<P style="MARGIN-LEFT: 50%" align=justify><U>By: /s/ Kerry D.
Hawkley&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</U>&nbsp;<BR>Kerry D. Hawkley <BR>Chief Financial Officer <BR>(Principal
Financial and Accounting Officer) </P>
<P align=center><B><a name="POWER OF ATTORNEY">POWER OF ATTORNEY </a> </B></P>
<P align=justify>Each person whose signature appears below constitutes and
appoints each of Daniel Kunz, Douglas Glaspey and Kerry Hawkley his
attorney-in-fact and agent, with the full power of substitution and
resubstitution and full power to act without the other, for them in any and all
capacities, to sign any and all amendments, including post-effective amendments,
and any registration statement relating to the same offering as this
registration that is to be effective upon filing pursuant to Rule 462(b) under
the Securities Act of 1933, as amended, to this registration statement, and to
file the same, with exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, hereby ratifying and
confirming all that said attorneys-in-fact, or their substitute or substitutes,
may do or cause to be done by virtue hereof.</P>
<P align=justify>Pursuant to the requirements of the Securities Act of 1933,
this registration statement has been signed by the following persons in the
capacities and on the dates indicated: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Name</B> </TD>
    <TD align=left width="33%"><B>Title</B> </TD>
    <TD align=left width="33%"><B>Date</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>&nbsp; &nbsp; &nbsp; &nbsp;/s/ Daniel J.
      Kunz&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;</U></TD>
    <TD align=left width="33%">Chief Executive Officer, President and Director
    </TD>
    <TD align=left width="33%">March 26, 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Daniel J. Kunz </TD>
    <TD align=left width="33%">(Principal Executive Officer) </TD>
    <TD align=left width="33%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>&nbsp; &nbsp; &nbsp; &nbsp;/s/ Kerry D.
      Hawkley&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </U>&nbsp;</TD>
    <TD align=left width="33%">Chief Financial Officer (Principal Financial
      and </TD>
    <TD align=left width="33%">March 26, 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Kerry D. Hawkley </TD>
    <TD align=left width="33%">Accounting Officer) </TD>
    <TD align=left width="33%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>&nbsp; &nbsp; &nbsp; &nbsp;/s/ Douglas J.
      Glaspey&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </U>&nbsp;</TD>
    <TD align=left width="33%">Chief Operating Officer and Director </TD>
    <TD align=left width="33%">March 26, 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Douglas J. Glaspey </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=left width="33%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>&nbsp; &nbsp; &nbsp; &nbsp;/s/ John H.
      Walker&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </U>&nbsp;</TD>
    <TD align=left width="33%">Chairman and Director </TD>
    <TD align=left width="33%">March 26, 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>John H. Walker </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=left width="33%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>&nbsp; &nbsp; &nbsp; &nbsp;/s/ Paul A.
      Larkin&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </U>&nbsp;</TD>
    <TD align=left width="33%">Director </TD>
    <TD align=left width="33%">March 26, 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Paul A. Larkin </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=left width="33%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="33%">&nbsp; </TD>
    <TD width="33%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><U>&nbsp; &nbsp; &nbsp; &nbsp;/s/ Leland R.
      Mink&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;</TD>
    <TD align=left width="33%">Director </TD>
    <TD align=left width="33%">March 26, 2010 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Leland R. Mink </TD>
    <TD align=left width="33%">&nbsp; </TD>
    <TD align=left width="33%">&nbsp; </TD></TR></TABLE>
<P align=center>II-10 </P>
<HR align=center width="100%" color=black noShade SIZE=5>


</BODY>

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{"company-data": {"conformed-name": "US GEOTHERMAL INC", "cik": "0001172136", "assigned-sic": "4911", "irs-number": "841472231", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-165728", "film-number": "10707683"}, "business-address": {"street1": "1505 TYRELL LANE", "city": "BOISE", "state": "ID", "zip": "83706", "phone": "208-424-1027"}, "mail-address": {"street1": "1505 TYRELL LANE", "city": "BOISE", "state": "ID", "zip": "83706"}}
U.S. Geothermal Inc.: Form S-1 - Filed by newsfilecorp.com
As filed with the Securities and Exchange Commission on March 26, 2010  
Registration Statement No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
__________________
U.S. Geothermal Inc.
(Exact name of Registrant as specified in its charter)
Delaware
4911
84-1472231
(State or jurisdiction of
(Primary Standard Industrial
(I.R.S. Employee Identification
No.)
incorporation or organization)
Classification Code Number)
1505 Tyrell Lane
(208) 424-1027
Boise, Idaho 83706
(Registrant's telephone number,
(Address of principal executive
offices)
including area code)
Daniel J. Kunz
Chief Executive Officer
1505 Tyrell Lane
Boise, Idaho 83706
(208) 424-1027
(Name, address and telephone number of agent for service)
__________________
Copy to
:
Christopher J. Barry
Kimberley R. Anderson
Dorsey & Whitney LLP
701 Fifth Avenue, Suite 6100
Seattle, WA 98104
(206) 903-8800
__________________
Approximate date of commencement of proposed sale to the public
: From time to time after the effective date of this Registration Statement.
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following box.
[X]
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. [   ]
If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [   ]
If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [   ]
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of "large accelerated filer,"
"accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large accelerated filer [   ]
Accelerated filer  [X]
Non-accelerated filer
[  
    ]
(Do not check if a smaller
      reporting company)
Smaller reporting company [  
    ]
CALCULATION OF REGISTRATION FEE
Amount to
Amount of
Title of Each Class of
be
Proposed Maximum
Proposed Maximum
Registration
Securities to be Registered
Registered
Offering Price Per Share
Aggregate Offering
    Price
Fee
Common stock to be offered for
      resale by the selling securityholders, $0.001 par value
8,209,519
$ 1.00
(1)
$ 8,209,519
$ 585.34
Common stock acquirable upon the exercise of
      warrants
4,104,757
$ 1.25
(2)
$ 5,130,946
$ 365.84
Common stock acquirable upon
      the exercise of compensation warrants
246,285
$ 1.25
(3)
$   307,856
$   21.95
Total
12,560,561
$ 973.13
(1)
Estimated solely for the purpose of calculating the amount of the
      registration fee pursuant to Rule 457(c) under the Securities Act of 1933,
      as amended. The price per share is based on the average of the high and
      low prices reported on the NYSE Amex for shares of the registrant's common
      stock on March 23, 2010.
(2)
Consisting of up to 4,104,757 shares of common stock issuable upon the
      exercise of warrants issued in a private placement that closed on March
      16, 2010. Each whole warrant is exercisable at an exercise price of
      US$1.25 per share for a period beginning 6 months after March 16, 2010 and
      ending 66 months after March 16, 2010. Estimated pursuant to Rule 457(g)
      under the Securities Act of 1933, as amended, solely for the purposes of
      calculating the registration fee, based on the exercise price of US$1.25
      per share.
(3)
Consisting of up to 246,285 shares of common stock issuable upon the
      exercise of compensation warrants granted to the placement agents in a
      private placement that closed on March 16, 2010. Each whole compensation
      warrant is exercisable at an exercise price of US$1.25 per share for a
      period beginning 6 months after March 16, 2010 and ending 66 months after
      March 16, 2010. Estimated pursuant to Rule 457(g) under the U.S.
      Securities Act of 1933, as amended, solely for the purposes of calculating
      the registration fee, based on the exercise price of US$1.25 per share.
__________________
The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically states that this
Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933, as amended, or until this
Registration Statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.
The information in this prospectus is not complete and may be
changed. We may not sell these securities until the Securities and Exchange
Commission declares our registration statement effective. This prospectus is not
an offer to sell these securities and is not soliciting an offer to buy these
securities in any state where the offer or sale is not permitted.
Subject to completion, dated March 26, 2010
Preliminary Prospectus
U.S. GEOTHERMAL INC.
12,560,561 shares of Common Stock
This is a public offering of up to 12,560,561 shares of the common stock, par value $0.001 per share, of U.S. Geothermal Inc., ("we," "us," or "our company"), by selling stockholders listed beginning on page 11 of
this prospectus. All of the shares being offered, when sold, will be sold by selling stockholders. The shares of common stock registered for resale under this registration statement includes:
up to 8,209,519 shares of common stock held by the selling stockholders described herein;
up to 4,104,757 shares of our common stock acquirable upon the exercise of common stock purchase warrants at the exercise price of $1.25 per share for a period beginning 6 months after the date of issuance and ending 66 months after the date of
issuance; and
up to 246,285 shares of our common stock issuable to the underwriters pursuant to compensation warrants granted by the Company in the private placement at the exercise price of $1.25 per share for a period beginning 6 months after the date of
issuance and ending 66 months after the date of issuance.
The shares of common stock and common stock purchase warrants were sold by us in a private placement in March 2010. We will not receive any proceeds from the sale of the shares by the selling stockholders, however, if the warrants are exercised on
a cash basis we will receive the exercise price of the warrants, if exercised at all. We will pay the expenses of registering the shares sold by the selling stockholders. See "Selling Stockholders" beginning on page 11 for a list of the
selling stockholders.
These shares of common stock were registered to permit the selling stockholders to sell the shares from time to time, in amounts and at prices and on terms determined at the time of the offering. The selling stockholders may sell the shares of our
common stock covered by this prospectus in a number of different ways and at prevailing market prices or privately negotiated transactions. We provide more information about how the selling stockholders may sell the shares in the section entitled
"Plan of Distribution" beginning on page 16 of this prospectus.
You should read this prospectus and any prospectus supplement, as well as the documents incorporated or deemed to be incorporated by reference in this prospectus, carefully before you invest.
Our common stock is quoted on the NYSE Amex under the symbol "HTM" and on the Toronto Stock Exchange under the symbol "GTH." On March 25, 2010 the last reported sale price for our common stock on each exchange was $0.99
and CDN$1.00 per share, respectively.
Investing in our common stock involves a high degree of risk. See "Risk Factors" beginning on page
4 of this prospectus.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal
offense.
The date of this prospectus is ________, 2010
TABLE OF CONTENTS
Page
SUMMARY INFORMATION
1
RISK FACTORS
4
SPECIAL NOTE REGARDING
      FORWARD-LOOKING STATEMENTS
10
USE OF PROCEEDS
11
SELLING STOCKHOLDERS
11
PLAN OF DISTRIBUTION
16
DESCRIPTION OF SECURITIES TO BE
      REGISTERED
18
MARKET FOR COMMON EQUITY AND RELATED SECURITYHOLDER
      MATTERS
19
LEGAL MATTERS
20
EXPERTS
20
INCORPORATION BY REFERENCE
20
WHERE YOU CAN FIND MORE INFORMATION
22
DISCLOSURE OF COMMISSION POSITION ON
      INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
22
You should rely only on the information contained in this
prospectus. We have not authorized anyone to provide you with information
different from that contained in this prospectus. The distribution or possession
of this prospectus in or from certain jurisdictions may be restricted by law.
This prospectus is not an offer to sell these securities and is not soliciting
an offer to buy these securities in any jurisdiction where the offer or sale is
not permitted or where the person making the offer or sale is not qualified to
do so or to any person to whom it is not permitted to make such offer or sale.
The information contained in this prospectus is accurate only as of the date of
this prospectus, regardless of the time of delivery of this prospectus or of any
sale of our common stock. Our business, financial condition, results of
operations and prospects may have changed since that date.
i
SUMMARY INFORMATION
The Offering
This is an offering of up to 12,560,561 shares
      of our common stock by certain selling stockholders.
Shares Offered By the Selling Stockholders
12,560,561 shares of common stock,
      $0.001 par value per share.
(1)
Offering Price
Determined at the time of sale by the
      selling stockholders
Common Stock Outstanding
as of March 18, 2010
78,647,776
(2)
Use of Proceeds
We will not receive any of the proceeds of the
      shares offered by the selling stockholders. We may receive proceeds from
      the exercise of the warrants upon exercise, if they are exercised. The
      shares that will be resold under this prospectus were sold by us, or were
      issued upon the exercise of warrants granted by us. The funds that we
      raised through the sale of those shares were used for general working
      capital.
Dividend Policy
We currently intend to retain any future
      earnings to fund the development and growth of our business. Therefore, we
      do not currently anticipate paying cash dividends.
Trading Symbols
NYSE AMEX: HTM; TSX: GTH
(1)
In connection with the private placement, we agreed to file a
      registration statement with the Securities and Exchange Commission no
      later than 30 days after closing of the private placement and use best
      efforts to cause it to become effective and remain effective until all
      securities covered by the registration statement either have been sold,
      under the registration statement or pursuant to Rule 144 under the
      Securities Act of 1933, as amended, or may be sold without volume or
      manner-of-sale restrictions pursuant to Rule 144, and without the
      requirement for the Company to be in compliance with the current public
      information requirement under Rule 144 or the Company is in compliance
      with the current public information requirement under Rule 144.
(2)
Outstanding common stock excludes approximately 5,729,875 shares of
      common stock acquirable upon exercise of options at exercise prices
      ranging from $0.90 to $2.41 per share and 12,026,767 shares of common
      stock acquirable upon exercise of common stock purchase warrants at
      exercise prices ranging from $1.22 to $3.00.
Summary of Our Business
U.S. Geothermal Inc. ("our Company" or "we" or "us" or similar
references) is in the renewable "green" energy business. Through our subsidiary,
U.S. Geothermal Inc., an Idaho corporation ("Geo-Idaho," although references to
our Company include and refer to our operations through Geo-Idaho), we are
engaged in the acquisition, development and utilization of geothermal resources
in the Western Region of the United States of America. Geothermal energy is the
natural heat energy stored within the earth's crust. In some areas of the earth,
economic concentrations of heat energy result from a combination of geological
conditions that allow water to penetrate into hot rocks at depth, become heated,
and then circulate to a near surface environment. In these settings,
commercially viable extraction of the geothermal energy and its conversion to
electricity become possible and a "geothermal resource" is present.
Please carefully read both this prospectus and any prospectus
supplement together with the additional information described below under "Where
You Can Find More Information." Our principal corporate and executive offices
are located at 1505 Tyrell Lane, Boise, Idaho 83706. Our telephone number is
208-424-1027. We maintain a website at www.usgeothermal.com. Information
contained on our website is not part of this prospectus.
