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   <TITLE>U.S. Geothermal Inc.&nbsp; - Form S-1 - Prepared By TNT Filings Inc.</TITLE>

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<P align=center>As filed with the Securities and Exchange Commission on November
27, 2009 </P>
<P align=right>Registration Statement No. 333- </P>
<P align=center><B><font size="5">UNITED STATES <br>
SECURITIES AND EXCHANGE COMMISSION <br>
</font>Washington, D.C. 20549 </B></P>
<P align=center>__________________ </P>
<P align=center><B><font size="5">FORM S-1 <br>
</font>REGISTRATION STATEMENT <br>
UNDER <br>
THE SECURITIES ACT OF 1933
</B></P>
<P align=center>__________________ </P>
<P align=center><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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    <td WIDTH="33%" align="center"><font FACE="Times New Roman" SIZE="2"><b>
    Delaware</b></font></td>
    <td WIDTH="33%" align="center"><font FACE="Times New Roman" SIZE="2"><b>4911</b></font></td>
    <td WIDTH="34%" align="center"><font FACE="Times New Roman" SIZE="2"><b>
    84-1472231</b></font></td>
  </tr>
  <tr>
    <td WIDTH="33%" align="center"><font FACE="Times New Roman" SIZE="2">(State
    or other jurisdiction of</font></td>
    <td WIDTH="33%" align="center"><font FACE="Times New Roman" SIZE="2">
    (Primary Standard Industrial</font></td>
    <td WIDTH="34%" align="center"><font FACE="Times New Roman" SIZE="2">(I.R.S.
    Employee Identification</font></td>
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  <tr>
    <td WIDTH="33%" align="center"><font FACE="Times New Roman" SIZE="2">
    incorporation or organization)</font></td>
    <td WIDTH="33%" align="center"><font FACE="Times New Roman" SIZE="2">
    Classification Code Number)</font></td>
    <td WIDTH="34%" align="center"><font FACE="Times New Roman" SIZE="2">No.)</font></td>
  </tr>
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<P align=center>&nbsp;</P>
<P align=center><B>1505 Tyrell Lane</B> <B><br>
Boise, Idaho 83706 <br>
(208)
424-1027</B> <br>
(Address, including zip code, and telephone number, <br>
including area
code of registrant&#146;s principal executive offices) </P>
<P align=center><B>Daniel J. Kunz <br>
Chief Executive
Officer <br>
1505 Tyrell Lane <br>
Boise, Idaho 83706 <br>
(208) 424-1027 <br>
</B>(Name, address, including zip code, and telephone number,<br>
&nbsp;including area code, of agent for service)</P>
<P align=center>__________________<BR></P>
<P align=center><I>Copy to</I>: </P>
<P align=center><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 </B></P>
<P align=center>__________________ </P>
<P align=justify><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.&nbsp;
    <font face="Wingdings 2" size="3">Q</font></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;
    <font face="Wingdings 2" size="3">&#163;</font></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;
    <font face="Wingdings 2" size="3">&#163;</font></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;
    <font face="Wingdings 2" size="3">&#163;</font></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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    <td dir="ltr" style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 7.2pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" vAlign="top" width="50%" align="center">
    <font face="Times New Roman" size="2">Large accelerated filer&nbsp; </font>
    <font face="Wingdings 2">&#163;</font></td>
    <td dir="ltr" style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 7.2pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" vAlign="top" width="50%" align="center">
    <p dir="ltr" style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; FONT-SIZE: 10pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 0pt; COLOR: #000000; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; PADDING-TOP: 0pt" align="center">
    <font face="Times New Roman">Accelerated filer </font>
    <font face="Wingdings 2" size="3">Q</font></td>
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    <td dir="ltr" style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 7.2pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" vAlign="top" width="50%" align="center">
    <p dir="ltr" style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; FONT-SIZE: 10pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 0pt; COLOR: #000000; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; PADDING-TOP: 0pt" align="center">
    <font face="Times New Roman">Non-accelerated filer</font><font FACE="Times New Roman" SIZE="2"><br>
    (Do not check if a smaller reporting company)</font><font FACE="Times New Roman" SIZE="2"><b>
    </b></font>
    <font face="Times New Roman">&nbsp; </font>
    <font face="Wingdings 2" size="3">&#163;</font></td>
    <td dir="ltr" style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 7.2pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt" vAlign="top" width="50%" align="center">
    <p dir="ltr" style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; FONT-SIZE: 10pt; PADDING-BOTTOM: 0pt; MARGIN-LEFT: 0pt; COLOR: #000000; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; PADDING-TOP: 0pt" align="center">
    <font face="Times New Roman">Smaller reporting company </font>
    <font face="Wingdings 2" size="3">&#163;</font></td>
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<P align=center><B>CALCULATION OF REGISTRATION FEE </B></P>
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  <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=center width="13%" 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"><B><FONT size=2>Amount to
    </FONT></B></TD>
    <TD noWrap align=center width="13%" 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=center width="13%" 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=center width="13%" 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"><B><FONT size=2>Amount of
    </FONT></B></TD></TR>
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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"><B><FONT size=2>Title of Each Class of
</FONT></B></TD>
    <TD noWrap align=center width="13%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B><FONT size=2>be </FONT></B></TD>
    <TD noWrap align=center width="13%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B><FONT size=2>Proposed Maximum
      </FONT></B></TD>
    <TD noWrap align=center width="13%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B><FONT size=2>Proposed Maximum
      </FONT></B></TD>
    <TD noWrap align=center width="13%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1"><B><FONT size=2>Registration
      </FONT></B></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><B><FONT
      size=2>Securities to be Registered </FONT></B></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%"><B><FONT size=2>Registered </FONT></B></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%"><B><FONT size=2>Offering Price Per Unit </FONT></B></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%"><B><FONT size=2>Aggregate Offering Price </FONT></B></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%"><B><FONT size=2>Fee</FONT></B></TD></TR>
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    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left
      bgColor=#e6efff><FONT size=2>Common stock to be </FONT><FONT
      size=2>offered for resale by the </FONT><FONT size=2>selling
      securityholders, </FONT><FONT size=2>$0.001 par value </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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2>8,100,000 </FONT><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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2>$1.57<SUP>(1) </SUP></FONT><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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2>$12,717,000 </FONT><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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2></FONT><FONT
      size=2>$709.61 </FONT><FONT size=2></FONT></TD></TR>
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    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1; border-right-style:solid; border-right-width:1" align=left><FONT
      size=2>Common stock acquirable </FONT><FONT size=2>upon the exercise of
      </FONT><FONT size=2>warrants </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" align=center
      width="13%"><FONT size=2></FONT><FONT size=2>4,050,000 </FONT><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" align=center
      width="13%"><FONT size=2></FONT><FONT size=2>$1.75<SUP>(2)
      </SUP></FONT><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" align=center
      width="13%"><FONT size=2></FONT><FONT size=2>$7,087,500 </FONT><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" align=center
      width="13%"><FONT size=2></FONT><FONT size=2>$395.48 </FONT><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" align=left
      bgColor=#e6efff><FONT size=2>Common stock acquirable </FONT><FONT
      size=2>upon the exercise of </FONT><FONT size=2>compensation options
      </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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2>243,000 </FONT><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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2>$1.22<SUP>(3)
      </SUP></FONT><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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2>$296,460 </FONT><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" align=center width="13%"
    bgColor=#e6efff><FONT size=2></FONT><FONT size=2>$16.54 </FONT><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><B><FONT
      size=2>Total </FONT></B></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>12,393,000 </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=center
      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=center
      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=center
      width="13%"><FONT size=2>$1,121.63 </FONT></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 November 19, 2009. </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 4,050,000 shares of common stock issuable upon the
      exercise of warrants issuable pursuant to subscription receipts sold in a
      private placement that closed on August 17, 2009. Each whole warrant is
      exercisable for a period of 24 months from August 24, 2009 at an exercise
      price of US$1.75 per share. 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$1.75
      per share, the highest exercise price for the warrants over the term of
      the warrants. </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 243,000 shares of common stock issuable upon the
      exercise of broker warrants issuable pursuant to compensation options
      granted to the agent in a private placement that closed on August 17,
      2009. Each whole broker warrant is exercisable for a period of 24 months
      from August 17, 2009 at an exercise price of US$1.22 per share, the U.S.