1
The Offering
We are registering for resale shares of our common stock held by the selling stockholders listed in this prospectus. The selling stockholders acquired the securities in the following transaction.
On March 16, 2010, we completed a private placement of 8,209,519 shares of common stock at a price of $1.05 per share and common stock purchase warrants to acquire 4,104,757 shares of common stock, for gross proceeds of $8,619,995. Each
common stock purchase warrant entitles the holder to acquire one common share of the Company at the exercise price of $1.25 per share for a period beginning 6 months after the date of issuance and ending 66 months after the date of issuance.
Under the terms of the registration rights agreement entered into as part of the offering, we agreed to file a registration statement with the Securities and Exchange Commission and use best efforts to cause it to become effective no later than 30
days following closing and to remain effective until all securities covered by the registration statement either have been sold, under the registration statement or pursuant to Rule 144 under the Securities Act of 1933, as amended, or may be sold
without volume or manner-of-sale restrictions pursuant to Rule 144, and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144 or the Company is in compliance with the current
public information requirement under Rule 144. The registration statement of which this prospectus is a part registers 12,560,561 of our shares of common stock of which 8,209,519 are currently outstanding and 4,351,042 shares of common stock
acquirable upon the exercise of the warrants and the compensation warrants issued in connection with the offering for a period beginning 6 months after the date of issuance and ending 66 months after the date of issuance. In the event the
registration statement is not effective by July 14, 2010, the purchasers are entitled to receive as liquidated damages an amount in cash equal to 1% of the aggregate purchase price paid by each purchaser upon the failure to be so effective and upon
the monthly anniversary of the failure to be so effective until the registration statement is effective.
We paid RBC Capital Markets Corporation, Clarus Securities Inc., Dundee Securities Corporation and Robert W. Baird & Co. (collectively, the "Placement Agents") a cash commission of $517,200, representing 6% of the gross proceeds of
the offering and compensation warrants entitling the Placement Agents to purchase 246,285 shares of common stock of the Company at $1.25 exercisable for a period beginning 6 months after the date of issuance and ending 66 months after the date
of issuance. We also agreed to reimburse the Placement Agents for certain legal fees and out-of-pocket expenses.
The net proceeds of the private placement will be used to further develop its Neal Hot Springs geothermal project and for general working capital purposes.
2
Summary Financial Information
For the Fiscal Years Ended
      March 31,
2009
2008
2007
2006
2005
Operating Revenues
$
2,336,202
$
190,721
$
117,809
$
0
$
0
Operating Expenses
7,660,868
4,568,871
3,035,833
1,663,069
1,751,530
Loss from Continuing Operations
(5,187,754
)
(3,314,473
)
(1,812,945
)
(1,490,593
)
(1,830,421
)
Loss per share from Continuing Operations
(0.08
)
(0.06
)
(0.04
)
(0.09
)
(0.12
)
Cash dividends declared and
      paid per common share
0
0
0
0
0
As of March 31,
2009
2008
2007
2006
2005
Total Assets
$
52,451,343
$
40,731,585
$
22,673,340
$
21,895,933
$
2,584,970
Total Long-term Obligations (1)
1,972,200
1,975,672
2,533,858
1,707,548
0
(1)
Long-term obligations represent the fair value of stock options to be
      exercised by officers, directors, employees and consultants of the
      Company. These obligations were recorded as a liability since the option
      exercise price was stated in Canadian dollars, subjecting the Company and
      the employee to foreign currency exchange risk in addition to the normal
      market price fluctuation risk. In addition, beginning in the year ended
      March 31, 2009, the long-term portion of an equipment lease is included in
      long-term obligations.
Loss per
Net Loss
share from
from
Continuing
Operating
Gross
Loss from
Continued
Operations
Revenues
Profit
Operations
Operations
Fiscal Year Ended March 31, 2007
1
st
Quarter
$
(0.01
)
$
0
$
0
$
(961,777
)
$
(372,486
)
2
nd
Quarter
(0.01
)
206
206
(746,292
)
(680,021
)
3
rd
Quarter
(0.01
)
90,000
90,000
(610,310
)
(338,278
)
4
th
Quarter
(0.01
)
27,603
27,603
(599,645
)
(422,160
)
Fiscal Year Ended March 31, 2008
1
st
Quarter
(0.01
)
0
0
(607,501
)
(323,415
)
2
nd
Quarter
(0.02
)
28
28
(1,348,069
)
(1,016,462
)
3
rd
Quarter
(0.01
)
1,103
1,103
(1,123,605
)
(826,907
)
4
th
Quarter
(0.02
)
189,590
189,590
(1,298,975
)
(1,147,689
)
Fiscal Year Ended March 31, 2009
1
st
Quarter
(0.03
)
461,712
461,712
(1,793,720
)
(1,736,263
)
2
nd
Quarter
(0.02
)
827,610
827,610
(1,322,529
)
(1,272,182
)
3
rd
Quarter
(0.01
)
545,224
545,224
(930,305
)
(904,848
)
4
th
Quarter
(0.02
)
501,656
501,656
(1,278,112
)
(1,274,461
)
Fiscal Year End March 31, 2010
1
st
Quarter
(0.03
)
394,567
394,567
(1,834,075
)
(1,809,175
)
2
nd
Quarter
(0.02
)
734,622
734,622
(1,156,554
)
(1,125,681
)
3rd
      Quarter
(0.02
)
731,315
731,315
(1,449,421
)
(1,399,946
)
3
RISK FACTORS
General Business Risks
Our future performance depends on our ability to establish that the geothermal resource is economically sustainable.
Geothermal resource exploration and development involves a high degree of risk. The recovery of the amounts shown for
geothermal properties and related deferred costs on our financial statements, as well as the execution of our business plan generally, is dependent upon the existence of economically recoverable and sustainable reserves. Expansion of the production
of power from our interests is not certain and depends on successful drilling and discovery of additional geothermal hydrothermal resources in quantities and containing sufficient heat necessary to economically fuel future plants.
We have a need for substantial additional financing and will have to significantly delay, curtail or cease operations if we are unable to secure such financing.
The Company requires substantial additional financing to fund the cost of
continued development of the Neal Hot Springs (Oregon), San Emidio, Gerlach, and Granite Creek Ranch (Nevada) projects and the repower of Raft River Unit I. Also, the Company requires funds for other operating activities, and to finance the growth
of our business, including the construction and commissioning of power generation facilities. We may not be able to obtain the needed funds on terms acceptable to us or at all. Further, if additional funds are raised by issuing equity securities,
significant dilution to our current stockholders may occur and new investors may get rights that are preferential to current stockholders. Alternatively, we may have to bring in joint venture partners to fund further development work, which would
result in reducing our interests in the projects.
We may be unable to obtain the financing we need to pursue our growth strategy in the geothermal power production segment, which may adversely affect our ability to expand our operations.
When we identify a geothermal property that we may
seek to acquire or to develop, a substantial capital investment will be required. Our continued access to capital, through project financing or through a partnership or other arrangements with acceptable terms is necessary for the success of our
growth strategy. Our attempts to secure the necessary capital may not be successful on favorable terms, or at all.
Market conditions and other factors may not permit future project and acquisition financings on terms favorable to us. Our ability to arrange for financing on favorable terms, and the costs of such financing, are dependent on numerous factors,
including general economic and capital market conditions, investor confidence, the continued success of current projects, the credit quality of the projects being financed, the political situation in the state in which the project is located and the
continued existence of tax laws which are conducive to raising capital. If we are unable to secure capital through partnership or other arrangements, we may have to finance the projects using equity financing which will have a dilutive effect on our
common stock. Also, in the absence of favorable financing or other capital options, we may decide not to build new plants or acquire facilities from third parties. Any of these alternatives could have a material adverse effect on our growth
prospects and financial condition.
We may not be able to fully develop the geothermal resource within the Raft River Unit I joint venture boundaries which would increase development costs for Raft River Unit II and result in delays.
Raft River Unit II is currently anticipated
to be located within the Raft River Unit I joint venture boundaries. Without the agreement and consent of our Raft River Unit I joint-venture partner, Raft River Holdings, we cannot fully develop the geothermal resource within the Raft River Unit I
joint venture boundaries without incurring increased development costs and delays.
It is very costly to place geothermal resources into commercial production.
Before the sale of any power can occur, it will be necessary to construct a gathering and disposal system, a power plant, and a transmission line, and considerable
administrative costs would be incurred, together with the drilling of additional wells. For Raft River Energy Unit I, capital contributions of approximately $52.1 million were needed. Future expansion of power production at Raft River, Idaho and
San Emidio, Nevada and development of new power production capability at Neal Hot Springs may result in significantly increased capital costs related to increased production and injection well drilling and higher costs for labor and materials. To
fund expenditures of this magnitude, we may have to find a joint venture participant with substantial financial resources. There can be no assurance that a participant can be found and, if found, it would result in us having to substantially reduce
our interest in the project.
We may be unable to realize our strategy of utilizing the tax and other incentives available for developing geothermal power projects to attract strategic alliance partners, which may adversely affect our ability to complete these projects.
Part of our business strategy is to utilize the tax and other incentives available to developers of geothermal power generating plants to attract strategic alliance partners with the capital sufficient to complete these projects. Many of the
incentives available for these projects are new and highly complex. There can be no assurance that we will be successful in structuring agreements that are attractive to potential strategic alliance
partners. If we are unable to do so, we may be unable to complete the development of our geothermal power projects and our business could be harmed.
4
Our participation in the joint venture is subject to risks relating to working with a co-venturer.
Raft River Energy I LLC is the Unit I project joint venture company with Raft River I Holdings, LLC, a subsidiary of The Goldman Sachs Group
Inc. Raft River I Holdings, LLC has contributed a total of $34.2 million in cash and we have contributed over $16.4 million in cash and approximately $1.5 million in production and injection wells and geothermal leases to Raft River
Energy I LLC. We are subject to risks in working with a co-venturer that could adversely impact Unit I of the Raft River project as well as anticipated development of Raft River Unit II. We anticipate that the Raft River Unit II power plant may
utilize the geothermal resource within the Raft River Unit I joint venture boundaries. Further, our contribution to the joint venture may exceed returns from the joint venture, if any.
We are a holding company and our revenues depend substantially on the performance of our subsidiaries and the projects they operate.
We are a holding company whose primary assets are our ownership of the equity interests in our subsidiaries.
We conduct no other business and, as a result, we depend entirely upon our subsidiaries' earnings and cash flow. Our subsidiaries and projects may be restricted in their ability to pay dividends, make distributions or otherwise transfer funds
to us prior to the satisfaction of other obligations, including the payment of operating expenses or debt service.
We may have to pay liquidated damages to our investors in the March 2010 private placement if the registration is not effective by July 14, 2010 or under certain other circumstances.
In connection with the March 2010 private placement
described above, we entered into a Registration Rights Agreement. Under the terms of the Registration Rights Agreement, if a registration statement relating to the shares covered by this prospectus is not declared effective by the SEC within the
time periods specified in the Registration Rights Agreement or, after having been declared effective, is not available (with certain limited exceptions), then we are required to pay the investors, as liquidated damages, 1.0% of the amount invested
for each 30-day period during which such failure continues until the shares are sold or can be sold without restriction under Rule 144. As of the date of this prospectus, no liquidated damages have accrued. There can be no assurance that the
registration statement of which this prospectus is a part will be declared or will remain effective by the SEC for the time periods necessary to avoid payment of liquidated damages.
We may not be able to manage our growth due to the commencement of operations of the Raft River and San Emidio power plants and exploration activities in Neal Hot Springs which could negatively impact our operations and financial condition.
Significant growth in our operations will place demands on our operational, administrative and financial resources, and the increased scope of our operations will present challenges to us due to increased management time and resources required and
our existing limited staff. Our future performance and profitability will depend in part on our ability to successfully integrate the operational, financial and administrative functions of Raft River and San Emidio and other acquired properties into
our operations, to hire additional personnel and to implement necessary enhancements to our management systems to respond to changes in our business. There can be no assurance that we will be successful in these efforts. Our inability to manage the
increased scope of operations, to integrate acquired properties, to hire additional personnel or to enhance our management systems could have a material adverse effect on our results of operations.
If we incur material debt to fund our business, we could face significant risks associated with such debt levels.
We will need to procure significant additional financing to construct, commission and operate our power plants in order to
generate and sell electricity. If this financing includes the issuance of material amounts of debt, this would expose the Company to risks including, among others, the following:
a portion of our cash flow from operations would be used for the payment of principal and interest on such indebtedness and would not be available for financing capital expenditures or other purposes;
a significant level of indebtedness and the covenants governing such indebtedness could limit our flexibility in planning for, or reacting to, changes in our business because certain activities or financing options may be limited or prohibited under
the terms of agreements relating to such indebtedness;
a significant level of indebtedness may make us more vulnerable to defaults by the purchasers of electricity or in the event of a downturn in our business because of fixed debt service obligations; and
the terms of agreements may require us to make interest and principal payments and to remain in compliance with stated financial covenants and ratios. If the requirements of such agreements were not
satisfied, the lenders could be entitled to accelerate the payment of all outstanding indebtedness and foreclose on the collateral securing payment of that indebtedness, which would likely include our interest in the project.
5
In such event, we cannot assure you that we would have sufficient funds available or could obtain the financing required to meet our obligations, including the repayment of outstanding principal and interest on such indebtedness.
We may not be able to successfully integrate companies that we may acquire in the future, which could materially and adversely affect our business, financial condition, future results and cash flow.
Our strategy is to continue to expand in
the future, including through acquisitions. Integrating acquisitions is often costly, and we may not be able to successfully integrate our acquired companies with our existing operations without substantial costs, delays or other adverse operational
or financial consequences. Integrating our acquired companies involves a number of risks that could materially and adversely affect our business, including:
failure of the acquired companies to achieve the results we expect;
inability to retain key personnel of the acquired companies;
risks associated with unanticipated events or liabilities; and
the difficulty of establishing and maintaining uniform standards, controls, procedures and policies, including accounting controls and procedures.
If any of our acquired companies suffers performance problems, the same could adversely affect the reputation of our group of companies and could materially and adversely affect our business, financial condition, future results and cash flow.
The success of our business relies on retaining our key personnel.