      dollar equivalent of Cdn$1.35 as of August 17, 2009. 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. </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
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<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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<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=center><font color="#FF0000">Subject to completion, dated November 27, 2009
</font> </P>
<P align=justify><B>Preliminary Prospectus </B></P>
<P align=center><img border="0" src="firsth1.jpg" width="298" height="67"></P>
<P align=center><B>Up To 12,393,000 Shares of Common Stock </B></P>
<P align=justify>This is a public offering of up to 12,393,000 shares of the
common stock, par value $0.001 per share, of U.S. Geothermal Inc., (&#147;we,&#148; &#147;us,&#148;
or &#147;our company&#148;), by selling securityholders listed beginning on page 12 of
this prospectus. All of the shares being offered, when sold, will be sold by
selling securityholders. The shares of common stock registered for resale under
this registration statement are: </P>
<UL>
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">up to 8,100,000 shares of common stock;
  <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">up to 4,050,000 shares of our common stock issuable upon the exercise of
  common stock purchase warrants at the exercise price of $1.75 per share for a
  period of 24 months from August 17, 2009; and <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">up to 243,000 shares of our common stock issuable upon the exercise of
  broker warrants at the exercise price of $1.22 per share for a period of 24
  months from August 17, 2009. </LI></UL>
<P align=justify>The shares of common stock and the common stock purchase
warrants will be issued by us pursuant to a private placement of subscription
receipts that closed on August 17, 2009. The broker warrants will be issued by
us to the agents for the private placement pursuant to the exchange of
compensation options granted to the agents for their services in the private
placement. We will not receive any proceeds from the sale of the shares by the
selling securityholders of subscription receipts; 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 securityholders. See &#147;Selling Securityholders&#148; beginning on page 12 for
a list of the selling securityholders.</P>
<P align=justify>These shares of common stock were registered to permit the
selling securityholders 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
securityholders may sell the shares of our common stock covered by this
prospectus in a number of different ways and at prevailing market prices or in
privately negotiated transactions. We provide more information about how the
selling securityholders may sell the shares in the section entitled &#147;Plan of
Distribution&#148; beginning on page 15 of this prospectus.</P>
<P align=justify>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>Our common stock is quoted on the NYSE Amex under the trading
symbol &#147;HTM&#148; and on the Toronto Stock Exchange under the trading symbol &#147;GTH.&#148;
On November 23, 2009, the closing price of our common stock on the NYSE Amex was
$1.70 per share and Cdn$1.81 per share on the Toronto Stock Exchange. </P>
<P align=justify><B>Investing in our securities involves significant risks. We
strongly recommend that you read carefully the risks we describe in this
prospectus as well as in any accompanying prospectus supplement and the risk
factors that are incorporated by reference in this prospectus from our filings
made with the Securities and Exchange Commission. See &#147;Risk Factors&#148; on page
4.</B></P>
<P align=justify><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 __________, 2009. </B></P>
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<P align=center><B>TABLE OF CONTENTS </B></P>
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  <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>2 </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%">12 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff>SELLING SECURITYHOLDERS </TD>
    <TD noWrap align=right width="15%" bgColor=#e6efff>12 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>PLAN OF DISTRIBUTION </TD>
    <TD noWrap align=right width="15%">15 </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>17 </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%">21 </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>21 </TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left>SIGNATURES </TD>
    <TD noWrap align=right width="15%">8 </TD></TR></TABLE>
<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>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_6></A>
<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 style="border-style: solid; border-width: 1">
    <p style="margin-left: 5; margin-right: 5"><B>The Offering</B> </TD>
    <TD align=left width="50%" style="border-style: solid; border-width: 1">
    <p style="margin-left: 5; margin-right: 5">This is an offering up of to 12,393,000 shares
      of our common stock by certain selling securityholders.<SUP>(1)</SUP>
  </TD></TR>
  <TR>
    <TD 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: 5; margin-right: 5">&nbsp; </TD>
    <TD width="50%" 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: 5; margin-right: 5">&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">
    <p style="margin-left: 5; margin-right: 5"><B>Shares Offered By the Selling</B> </TD>
    <TD noWrap align=left width="50%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">Up to 12,393,000 shares of common stock,
      $0.001 par value per share. </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: 5; margin-right: 5"><B>Shareholders</B> </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="50%">
    <p style="margin-left: 5; margin-right: 5">&nbsp; </TD></TR>
  <TR>
    <TD style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">&nbsp; </TD>
    <TD width="50%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">&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="margin-left: 5; margin-right: 5"><B>Offering
      Price</B> </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="50%">
    <p style="margin-left: 5; margin-right: 5">Determined at the time of sale by the selling securityholders.
    </TD></TR>
  <TR>
    <TD style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">&nbsp; </TD>
    <TD width="50%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">&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">
    <p style="margin-left: 5; margin-right: 5"><B>Common Stock Outstanding as of</B> </TD>
    <TD noWrap align=left width="50%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">62,131,882 shares </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: 5; margin-right: 5"><B>October
      30, 2009</B> </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="50%">
    <p style="margin-left: 5; margin-right: 5">&nbsp; </TD></TR>
  <TR>
    <TD style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">&nbsp; </TD>
    <TD width="50%" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1">
    <p style="margin-left: 5; margin-right: 5">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left 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: 5; margin-right: 5"><B>Use of Proceeds</B> </TD>
    <TD align=left width="50%" 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: 5; margin-right: 5">We will not receive any of the proceeds from
      the sale of the shares offered by the selling securityholders. We may
      receive proceeds from the exercise of the warrants and compensation
      options, if and when they are exercised. The proceeds we receive upon the
      exercise of any warrants or compensation options will be used for general
      working capital. The shares of common stock that may be resold under this
      prospectus were sold by us, or were or will be issued upon the exercise of
      warrants and compensation options granted by us. The proceeds that we
      raised through the sale of common stock and common stock purchase warrants
      were used for drilling and exploration at Neal Hot Springs and for general
      working capital. </TD></TR>
  <TR>
    <TD 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: 5; margin-right: 5">&nbsp; </TD>
    <TD width="50%" 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: 5; margin-right: 5">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left 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: 5; margin-right: 5"><B>Dividend Policy</B> </TD>
    <TD align=left width="50%" 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: 5; margin-right: 5">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 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: 5; margin-right: 5">&nbsp; </TD>
    <TD width="50%" 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: 5; margin-right: 5">&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="margin-left: 5; margin-right: 5"><B>Trading
      Symbols</B> </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="50%">
    <p style="margin-left: 5; margin-right: 5">NYSE AMEX: HTM;&nbsp; TORONTO STOCK EXCHANGE: GTH
</TD></TR></TABLE>
<P align=justify>(1) In connection with the private placement, we agreed to file
a registration statement with the Securities and Exchange Commission as soon as
possible following the closing of the private placement and use commercially
reasonable efforts to cause it to become 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. In the event the registration
statement is not effective within 6 months following the closing of the private
placement, each warrant may be exercised by the holder on a net &#147;cashless&#148;
basis. </P>
<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=justify><B>The Offering</B></P>
<P align=justify>We are registering for resale shares of our common stock held
by the selling securityholders listed in this prospectus. The selling
securityholders acquired the securities in a private placement of 8,100,000
subscription receipts at a price of Cdn$1.35 per subscription receipt, for gross proceeds
of approximately Cdn$10,935,000. Each subscription receipt will be automatically
exchanged, without additional consideration on the exchange date (described
below), for one unit of our Company. Each unit consists of one share of our
common stock and one half of one common stock purchase warrant. Each warrant
entitles the holder to acquire one additional share of our common stock for a
period of 24 months following the closing of the private placement for $1.75 per
share of common stock. The subscription receipt exchange date is the earlier of
the date on which the 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 four months and one day after the
closing of the private placement (being December 18, 2009).</P>
<P align=center>2 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_7></A>
<P align=justify>Under the terms of the registration rights agreement entered
into in connection with the private placement, we agreed to file a registration
statement with the Securities and Exchange Commission and use commercially
reasonable efforts to cause it to become effective as soon as practicable
following closing and to 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. In the event that 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>We paid Clarus Securities Inc., Dundee Securities Corporation
and Toll Cross Securities Inc., the agents for the private placement, a cash
commission of Cdn$656,100, representing 6% of the gross proceeds of the private
placement. We also granted to the agents compensation options exchangeable on
the exchange date for broker warrants. The broker warrants entitle the agents to
purchase 243,000 shares of our common stock at $1.22 exercisable for a period of
24 months from the closing date. </P>
<P align=justify>The registration statement of which this prospectus is a part
registers up to 12,393,000 shares of our common stock. As of November 23, 2009
none of common stock is currently outstanding, the shares of common stock are
issuable upon the exchange of (i) subscription receipts, and (ii) the exercise
of warrants and broker warrants to be issued in connection with the private
placement of subscription receipts for a period of two years from the date of
closing of the private placement. </P>
<P align=justify>The net proceeds of the private placement will be used by the
Company for drilling wells at the Neal Hot Springs geothermal project and for
general working capital purposes. The proceeds were not subject to escrow. We
will not receive any proceeds from the sale of the shares of common stock by the
selling securityholders. We may receive proceeds from the exercise of the
warrants and compensation options, if and when exercised on a cash basis. </P>
<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-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 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%">&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></FONT><FONT size=2>For the Fiscal Years Ended
      March 31, </FONT><FONT size=2></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 noWrap align=left 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"><FONT size=2>&nbsp; </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=right
      width="7%"><FONT size=2>2009 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2008 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2007 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2006 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2005 </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; border-top-style:solid; border-top-width:1" noWrap align=left
    bgColor=#e6efff><FONT size=2>Operating Revenues </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp;2,336,202 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp;190,721 </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=left width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp;117,809 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left width="1%"
    bgColor=#e6efff><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>&nbsp;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=left 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>&nbsp;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></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>Operating Expenses </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=right
      width="7%"><FONT size=2>7,660,868 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>4,568,871 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>3,035,833 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>1,663,069 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>1,751,530 </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>Loss from Continuing Operations </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(5,187,754</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=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(3,314,473</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=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,812,945</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=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,490,593</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=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right width="7%"
    bgColor=#e6efff><FONT size=2>(1,830,421</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></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>Loss per share from Continuing Operations </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=right
      width="7%"><FONT size=2>(0.08</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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.06</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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.04</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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.08</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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>(0.12</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" align=left
      bgColor=#e6efff><FONT size=2>Cash dividends declared and paid per
      </FONT><FONT size=2>common share </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>0 </FONT><FONT size=2></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>0 </FONT><FONT size=2></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>0 </FONT><FONT size=2></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>0 </FONT><FONT size=2></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="7%"
    bgColor=#e6efff><FONT size=2>0 </FONT><FONT size=2></FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="1%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="7%" style="border-left-style: none; border-left-width: medium; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="1%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD width="7%" style="border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD width="2%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-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; border-top-style: solid; border-top-width: 1"><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=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center width="47%" colSpan=13><FONT size=2>As of March
      31, </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 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 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=right