We are dependent upon the services of our President and Chief Executive Officer, Daniel J. Kunz, our Chief Financial Officer, Kerry D. Hawkley, our Chief Operating Officer,
Douglas J. Glaspey, and Kevin R. Kitz, our Vice President – Project Development. The loss of any of their services could have a material adverse effect upon us. As of the date of this report, there are no employment agreements with these
persons, and the Company does not have key-man insurance on any of them.
Our development activities are inherently very risky.
The high risks involved in the development of a geothermal resource cannot be over-stated. The development of
geothermal resources at our Raft River, Idaho; San Emidio, Nevada and Neal Hot Springs, Oregon projects are such that there cannot be any assurance of success. Exploration costs are high and are not fixed. The geothermal resource cannot be relied
upon until substantial development, including drilling, has taken place. The costs of development drilling are subject to numerous variables such as unforeseen geologic conditions underground which could result in substantial cost overruns. Drilling
for geothermal resource at Raft River is relatively deep with the average depth of wells some 6,000 feet. Drilling at Neal Hot Springs, Raft River and San Emidio
may involve unprofitable efforts, not only from dry wells, but from wells that
are productive but do not produce sufficient net revenues to return a profit
after drilling, operating and other costs.
Our drilling operations may be curtailed, delayed or cancelled as a result of
numerous factors, many of which are beyond our control, including economic
conditions, mechanical problems, title problems, weather conditions, compliance
with governmental requirements and shortages or delays of equipment and
services. If our drilling activities are not successful, we could experience a
material adverse effect on our future results of operations and financial
condition.
In addition to the substantial risk that wells drilled will not be productive, or may decline in productivity after commencement of production, hazards such as unusual or unexpected geologic formations, pressures, downhole conditions, mechanical
failures, blowouts, cratering, explosions, uncontrollable flows of well fluids, pollution and other physical and environmental risks are inherent in geothermal exploration and production. These hazards could result in substantial losses to us due to
injury and loss of life, severe damage to and destruction of property and equipment, pollution and other environmental damage and suspension of operations.
The impact of governmental regulation could adversely affect our business by increasing costs for financing or development of power plants.
Our business is subject to certain federal, state and local laws and regulations, including laws and
regulations on taxation, the exploration for and development, production and distribution of electricity, and environmental and safety matters. On a Federal level, the most important tax rule that affects our business is the Production Tax Credit
("PTC"), which was extended to December 31, 2012. Recent legislation enacted as part of the stimulus funding has also provided an election to take 30% investment tax credit in lieu of the
PTC for certain qualified investments being initiated before the end of 2010 and being placed in service before the end of 2014. The loss of the PTC or ITC is a risk that could result in making future expansions at Raft River, San Emidio and at Neal
Hot Springs uneconomic. New rules recently adopted by the Bureau of Land Management, as directed by the Energy Policy Act of 2005, require competitive auction of all geothermal leases on Federal lands. Competitive leasing is significantly increasing
the cost of obtaining leases on Federal land, is adding to the capital costs needed to develop geothermal projects, is increasing the total electrical power prices needed to make a geothermal project viable and is making it more difficult to acquire
additional adjacent lands for reservoir protection and exploration.
6
If Federal lands or any Federal involvement are included in any geothermal development, requirements of the National Environmental Policy Act ("NEPA") will be triggered. Most of the geothermal resource in the United States is located in
the western states, where the Federal Government often is the largest landowner. If a NEPA action is triggered, such as an Environmental Impact Statement or Environmental Assessment, a project delay of one to two years and a cost of $1,000,000
to $2,000,000 or more may be incurred while the environmental permitting process is completed. NEPA not only can impact the property where the geothermal resource is located, but includes the siting and construction of transmission lines.
Environmental legislation is evolving in a manner that means stricter standards, and enforcement, fines and penalties for non-compliance are more stringent. Environmental assessments of proposed projects carry a heightened degree of responsibility
for companies and directors, officers and employees. The cost of compliance with changes in governmental regulations has a potential to reduce the profitability of operations.
In the states of Idaho, Nevada and Oregon, drilling for geothermal resources is governed by specific rules. In Nevada drilling operations are governed by the Division of Minerals (Nevada Administrative Code Chapter 534A); in Idaho by the Idaho
Department of Water Resources (IDAPA 37 Title 03 Chapter 04); and in Oregon by the Division of Oil, Gas and Mineral Industries (Division 20 Geothermal Regulation). These rules require drilling permits and govern the spacing of wells, rates of
production, prevention of waste and other matters, and, may not allow or may restrict drilling activity, or may require that a geothermal resource be unitized (shared) with adjoining land owners. Such laws and regulations may increase the costs of
planning, designing, drilling, installing, operating and abandoning our geothermal wells, the power plant and other facilities. State environmental requirements and permits, such as the Idaho Department of Environmental Quality, Air Quality Permit
to Construct, include public disclosure and comment. It is possible that a legal protest could be triggered through one of the permitting processes that would delay construction and increase cost for one of our projects. The state of Oregon has an
Energy Facility Siting Council that must issue a site certificate for any geothermal energy facilities of 35 megawatts or higher which could affect the Neal Hot Spring project by adding additional cost and delay construction.
Because of these state and federal regulations, we could incur liability to governments or third parties for any unlawful discharge of pollutants into the air, soil or water, including responsibility for remediation costs. We could potentially
discharge such materials into the environment:
from a well or drilling equipment at a drill site;
leakage of fluids or airborne pollutants from gathering systems, pipelines, power plant and storage tanks;
damage to geothermal wells resulting from accidents during normal operations; and
blowouts, cratering and explosions.
Because the requirements imposed by such laws and regulations are frequently changed, we cannot assure you that laws and regulations enacted in the future, including changes to existing laws and regulations, will not adversely affect our business by
increasing cost and the time required to explore and develop geothermal projects. In addition, because the Vulcan Property at Raft River was previously operated by others, we may be liable for environmental damage caused by such former
operators.
Industry competition may impede our growth and ability to enter into power purchase agreements on terms favorable to us, or at all, which would negatively impact our revenue.
The electrical power generation industry, of which geothermal power
is a sub-component, is highly competitive and we may not be able to compete successfully or grow our business. We compete in areas of pricing, grid access and markets. The industry in the Western United States, in which the Raft River and San Emidio
projects are located, is complex as it is composed of public utility districts, cooperatives and investor-owned power companies. Many of the participants produce and distribute electricity. Their willingness to purchase electricity from an
independent producer may be based on a number of factors and not solely on pricing and surety of supply. If we cannot enter into power purchase agreements
on terms favorable to us, or at all, it would negatively impact our revenue and our decisions regarding development of additional properties.
7
Some of our leases will terminate if we do not achieve commercial production during the primary term of the lease, thus requiring us to enter into new leases or secure rights to alternate geothermal resources, none of which may be available on
terms as favorable to us as any such terminated lease, if at all.
Most of our geothermal resource leases are for a fixed primary term, and then continue for so long as we achieve commercial production or pursuant to other terms of extension. The
land covered by some of our leases is undeveloped and has not yet achieved commercial production of the geothermal resources. Leases that cover land which remains undeveloped and does not achieve commercial production and leases that we allow to
expire, will terminate. In the event that a lease is terminated and we determine that we will need that lease once the applicable project is operating, we would need to enter into one or more new leases with the owner(s) of the premises that are the
subject of the terminated lease(s) in order to develop geothermal resources from, or inject geothermal resources into, such premises or secure rights to alternate geothermal resources or lands suitable for injection, all of which may not be possible
or could result in increased cost to us, which could materially and adversely affect our business, financial condition, future results and cash flow.
Claims have been made that some geothermal plants cause seismic activity and related property damage.
There are approximately two-dozen geothermal plants operating within a fifty-square-mile region in the area of Anderson Springs, in Northern
California, and there is general agreement that the operation of these plants causes a generally low level of seismic activity. Some residents in the Anderson Springs area have asserted property damage claims against those plant operators. There are
significant issues whether the plant operators are liable, and to date no court has found in favor of such claimants. While we do not believe the areas of the Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon will present the same
geological or seismic risks, there can be no assurance that we would not be subject to similar claims and litigation, which may adversely impact our operations and financial condition.
Actual costs of construction or operation of a power plant may exceed estimates used in negotiation of power purchase and power financing agreements.
The Company's initial power purchase contract is under rates established by the Idaho
Public Utility Commission, using an "avoided-cost" model for cost of construction and operating costs of power plants. If the actual costs of construction or operations exceed the model costs, the Company may not be able to build the
contemplated power plants, or if constructed, may not be able to operate profitably. The Company's financing agreements provide for a priority payback to our partner. If the actual costs of construction or operations exceed the model costs, we
may not be able to operate profitably or receive the planned share of cash flow and proceeds from the project. The actual costs of operating the Raft River power project are higher than the original estimate due to several factors including the need
to filter the ground water for cooling to remove harmful and unanticipated chloride levels in the water, the need to purchase production pump power from a third party to provide maximum plant output, and increased general costs related to labor and
management.
Payments under our initial power purchase agreement may be reduced if we are unable to forecast our production adequately.
Under the terms of our initial power purchase agreement, and starting with the third year of operation, if we do not
deliver electricity output within 90% to 110% of our forecasted amount, which requires us to submit a forecast every three months, payments for the amount delivered will be reduced, possibly significantly. For example if the plant produces more than
110% of the power as forecasted then we would not receive any revenue for the amount over the forecast figure. If the plant produces less than 90% of the forecast amount for unexcused reasons, such as normal plant breakdowns and maintenance, then we
may be subject to a reduced power price, depending on the prevailing power market conditions. The agreement moves the power price to the market price instead of contracted price. We currently expect to forecast 9 megawatts of delivery on a
10-megawatt plant and the damages would then result if the actual delivery was only 8.1 megawatts or less. All 8.1 megawatts would be subject to a reduced price that is not possible to predict at this time. The total average revenue per megawatt
hour is approximately $62.40 and the reduction in revenue could be perhaps 30 percent of that amount. As a risk mitigation element, we are not subject to this adjustment until year three of the contract and then we are able to submit a new
forecast every three months thereby limiting this exposure.
There are some risks for which we do not or cannot carry insurance.
Because our current operations are limited in scope, the Company carries property, public liability insurance and directors' and officers' liability coverage, but
does not currently insure against any other risks.
8
As its operations progress, the Company will acquire additional
coverage consistent with its operational needs, but the Company may become
subject to liability for pollution or other hazards against which it cannot
insure or cannot insure at sufficient levels or against which it may elect not
to insure because of high premium costs or other reasons. In particular,
coverage is not available for environmental liability or earthquake damage.
Our officers and directors may have conflicts of interests
arising out of their relationships with other companies.
Several of our
directors and officers serve (or may agree to serve) as directors or officers of
other companies or have significant shareholdings in other companies. To the
extent that such other companies may participate in ventures in which the
Company may participate, the directors may have a conflict of interest in
negotiating and concluding terms respecting the extent of such participation.
From time to time several companies may participate in the acquisition,
exploration and development of natural resource properties thereby allowing for
their participation in larger programs, permitting involvement in a greater
number of programs and reducing financial exposure in respect of any one
program. It may also occur that a particular company will assign all or a
portion of its interest in a particular program to another of these companies
due to the financial position of the company making the assignment.
Failure to maintain effective disclosure controls and
procedures could result in the loss of investor confidence.
For the period ended March 31, 2009, the Company determined
that its disclosure controls and procedures were not effective due the Company's
inadvertent failure to file the financials statements of its subsidiary Raft
River Energy I LLC as required by SEC rules and forms. The Company may in the
future fail to achieve and maintain the adequacy of its disclosure controls and
procedures, as such standards are modified, supplemented or amended from time to
time. The Company's failure to maintain effective disclosure controls and
procedures could result in the loss of investor confidence in the Company's
reports, which in turn could harm the Company's business and negatively impact
the trading price of its common shares. In addition, any failure to implement
required new or improved controls, or difficulties encountered in their
implementation, could harm the Company's operating results or cause it to fail
to meet its reporting obligations.
Failure to comply with regulatory requirements may adversely
affect our stock price and business.
As a public company, we are subject to
numerous governmental and stock exchange requirements, with which we believe we
are in compliance. The Sarbanes-Oxley Act of 2002 and the Securities and
Exchange Commission have requirements that we may fail to meet by the required
deadlines or we may fall out of compliance with, such as the internal controls
assessment, reporting and auditor attestation required under Section 404 of the
Sarbanes-Oxley Act of 2002. The Company has documented and tested its internal
control procedures in order to satisfy the requirements of Section 404 of the
Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act of 2002 requires an annual
assessment by management of the effectiveness of the Company's internal control
over financial reporting and an attestation report by the Company's independent
auditors on internal controls over financial reporting. We may incur additional
costs in order to comply with Section 404. In addition, if we fail to achieve
and maintain the adequacy of our internal controls, as such standards are
modified, supplemented or amended from time to time, we may not be able to
ensure that we can conclude on an ongoing basis that we have effective internal
controls over financial reporting in accordance with Section 404 of the
Sarbanes-Oxley Act of 2002. Moreover, effective internal controls are necessary
for us to produce reliable financial reports and are important to help prevent
financial fraud. If we cannot provide reliable financial reports or prevent
fraud, our business and operating results could be harmed, investors could lose
confidence in our reported financial information, and the trading price of our
stock could drop significantly. Our failure to meet regulatory requirements and
exchange listing standards may result in actions such as the delisting of our
stock impacting our stock's liquidity; Securities and Exchange Commission
enforcement actions; and securities claims and litigation.
Risks Relating To the Market for Our Securities
A significant number of shares of our common stock are
eligible for public resale. If a significant number of shares are resold on the
public market, the share price could be reduced and could adversely affect our
ability to raise needed capital.
The market price for our common stock could
decrease significantly and our ability to raise capital through the issuance of
additional equity could be adversely affected by the availability and resale of
such a large number of shares in a short period of time. If we cannot raise
additional capital on terms favorable to us, or at all, it may delay our
exploration or development of existing properties or limit our ability to
acquire new properties, which would be detrimental to our business.
Because the public market for shares of our common stock is
limited, investors may be unable to resell their shares of common stock.