      width="7%"><FONT size=2>2009 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2008 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2007 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2006 </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=left
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%"><FONT size=2>2005 </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; border-top-style:solid; border-top-width:1" noWrap align=left bgcolor="#E6EFFF"><FONT
      size=2>Total Assets </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left
      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>&nbsp;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=left
      width="1%" bgcolor="#E6EFFF"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%" bgcolor="#E6EFFF"><FONT size=2>&nbsp;40,731,585 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left
      width="1%" bgcolor="#E6EFFF"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%" bgcolor="#E6EFFF"><FONT size=2>&nbsp;22,803,279 </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=left
      width="1%" bgcolor="#E6EFFF"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%" bgcolor="#E6EFFF"><FONT size=2>&nbsp;21,895,933 </FONT></TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-right-style:solid; border-right-width:1" noWrap align=left
    width="2%" bgcolor="#E6EFFF">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: 1px solid #000000; ; border-left-style:solid; border-left-width:1" noWrap align=left
      width="1%" bgcolor="#E6EFFF"><FONT size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=right
      width="7%" bgcolor="#E6EFFF"><FONT size=2>&nbsp;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><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=left 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=left 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=left 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=left 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=left 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>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. </TD></TR></TABLE>
<P align=center>3 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_8></A><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=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=right width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>Loss per </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>
    <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=right width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>Operating </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>
    <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=right width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>Gross </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>
    <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=right width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>Loss from </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>
    <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=right width="7%" style="border-top-style: solid; border-top-width: 1"><FONT size=2>Net Loss </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=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>share from&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Revenues</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Profit </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Operations </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>from </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=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Continuing </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Continued </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; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Operations </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Operations </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2><B>Fiscal Year Ended
      March 31, 2007</B> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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 noWrap align=left 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"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;1<SUP>st </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>$</FONT></TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;(0.01</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>$</FONT></TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>0 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>$</FONT></TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;0 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>$</FONT></TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;(961,777</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>$</FONT></TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;(372,486</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
    size=2>(0.02</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>206
    </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>206
    </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(746,292</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(680,021</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </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; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;3<SUP>rd </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;(0.01</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>90,000 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>90,000 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(610,310</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(338,278</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;4<SUP>th </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
    size=2>(0.01</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>27,603
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>27,603
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(599,645</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(422,160</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </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; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2><B>Fiscal Year Ended March 31, 2008</B>
      </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;1<SUP>st </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
    size=2>(0.01</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>0
</FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>0
</FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(607,501</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(323,415</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </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; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;(0.02</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>28 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>28 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,348,069</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,016,462</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;3<SUP>rd </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>&nbsp;(0.01</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>1,103
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>1,103
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(1,123,605</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(826,907</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </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; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;4<SUP>th </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(0.02</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>189,590 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>189,590 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,298,975</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,147,689</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2><B>Fiscal Year Ended
      March 31, 2009</B> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;
      </FONT></TD>
    <TD noWrap 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 noWrap align=left 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"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;1<SUP>st </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp;(0.03</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>571,862 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>571,862 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,683,572</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,626,115</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>&nbsp;(0.02</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>717,460
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>717,460
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(1,432,677</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(1,382,330</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </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; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;3<SUP>rd </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(0.01</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>545,224 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>545,224 </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(930,305</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(904,848</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD></TR>
  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;4<SUP>th </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
    size=2>(0.02</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>501,656
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>501,656
      </FONT></TD>
    <TD noWrap 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>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(1,278,112</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(1,274,461</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#e6efff style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </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; border-bottom-style: solid; border-bottom-width: 1"><FONT size=2><B>Fiscal Year End March 31, 2010</B>
      </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
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    <TD noWrap align=left width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; </FONT></TD>
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  <TR vAlign=top>
    <TD noWrap 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"><FONT size=2>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;1<SUP>st </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#e6efff style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
    size=2>(0.03</FONT></TD>
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    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>394,567
      </FONT></TD>
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    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>394,567
      </FONT></TD>
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    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(1,834,075</FONT></TD>
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    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-bottom-style: solid; border-bottom-width: 1"><FONT
      size=2>(1,809,175</FONT></TD>
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  <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-bottom-style: solid; border-bottom-width: 1"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;2<SUP>nd </SUP>Quarter </FONT></TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(0.02</FONT></TD>
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    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>734,622 </FONT></TD>
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    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,156,554</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD>
    <TD noWrap align=left width="1%" style="border-left-style: solid; border-left-width: 1; border-bottom-style: solid; border-bottom-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>(1,125,681</FONT></TD>
    <TD noWrap align=left width="2%" style="border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1">) </TD></TR></TABLE>
<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. 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=center>4 </P>
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<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 $52 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=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 $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.</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 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=center>5 </P>
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<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: 0">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;<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">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;<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">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<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">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>
<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: 0">failure of the acquired companies to achieve the results we expect;<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">inability to retain key personnel of the acquired companies;<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">risks associated with unanticipated events or liabilities; and<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">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, the Company has executed employment agreements with
these persons, except Mr. Kunz, but 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. 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="center">
6 </P>

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<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>
<P align="justify">
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 &#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: 0">from a well or drilling equipment at a drill site;<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">leakage of fluids or airborne pollutants from gathering systems, pipelines, power plant and storage tanks;</LI>
</UL>
<P align="center">
7 </P>

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<UL>
<LI>
<p style="margin-top: 0; margin-bottom: 0">damage to geothermal wells resulting from accidents during normal operations; and<br>
&nbsp;</LI>
<LI>
<p style="margin-top: 0; margin-bottom: 0">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>
<P align="justify">
<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="center">
8 </P>

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<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="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 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="center">
9 </P>

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<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="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&#36;0.46 to a
high of Cdn&#36;3.02 on the Toronto Stock Exchange and from a low of &#36;0.39 to a high of &#36;2.95 on the NYSE Amex. Since March 31, 2009, our common stock has ranged from a low of Cdn&#36;0.85 to a high of Cdn&#36;2.39 on the Toronto Stock
Exchange and from a low of &#36;0.71 to a high of &#36;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="center">
10 </P>

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<P align="justify">
All references to &#147;dollars&#148; or &#147;&#36;&#148; are to United States dollars and all references to &#147;Cdn&#36;&#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">
11 </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 securityholders. The selling securityholders 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 broker warrants are exercised by the selling securityholders, the proceeds from the exercise of the warrants and broker warrants will be used by use for drilling and exploration at Neal Hot Springs and
general working capital purposes. The shares that may be resold under this prospectus will be issued upon (i) the exchange of subscription receipts sold by us in a private placement that closed on August 17, 2009, (ii) the exercise of warrants
issued upon the exchange of these subscription receipts, and (iii) the exercise of broker warrants issued upon the exercise of the compensation options granted to the agents in the private placement. The funds that we raised through the sale of the
subscription receipts in the private placement are to be used for drilling and exploration at Neal Hot Springs and for general working capital. </P>
<P align="center">
<B>SELLING SECURITYHOLDERS </B></P>
<P align="justify">
<B>Transactions with Selling Securityholders </B></P>
<P align="justify">
On August 17, 2009, we completed a private placement of 8,100,000 subscription receipts at a price of Cdn&#36;1.35 per subscription receipt, for gross proceeds of Cdn&#36;10,935,000. The sale of securities was pursuant to the exemption from
registration provided under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended (or the Securities Act). In the event that 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">
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&#36;656,100, representing 6% of the aggregate gross proceeds of the private