There is currently only a limited public market for our common stock on the
Toronto Stock Exchange in Canada and on the NYSE Amex in the United
States, and investors may be unable to resell their shares of common stock. The
development of an active public trading market depends upon the existence of
willing buyers and sellers that are able to sell their shares and market makers
that are willing to make a market in the shares. Under these circumstances, the
market bid and ask prices for the shares may be significantly influenced by the
decisions of the market makers to buy or sell the shares for their own account,
which may be critical for the establishment and maintenance of a liquid public
market in our common stock. We cannot give you any assurance that an active
public trading market for the shares will develop or be sustained.
9
The price of our common stock is volatile, which may cause
investment losses for our stockholders.
The market for our common stock is
highly volatile, having ranged in the last fiscal year ended March 31, 2009,
from a low of Cdn$0.46 to a high of Cdn$3.02 on the Toronto Stock Exchange and
from a low of $0.39 to a high of $2.95 on the NYSE Amex. Since March 31, 2009,
our common stock has ranged from a low of Cdn$0.93 to a high of Cdn$2.39 on the
Toronto Stock Exchange and from a low of $0.71 to a high of $2.09 on the NYSE
Amex. The trading price of our common stock on the Toronto Stock Exchange and on
the NYSE Amex is subject to wide fluctuations in response to, among other
things, quarterly variations in operating and financial results, and general
economic and market conditions. In addition, statements or changes in opinions,
ratings, or earnings estimates made by brokerage firms or industry analysts
relating to our market or relating to our company could result in an immediate
and adverse effect on the market price of our common stock. The highly volatile
nature of our stock price may cause investment losses for our stockholders.
We do not intend to pay any cash dividends in the
foreseeable future.
We intend to reinvest any earnings in the development of
our projects. Payments of future dividends, if any, will be at the discretion of
our board of directors after taking into account various factors, including our
business, operating results and financial condition, current and anticipated
cash needs, plans for expansion and any legal or contractual limitations on our
ability to pay dividends.
Provisions in our bylaws and under Delaware law could
discourage a takeover that stockholders may consider favorable.
Our bylaws
contain provisions that could depress the trading price of our common stock by
acting to discourage, delay or prevent a change of control of our company or
changes in our management that the stockholders of our company may deem
advantageous. These provisions prohibit stockholders from calling special
meetings, which may deter a takeover attempt. Additionally, we are subject to
Section 203 of the Delaware General Corporation Law, which generally prohibits a
Delaware corporation from engaging in any of a broad range of business
combinations with any holder of 15% or more of our capital stock for a period of
three years following the date on which the stockholders acquired such ownership
percentage, unless, among other things, our Board of Directors has approved the
transaction. This statute likewise may discourage, delay or prevent a change of
control.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This registration statement contains forward-looking
statements, including, but not limited to, our statements on strategy, operating
forecasts, and our working capital requirements and availability. In addition,
from time to time, our company or our representatives have made or may make
forward-looking statements, orally or in writing. Such forward-looking
statements may be included in, but are not limited to, various filings made by
our company with the Securities and Exchange Commission, press releases or oral
statements made by or with the approval of an authorized executive officer of
our company. Forward-looking statements consist of any statement other than a
recitation of historical fact and can be identified by the use of
forward-looking terminology such as "may", "expect", "anticipate", "estimate",
or "continue" or the negative thereof or other variations thereon or comparable
terminology. Actual results could differ materially from those projected or
suggested in any forward-looking statements as a result of a wide variety of
factors and conditions, including, but not limited to, the factors and
conditions described in the discussions of "Risk Factors" in this registration
statement and in other documents our company files from time to time with the
Securities and Exchange Commission. The reader is cautioned that our company
does not have a policy of updating or revising forward-looking statements and
thus the reader should not assume that silence by management of our company over
time means that actual events are bearing out as estimated in such
forward-looking statements.
All references to "dollars" or "$" are to United States dollars
and all references to "Cdn$" are to Canadian dollars. United States dollar
equivalents of Canadian dollar figures are based on the noon buying rate for
Canadian dollars for the Federal Reserve Bank of New York on the applicable
date.
10
USE OF PROCEEDS
We will not receive any of the proceeds from the sale of shares
of our common stock by the selling stockholders. The selling stockholders will
receive all of the net proceeds from the sales of common stock offered by them
under this prospectus. If, and when, the warrants and compensation warrants are
exercised by the selling stockholders, the proceeds from the exercise of the
warrants and broker warrants will be used by us for
drilling and
exploration at Neal Hot Springs, the San Emidio project, and general working
capital purposes.
SELLING STOCKHOLDERS
This prospectus covers the offering of up to 12,560,561 shares
of our common stock by selling stockholders. We will not receive any proceeds
from the sale of the shares by the selling stockholders.
The shares issued to the selling stockholders are "restricted
securities" under applicable federal and state securities laws and are being
registered to give the selling stockholders the opportunity to sell their
shares. The registration of such shares does not necessarily mean, however, that
any of these shares will be offered or sold by the selling stockholders. The
selling stockholders may from time to time offer and sell all or a portion of
their shares in the over-the-counter market, in negotiated transactions, or
otherwise, at market prices prevailing at the time of sale or at negotiated
prices.
The registered shares may be sold directly or through brokers
or dealers, or in a distribution by one or more underwriters on a firm
commitment or best efforts basis. To the extent required, the names of any agent
or broker-dealer and applicable commissions or discounts and any other required
information with respect to any particular offer will be set forth in an
accompanying prospectus supplement. See "Plan of Distribution" beginning on page
16 of this prospectus. Each of the selling stockholders reserves the sole right
to accept or reject, in whole or in part, any proposed purchase of the
registered shares to be made directly or through agents. The selling
stockholders and any agents or broker-dealers that participate with the selling
stockholders in the distribution of their registered shares may be deemed to be
"underwriters" within the meaning of the Securities Act of 1933, as amended, and
any commissions received by them and any profit on the resale of the registered
shares may be deemed to be underwriting commissions or discounts under the
Securities Act.
We will receive no proceeds from the sale of the registered
shares, and we have agreed to bear the expenses of registration of the shares,
other than commissions and discounts of agents or broker-dealers and transfer
taxes, if any.
Selling Stockholders Information
The following table sets forth the number of shares of common
stock beneficially owned by the selling stockholders as of March 16, 2010, the
number of shares of common stock covered by this prospectus on behalf of the
stockholders and the total number of shares of common stock that the
stockholders will beneficially own upon completion of the offering. This table
assumes that the stockholders will offer for sale all of the shares of common
stock covered by this prospectus. At March 18, 2010, we had 78,647,776 shares of
common stock issued and outstanding.
The common stock may be offered under this prospectus from time
to time by the selling stockholders, or by any of their respective pledgees,
donees, transferees or other successors in interest. The amounts set forth below
are based upon information provided to us by the stockholders, or on our
records, as of March 16, 2010, and are accurate to the best of our knowledge. It
is possible, however, that the selling stockholders may acquire or dispose of
additional shares of common stock from time to time after the date of this
prospectus.
The warrants issued in the March 2010 financing may not be
exercised until September 16, 2010 and are subject to certain beneficial
ownership limitations. A holder of a warrant received in the March 2010
financing may not exercise such warrant to the extent that the holder and its
affiliates would beneficially own in excess of 4.99% of our common stock
outstanding immediately after giving effect to such exercise. For purposes of
this 4.99% limitation, beneficial ownership is calculated as set forth in
Exchange Act Rule 13d-3, except that the aggregate number of shares of common
stock beneficially owned by such holder and its affiliates will exclude shares
of common stock which would be issuable upon (i) exercise of any remaining,
unexercised portion of the warrant issued to such holder and its affiliates in
the March 2010 financing and (ii) exercise or conversion of the unexercised or
unconverted portion of any other securities of our company beneficially owned by
the holder and its affiliates which are subject to a limitation on conversion or
exercise analogous to the 4.99% limitation contained in the warrants issued in
the March 2010 financing. By written notice to us, a holder may from time to
time increase or decrease the 4.99% limitation to any other percentage not in
excess of 9.99%; provided that any such change will not be effective until the
61st day after such notice is delivered to us. The 4.99% and 9.99% ownership
limitations do not prevent a stockholder from selling some of its holdings and
then receiving additional shares. In this way, a stockholder could sell more
than the 4.99% and 9.99% ownership limitation while never holding more than this
limit. For purposes of this table, the "Before Offering", "Total Number of
Shares Beneficially Owned" includes the shares underlying the warrants issued in
the March 2010 financing, despite the fact that all or a portion of such
warrants, following September 16, 2010, may not be exercisable until the 61st
day following delivery of prior written notice by a holder of such warrants if
the exercise of such warrants would cause the holder and its affiliates to
exceed the 4.99% ownership limitation (and thus all or a portion of such shares
technically may not be deemed to be "beneficially owned" under Exchange Act Rule
13d-3 until one day after such notice is given).
11
The selling stockholders will pay any underwriting discounts
and commissions and expenses incurred by the stockholder for brokerage,
accounting, tax or legal services or any other expenses incurred by the
stockholder in disposing of the shares. We will bear all other costs, fees and
expenses incurred in effecting the registration of the shares covered by this
prospectus, including, without limitation, fees and expenses of our counsel and
our accountants.
Before Offering
After Offering
Total Number
Shares
Percentage
of Shares
Percentage
Number of
Owned
of
    Shares
Beneficially
of Shares
Shares
After
owned
After
Name
Owned
Owned
(1)
Offered
Offering
(2)
Offering
AGF Canada Class
(3)
231,870
*
75,720
156,150
*
AGF Canada Fund
(4)
1,083
*
483
600
*
AGF Canadian Stock Fund
(5)
6,244,966
7.94%
1,553,466
4,691,500
5.97%
Baird Financial Corporation
(6)
12,314
*
12,314
-
-
Clarus Securities Inc.
(7)
303,054
*
43,100
259,954
*
Cranshire Capital LP
(8)
468,571
*
428,571
40,000
*
Dundee Securities Corporation
(9)
140,300
*
43,100
97,200
*
Empery Asset Master LTD
(10)
357,143
*
357,143
-
-
Exploration Capital Partners
      2005 Limited Partnership
(11)
6,285,000
7.99%
3,000,000
3,285,000
4.18%
Front Street Investment Management Inc.
(12)
2,746,770
3.49%
1,428,570
1,318,200
1.68%
Glacier Partners
(13)
714,285
*
714,285
-
-
Hartz Capital Investments LLC
(14)
357,142
*
357,142
-
-
Hudson Bay Overseas Fund LTD
(15)
210,713
*
210,713
-
-
Hudson Bay Fund LP
(16)
146,429
*
146,429
-
-
IG AGF Canadian Growth Class
(17)
79,733
*
23,133
56,600
*
IG AGF Canadian Growth Fund
(18)
1,788,453
2.27%
446,053
1,342,400
1.71%
Iroquois Master Fund Ltd.
(19)
357,142
*
357,142
-
-
Keystone Equity Fund
(20)
186,751
*
44,001
142,750
*
Orphan Fund, L.P.
(21)
1,071,427
1.36%
1,071,427
-
-
Praesidis Master Fund, LP
(22)
622,600
*
600,000
22,600
*
Ramius Enterprise Master Fund
      Ltd
(23)
357,143
*
357,143
-
-
Ramius Navigation Master Fund Ltd
(24)
357,142
*
357,142
-
-
RBC Capital Markets
      Corporation
(25)
147,771
*
147,771
-
-
SIM Green Tech Fund, L.P.
(26)
71,428
*
71,428
-
-
ZLP Master Opportunity Fund, Ltd.
(27)
714,285
*
714,285
-
-
TOTAL
12,560,561
12
*
Represents less than one percent of the outstanding
      common stock.
(1)
All percentages are based on 78,647,776 shares of common
      stock issued and outstanding on March 18, 2010.
(2)
This table assumes that each shareholder will sell all of
      its shares available for sale during the effectiveness of the registration
      statement that includes this prospectus. Shareholders are not required to
      sell their shares. See "Plan of Distribution" beginning on page 16.
(3)
Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 154,580
      shares of common stock and 77,290 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Bershaw &
      Co., which holds such securities in trust for this securityholder.
(4)
Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 722
      shares of common stock and 361 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Bershaw &
      Co., which holds such securities in trust for this securityholder.
(5)
Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes
      4,504,144 shares of common stock and 1,740,822 shares of common stock
      acquirable upon exercise of warrants. The registered holder of the
      securities issued to this securityholder in the March 2010 private
      placement is Bershaw & Co., which holds such securities in trust for
      this securityholder.
(6)
Representatives of this securityholder have advised us
      that Paul Carbone is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder. This selling
      securityholder acquired the securities as compensation for activities
      relating to acting as a placement agent in the March 2010 private
      placement and is affiliated with a registered broker-dealer. Includes
      12,314 shares of common stock acquirable upon exercise of warrants.
(7)
Representatives of this securityholder have advised us
      that Tom Monahas is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder. This selling
      securityholder acquired the securities as compensation for activities
      relating to acting as a placement agent in the March 2010 private
      placement. In connection
      with the private placement, this securityholder only conducted activities
      relating to acting as a placement agent outside of the United States;
      activities relating to acting as a placement agent in the United States in
      the March 2010 private placement were conducted by registered
      broker-dealers. Includes 303,054 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued in
      the March 2010 private placement to this securityholder is NBCN INC.,
      which holds such securities in trust for this securityholder.
(8)
Representatives of this securityholder have advised us
      that Downsview Capital, Inc. ("Downsview") is the general partner of
      Cranshire Capital, L.P. ("Cranshire") and consequently has voting control
      and investment discretion over securities held by Cranshire. Mitchell P.
      Kopin ("Mr. Kopin"), President of Downsview, has voting control over
      Downsview. As a result of the foregoing, each of Mr. Kopin and Downsview
      may be deemed to have beneficial ownership (as determined under Section
      13(d) of the Securities Exchange Act of 1934, as amended) of the shares of
      common stock beneficially owned by Cranshire. Includes 285,714 shares of
      common stock and 182,857 shares of common stock acquirable upon exercise
      of warrants.
(9)
Representatives of this securityholder have advised us
      that Joanne Ferstman and Harold Wolkin are the natural persons with voting
      and dispositive power with respect to the common stock held by this securityholder. This selling securityholder acquired the securities as
      compensation for activities relating to acting as a placement agent in the
      March 2010 private placement and is a registered broker-dealer. In
      connection with the private placement, this securityholder only conducted
      activities relating to acting as a placement agent outside of the United
      States; activities relating to acting as a placement agent in the United
      States in the March 2010 private placement were conducted by registered
      broker-dealers. Includes 140,300 shares of common stock acquirable upon
      exercise of warrants.
(10)
Representatives of this securityholder have advised us
      that Empery Asset Management LP, the authorized agent of Empery Asset
      Master Ltd ("EAM"), has discretionary authority to vote and dispose of the
      shares held by EAM and may be deemed to be the beneficial owner of these
      shares. Martin Hoe and Ryan Lane, in their capacity as investment managers
      of Empery Asset Management LP, may also be deemed to have investment
      discretion and voting power over the shares held by EAM. Mr. Hoe and Mr.
      Lane disclaim any beneficial ownership of these shares. Includes 238,095
      shares of common stock and 119,048 shares of common stock acquirable upon
      exercise of warrants.
(11)
Representatives of this securityholder have advised us
      that Arthur Richards Rule and Gretchen Carter are the natural persons with
      voting and dispositive power with respect to the common stock held by this
      securityholder. Representatives of this securityholder have advised us that this securityholder is an affiliate of a U.S.
      registered broker-dealer; however, this securityholder acquired the
      securities issued in the March 2010 private placement in the ordinary
      course of business and, at the time of the acquisition, had no agreements
      or understandings, directly or indirectly, with any person to distribute
      the securities. Includes 4,190,000 shares of common stock and 2,095,000
      shares of common stock acquirable upon exercise of warrants.
13
(12)
Representatives of this securityholder have advised us
      that Frank L. Mersch is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder.
      Includes 1,792,280 shares of common stock and 954,490 shares of common
      stock acquirable upon exercise of warrants. The registered holder of the
      securities issued in the March 2010 private placement to this
      securityholder is NBCN INC., which holds such securities in trust for this
      securityholder.
(13)
Representatives of this securityholder have advised us
      that Peter Castellanos is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder.
      Includes 476,190 shares of common stock and 238,095 shares of common stock
      acquirable upon exercise of warrants.
(14)
Representatives of this securityholder have advised us
      that Empery Asset Management LP, the authorized agent of Hartz Capital
      Investments, LLC ("HCI"), has discretionary authority to vote and dispose
      of the shares held by HCI and may be deemed to be the beneficial owner of
      these shares. Martin Hoe and Ryan Lane, in their capacity as investment
      managers of Empery Asset Management LP, may also be deemed to have
      investment discretion and voting power over the shares held by HCI. Mr.
      Hoe and Mr. Lane disclaim any beneficial ownership of these shares.
      Includes 238,095 shares of common stock and 119,047 shares of common stock
      acquirable upon exercise of warrants.
(15)
Representatives of this securityholder have advised us
      that Sander Gerber shares voting and investment power over these
      securities. Sander Gerber disclaims beneficial ownership over the
      securities held by Hudson Bay Overseas Fund LTD. Includes 140,476 shares
      of common stock and 70,237 shares of common stock acquirable upon exercise
      of warrants.
(16)
Representatives of this securityholder have advised us
      that Sander Gerber shares voting and investment power over these
      securities. Sander Gerber disclaims beneficial ownership over the
      securities held by Hudson Bay Fund LP. Includes 97,619 shares of common
      stock and 48,810 shares of common stock acquirable upon exercise of
      warrants.
(17)
Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 55,622
      shares of common stock and 24,111 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Jayvee &
      Co., which holds such securities in trust for this securityholder.
(18)
Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes
      1,292,669 shares of common stock and 495,784 shares of common stock
      acquirable upon exercise of warrants. The registered holder of the
      securities issued to this securityholder in the March 2010 private
      placement is Jayvee & Co., which holds such securities in trust for
      this securityholder.
(19)
Representatives of this securityholder have advised us
      that Joshua Silverman has voting and investment control over the shares
      held by Iroquois Master Fund Ltd. Mr. Silverman disclaims beneficial
      ownership of these shares. Includes 238,095 shares of common stock and
      119,047 shares of common stock acquirable upon exercise of warrants.
(20)
Representatives of this securityholder have advised us
      that Martin Hubbes is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder.
      Representatives of this securityholder have advised us that this
      securityholder is an affiliate of a U.S. registered broker-dealer;
      however, this securityholder acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 135,134
      shares of common stock and 51,617 shares of common stock acquirable upon
      exercise of warrants. The registered holder of the securities issued to
      this securityholder in the March 2010 private placement is Jayvee &
      Co., which holds such securities in trust for this securityholder.
(21)
Representatives of this securityholder have advised us
      that Paul H. Stephens, P. Bart Stephens and W. Bradford Stephens are the
      natural persons with voting and dispositive power with respect to the
      common stock held by this securityholder. Includes 714,285 shares of
      common stock and 357,142 shares of common stock acquirable upon exercise
      of warrants.
(22)
Representatives of this securityholder have advised us
      that Kyle D. Henderson is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder.
      Includes 422,600 shares of common stock and 200,000 shares of common stock
      acquirable upon exercise of warrants.
(23)
Representatives of this securityholder have advised us
      that Ramius Advisors, LLC ("Ramius Advisors") is the investment manager of
      Ramius Enterprise Master Fund Ltd ("Ramius Enterprise") and consequently
      has voting control and investment discretion over securities held by
      Ramius Enterprise. Ramius Advisors disclaims beneficial ownership of these
      securities. Ramius LLC ("Ramius") is the managing member of Ramius
      Advisors and may be considered the beneficial owner of any securities
      deemed to be beneficially owned by Ramius Advisors. Ramius disclaims
      beneficial ownership of these securities. Cowen Group, Inc. ("Cowen") is
      the managing member of Ramius and may be considered the beneficial owner
      of any securities deemed to be beneficially owned by Ramius. Cowen
      disclaims beneficial ownership of these securities. RCG Holdings LLC ("RCG
      Holdings") is a significant shareholder of Cowen and may be considered the
      beneficial owner of any securities deemed to be beneficially owned by
      Cowen. RCG Holdings disclaims beneficial ownership of these securities.
      C4S & Co., L.L.C. ("C4S") is the managing member of RCG Holdings and
      may be considered the beneficial owner of any securities deemed to be beneficially owned by RCG
      Holdings. C4S disclaims beneficial ownership of these securities. Peter A.
      Cohen, Morgan B. Stark, Thomas W. Strauss and Jeffrey M. Solomon are the
      sole managing members of C4S and may be considered beneficial owners of
      any securities deemed to be beneficially owned by C4S. Messrs. Cohen,
      Stark, Strauss and Solomon disclaim beneficial ownership of these
      securities. Representatives of Ramius Enterprise have advised us that
      Ramius Enterprise is an affiliate of a U.S. registered broker-dealer;
      however, Ramius Enterprise acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 238,095
      shares of common stock and 119,048 shares of common stock acquirable upon
      exercise of warrants.
14
(24)
Representatives of this securityholder have advised us
      that RCG PB, Ltd ("RCG PB") is the sole shareholder of Ramius Navigation
      Master Fund Ltd ("Ramius Navigation") and may be considered the beneficial
      owner of any securities deemed to be beneficially owned by Ramius
      Navigation. RCG PB disclaims beneficial ownership of these securities.
      Ramius Advisors, LLC ("Ramius Advisors") is the investment manager of
      Ramius Navigation and RCG PB and consequently has voting control and
      investment discretion over securities held by Ramius Navigation. Ramius
      Advisors disclaims beneficial ownership of these securities. Ramius LLC
      ("Ramius") is the managing member of Ramius Advisors and may be considered
      the beneficial owner of any securities deemed to be beneficially owned by
      Ramium Advisors. Ramius disclaims beneficial ownership of these
      securities. Cowen Group, Inc. ("Cowen") is the managing member of Ramius
      and may be considered the beneficial owner of any securities deemed to be
      beneficially owned by Ramius. Cowen disclaims beneficial ownership of
      these securities. RCG Holdings LLC ("RCG Holdings") is a significant
      shareholder of Cowen and may be considered the beneficial owner of any
      securities deemed to be beneficially owned by Cowen. RCG Holdings
      disclaims beneficial ownership of these securities. C4S & Co., L. L.C.
      ("C4S") is the managing member of RCG Holdings and may be considered the
      beneficial owner of any securities deemed to be beneficially owned by RCG
      Holdings. C4S disclaims beneficial ownership of these securities. Peter A.
      Cohen, Morgan B. Stark, Thomas W. Strauss and Jeffrey M. Solomon are the
      sole managing members of C4S and may be considered beneficial owners of
      any securities deemed to be beneficially owned by C4S. Messrs. Cohen,
      Stark, Strauss and Solomon disclaim beneficial ownership of these
      securities. Representatives of Ramius Navigation have advised us that
      Ramius Navigation is an affiliate of a U.S. registered broker-dealer;
      however, Ramius Navigation acquired the securities issued in the March
      2010 private placement in the ordinary course of business and, at the time
      of the acquisition, had no agreements or understandings, directly or
      indirectly, with any person to distribute the securities. Includes 238,095
      shares of common stock and 119,047 shares of common stock acquirable upon
      exercise of warrants.
(25)
Representatives of this securityholder have advised us
      that Eric J. Hansen is the natural person with voting and dispositive
      power with respect to the common stock held by this securityholder. This
      selling securityholder acquired the securities as compensation for
      activities relating to acting as a placement agent in the March 2010
      private placement and is a registered broker-dealer. Includes 147,771
      shares of common stock acquirable upon exercise of warrants.
(26)
Representatives of this securityholder have advised us
      that Paul H. Stephens, P. Bart Stephens and W. Bradford Stephens are the
      natural persons with voting and dispositive power with respect to the
      common stock held by this securityholder. Includes 47,619 shares of common
      stock and 23,809 shares of common stock acquirable upon exercise of
      warrants.
(27)
Representatives of this securityholder have advised us
      that Stuart Zimmer is the natural person with voting and dispositive power
      with respect to the common stock held by this securityholder. Includes
      476,190 shares of common stock and 238,095 shares of common stock
      acquirable upon exercise of warrants.
Each of the selling stockholders, other than Dundee Securities
Corporation and RBC Capital Markets Corporation, has represented to us that it
is not a broker-dealer. Further, each of the selling stockholders has
represented to us that it is not affiliated with any broker-dealer in the United
States, other than AGF Canada Class, AGF Canada Fund, AGF Canadian Stock Fund,
Baird Financial Corporation, Exploration Capital
Partners 2005 Limited Partnership, IG AGF Canadian Growth Class, IG AGF Canadian
Growth Fund, Keystone Equity Fund, Ramius Enterprise Master Fund Ltd and Ramius
Navigation Master Fund Ltd, each of which is affiliated with a registered
broker-dealer in the United States. Except as otherwise provided in this
prospectus, none of the selling stockholders are affiliated or have been
affiliated with us, any of our predecessors or affiliates during the past three
years.
Transactions with Selling Stockholders
On March 16, 2010, we completed a private placement of
8,209,519 shares of common stock at a price of $1.05 per share and common stock
purchase warrants to acquire 4,104,757 shares of common stock, for gross
proceeds of $8,619,995. Each common stock purchase warrant entitles the holder
to acquire one common share of the Company at the exercise price of $1.25 per
share for a period beginning 6 months after the date of issuance and ending 66
months after the date of issuance. The sale of shares and warrant was pursuant
to the exemption from registration provided by Rule 506 of Regulation D
promulgated under the Securities Act of 1933, as amended. Upon completion of the
placement, the company had 78,647,776 shares issued and outstanding.
The Placement Agents were paid an aggregate cash fee of
$517,200 representing 6% of the aggregate gross proceeds from the offering, and
have been issued broker warrants to purchase up to 246,285 common shares of the
Company at $1.25 exercisable for a period beginning 6 months after the date of
issuance and ending 66 months after the date of issuance. We also agreed to
reimburse the Placement Agents for certain legal fees and out-of-pocket
expenses.
15
In connection with the offering, we agreed to file a
registration statement with the Securities and Exchange Commission as soon as
practicable after closing and use best efforts to cause it to become effective
and remain effective until all securities covered by the registration statement
either have been sold, under the registration statement or pursuant to Rule 144
under the Securities Act of 1933, as amended, or may be sold without volume or
manner-of-sale restrictions pursuant to Rule 144, and without the requirement
for the Company to be in compliance with the current public information
requirement under Rule 144 or the Company is in compliance with the current
public information requirement under Rule 144. In the event the registration
statement is not effective by July 14, 2010, the purchasers are entitled to
receive as liquidated damages an amount in cash equal to 1% of the aggregate
purchase price paid by each purchaser upon the failure to be so effective and
upon the monthly anniversary of the failure to be so effective until the
registration statement is effective.
The net proceeds of the private placement will be used to
further develop its Neal Hot Springs geothermal project and for general working
capital purposes.
Clarus Securities Inc. and Dundee Securities Corporation acted
as two of the three agents in the August 2009 private placement. Collectively,
the agents in the August 2009 private placement were paid an aggregate cash fee
of Cdn$656,100 and were granted compensation options exchangeable on the
exchange date for broker warrants, which entitle the agents to purchase up to
243,000 shares of our common stock at $1.22 (the U.S. dollar equivalent of
Cdn$1.35 on August 17, 2009) exercisable for 24 months from the closing of the
August 2009 private placement.
Clarus Securities Inc. acted as one of the three underwriters
in the April 2008 private placement. Collectively, the underwriters in the April
2008 private placement were paid an aggregate cash fee of Cdn$854,932 and were
issued broker warrants to purchase up to 191,475 shares of common stock of the
Company at $2.34 exercisable for 24 months from the closing of the April 2008
private placement.
Dundee Securities Corporation acted as one of the three
underwriters in the June 2007 private placement. Collectively, the underwriters
in the June 2007 private placement were paid an aggregate cash fee of
Cdn$999,999 and were issued broker warrants to purchase up to 454,545 common
shares of the Company at $2.08 exercisable for 18 months.