placement. We also granted to the agents compensation options exchangeable on the exchange date, without payment of additional consideration, for broker warrants. The broker warrants are exercisable for 24 months and entitle the Agents to purchase
up to 243,000 shares of our common stock at &#36;1.22 (the U.S. dollar equivalent of Cdn&#36;1.35 on August 17, 2009). The exchange date is the date that is the earlier of the date on which a receipt for a final prospectus is issued in Canadian
qualifying the distribution of the shares of common stock and warrants to the holders of the subscription receipts and the date which is four months and one day after the Closing Date.</P>
<P align="justify">
This prospectus covers the offering of up to 12,393,000 shares of our common stock by selling securityholders. The shares issued to the selling securityholders are &#147;restricted securities&#148; under applicable federal and state securities laws
and are being registered to give the selling securityholders the opportunity to freely transfer their shares in the manner contemplated under the &#147;Plan of Distribution.&#148; The registration of the shares does not necessarily mean, however,
that any of these shares will be offered or sold by the selling securityholders. The selling securityholders may from time to time offer and sell all or a portion of their shares. We do not know how long the selling securityholders will hold their
shares before selling them, and we currently have no agreements, arrangements or understandings with the selling securityholders regarding the sale of any of the shares. </P>
<P align="justify">
Certain selling securityholders may be deemed to be &#147;underwriters&#148; within the meaning of the Securities Act 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 Securityholder Information </B></P>
<P align="justify">
The following is a list of the selling securityholders who own an aggregate of up to 12,393,000 shares of our common stock covered in this prospectus. Except as otherwise disclosed herein or in the footnotes below the table, none of the selling
securityholders has, or within the past three years has had, any position, office, or other material relationship with us. The information set forth below is based upon information obtained from the selling securityholders. All percentages are based
on 62,131,882 shares of common stock issued and outstanding on October 30, 2009. This table assumes that each securityholder will sell all of its shares available for sale during the effectiveness of the registration statement that includes this
prospectus, however, securityholders are not required to sell any or all of
their shares.</P>
<P align="center">
12 </P>

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<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><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="17%" colSpan=4>
    <p align="center"><FONT size=2>&nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Before Offering </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="27%" colspan="7">
    <p align="center"><FONT size=2>&nbsp; After Offering &nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Total Number of </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Shares </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Percentage of </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left><FONT size=2>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Beneficially </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Percentage of </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Number of </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Shares Owned </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>Shares Owned </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Name </FONT></TD>
    <TD noWrap align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Owned </FONT></TD>
    <TD noWrap align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Shares
      Owned<SUP>(1</SUP></FONT></TD>
    <TD noWrap align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" ><SUP>)</SUP> </TD>
    <TD noWrap align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>Shares Offered </FONT></TD>
    <TD noWrap align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD noWrap align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>After
      Offering<SUP>(2</SUP></FONT></TD>
    <TD noWrap align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" ><SUP>)</SUP> </TD>
    <TD noWrap align=left width="1%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD>
    <TD noWrap align=right width="7%" style="border-bottom-style: solid; border-bottom-width: 1"><FONT size=2>After Offering </FONT></TD>
    <TD noWrap align=left width="2%" style="border-bottom-style: solid; border-bottom-width: 1" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><FONT size=2>AGF Canada
      Class<SUP>(1)(2)</SUP> </FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><FONT size=2>156,150
      </FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><FONT size=2>156,150
      </FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><FONT size=2>-0-
    </FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff style="border-top-style: solid; border-top-width: 1"><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%"
bgColor=#e6efff style="border-top-style: solid; border-top-width: 1">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left><FONT size=2>AGF Canada Fund<SUP>(1)(3)</SUP>
    </FONT></TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>600 </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>600 </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>-0- </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD>
    <TD noWrap align=left width="1%" >&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><FONT size=2>AGF Canadian Small
      </FONT><FONT size=2>Cap<SUP>(1)(4)</SUP> </FONT></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2></FONT><FONT
      size=2>856,350 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2></FONT><FONT
      size=2>1.38% </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2></FONT><FONT
      size=2>856,350 </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2></FONT><FONT
      size=2>-0- </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="7%" bgColor=#e6efff><FONT size=2></FONT><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>AGF Canadian Stock </FONT><FONT
      size=2>Fund<SUP>(1)(5)</SUP> </FONT></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>4,691,500
      </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>7.55%
    </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>2,938,500
      </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>1,753,000
      </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>2.82%
    </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgColor=#e6efff><FONT size=2>Apex Balanced
      Fund<SUP>(1)(6)</SUP> </FONT></TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff><FONT size=2>13,950
      </FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff><FONT size=2>13,950
      </FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff><FONT size=2>-0-
    </FONT></TD>
    <TD noWrap align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD noWrap align=right width="7%" bgColor=#e6efff><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%"
bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>Apex Canadian Growth </FONT><FONT
      size=2>Fund<SUP>(1)(7)</SUP> </FONT></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>11,100
    </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>11,100
    </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>-0- </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="7%"><FONT size=2></FONT><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgcolor="#E6EFFF"><FONT size=2>Clarus Securities Inc.<SUP>(8)</SUP>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>97,200 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>97,200 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>-0- </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left><FONT size=2>Cranshire Capital,
      L.P.<SUP>(9)</SUP> </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>120,000
      </FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>120,000
      </FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>-0-
    </FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><FONT size=2>Creststreet Mutual Funds Limited<SUP>(10)</SUP> </FONT></TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>270,000
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>270,000
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>-0- </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>Dundee Securities Corporation<SUP>(11)</SUP> </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>97,200 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>97,200 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>-0- </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><FONT size=2>Exploration Capital Partners 2005 Limited Partnership<SUP>(12)</SUP> </FONT></TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT
      size=2>3,285,000 </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT
      size=2>5.29% </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT
      size=2>3,285,000 </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT
      size=2>-0- </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>Front Street Investment Management Inc.<SUP>(13)</SUP>
      </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>1,320,000 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>2.13% </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>1,320,000 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>-0- </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgcolor="#E6EFFF"><FONT size=2>Gordon Clements<SUP>(14)</SUP>
    </FONT></TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>179,250 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>179,250 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>-0- </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>IG AGF Canadian Growth CL<SUP>(1)(15)</SUP> </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>56,600 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>41,700 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>14,900 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><FONT size=2>IG AGF Canadian Growth
      Fund<SUP>(1)(16)</SUP> </FONT></TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>1,341,700
      </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>2.16%
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>843,750
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>497,950
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>Keystone Equity Fund<SUP>(1)(17)</SUP> </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>142,250 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>87,900 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>54,350 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><FONT size=2>Mariel International Limited<SUP>(18)</SUP> </FONT></TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>45,750
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>45,750
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>-0- </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>Middlemarch Partners Limited<SUP>(19)</SUP>
      </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>375,000 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>375,000 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>-0- </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgcolor="#E6EFFF"><FONT size=2>Mike Jaksic<SUP>(20)</SUP> </FONT></TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>7,500 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>7,500 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>-0- </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=2>Scotia Canadian Small Cap Fund <SUP>(21)</SUP>
      </FONT></TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>990,000 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>1.59% </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>990,000 </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>-0- </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD>
    <TD align=left width="1%">&nbsp;</TD>
    <TD align=right width="7%"><FONT
      size=2>* </FONT></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><FONT size=2>Toll Cross Securities Inc.<SUP>(22)</SUP> </FONT></TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>67,747
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>48,600
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>19,147
    </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left><FONT size=2>Wirth Associates
      Inc.<SUP>(23)</SUP> </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>371,700
      </FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>371,700
      </FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>-0-
    </FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT size=2>*
</FONT></TD>
    <TD noWrap align=left width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD noWrap align=left bgcolor="#E6EFFF"><FONT size=2>Wirth Associates Inc.<SUP>(24)</SUP>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>235,800 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>235,800 </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>-0- </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=left width="1%" bgcolor="#E6EFFF" >&nbsp;</TD>
    <TD noWrap align=right width="7%" bgcolor="#E6EFFF"><FONT size=2>* </FONT></TD>
    <TD noWrap align=left width="2%" bgcolor="#E6EFFF" >&nbsp;</TD></TR></TABLE>
<P align=justify>* Represents less than one percent of the outstanding common
stock. </P>
<P align=justify>(1) Representatives of this securityholder have advised us that
W. Robert Farquharson, Martin Hubbes, Jean Charbonneau, Tony Genua, Christine
Hughes, Patricia Perez-Coutts, Stephen Way, Tristan Sones, Coulter Wright, Tom
Nakamura, Robert Lyon, Niall Dineen, Caterina Prato, Terry Chong, Ani Markova,
Thomas Pinto Basto, and
Alice Popescu are the natural persons with voting and dispositive power with respect to the common stock held by this security holder. Representatives of this security holder have advised us that this security holder is an affiliate of a U.S.
registered broker-dealer; however, this security holder acquired the securities in the ordinary course of business and, at the time of the acquisition, had no agreements or understandings, directly or indirectly, with any party to distribute the
securities. </P>
<P align=center>13 </P>

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<P align=justify style="margin-top: 12">(2) Includes 104,100 shares of common stock and 52,050 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. </P>
<P align=justify>(3) Includes 400 shares of common stock and 200 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement. </P>
<P align=justify>(4) Includes 570,900 shares of common stock and 285,450 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. </P>
<P align=justify>(5) Includes 1,959,000 shares of common stock and 979,500
shares of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. </P>
<P align=justify>(6) Includes 9,300 shares of common stock and 4,650 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement. </P>
<P align=justify>(7) Includes 7,400 shares of common stock and 3,700 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement. </P>
<P align=justify>(8) Includes 97,200 shares of common stock issuable upon the
exercise of broker warrants to be issued upon exchange of compensation options.
The broker warrants are exercisable for 24 months at $1.22 per share.
Representatives of this securityholder have advised us that Jim Christodoulis is
the natural person with voting and dispositive power with respect to the common
stock held by this security holder. This selling securityholder acquired the
securities as compensation for underwriting activities in the August 2009
private placement and is affiliated with a registered broker-dealer. In
connection with the private placements, this security holder only conducted
underwriting activities outside of the United States; underwriting activities in
the United States in the August 2009 private placement were conducted by
registered broker-dealers. This selling securityholder also is the holder of
162,754 broker warrants exercisable through April 27, 2010 at an exercise price
of $2.34. </P>
<P align=justify>(9)Representatives of this securityholder have advised us that
Downsview Capital, Inc. is the general partner of Cranshire Capital, L.P. and
consequently has voting control and investment discretion over securities held
by Cranshire Capital, L.P. Mitchell P. Kopin, president of Downsview Capital,
Inc., is the natural person with voting and dispositive power with respect to
the common stock held by this securityholder. Each of Mr. Kopin and Downsview
Capital, Inc. 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 Capital, L.P. Includes 80,000
shares of common stock and 40,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement. </P>
<P align=justify>(10) Representatives of this securityholder have advised us
that Robert J. Toole is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 180,000
shares of common stock and 90,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement. </P>
<P align=justify>(11) Includes 97,200 shares of common stock issuable upon
exercise of broker warrants to be issued upon exchange of compensation options.
The compensation options are exercisable for 24 months at $1.22 per share.