PLAN OF DISTRIBUTION
Each selling stockholder and any of their pledgees, assignees
and successors-in-interest may, from time to time, sell any or all of their
shares of common stock covered hereby on NYSE Amex or any other stock exchange,
market or trading facility on which the shares are traded or in private
transactions. These sales may be at fixed or negotiated prices. A selling
stockholder may use any one or more of the following methods when selling
shares:
ordinary brokerage transactions and transactions in which the
  broker-dealer solicits purchasers;
block trades in which the broker-dealer will attempt to sell the shares as
  agent but may position and resell a portion of the block as principal to
  facilitate the transaction;
purchases by a broker-dealer as principal and resale by the broker-dealer
  for its account;
an exchange distribution in accordance with the rules of the applicable
  exchange;
privately negotiated transactions;
settlement of short sales entered into after the effective date of the
  registration statement of which this prospectus is a part;
in transactions through broker-dealers that agree with the selling
  stockholders to sell a specified number of such shares at a stipulated price
  per share;
through the writing or settlement of options or other hedging
  transactions, whether through an options exchange or otherwise;
a combination of any such methods of sale; or
any other method permitted pursuant to applicable law.
16
The selling stockholders may also sell shares under Rule 144
under the Securities Act of 1933, as amended, if available, rather than under
this prospectus.
Broker-dealers engaged by the selling stockholders may arrange
for other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the selling stockholders (or, if any broker-dealer
acts as agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated, but, except as set forth in a supplement to this prospectus, in the
case of an agency transaction not in excess of a customary brokerage commission
in compliance with Rule 2440 of the Financial Industry Regulatory Authority,
Inc.; and in the case of a principal transaction a markup or markdown in
compliance with IM-2440 of the Financial Industry Regulatory Authority, Inc.
In connection with the sale of the common stock or interests
therein, the selling stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the common stock in the course of hedging the positions they
assume. The selling stockholders may also sell shares of the common stock short
and deliver these securities to close out their short positions, or loan or
pledge the common stock to broker-dealers that in turn may sell these
securities. The selling stockholders may also enter into option or other
transactions with broker-dealers or other financial institutions or create one
or more derivative securities which require the delivery to such broker-dealer
or other financial institution of shares offered by this prospectus, which
shares such broker-dealer or other financial institution may resell pursuant to
this prospectus (as supplemented or amended to reflect such transaction).
The selling stockholders and any broker-dealers or agents that
are involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act of 1933, as amended, in connection with such
sales. In such event, any commissions received by such broker-dealers or agents
and any profit on the resale of the shares purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act of 1933, as
amended. Each selling stockholder has informed the Company that it does not have
any written or oral agreement or understanding, directly or indirectly, with any
person to distribute their shares of common stock. In no event shall any
broker-dealer receive fees, commissions and markups which, in the aggregate,
would exceed eight percent (8%).
The Company is required to pay certain fees and expenses
incurred by the Company incident to the registration of the shares. The Company
has agreed to indemnify the selling stockholders against certain losses, claims,
damages and liabilities, including liabilities under the Securities Act of 1933,
as amended.
Because selling stockholders may be deemed to be "underwriters"
within the meaning of the Securities Act of 1933, as amended, they will be
subject to the prospectus delivery requirements of the Securities Act of 1933,
as amended, including Rule 172 thereunder. The selling stockholders have advised
us that there is no underwriter or coordinating broker acting in connection with
the proposed sale of the resale shares by the selling stockholders.
We agreed to keep this prospectus effective until the earlier
of (i) the date on which the shares may be resold by the selling stockholders
without registration and without regard to any volume or manner-of-sale
limitations by reason of Rule 144, without the requirement for the Company to be
in compliance with the current public information under Rule 144 under the
Securities Act of 1933, as amended, or any other rule of similar effect
(assuming that the shares were at no time held by any affiliate of ours, and all
warrants are exercised by "cashless exercise" as provided in each of the
warrants) or (ii) all of the shares have been sold pursuant to this prospectus
or Rule 144 under the Securities Act of 1933, as amended, or any other rule of
similar effect. The resale shares will be sold only through registered or
licensed brokers or dealers if required under applicable state securities laws.
In addition, in certain states, the resale shares of common stock covered hereby
may not be sold unless they have been registered or qualified for sale in the
applicable state or an exemption from the registration or qualification
requirement is available and is complied with.
Under applicable rules and regulations under the Securities
Exchange Act of 1934, as amended, any person engaged in the distribution of the
resale shares may not simultaneously engage in market making activities with
respect to the common stock for the applicable restricted period, as defined in
Regulation M, prior to the commencement of the distribution. In addition, the
selling stockholders will be subject to applicable provisions of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder,
including Regulation M, which may limit the timing of purchases and sales of
shares of the common stock by the selling stockholders or any other person. We
will make copies of this prospectus available to the selling stockholders and
have informed them of the need to deliver a copy of this prospectus to each
purchaser at or prior to the time of the sale (including by compliance with Rule
172 under the Securities Act of 1933, as amended).
17
DESCRIPTION OF SECURITIES TO BE REGISTERED
Capital Stock
Under our Certificate of Incorporation, the total number of
shares of all classes of stock that we have authority to issue is 250,000,000,
consisting of 250,000,000 shares of common stock, with a par value of $0.001 per
share. As of December 31, 2009, there were 70,363,257 shares of our common stock
issued and outstanding. As of March 18, 2010, there were 78,647,776 shares of
our common stock issued and outstanding. Our common stock is traded on the
Toronto Stock Exchange under the symbol "GTH" and on the NYSE Amex under the
symbol "HTM". The holders of common stock:
are entitled to one vote per share on each matter submitted to a vote of
  stockholders;
have no cumulative voting rights, and, accordingly, the holders of a
  majority of the outstanding shares have the ability to elect all of the
  directors;
have no preemptive or other rights to subscribe for shares; and
are entitled to such distributions as may be declared from time to time by
  the board of directors from funds legally available therefore, and upon
  liquidation are entitled to share ratably in the distribution of assets
  remaining after payment of liabilities.
Warrants
This registration statement does not register the resale of the
warrants, but does register for resale the shares of common stock issuable upon
exercise of the warrants including (i) up to 4,104,757 shares of our common
stock issuable upon the exercise of warrants at the exercise price of $1.25 per
share from September 16, 2010 until September 16, 2015, and (ii) up to 246,285
shares of our common stock issuable upon the exercise of compensation warrants
at the exercise price of $1.25 per share from September 16, 2010 until September
16, 2015.
The warrant provides that the warrant exercise price is subject
to adjustment from time to time if we (i) pay a stock dividend or otherwise make
a distribution or distributions on shares of our common stock or any other
equity or equity equivalent securities payable in shares of common stock, (ii)
subdivide outstanding shares of common stock into a larger number of shares,
(iii) combine (including by way of reverse stock split) outstanding shares of
common stock into a smaller number of shares or (iv) issue by reclassification
of shares of the common stock any shares of our capital stock. For example, if
we were to conduct a 4-for-1 stock split such that each outstanding share became
four shares of common stock, the exercise price of the warrant would be reduced
to one-quarter of the exercise price in effect immediately prior to the stock
split and the number of shares acquirable upon a subsequent exercise of the
warrant shall be multiplied by four.
If (i) we effect any merger or consolidation with or into
another person, (ii) we effect any sale, lease, license, assignment, transfer,
conveyance or other disposition of all or substantially all of our assets, (iii)
any purchase offer, tender offer or exchange offer is completed pursuant to
which holders of common stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted by the
holders of 50% or more of the outstanding common stock, (iv) we effect any
reclassification, reorganization or recapitalization of the common stock or any
compulsory share exchange pursuant to which the common stock is effectively
converted into or exchanged for other securities, cash or property, (v) we
consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) with another person whereby such other person acquires
more than 50% of the outstanding shares of common stock (not including any
shares of common stock held by the other person(s) making or party to, or
associated or affiliated with the other persons making or party to, such stock
or share purchase agreement or other business combination) (each a "Fundamental
Transaction"), then any warrant holder that exercises warrants after a
Fundamental Transaction will be entitled to receive, in lieu of the number of
shares of common stock to which the holder was previously entitled upon exercise
of the warrant, the aggregate number of shares that the holder would have been
entitled to receive as a result of the Fundamental Transaction as if the warrant
holder had been the holder of the number of shares of common stock to which the
warrant holder was entitled on the effective date of the Fundamental
Transaction. We are obligated to cause any successor entity in a Fundamental
Transaction in which we are not the survivor to assume in writing all of our
obligations under the terms of the warrants.
18
MARKET FOR COMMON EQUITY AND RELATED SECURITYHOLDER MATTERS
Market Information and Holders
As of March 18, 2010, there were 78,647,776 shares of our
common stock issued and outstanding and 12,026,767 shares issuable upon exercise
of outstanding share purchase and broker warrants. On that date, there were
approximately 20,200 holders of record of shares of our common stock.
Our common stock is listed on the NYSE Amex under the symbol
"HTM" and the Toronto Stock Exchange under the symbol "GTH".
The following table sets forth the high and low closing bid
prices for our common stock for the fiscal quarters indicated as reported on the
NYSE Amex and the Toronto Stock Exchange.
Period
NYSE Amex
Toronto
      Stock Exchange
(formerly the American Stock Exchange)
Cdn$
High
Low
High
Low
Fiscal year end March 31,
      2010
1
st
Quarter
1.93
0.74
2.16
0.93
2
nd
Quarter
1.75
1.14
1.87
1.34
3
rd
Quarter
1.74
1.45
1.91
1.55
4
th
Quarter
      (through March 18, 2010)
1.65
0.95
1.69
1.00
Fiscal year ended March 31,
      2009
1
st
Quarter
3.04
2.12
3.05
2.15
2
nd
Quarter
2.95
1.30
2.81
1.45
3
rd
Quarter
1.82
0.33
1.92
0.46
4
th
Quarter
1.16
0.60
1.40
0.76
Fiscal year ended March 31, 2008
1
st
Quarter
2.70
1.36
2.85
1.57
2
nd
Quarter
3.10
1.85
3.27
1.99
3
rd
Quarter
4.78
2.56
4.75
2.49
4
th
Quarter
4.09
2.07
4.05
2.00
Dividends
We have never declared any cash dividends with respect to our
common stock. Future payment of dividends is within the discretion of our Board
of Directors and will depend on our earnings, capital requirements, financial
condition and other relevant factors. Although there are no material
restrictions limiting, or that are likely to limit, our ability to pay dividends
on our common stock, we presently intend to retain future earnings, if any, for
use in our business and have no present intention to pay cash dividends on our
common stock.
19
LEGAL MATTERS
Certain legal matters in connection with the offering and the
validity of the common stock offered by this prospectus was passed upon for us
by Dorsey & Whitney LLP.
EXPERTS
The financial statements as of March 31, 2009, 2008 and 2007
incorporated by reference into this prospectus have been so included in reliance
on the report of BehlerMick PS, independent accountants, given on the authority
of said firm as experts in auditing and accounting.
The financial statements of Raft River Energy I, LLC as of
November 28, 2008 and November 30, 2007, and the results of its operations and
cash flows for the three years in the period ended November 28, 2008
incorporated in this prospectus by reference to U.S. Geothermal Inc.'s Annual
Report on Form 10-K (Amendment No. 1) for the year ended March 31, 2009 have
been so incorporated in reliance on the report of PricewaterhouseCoopers LLP,
independent accountants, given on the authority of said firm as experts in
auditing and accounting.
Much of the information with respect to the geothermal resource
at the Raft River, Empire and Neal Hot Springs projects incorporated by
reference into this prospectus is derived from the reports of GeothermEx, Inc.,
Black Mountain Technology, and Teplow Geologic, respectively and has been
included in this prospectus upon the authority of that company as experts with
respect to the matters covered by the reports.
INCORPORATION BY REFERENCE
The Securities and Exchange Commission allows us to
"incorporate by reference" information we file with it. This means that we can
disclose important information to you by referring you to those documents. Any
information we reference in this manner is considered part of this prospectus.
Information contained in this prospectus supersedes information incorporated by
reference that we have filed with the Securities and Exchange Commission prior
to the date of this prospectus.
We incorporate by reference the documents listed below, except
to the extent that any information contained in any such document is deemed
"furnished" in accordance with the rules of the Securities and Exchange
Commission:
Our Annual Report on Form 10-K for the year ended March 31, 2009 filed on
  June 15, 2009 and as amended on October 23, 2009 and further amended on
  November 24, 2009;
Our Quarterly Reports on Form 10-Q for the quarterly period ended June 30,
  2009 filed on August 10, 2009 and as amended on October 23, 2009, for the
  quarterly period ended September 30, 2009 filed on November 10, 2009, and for
  the quarterly period ended December 31, 2009 filed on February 9, 2010 and as
  amended on March 3, 2010;
Our Current Reports on Form 8-K filed June 15, 2009, July 2, 2009, July
  31, 2009, August 17, 2009, October 21, 2009, November 4, 2009 (both 8-Ks filed
  on this date), December 16, 2009, December 21, 2009, and March 9, 2010 (as
  amended March 17, 2010);
Our definitive proxy statement on Schedule 14A for our 2009 Annual Meeting
  of Stockholders filed with the Securities and Exchange Commission on November
  6, 2009, and the definitive additional materials on Schedule 14A filed on
  November 9, 2009 and November 13, 2009; and
The description of our common stock contained in our registration
  statement on Form 8-A filed on April 15, 2008 with the Securities and Exchange
  Commission under Section 12 of the Securities Exchange Act of 1934, as
  amended, including any amendment or report filed for purposes of updating such
  description.
We will provide to each person, including any beneficial owner,
to whom a prospectus is delivered, a copy of any or all of the reports or
documents that we incorporate by reference in this prospectus contained in the
registration statement (except exhibits to the documents that are not
specifically incorporated by reference) at no cost to you, by writing or calling
us at:
U.S. Geothermal Inc.
1505 Tyrell Lane
Boise, ID 83706
208-424-1027
20
Information about us is also available at our website at
http://www.usgeothermal.com. However, the information in our website is not a
part of this prospectus and is not incorporated by reference into this
prospectus.
21
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy statements
and other information with the Securities and Exchange Commission. Our
Securities and Exchange Commission filings are available to the public over the
Internet at the Securities and Exchange Commission's web site at
http://www.sec.gov. You may also read and copy any document we file with the
Securities and Exchange Commission at its public reference rooms at:
100 F Street, N.E.
Room 1580
Washington, D.C. 20549
You may call the Securities and Exchange Commission at
1-800-SEC-0330 for more information on the public reference rooms and their copy
charges. This prospectus is part of a registration statement and, as permitted
by Securities and Exchange Commission rules, does not contain all of the
information included in the registration statement. Whenever a reference is made
in this prospectus to any of our contracts or other documents, the reference may
not be complete and, for a copy of the contract or document, you should refer to
the exhibits that are part of the registration statement.