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 security holder. This selling securityholder acquired the
securities as compensation for underwriting activities in the August 2009
private placement and is affiliated with a registered broker-dealer. In
connection with the private placements, this security holder only conducted
underwriting activities outside of the United States; underwriting activities in
the United States in the August 2009 private placement were conducted by
registered broker-dealers. </P>
<P align=justify>(12) 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
security holder. Includes 2,190,000 shares of common stock and 1,095,000 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. Representatives
of this security holder have advised us that this security holder is an
affiliate of a U.S. registered broker-dealer; however, this security holder
acquired the securities in the ordinary course of business and, at the time of
the acquisition, had no agreements or understandings, directly or indirectly,
with any party to distribute the securities. </P>
<P align=justify>(13) 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 security holder. Includes 88,000
shares of common stock and 44,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in the private
placement. Representatives of this security holder have advised us that this
security holder is an affiliate of a U.S. registered broker-dealer; however,
this security holder acquired the securities in the ordinary course of business
and, at the time of the acquisition, had no agreements or understandings,
directly or indirectly, with any party to distribute the securities. </P>
<P align=center>14 </P>
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<P align=justify>(14) Includes 119,500 shares of common stock and 59,750 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. </P>
<P align=justify>(15) Includes 27,800 shares of common stock and 13,900 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. </P>
<P align=justify>(16) Includes 562,500 shares of common stock and 281,250 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. </P>
<P align=justify>(17) Includes 58,600 shares of common stock and 29,300 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. </P>
<P align=justify>(18) Representatives of this securityholder have advised us
that Doug Campbell is the natural person with voting and dispositive power with
respect to the common stock held by this security holder. Includes 30,500 shares
of common stock and 15,250 shares of common stock issuable upon the exercise of
warrants to be issued upon exchange of subscription receipts sold in the private
placement. </P>
<P align=justify>(19) Representatives of this securityholder have advised us
that Cecilia Kershaw is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 250,000
shares of common stock and 125,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement. </P>
<P align=justify>(20) Includes 5,000 shares of common stock and 2,500 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement. </P>
<P align=justify>(21) Includes 660,000 shares of common stock and 330,000 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. Representatives
of this securityholder have advised us that David George Whetham is the natural
person with voting and dispositive power with respect to the common stock held
by this security holder. Representatives of this security holder have advised us
that this security holder is an affiliate of a U.S. registered broker-dealer;
however, this security holder acquired the securities in the ordinary course of
business and, at the time of the acquisition, had no agreements or
understandings, directly or indirectly, with any party to distribute the
securities. </P>
<P align=justify>(22) Includes 48,600 shares of common stock issuable upon
exercise of compensation options. The compensation options are exercisable for
24 months at $1.22 per share. Representatives of this securityholder have
advised us that Rodger Gray and Marc Bouchard are the natural persons with
voting and dispositive power with respect to the common stock held by this
security holder. This selling securityholder acquired the securities as
compensation for underwriting activities in the August 2009 private placement
and is affiliated with a registered broker-dealer. In connection with the
private placements, this security holder only conducted underwriting activities
outside of the United States; underwriting activities in the United States were
conducted by registered broker-dealers. Total number of shares beneficially
owned includes 19,147 shares of common stock issuable upon exercise of warrants
issued in the April 2008 private placement. The warrants are exercisable for 24
months at $2.34 per share. </P>
<P align=justify>(23) Representatives of this securityholder have advised us
that Thomas A. Starkey is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 247,500
shares of common stock and 123,750 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement. Representatives of this security holder have advised us
that this security holder is an affiliate of a U.S. registered broker-dealer;
however, this security holder acquired the securities in the ordinary course of
business and, at the time of the acquisition, had no agreements or
understandings, directly or indirectly, with any party to distribute the
securities. </P>
<P align=justify>(24) Representatives of this securityholder have advised us
that Thomas A. Starkey is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 157,200
shares of common stock and 78,600 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement. Representatives of this security holder have advised us
that this security holder is an affiliate of a U.S. registered broker-dealer;
however, this security holder acquired the securities in the ordinary course of
business and, at the time of the acquisition, had no agreements or
understandings, directly or indirectly, with any party to distribute the
securities. </P>
<P align=center><B>PLAN OF DISTRIBUTION </B></P>
<P align=justify>Each selling securityholder of our common stock and any of
their pledgees, donees, transferees, assignees and successors-in-interest may,
from time to time, sell any or all of their shares of common stock on the NYSE
Amex, Toronto Stock Exchange 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 securityholder may
use any one or more of the following methods when selling shares: </P>
<P align=center>15 </P>
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<UL style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">ordinary brokerage transactions and transactions in which the broker
  dealer solicits purchasers; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">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; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">purchases by a broker dealer as principal and resale by the broker dealer
  for its account; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">an exchange distribution in accordance with the rules of the applicable
  exchange; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">privately negotiated transactions;
  <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">settlement of short sales entered into after the effective date of the
  registration statement of which this prospectus is a part; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">broker dealers may agree with the selling securityholders to sell a
  specified number of such shares at a stipulated price per share; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">a combination of any such methods of sale;
  <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">through the writing or settlement of options or other hedging
  transactions, whether through an options exchange or otherwise; or <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">any other method permitted pursuant to applicable law. </LI></UL>
<P align=justify>The selling securityholders may also sell shares under Rule 144
under the Securities Act, if available, rather than under this prospectus. </P>
<P align=justify>Broker-dealers engaged by the selling securityholders may
arrange for other brokers-dealers to participate in sales. Broker-dealers may
receive commissions or discounts from the selling securityholders (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 NASD Rule 2440; and in the case of a
principal transaction a markup or markdown in compliance with NASD IM-2440.</P>
<P align=justify>In connection with the sale of the common stock or interests
therein, the selling securityholders 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 securityholders 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 securityholders may also enter into option or other
transactions with broker-dealers or other financial institutions or the creation
of 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 securityholders and any broker-dealers or agents
that are involved in selling the common stock may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act 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 common stock purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act. Each selling
securityholder has informed us that it does not have any written or oral
agreement or understanding, directly or indirectly, with any underwriter or
other person to distribute the common stock. In no event shall any broker-dealer
receive fees, commissions and markups which, in the aggregate, would not exceed
customary fees and commissions. </P>
<P align=justify>The selling securityholders may from time to time pledge or
grant a security interest in some or all of the shares of common stock owned by
them and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock from
time to time under this prospectus after we have filed an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities
Act amending the list of selling securityholders to include the pledgee,
transferee or other successors in interest as selling securityholders under this
prospectus.</P>
<P align=center>16 </P>
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<P align=justify>The selling securityholders also may transfer the shares of
common stock in other circumstances, in which case the transferees, pledgees or
other successors in interest will be the selling beneficial owners for purposes
of this prospectus and may sell the shares of common stock from time to time
under this prospectus after we have filed an amendment to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act amending the
list of selling securityholders to include the pledgee, transferee or other
successors in interest as selling securityholders under this prospectus. </P>
<P align=justify>We are required to pay certain fees and expenses incurred by us
incident to the registration of the shares, but we will not receive any proceeds
from the sale of the common stock by the selling securityholders. We have agreed
to indemnify the selling securityholders against certain losses, claims, damages
and liabilities, including liabilities under the Securities Act. </P>
<P align=justify>Because selling securityholders may be deemed to be
&#147;underwriters&#148; within the meaning of the Securities Act, they will be subject to
the prospectus delivery requirements of the Securities Act. In addition, any
securities covered by this prospectus which qualify for sale pursuant to Rule
144 under the Securities Act may be sold under Rule 144 rather than under this
prospectus. Each selling securityholder has advised us that they have not
entered into any written or oral agreements, understandings or arrangements with
any underwriter or broker-dealer regarding the sale of the common stock. There
is no underwriter or coordinating broker acting in connection with the proposed
sale of the common stock by the selling securityholders. </P>
<P align=justify>We agreed to keep this prospectus effective until the earlier
of (i) two years following closing, or (ii) such time as all shares covered by
the registration statement have been sold publicly. The common stock will be
sold only through registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states, the common
stock 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 (the &#147;Exchange Act&#148;), any person engaged in the
distribution of the common stock 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. We have advised each selling securityholder that it may not use
shares registered under this registration statement to cover short sales of
common stock made prior to the date on which this registration statement shall
have been declared effective by the Securities and Exchange Commission. In
addition, the selling securityholders will be subject to applicable provisions
of the Exchange Act 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 securityholders or any other person. We will make
copies of this prospectus available to the selling securityholders 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. </P>
<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 October 30, 2009, there were 62,131,882 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 style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 0">are entitled to one vote per share on each matter submitted to a vote of
  stockholders; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">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; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">have no preemptive or other rights to subscribe for shares; and
  <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">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>The shares of common stock registered for resale under this
registration statement include (i) 4,050,000 shares of our common stock issuable
upon the exercise of warrants at the exercise price of $1.75 per share for a
period of 24, months from the date of closing of the private placement of
subscription receipts on August 17, 2009, and (ii) up to 243,000 shares of our
common stock issuable upon the exercise of broker warrants at the exercise price
of $1.22 per share for a period of 24 months from date of closing of the private
placement of subscription receipts on August 17, 2009. The warrants are issuable
upon the exchange of the subscription receipts on the exchange date. The
exchange date is the earlier of the date on which the receipt for a final
prospectus is issued in Canada qualifying the distribution of the common stock
and warrants issuable upon exchange of the subscription receipts, and December
18, 2009. In the event that this 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 broker warrants are issuable
pursuant compensation options issued to the agents in the private placement of
subscription receipts on August 17, 2009. </P>
<P align=center>17 </P>
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<P align=justify>The Form of Warrant for the common stock issuable upon exercise
of warrants pursuant to this registration statement provides that the warrant
exercise price is subject to adjustment from time to time if we (i) issue common
stock or securities exchangeable or convertible into common stock to all or
substantially all of our stockholders, (ii) make a distribution on our
outstanding common stock that is paid in shares or securities convertible into
shares, (iii) subdivide or consolidate our common stock into a greater or lesser
number of shares, as applicable. In addition, if we reclassify or redesignate
our outstanding common stock or change our common stock into other securities
(other than in (i)-(iii) above), or enter into a consolidation, amalgamation or
merger with another entity, or if we transfer our undertaking or all or
substantially all of our assets, then any warrant holder that exercises warrants
after such time, 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 consolidation, amalgamation or merger 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 on the effective date of the
consolidation, amalgamation or merger, unless the consolidation, amalgamation or
merger does not result in any reclassification or redesignation of our
outstanding common stock. </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 October 30, 2009, there were 62,131,882 shares of our