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR
SECURITIES ACT LIABILITIES
Section 145 of the Delaware General Corporation Law (the
"Delaware Law") authorizes a court to award, or a corporation's board of
directors to grant, indemnity to directors and officers in terms sufficiently
broad to permit such indemnification under certain circumstances for
liabilities, (including reimbursement for expenses incurred) arising under the
Securities Act of 1933. Article XII of the Certificate of Incorporation of U.S.
Geothermal Inc. ("we", "us" or "our company") provides for indemnification of
officers, directors and other employees of U.S. Geothermal to the fullest extent
permitted by Delaware Law. Article XIII of the Certificate of Incorporation
provides that directors shall not be personally liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except (i) for any breach of a director's duty of loyalty to our company or our
stockholders, (ii) acts and omissions that are not in good faith or that involve
intentional misconduct or knowing violation of law, (iii) under Section 174 of
the Delaware Law, or (iv) for any transaction from which the director derived
any improper benefit.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant
has been information that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.
22
U.S. GEOTHERMAL INC.
12,560,561 shares of
Common
Stock
________________________
PROSPECTUS
________________________
The date of this prospectus is , 2010
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and
Distribution.
Securities and Exchange Commission
      Registration Fee*
$
973.13
Legal Fees and Expenses
75,000
Accounting Fees and Expenses
20,000
Miscellaneous Expenses
4,000
Total
$
99,973.13
* All expenses other than the registration fee and filing fee
are estimates.
Item 14. Indemnification of Directors and Officers
Section 145 of the Delaware General Corporation Law (the
"Delaware Law") authorizes a court to award, or a corporation's board of
directors to grant, indemnity to directors and officers in terms sufficiently
broad to permit such indemnification under certain circumstances for
liabilities, (including reimbursement for expenses incurred) arising under the
Securities Act of 1933. Article XII of the Certificate of Incorporation of U.S.
Geothermal Inc. ("we", "us" or "our company") provides for indemnification of
officers, directors and other employees of U.S. Geothermal to the fullest extent
permitted by Delaware Law. Article XIII of the Certificate of Incorporation
provides that directors shall not be personally liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director,
except (i) for any breach of a director's duty of loyalty to our company or our
stockholders, (ii) acts and omissions that are not in good faith or that involve
intentional misconduct or knowing violation of law, (iii) under Section 174 of
the Delaware Law, or (iv) for any transaction from which the director derived
any improper benefit.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended, may be permitted to our directors, officers
or controlling persons pursuant to the foregoing provisions, or otherwise, we
have been advised that in the opinion of the Securities and Exchange Commission
this indemnification is against public policy as expressed in the Securities Act
of 1933, as amended, and is, therefore, unenforceable.
Item 15. Recent Sales of Unregistered Securities
A. On March 16, 2010, we completed a private placement of
securities issued pursuant to a securities purchase agreement entered into with
several institutional investors, pursuant to which the Company issued 8,209,519
shares of common stock at a price of $1.05 per share for gross proceeds of
approximately $8.6 million. Pursuant to the terms of the private placement, each
investor was also issued a common share purchase warrant exercisable for 50% of
the number of shares of common stock purchased by the investor. After deducting
for fees and expenses, the net proceeds are approximately $8.0 million. The
securities were issued in reliance on exemptions from registration pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act"),
and Rule 506 of Regulation D thereunder. Each of the investors has represented
to the Company that it is an "accredited investor" as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act.
RBC Capital Markets Corporation served as lead placement agent
and Clarus Securities Inc., Dundee Securities Corporation and Baird acted as
co-agents. The Company paid commissions to agents in connection with the private
placement in the amount of approximately $517,200 and issued warrants to
purchase up to 246,285 shares of common stock on the same terms as the warrants
issued to the investors. The Company also agreed to reimburse the agents for
certain legal fees and out-of-pocket expenses.
Each warrant is exercisable at $1.25 per share for a period of
five years beginning six months after the closing of the private placement.
However, under certain specified circumstances, the warrants may be exercised by
means of a "cashless exercise." The warrants have customary provisions for the
adjustment to the exercise price based on certain stock dividends, stock splits
and certain types of fundamental transactions such as mergers and asset sales.
In connection with the private placement, we also entered into
a registration rights agreement with the investors.
Pursuant to the registration rights agreement, the Company has
agreed to file a registration statement covering the resale of the shares of
common stock issued to investors in the private placement, including the shares
of common stock issuable upon exercise of the warrants. The registration rights
agreement also extends to the shares of common stock issuable upon the exercise
of the warrants issued to the agents as a portion of their commissions in the
private placement. Pursuant to the registration rights agreement, the Company
has agreed to file an initial registration statement with the Securities and Exchange Commission within 30
calendar days of the closing of the private placement and to use its best
efforts to cause such registration statement to become effective within 120 days
of the closing, or it will be subject to certain liquidated damages provisions
(described below). The Company has also agreed to file and keep continuously
effective the resale registration statement or any additional registration
statements until all of the shares of common stock and the shares of common
stock issuable upon exercise of the warrants registered thereunder have been
sold or may be sold without volume restrictions pursuant to Rule 144 of the
Securities Act.
II-1
If, among other things, (i) the Company fails to file the
initial registration statement within the prescribed period or (ii) any
registration statement that we file is not declared effective within 120
calendar days of the required filing date or (iii) upon the occurrence of
certain other specified events, the Company has agreed to pay to each investor,
as partial liquidated damages, an amount in cash equal to 1% of the aggregate
purchase price paid by each such investor upon the occurrence of such event and
upon the monthly anniversary of the event date until cured. The maximum
aggregate liquidated damages payable to an investor will not exceed 10% of the
aggregate purchase price paid by such investor. Notwithstanding the foregoing,
liquidated damages shall not be payable for any period during which the shares
of commons stock may be sold without volume restrictions pursuant to Rule 144 of
the Securities Act.
B. On August 17, 2009 we completed a private placement of
8,100,000 subscription receipts at a price of Cdn$1.35 per subscription receipt
for an aggregate gross proceeds of Cdn$10,935,000. On December 17, 2009, each
subscription receipt was automatically exchanged, without additional
consideration, for one unit of our Company. Each unit consists of one share of
our common stock and one-half of a common stock purchase warrant. Each whole
common share purchase warrant entitles the holder to acquire one share of our
common stock for $1.75 for 24 months from the closing of the private placement.
The exchange date for the subscription receipts was the date that was the
earlier of the date on which a receipt for a final prospectus is issued in
Canada qualifying the distribution of the common stock and warrants issuable
upon exercise of the subscription receipts and the date which is four months and
one day after the closing date of the private placement (being December 17,
2009).
The offer and sale of the subscription receipts was made to a
limited number of "accredited investors" as defined in Rule 501(a) of Regulation
D with no general solicitation or general advertising, and was exempt from
registration under the Securities Act pursuant to Rule 506 of Regulation D.
Dundee Securities Corporation, Clarus Securities Inc., and Toll
Cross Securities Inc., the agents for the private placement, were paid an
aggregate cash fee of Cdn$656,100, representing 6% of the aggregate gross
proceeds of the private placement. We granted the agents compensation options
exchangeable on the exchange date for broker warrants. The broker warrants
entitle the agents to purchase up to 243,000 shares of our common stock at $1.22
(the U.S. dollar equivalent of Cdn$1.35 on August 17, 2009). The issuance of
these securities was exempt from registration pursuant to Rule 506 of Regulation
D.
In connection with the private placement, we agreed to file a
resale registration statement with the Securities and Exchange Commission as
soon as practicable following closing of the private placement and to use
commercially reasonable efforts to cause it to become effective and remain
effective until the earlier of two years after the closing date of the private
placement, and the date on which all of the shares of our common stock offered
by this prospectus have been publicly sold by the selling securityholders. If
the registration statement has not become effective by February 17, 2010, or at
any time on or after February 17, 2010 that the registration statement is not
usable, the warrants will be exercisable into common stock pursuant to a net
exercise right until such time as the registration statement is effective or
usable, as applicable. The net exercise right allows the holder to exercise the
warrants on a cashless basis by paying the exercise price in shares of common
stock.
The proceeds of the private placement will be used for drilling
and exploration at Neal Hot Springs and for general working capital.
C. On April 28, 2008, the Company completed a private placement
of 6,382,500 units at a price of Cdn$2.35 per unit for aggregate gross proceeds
to the Company of Cdn$14,998,875. Each unit consisted of one share of common
stock of the Company and one-half of a common stock purchase warrant. Each whole
common share purchase warrant entitles the holder to acquire one share of common
stock of the Company for $3.00 for 24 months from closing. The sale of the
shares was pursuant to the exemption from registration provided under Rule 501
of Regulation D, promulgated under the Securities Act.
II-2
Clarus Securities Inc., Toll Cross Securities Inc., and Loewen
Ondaatje McCutcheon Limited, the underwriters for the private placement, were
paid an aggregate cash fee of Cdn$854,932, representing 6% of the aggregate
gross proceeds of the private placement, less $45,000, and were issued broker
warrants to purchase up to 191,475 shares of common stock of the Company at
$2.34 exercisable for 24 months from the closing of the private placement.
In connection with the private placement, the Company agreed to
file a registration statement with the Securities and Exchange Commission as
soon as practicable following closing and use commercially reasonable efforts to
cause it to become effective and remain effective for two years. The
registration statement became effective on September 11, 2008. The proceeds of
the private placement were used to complete the acquisition of assets from
Empire Geothermal Power LLC, and for working capital and general corporate
purposes.
D. In April 2008, the Company negotiated to reduce an existing
third party royalty from 12.5% to 1.75% of the gross power plant revenue
associated with the existing production wells under a primary geothermal lease.
In exchange, we issued 290,000 shares of our common stock to the lessor, The
Kosmos Company on May 1, 2008. The shares were not registered under the
Securities Act, in reliance on an exemption from registration provided by
Section 4(2) of the Securities Act.
E. On June 5, 2007, the Company completed a private placement
of 9,090,900 shares of common stock at a price of Cdn$2.20 per share, for gross
proceeds to the company of Cdn$19,999,980. The sale of shares was pursuant to
the exemption from registration provided under Rule 506 of Regulation D,
promulgated under the Securities Act.
Cormark Securities Inc., Dundee Securities Corporation, and
Toll Cross Securities Inc., the underwriters for the private placement, were
paid an aggregate cash fee of Cdn$999,999, representing 5% of the aggregate
gross proceeds from the private placement, and were issued broker warrants to
purchase up to 454,545 common shares of the Company at $2.08 exercisable for 18
months.
The proceeds of the private placement will be used for the
ongoing development and exploration at their Raft River and Neal Hot Springs
projects, and for general corporate working capital purposes.
II-3
Item 16. Exhibits and Financial Statement Schedules
(a) Exhibits
EXHIBIT
NUMBER
DESCRIPTION
3.1
Certificate of Incorporation of U.S. Cobalt Inc. (now
      known as U.S. Geothermal Inc.) (Incorporated by reference to Exhibit 3.1
      to the registrant's Form SB-2 registration statement as filed on July 8,
      2004)
3.2
Certificate of Domestication of Non-U.S. Corporation
      (Incorporated by reference to Exhibit 3.2 to the registrant's Form SB-2
      registration statement as filed on July 8, 2004)
3.3
Certificate of Amendment of Certificate of Incorporation
      (changing name of U.S. Cobalt Inc. to U.S. Geothermal Inc.) (Incorporated
      by reference to Exhibit 3.3 to the registrant's Form SB-2 registration
      statement as filed on July 8, 2004)
3.4
Certificate of Amendment to the Certificate of
      Incorporation of U.S. Geothermal Inc. as filed on August 26, 2008
      (Incorporated by reference to Exhibit 3.1 to the registrant's Form 8-K as
      filed on August 27, 2008)
3.5
First Amended and Restated Bylaws of U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 3.4 to the registrant's report on
      Form 8-K as filed on November 4, 2009)
4.1
Form of Stock Certificate (Incorporated by reference to
      Exhibit 4.1 to the registrant's Form SB-2 registration statement as filed
      on July 8, 2004)
4.2
Provisions Regarding Rights of Stockholders (Incorporated
      by reference to Exhibit 4.3 to the registrant's Form SB-2 registration
      statement as filed on July 8, 2004)
4.3
Form of Securities Purchase Agreement used in private
      placement of March 2010 (Incorporated by reference to Exhibit 10.1 to the
      registrant's Form 8-K as filed on March 9, 2010)
4.4
Form of Registration Rights Agreement used in private
      placement of March 2010 (Incorporated by reference to Exhibit 10.2 to the
      registrant's Form 8-K as filed on March 9, 2010)
4.5
Form of Warrant used in private placement of March 2010
      (Incorporated by reference to Exhibit 10.3 to the registrant's Form 8-K as
      filed on March 9, 2010)
5.1
Opinion of Dorsey & Whitney LLP
10.1
Agreement between U.S. Geothermal Inc. and Vulcan Power
      Company dated December 3, 2002 regarding the acquisition of the Vulcan
      interest (Incorporated by reference to Exhibit 10.1 to the registrant's
      Form SB-2 registration statement as filed on July 8, 2004)
10.2
Amendment No. 1 dated November 15, 2003 to Agreement
      between U.S. Geothermal Inc. and Vulcan Power Company (Incorporated by
      reference to Exhibit 10.2 to the registrant's Form SB-2 registration
      statement as filed on July 8, 2004)
10.3
Amendment No. 2 dated December 30, 2003 to Agreement
      between U.S. Geothermal Inc. and Vulcan Power Company (Incorporated by
      reference to Exhibit 10.3 to the registrant's Form SB-2 registration
      statement as filed on July 8, 2004)
10.4
Geothermal Lease and Agreement dated July 11, 2002,
      between Sergene Jensen, Personal Representative of the Estate of Harlan B.