common stock issued and outstanding and 3,625,725 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>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left><BR></TD>
    <TD align=center width="40%" colSpan=2><B>NYSE Amex</B>
      <BR><B>(formerly the American Stock Exchange)</B> </TD>
    <TD align=center width="40%" colSpan=2><B>Toronto Stock
      Exchange</B> <BR><B>Cdn$</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>High</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>Low</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>High</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center
      width="20%"><B>Low</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      colSpan=5><B>Fiscal year end March 31, 2010</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">1<SUP>st
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.93
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">0.74
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">2.16
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">0.93
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>2<SUP>nd
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.75
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.14
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.87
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.34
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">3<SUP>rd </SUP>Quarter (through November 23, 2009)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.71
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.45
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.80
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.55
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      colSpan=5><B>Fiscal year ended March 31, 2009</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">1<SUP>st
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">3.04
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">2.12
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">3.05
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">2.15
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>2<SUP>nd
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">2.95
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.30
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">2.81
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.45
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">3<SUP>rd
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.82
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">0.33
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.92
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">0.46
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>4<SUP>th
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.16
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">0.60
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.40
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">0.76
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      colSpan=5 bgcolor="#E6EFFF"><B>Fiscal year ended March 31, 2008</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>1<SUP>st
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">2.70
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.36
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">2.85
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">1.57
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">2<SUP>nd
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">3.10
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.85
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">3.27
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">1.99
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>3<SUP>rd
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">4.78
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">2.56
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">4.75
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%">2.49
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left bgcolor="#E6EFFF">4<SUP>th
      </SUP>Quarter </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">4.09
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">2.07
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">4.05
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="20%" bgcolor="#E6EFFF">2.00
    </TD></TR></TABLE></DIV>
<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>
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<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 will be 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 by reference into this prospectus have been so included 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 style="TEXT-ALIGN: justify">
  <LI>
  <p style="margin-top: 0; margin-bottom: 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; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 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 and for the
  quarterly period ended September 30, 2009 filed on November 10, 2009; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">Our Current Reports on Form 8-K filed June 15, 2009, July 2, 2009, July
  31, 2009, August 17, 2009, October 21, 2009, and November 4, 2009; <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 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 <br>
&nbsp;<LI>
  <p style="margin-top: 0; margin-bottom: 0">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=justify>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>20 </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>21 </P>
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<P align=center><B>U.S. GEOTHERMAL INC. </B></P>
<P align=center><B>Common Stock </B></P>
<P align=center><img border="0" src="logo.jpg" width="549" height="116"></P>
<P align=center>&nbsp;</P>
<P align=center><B>__________________<br>
<br>
PROSPECTUS<br>
__________________ </B></P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><B>The date of this prospectus is , 2009 </B></P>
<P align=center>&nbsp;</P>
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<P align=center><B>PART II </B></P>
<P align=center><B>INFORMATION NOT REQUIRED IN PROSPECTUS</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><B>Item 13. Other Expenses of Issuance and
      Distribution.</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%" >&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Securities and Exchange Commission
      Registration Fee* </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,121.63 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Legal Fees and Expenses </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">20,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Accounting Fees and Expenses </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>20,000 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Miscellaneous Expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">4,000
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total </TD>
    <TD align=left width="1%"  bgColor=#e6efff>$</TD>
    <TD align=right width="12%" bgColor=#e6efff>&nbsp;45,212.63 </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 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. Each subscription receipt
will, subject to adjustment, be automatically exchanged on the exchange date (as
described below), 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 is the date that is 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 18,
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=center>II-1 </P>
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<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>B. 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=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>C. 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>D. 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=justify>E. On January 22, 2007, the Board of Directors approved an
action to grant 235,000 incentive stock options to purchase capital stock at a
price of $1.12 for a five year period. The options were granted to two employees
and a director. The securities were issued in reliance on Section 4(2) of the
Securities Act. </P>
<P align=justify><B>Item 16. Exhibits and Financial Statement Schedules </B></P>
<P 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 align=left ><B>EXHIBIT</B> </TD>
    <TD align=left width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>NUMBER</B> </TD>
    <TD align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >3.1 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >3.2 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >3.3 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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)
  </TD></TR></TABLE>
<P align=center>II-2 </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 align=left ><B>EXHIBIT</B> </TD>
    <TD align=left width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>NUMBER</B> </TD>
    <TD align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >3.4 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >3.5 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >4.1 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >4.2 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >
    <a href="usgeo112009exh43.htm" style="text-decoration: none">4.3 </a> </TD>
    <TD align=left width="90%" bgColor=#e6efff>
    <a href="usgeo112009exh43.htm" style="text-decoration: none">Form of Subscription Agreement
      for Subscription Receipts relating to private placement of August 2009 </a>
  </TD></TR>
  <TR vAlign=top>
    <TD align=left >
    <a href="usgeo112009exh44.htm" style="text-decoration: none">4.4 </a> </TD>
    <TD align=left width="90%">
    <a href="usgeo112009exh44.htm" style="text-decoration: none">Subscription Receipt Agreement dated August 17,
      2009 among U.S. Geothermal Inc., Dundee Securities Corporation, Clarus
      Securities Inc., Toll Cross Securities Inc. and Computershare Trust
      Company of Canada </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >
    <a href="usgeo112009exh45.htm" style="text-decoration: none">4.5</a> </TD>
    <TD align=left width="90%" bgColor=#e6efff>
    <a href="usgeo112009exh45.htm" style="text-decoration: none">Form of Warrant used in private
      placement of August 2009 </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left >
    <a href="usgeo112009exh46.htm" style="text-decoration: none">4.6 </a> </TD>
    <TD align=left width="90%">
    <a href="usgeo112009exh46.htm" style="text-decoration: none">Form of Broker Warrant
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >
    <a href="usgeo112009exh51.htm" style="text-decoration: none">5.1 </a> </TD>
    <TD align=left width="90%" bgColor=#e6efff>
    <a href="usgeo112009exh51.htm" style="text-decoration: none">Opinion of Dorsey &amp; Whitney
      LLP </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.1 </TD>
    <TD align=left width="90%">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)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.2 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.3 </TD>
    <TD align=left width="90%">Amendment No. 2 to &#147;Agreement by and between
      U.S. Geothermal Inc. and Vulcan Power Company&#148; dated December 30, 2003
      (Incorporated by reference to exhibit 10.3 to the registrant&#146;s Form SB-2
      registration statement as filed on July 8, 2004) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.4 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.5 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.6 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.7 </TD>
    <TD align=left width="90%">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)
  </TD></TR></TABLE>
<P align=center>II-3 </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 align=left ><B>EXHIBIT</B> </TD>
    <TD align=left width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>NUMBER</B> </TD>
    <TD align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.8 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Geothermal Lease and Agreement
      dated December 1, 2004, between Reid S. Stewart and Ruth O. Stewart and US
      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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.9 </TD>
    <TD align=left width="90%">Geothermal Lease and Agreement, dated July 5,
      2005, between Bighorn Mortgage Corporation and US 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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.10 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Geothermal Lease and Agreement,
      dated June 23, 2005, among Dale and Ronda Doman, and US 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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.11 </TD>
    <TD align=left width="90%">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 US 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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.12 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Geothermal Lease and Agreement
      dated January 25, 2006, between Philip Glover and US 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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.13 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.14 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.15 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.16 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.17 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.18 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.19 </TD>
    <TD align=left width="90%">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)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.20 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Amended and Restated Stock
      Option Plan of U.S. Geothermal Inc. dated September 29, 2006<B>.</B>
      (Incorporated by reference to exhibit 10.23 to the registrant&#146;s Form SB-2
      registration statement as filed on October 2, 2006.) </TD></TR>
  <TR vAlign=top>
    <TD align=left >10.21 </TD>
    <TD align=left width="90%">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)
  </TD></TR></TABLE>
<P align=center>II-4 </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 align=left><B>EXHIBIT</B> </TD>
    <TD align=left width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>NUMBER</B> </TD>
    <TD align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.22 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) *
    </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.23 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.24 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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). </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.25 </TD>
    <TD align=left width="90%">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). </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.26 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.27 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.28 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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). </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.29 </TD>
    <TD align=left width="90%">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) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.30 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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 10.2 to the registrant&#146;s Form
      8-K as filed on August 23, 2006). </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.31 </TD>
    <TD align=left width="90%">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 10.3 to the
      registrant&#146;s Form 8-K as filed on August 23, 2006) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.32 </TD>
    <TD align=left width="90%" bgColor=#e6efff>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) </TD></TR>
  <TR vAlign=top>
    <TD align=left>10.36 </TD>
    <TD align=left width="90%">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-QSB as filed on February 20, 2007). </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>10.38 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Geothermal Lease and Agreement
      dated August 1, 2007, between Bureau of Land Management and U.S.
      Geothermal Inc. (Incorporated by reference as exhibit 10.38 to the
      registrant&#146;s Form 10-K as filed on June 16, 2008) </TD></TR></TABLE>
<P align=center>II-5 </P>
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noShade SIZE=5>
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</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>EXHIBIT</B> </TD>
    <TD align=left width="90%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>NUMBER</B> </TD>
    <TD align=left width="90%"><B>DESCRIPTION</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >10.39 </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 >10.40 </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 as 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 >10.41 </TD>
    <TD align=left width="90%" bgColor=#e6efff>Water Rights Purchase Agreement
      Michael B. Stewart and U.S. Geothermal Inc. dated March 31, 2008
      (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 >
    <a href="usgeo112009exh1042.htm" style="text-decoration: none">10.42</a> </TD>
    <TD align=left width="90%">
    <a href="usgeo112009exh1042.htm" style="text-decoration: none">Agency Agreement dated August 17, 2009 among
      U.S. Geothermal Inc., Dundee Securities Inc., and Toll Cross Securities
      Inc. </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >21.1 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">Subsidiaries of the Registrant (Incorporated by
      reference as exhibit 21.1 to the registrants Form 10-K as filed on June
      15, 2009) </TD></TR>
  <TR vAlign=top>
    <TD align=left >
    <a href="usgeo112009exh231.htm" style="text-decoration: none">23.1 </a> </TD>
    <TD align=left width="90%">
    <a href="usgeo112009exh231.htm" style="text-decoration: none">Consent of BehlerMick PS
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >
    <a href="usgeo112009exh232.htm" style="text-decoration: none">23.2 </a> </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">
    <a href="usgeo112009exh232.htm" style="text-decoration: none">Consent of PricewaterhouseCoopers LLP
    </a> </TD></TR>
  <TR vAlign=top>
    <TD align=left >23.3 </TD>
    <TD align=left width="90%">Consent of GeothermEx, Inc.*
  </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >23.4 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">Consent of Teplow Geologic* </TD></TR>
  <TR vAlign=top>
    <TD align=left >23.5 </TD>
    <TD align=left width="90%">Consent of Black Mountain
      Technology* </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF" >23.6 </TD>
    <TD align=left width="90%" bgcolor="#E6EFFF">Consent of Dorsey &amp; Whitney LLP (Included
      in Exhibit 5.1) </TD></TR>
  <TR vAlign=top>
    <TD align=left >24.1 </TD>
    <TD align=left width="90%">Powers of Attorney (Included in
      the Signature Pages of this Registration Statement) </TD></TR></TABLE>
<P align=justify>*To be filed by amendment. </P>
<P align=justify><B>Item 17. Undertakings. </B></P>
<P align=justify style="text-indent: 5%">(a) The undersigned registrant hereby undertakes:</P>
<P align=justify style="text-indent: 10%">(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: 15%">(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933; </P>
<P align=justify style="text-indent: 15%">(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. </P>
<P align=justify style="text-indent: 15%">(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=center>II-6 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<P align=justify style="text-indent: 10%">(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: 10%">(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: 10%">(4) That, for the purpose of determining liability under the
Securities Act of 1933 to any purchaser, </P>
<P align=justify style="text-indent: 15%">(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: 10%">(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: 5%">(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=justify style="text-indent: 5%">(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-7 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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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 Novermber 25, 2009. </P>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=top>
    <TD align=left><B>U.S. Geothermal Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Registrant) </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>By: <U>/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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </U>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Daniel J. Kunz </TD></TR>
  <TR vAlign=top>
    <TD align=left>Chief Executive Officer and President </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Principal Executive Officer) </TD></TR></TABLE></DIV>
<P align=center><B>POWER OF ATTORNEY </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>&nbsp; &nbsp;<U>/s/ Daniel J.
      Kunz&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </U>&nbsp;</TD>
    <TD align=left width="33%">Chief Executive Officer, President and Director
    </TD>
    <TD align=left width="33%">Novermber 25, 2009 </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>&nbsp; &nbsp;<U>/s/ Kerry D. Hawkley&nbsp;&nbsp;&nbsp;&nbsp;
    </U>&nbsp;</TD>
    <TD align=left width="33%">Chief Financial Officer (Principal Financial
      and </TD>
    <TD align=left width="33%">Novermber 25, 2009 </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>&nbsp; &nbsp;<U>/s/ Douglas J. Glaspey&nbsp;&nbsp;
    </U>&nbsp;</TD>
    <TD align=left width="33%">Chief Operating Officer and Director </TD>
    <TD align=left width="33%">Novermber 25, 2009 </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>&nbsp; <U>&nbsp;/s/ John H.
      Walker&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%">Novermber 25, 2009 </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>&nbsp; &nbsp;<U>/s/ Paul A.
      Larkin&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%">Novermber 25, 2009 </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>&nbsp; &nbsp;<U>/s/ Leland R. Mink&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </U>&nbsp;</TD>
    <TD align=left width="33%">Director </TD>
    <TD align=left width="33%">Novermber 25, 2009 </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-8 </P>
<HR align=center width="100%" color=black noShade SIZE=5>


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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": "333-163384", "film-number": "091209177"}, "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 - Prepared By TNT Filings Inc.
As filed with the Securities and Exchange Commission on November
27, 2009
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 other jurisdiction of
(Primary Standard Industrial
(I.R.S.
    Employee Identification
incorporation or organization)
Classification Code Number)
No.)
1505 Tyrell Lane
Boise, Idaho 83706
(208)
424-1027
(Address, including zip code, and telephone number,
including area
code of registrant's principal executive offices)
Daniel J. Kunz
Chief Executive
Officer
1505 Tyrell Lane
Boise, Idaho 83706
(208) 424-1027
(Name, address, including zip code, and telephone number,
including area code, 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.
Q
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
Q
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 Unit
Aggregate Offering Price
Fee
Common stock to be
offered for resale by the
selling
      securityholders,
$0.001 par value
8,100,000
$1.57
(1)
$12,717,000
$709.61
Common stock acquirable
upon the exercise of
warrants
4,050,000
$1.75
(2)
$7,087,500
$395.48
Common stock acquirable
upon the exercise of
compensation options
243,000
$1.22
(3)
$296,460
$16.54
Total
12,393,000
$1,121.63
(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 November 19, 2009.
(2)
Consisting of up to 4,050,000 shares of common stock issuable upon the
      exercise of warrants issuable pursuant to subscription receipts sold in a
      private placement that closed on August 17, 2009. Each whole warrant is
      exercisable for a period of 24 months from August 24, 2009 at an exercise
      price of US$1.75 per share. 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$1.75
      per share, the highest exercise price for the warrants over the term of
      the warrants.
(3)
Consisting of up to 243,000 shares of common stock issuable upon the
      exercise of broker warrants issuable pursuant to compensation options
      granted to the agent in a private placement that closed on August 17,
      2009. Each whole broker warrant is exercisable for a period of 24 months
      from August 17, 2009 at an exercise price of US$1.22 per share, the U.S.
      dollar equivalent of Cdn$1.35 as of August 17, 2009. 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.
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 November 27, 2009
Preliminary Prospectus
Up To 12,393,000 Shares of Common Stock
This is a public offering of up to 12,393,000 shares of the
common stock, par value $0.001 per share, of U.S. Geothermal Inc., ("we," "us,"
or "our company"), by selling securityholders listed beginning on page 12 of
this prospectus. All of the shares being offered, when sold, will be sold by
selling securityholders. The shares of common stock registered for resale under
this registration statement are:
up to 8,100,000 shares of common stock;
up to 4,050,000 shares of our common stock issuable upon the exercise of
  common stock purchase warrants at the exercise price of $1.75 per share for a
  period of 24 months from August 17, 2009; and
up to 243,000 shares of our common stock issuable upon the exercise of
  broker warrants at the exercise price of $1.22 per share for a period of 24
  months from August 17, 2009.
The shares of common stock and the common stock purchase
warrants will be issued by us pursuant to a private placement of subscription
receipts that closed on August 17, 2009. The broker warrants will be issued by
us to the agents for the private placement pursuant to the exchange of
compensation options granted to the agents for their services in the private
placement. We will not receive any proceeds from the sale of the shares by the
selling securityholders of subscription receipts; 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 securityholders. See "Selling Securityholders" beginning on page 12 for
a list of the selling securityholders.
These shares of common stock were registered to permit the
selling securityholders 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
securityholders may sell the shares of our common stock covered by this
prospectus in a number of different ways and at prevailing market prices or in
privately negotiated transactions. We provide more information about how the
selling securityholders may sell the shares in the section entitled "Plan of
Distribution" beginning on page 15 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 trading
symbol "HTM" and on the Toronto Stock Exchange under the trading symbol "GTH."
On November 23, 2009, the closing price of our common stock on the NYSE Amex was
$1.70 per share and Cdn$1.81 per share on the Toronto Stock Exchange.
Investing in our securities involves significant risks. We
strongly recommend that you read carefully the risks we describe in this
prospectus as well as in any accompanying prospectus supplement and the risk
factors that are incorporated by reference in this prospectus from our filings
made with the Securities and Exchange Commission. See "Risk Factors" on page
4.
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 __________, 2009.
TABLE OF CONTENTS
Page
SUMMARY INFORMATION
2
RISK FACTORS
4
SPECIAL NOTE REGARDING
      FORWARD-LOOKING STATEMENTS
10
USE OF PROCEEDS
12
SELLING SECURITYHOLDERS
12
PLAN OF DISTRIBUTION
15
DESCRIPTION OF SECURITIES TO BE
      REGISTERED
17
MARKET FOR COMMON EQUITY AND RELATED SECURITYHOLDER
      MATTERS
19
LEGAL MATTERS
20
EXPERTS
20
INCORPORATION BY REFERENCE
20
WHERE YOU CAN FIND MORE INFORMATION
21
DISCLOSURE OF COMMISSION POSITION ON
      INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
21
SIGNATURES
8
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 up of to 12,393,000 shares
      of our common stock by certain selling securityholders.
(1)
Shares Offered By the Selling
Up to 12,393,000 shares of common stock,
      $0.001 par value per share.
Shareholders
Offering
      Price
Determined at the time of sale by the selling securityholders.