      Jensen, and U.S. Geothermal Inc. (Incorporated by reference to Exhibit
      10.5 to the registrant's Form SB-2 registration statement as filed on July
      8, 2004)
10.5
Geothermal Lease and Agreement dated June 14, 2002,
      between Jensen Investments Inc. and U.S. Geothermal Inc. (Incorporated by
      reference to Exhibit 10.6 to the registrant's Form SB-2 registration statement as filed on July 8, 2004)
II-4
EXHIBIT
NUMBER
DESCRIPTION
10.6
Geothermal Lease and Agreement dated March 1, 2004,
      between Jay Newbold and U.S. Geothermal Inc. (Incorporated by reference to
      Exhibit 10.7 to the registrant's Form SB-2 registration statement as filed
      on July 8, 2004)
10.7
Geothermal Lease and Agreement dated June 28, 2003,
      between Janice Crank and the children of Paul Crank and U.S. Geothermal Inc. (Incorporated by
      reference to Exhibit 10.8 to the registrant's Form SB-2 registration
      statement as filed on July 8, 2004)
10.8
Geothermal Lease and Agreement dated December 1, 2004,
      between Reid S. Stewart and Ruth O. Stewart and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.9 to the registrant's Amendment
      No. 2 to Form SB-2 registration statement as filed on January 10, 2005)
10.9
Geothermal Lease and Agreement dated July 5, 2005,
      between Bighorn Mortgage Corporation and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.11 to the registrant's Form
      10-QSB quarterly report as filed on February 17, 2006)
10.10
Geothermal Lease and Agreement dated June 23, 2005, among
      Dale and Ronda Doman and U.S. Geothermal Inc. (Incorporated by reference
      to Exhibit 10.13 to the registrant's Form 10-QSB quarterly report as filed
      on February 17, 2006)
10.11
Geothermal Lease and Agreement dated June 23, 2005, among
      Michael and Cleo Griffin, Harlow and Pauline Griffin, Douglas and Margaret
      Griffin, Terry and Sue Griffin, Vincent and Phyllis Jorgensen, and Alice
      Mae Griffin Shorts, and U.S. Geothermal Inc. (Incorporated by reference to
      Exhibit 10.14 to the registrant's Form 10-QSB quarterly report as filed on
      February 17, 2006)
10.12
Geothermal Lease and Agreement dated January 25, 2006,
      between Philip Glover and U.S. Geothermal Inc. (Incorporated by reference
      to Exhibit 10.9 to the registrant's Form 10-QSB quarterly report as filed
      on February 17, 2006)
10.13
Geothermal Lease and Agreement dated May 24, 2006,
      between JR Land and Livestock Inc. and US Geothermal Inc. (Incorporated by
      reference to Exhibit 10.30 to the registrant's Form 10-KSB annual report
      as filed on June 29, 2006)
10.14
Employment Agreement dated January 1, 2009, with Kerry D.
      Hawkley (Incorporated by reference to Exhibit 10.16 to the registrant's
      Form 10-K annual report as filed on June 15, 2009)
10.15
Employment Agreement dated January 1, 2009, with Douglas
      J. Glaspey (Incorporated by reference to Exhibit 10.16 to the registrant's
      Form 10-K annual report as filed on June 15, 2009)
10.16
Escrow Agreement made December 19, 2003, among U.S.
      Geothermal Inc., Pacific Corporate Trust Company, as escrow agent, and
      certain security holders (Incorporated by reference to Exhibit 10.15 to
      the registrant's Form SB-2 registration statement as filed on July 8,
      2004)
10.17
Escrow Agreement made December 19, 2003, among U. S.
      Geothermal Inc., Pacific Corporate Trust Company, as escrow agent, and
      certain security holders (Incorporated by reference to Exhibit 10.16 to
      the registrant's Form SB-2 registration statement as filed on July 8,
      2004)
10.18
First Amended and Restated Merger Agreement dated
      November 30, 2003, among U.S. Cobalt Inc., EverGreen Power Inc., U.S.
      Geothermal Inc., and the stockholders of U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.17 to the registrant's Form SB-2
      registration statement as filed on July 8, 2004)
II-5
EXHIBIT
NUMBER
DESCRIPTION
10.19
Agreement with Dundee Securities Corporation dated June
      28, 2004 (Incorporated by reference to Exhibit 10.18 to the registrant's
      Form SB-2 registration statement as filed on July 8, 2004)
10.20
Amended and Restated Stock Option Plan of U.S. Geothermal
      Inc. dated September 29, 2006 (Incorporated by reference to Exhibit 10.23
      to the registrant's Form SB-2 registration statement as filed on October
      2, 2006)
10.21
Power Purchase Agreement dated December 29, 2004 between
      U.S. Geothermal Inc. and Idaho Power Company (Incorporated by reference to
      Exhibit 10.19 to the registrant's Amendment No. 2 to Form SB-2
      registration statement as filed on January 10, 2005)
10.22
Engineering, Procurement and Construction Agreement dated
      December 5, 2005 between U.S. Geothermal Inc. and Ormat Nevada Inc.
      (Incorporated by reference to Exhibit 10.28 to the registrant's Form
      10-QSB quarterly report as filed on February 17, 2006) *
10.23
Amendment to the Engineering, Procurement and
      Construction Agreement dated April 26, 2006 between U.S. Geothermal Inc.
      and Ormat Nevada Inc. (Incorporated by reference to Exhibit 99.1 to the
      registrant's Form 8-K as filed on May 2, 2006)
10.24
Letter of Intent from Eugene Water and Electric Board to
      U.S. Geothermal Inc. dated February 22, 2006 (Incorporated by reference to
      Exhibit 10.27 to the registrant's Form SB-2 as filed on September 29,
      2006)
10.25
Renewable Energy Credits Purchase and Sales Agreement
      dated July 29, 2006, between Holy Cross Energy and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.28 to the registrant's Form SB-2
      as filed on September 29, 2006)
10.26
Transmission Agreement dated June 24, 2005, between
      Department of Energy's Bonneville Power Administration - Transmission
      Business Line and U.S. Geothermal Inc. (Incorporated by reference to
      Exhibit 10.27 to the registrant's Form 10-QSB quarterly report as filed on
      August 12, 2005)
10.27
Interconnection and Wheeling Agreement dated March 9,
      2006, between Raft River Rural Electric Co-op and U.S. Geothermal Inc.
      (Incorporated by reference to Exhibit 10.28 to the registrant's Form
      10-KSB annual report as filed on June 29, 2006)
10.28
Construction Contract dated May 16, 2006, between Raft
      River Rural Electric Co-op and U.S. Geothermal Inc. (Incorporated by
      reference to Exhibit 10.31 to the registrant's Form SB-2 as filed on
      September 29, 2006)
10.29
Membership Admission Agreement dated August 9, 2006,
      among Raft River Energy I LLC, U.S. Geothermal Inc., and Raft River I
      Holdings, LLC (Incorporated by reference to Exhibit 10.1 to the
      registrant's Form 8-K as filed on August 23, 2006)
10.30
Amended and Restated Operating Agreement of Raft River
      Energy I LLC, dated as of August 9, 2006, among Raft River Energy I LLC,
      Raft River I Holdings, LLC and U.S. Geothermal Inc (Incorporated by
      reference to Exhibit 10.33 to the registrant's Form 10-Q as filed on
      August 10, 2009)
10.31
Management Services Agreement dated as of August 9, 2006,
      between Raft River Energy I LLC and U.S. Geothermal Services, LLC
      (Incorporated by reference to Exhibit 10.31 to the registrant's Form
      10-K/A as filed on October 23, 2009)
10.32
Construction Contract dated May 22, 2006, between
      Industrial Builders and U.S. Geothermal Inc. (Incorporated by reference to Exhibit 10.31 to
      the registrant's Form 10-KSB annual report as filed on June 29, 2006)
II-6
EXHIBIT
NUMBER
DESCRIPTION
10.33
First Amendment to the Amended
      and Restated Operating Agreement of Raft River Energy I LLC dated as of
      November 7, 2006, among Raft River Energy I LLC, Raft River I Holdings,
      LLC and U.S. Geothermal Inc. (Incorporated by reference to Exhibit 10.36
      to the registrant's Form 10-Q as filed on August 10, 2009)
10.34
Geothermal Lease and Agreement dated August 1,
      2007, between Bureau of Land Management and U.S. Geothermal Inc.
10.35
Asset Purchase Agreement dated
      as of March 31, 2008, between U.S. Geothermal Inc., and Empire Geothermal
      Power LLC and Michael B. Stewart (Incorporated by reference as Exhibit
      99.1 to the registrant's Form 8-K current report as filed on April 7,
      2008)
10.36
Underwriting Agreement dated April 28, 2008,
      between U.S. Geothermal Inc. and Clarus Securities Inc., Toll Cross
      Securities Inc. and Loewen Ondaatje McCutcheon Limited (Incorporated by
      reference to Exhibit 10.1 to the registrant's Form 8-K current report as
      filed on May 2, 2008)
10.37
Agency Agreement dated August
      17, 2009, among U.S. Geothermal Inc., Dundee Securities Corporation,
      Clarus Securities Inc. and Toll Cross Securities Inc. (Incorporated by
      reference to Exhibit 10.42 to the registrant's Form S-1 registration
      statement as filed on November 27, 2009)
10.38
Water Rights Purchase Agreement dated March 31,
      2008, between Michael B. Stewart and U.S. Geothermal Inc. (Incorporated by
      reference as Exhibit 99.2 to the registrants Form 8-K current report as
      filed on April 7, 2008)
10.39
Employment Agreement dated
      January 1, 2009 with Daniel J. Kunz (Incorporated by reference to Exhibit
      10.15 to the registrant's Form 10-Q quarterly report as filed on August
      10, 2009)
10.40
2009 Stock Incentive Plan of U.S. Geothermal
      Inc. (Incorporated by reference to Appendix A to the registrant's Schedule
      14A definitive proxy statement as filed on November 6, 2009)
10.41
Power Purchase Agreement dated
      as of December 11, 2009, between Idaho Power Company and USG Oregon LLC
      (Incorporated by reference to Exhibit 10.43 to the Company's Form 10-Q
      quarterly report as filed on February 9, 2010)
10.42
Power Purchase and Sale Agreement, dated as of
      February 2008, between Eugene Water & Electric Board and U.S.
      Geothermal Inc. (Incorporated by reference to Exhibit 10.42 to the
      registrant's Form 10-Q/A quarterly report as filed on March 3, 2010)
10.43
Long Term Agreement For the
      Purchase and Sale of Electricity, dated December 31, 1986, between Sierra
      Pacific Power Company and Empire Farms, as amended (Incorporated by
      reference to Exhibit 10.43 to the registrant's Form 10-Q/A quarterly
      report as filed on March 3, 2010)
21.1
Subsidiaries of the Registrant (Incorporated by
      reference as Exhibit 21.1 to the registrant's Form 10- K as filed on June
      15, 2009)
23.1
Consent of BehlerMick PS
23.2
Consent of PricewaterhouseCoopers LLP
23.3
Consent of GeothermEx, Inc.
23.4
Consent of Teplow Geologic
23.5
Consent of Black Mountain
      Technology
II-7
EXHIBIT
NUMBER
DESCRIPTION
23.6
Consent of Dorsey & Whitney
      LLP (Included in Exhibit 5.1)
24.1
Powers of Attorney (Included in the Signature
      Pages of this Registration Statement)
Item 17. Undertakings.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales of
securities are being made, a post-effective amendment to this registration
statement:
(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of
the estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement.
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;
(2) That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
(4) That, for the purpose of determining liability under the
Securities Act of 1933 to any purchaser,
(A) Each prospectus filed by a registrant pursuant to Rule
424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration
statement; and
(5) If the registrant is subject to Rule 430C, each prospectus
filed pursuant to Rule 424(b) as part of a registration statement relating to an
offering, other than registration statements relying on Rule 430B or other than
prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and
included in the registration statement as of the date it is first used after
effectiveness.
Provided, however
, that no statement made in a
registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use.
(b) The undersigned registrant hereby undertakes to deliver or
cause to be delivered with the prospectus, to each person to whom the prospectus
is sent or given, the latest annual report to security holders that is
incorporated by reference in the prospectus and furnished pursuant to and
meeting the requirements of Rule 14a-3 or Rule 14c-3 under the Securities
Exchange Act of 1934; and, where interim financial information required to be
presented by Article 3 of Regulation S-X are not set forth in the prospectus, to
deliver, or cause to be delivered to each person to whom the prospectus is sent
or given, the latest quarterly report that is specifically incorporated by
reference in the prospectus to provide such interim financial information.
II-8
(c) Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the Commission
such indemnification is against public policy as expressed in the Securities Act
of 1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the claim has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities
Act of 1933 and will be governed by the final adjudication of such issue.
II-9
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant has duly caused this registration statement to be signed on its
behalf by the undersigned thereunto duly authorized in the City of Boise, State
of Idaho, on March 26, 2010.
U.S. Geothermal Inc.
(Registrant)
By: /s/ Kerry D.
Hawkley
Kerry D. Hawkley
Chief Financial Officer
(Principal
Financial and Accounting Officer)
POWER OF ATTORNEY
Each person whose signature appears below constitutes and
appoints each of Daniel Kunz, Douglas Glaspey and Kerry Hawkley his
attorney-in-fact and agent, with the full power of substitution and
resubstitution and full power to act without the other, for them in any and all
capacities, to sign any and all amendments, including post-effective amendments,
and any registration statement relating to the same offering as this
registration that is to be effective upon filing pursuant to Rule 462(b) under
the Securities Act of 1933, as amended, to this registration statement, and to
file the same, with exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, hereby ratifying and
confirming all that said attorneys-in-fact, or their substitute or substitutes,
may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933,
this registration statement has been signed by the following persons in the
capacities and on the dates indicated:
Name
Title
Date
/s/ Daniel J.
      Kunz
Chief Executive Officer, President and Director
March 26, 2010
Daniel J. Kunz
(Principal Executive Officer)
/s/ Kerry D.
      Hawkley
Chief Financial Officer (Principal Financial
      and
March 26, 2010
Kerry D. Hawkley
Accounting Officer)
/s/ Douglas J.
      Glaspey
Chief Operating Officer and Director
March 26, 2010
Douglas J. Glaspey
/s/ John H.
      Walker
Chairman and Director
March 26, 2010
John H. Walker
/s/ Paul A.
      Larkin
Director
March 26, 2010
Paul A. Larkin
/s/ Leland R.
      Mink
Director
March 26, 2010
Leland R. Mink
II-10