Common Stock Outstanding as of
62,131,882 shares
October
      30, 2009
Use of Proceeds
We will not receive any of the proceeds from
      the sale of the shares offered by the selling securityholders. We may
      receive proceeds from the exercise of the warrants and compensation
      options, if and when they are exercised. The proceeds we receive upon the
      exercise of any warrants or compensation options will be used for general
      working capital. The shares of common stock that may be resold under this
      prospectus were sold by us, or were or will be issued upon the exercise of
      warrants and compensation options granted by us. The proceeds that we
      raised through the sale of common stock and common stock purchase warrants
      were used for drilling and exploration at Neal Hot Springs and 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;  TORONTO STOCK EXCHANGE: GTH
(1) In connection with the private placement, we agreed to file
a registration statement with the Securities and Exchange Commission as soon as
possible following the closing of the private placement and use commercially
reasonable efforts to cause it to become 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. In the event the registration
statement is not effective within 6 months following the closing of the private
placement, each warrant may be exercised by the holder on a net "cashless"
basis.
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.
The Offering
We are registering for resale shares of our common stock held
by the selling securityholders listed in this prospectus. The selling
securityholders acquired the securities in a private placement of 8,100,000
subscription receipts at a price of Cdn$1.35 per subscription receipt, for gross proceeds
of approximately Cdn$10,935,000. Each subscription receipt will be automatically
exchanged, without additional consideration on the exchange date (described
below), for one unit of our Company. Each unit consists of one share of our
common stock and one half of one common stock purchase warrant. Each warrant
entitles the holder to acquire one additional share of our common stock for a
period of 24 months following the closing of the private placement for $1.75 per
share of common stock. The subscription receipt exchange date is the earlier of
the date on which the 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 four months and one day after the
closing of the private placement (being December 18, 2009).
2
Under the terms of the registration rights agreement entered
into in connection with the private placement, we agreed to file a registration
statement with the Securities and Exchange Commission and use commercially
reasonable efforts to cause it to become effective as soon as practicable
following closing and to 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. In the event that 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.
We paid Clarus Securities Inc., Dundee Securities Corporation
and Toll Cross Securities Inc., the agents for the private placement, a cash
commission of Cdn$656,100, representing 6% of the gross proceeds of the private
placement. We also granted to the agents compensation options exchangeable on
the exchange date for broker warrants. The broker warrants entitle the agents to
purchase 243,000 shares of our common stock at $1.22 exercisable for a period of
24 months from the closing date.
The registration statement of which this prospectus is a part
registers up to 12,393,000 shares of our common stock. As of November 23, 2009
none of common stock is currently outstanding, the shares of common stock are
issuable upon the exchange of (i) subscription receipts, and (ii) the exercise
of warrants and broker warrants to be issued in connection with the private
placement of subscription receipts for a period of two years from the date of
closing of the private placement.
The net proceeds of the private placement will be used by the
Company for drilling wells at the Neal Hot Springs geothermal project and for
general working capital purposes. The proceeds were not subject to escrow. We
will not receive any proceeds from the sale of the shares of common stock by the
selling securityholders. We may receive proceeds from the exercise of the
warrants and compensation options, if and when exercised on a cash basis.
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
)
(0.08
)
(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
$
22,803,279
$
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.
3
Loss per
Operating
Gross
Loss from
Net Loss
share from
Revenues
Profit
Operations
from
Continuing
Continued
Operations
Operations
Fiscal Year Ended
      March 31, 2007
1
st
Quarter
$
(0.01
)
$
0
$
0
$
(961,777
)
$
(372,486
)
2
nd
Quarter
(0.02
)
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
)
571,862
571,862
(1,683,572
)
(1,626,115
)
2
nd
Quarter
(0.02
)
717,460
717,460
(1,432,677
)
(1,382,330
)
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
)
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. 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.
4
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 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.
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 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.
5
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.
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, the Company has executed employment agreements with
these persons, except Mr. Kunz, but 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.
6
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.
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;
7
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.
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.
8
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.
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 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.
9
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.
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$0.85 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.
10
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.
11
USE OF PROCEEDS
We will not receive any of the proceeds from the sale of shares of our common stock by the selling securityholders. The selling securityholders 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 broker warrants are exercised by the selling securityholders, the proceeds from the exercise of the warrants and broker warrants will be used by use for drilling and exploration at Neal Hot Springs and
general working capital purposes. The shares that may be resold under this prospectus will be issued upon (i) the exchange of subscription receipts sold by us in a private placement that closed on August 17, 2009, (ii) the exercise of warrants
issued upon the exchange of these subscription receipts, and (iii) the exercise of broker warrants issued upon the exercise of the compensation options granted to the agents in the private placement. The funds that we raised through the sale of the
subscription receipts in the private placement are to be used for drilling and exploration at Neal Hot Springs and for general working capital.
SELLING SECURITYHOLDERS
Transactions with Selling Securityholders
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 gross proceeds of Cdn$10,935,000. The sale of securities was pursuant to the exemption from
registration provided under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended (or the Securities Act). In the event that 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.
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 also granted to the agents compensation options exchangeable on the exchange date, without payment of additional consideration, for broker warrants. The broker warrants are exercisable for 24 months and 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 exchange date is the date that is the earlier of the date on which a receipt for a final prospectus is issued in Canadian
qualifying the distribution of the shares of common stock and warrants to the holders of the subscription receipts and the date which is four months and one day after the Closing Date.
This prospectus covers the offering of up to 12,393,000 shares of our common stock by selling securityholders. The shares issued to the selling securityholders are "restricted securities" under applicable federal and state securities laws
and are being registered to give the selling securityholders the opportunity to freely transfer their shares in the manner contemplated under the "Plan of Distribution." The registration of the shares does not necessarily mean, however,
that any of these shares will be offered or sold by the selling securityholders. The selling securityholders may from time to time offer and sell all or a portion of their shares. We do not know how long the selling securityholders will hold their
shares before selling them, and we currently have no agreements, arrangements or understandings with the selling securityholders regarding the sale of any of the shares.
Certain selling securityholders may be deemed to be "underwriters" within the meaning of the Securities Act 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 Securityholder Information
The following is a list of the selling securityholders who own an aggregate of up to 12,393,000 shares of our common stock covered in this prospectus. Except as otherwise disclosed herein or in the footnotes below the table, none of the selling
securityholders has, or within the past three years has had, any position, office, or other material relationship with us. The information set forth below is based upon information obtained from the selling securityholders. All percentages are based
on 62,131,882 shares of common stock issued and outstanding on October 30, 2009. This table assumes that each securityholder will sell all of its shares available for sale during the effectiveness of the registration statement that includes this
prospectus, however, securityholders are not required to sell any or all of
their shares.
12
Before Offering
After Offering
Total Number of
Shares
Percentage of
Beneficially
Percentage of
Number of
Shares Owned
Shares Owned
Name
Owned
Shares
      Owned
(1
)
Shares Offered
After
      Offering
(2
)
After Offering
AGF Canada
      Class
(1)(2)
156,150
*
156,150
-0-
*
AGF Canada Fund
(1)(3)
600
*
600
-0-
*
AGF Canadian Small
Cap
(1)(4)
856,350
1.38%
856,350
-0-
*
AGF Canadian Stock
Fund
(1)(5)
4,691,500
7.55%
2,938,500
1,753,000
2.82%
Apex Balanced
      Fund
(1)(6)
13,950
*
13,950
-0-
*
Apex Canadian Growth
Fund
(1)(7)
11,100
*
11,100
-0-
*
Clarus Securities Inc.
(8)
97,200
*
97,200
-0-
*
Cranshire Capital,
      L.P.
(9)
120,000
*
120,000
-0-
*
Creststreet Mutual Funds Limited
(10)
270,000
*
270,000
-0-
*
Dundee Securities Corporation
(11)
97,200
*
97,200
-0-
*
Exploration Capital Partners 2005 Limited Partnership
(12)
3,285,000
5.29%
3,285,000
-0-
*
Front Street Investment Management Inc.
(13)
1,320,000
2.13%
1,320,000
-0-
*
Gordon Clements
(14)
179,250
*
179,250
-0-
*
IG AGF Canadian Growth CL
(1)(15)
56,600
*
41,700
14,900
*
IG AGF Canadian Growth
      Fund
(1)(16)
1,341,700
2.16%
843,750
497,950
*
Keystone Equity Fund
(1)(17)
142,250
*
87,900
54,350
*
Mariel International Limited
(18)
45,750
*
45,750
-0-
*
Middlemarch Partners Limited
(19)
375,000
*
375,000
-0-
*
Mike Jaksic
(20)
7,500
*
7,500
-0-
*
Scotia Canadian Small Cap Fund
(21)
990,000
1.59%
990,000
-0-
*
Toll Cross Securities Inc.
(22)
67,747
*
48,600
19,147
*
Wirth Associates
      Inc.
(23)
371,700
*
371,700
-0-
*
Wirth Associates Inc.
(24)
235,800
*
235,800
-0-
*
* Represents less than one percent of the outstanding common
stock.
(1) Representatives of this securityholder have advised us that
W. Robert Farquharson, Martin Hubbes, Jean Charbonneau, Tony Genua, Christine
Hughes, Patricia Perez-Coutts, Stephen Way, Tristan Sones, Coulter Wright, Tom
Nakamura, Robert Lyon, Niall Dineen, Caterina Prato, Terry Chong, Ani Markova,
Thomas Pinto Basto, and
Alice Popescu are the natural persons with voting and dispositive power with respect to the common stock held by this security holder. Representatives of this security holder have advised us that this security holder is an affiliate of a U.S.
registered broker-dealer; however, this security holder acquired the securities in the ordinary course of business and, at the time of the acquisition, had no agreements or understandings, directly or indirectly, with any party to distribute the
securities.
13
(2) Includes 104,100 shares of common stock and 52,050 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement.
(3) Includes 400 shares of common stock and 200 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement.
(4) Includes 570,900 shares of common stock and 285,450 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement.
(5) Includes 1,959,000 shares of common stock and 979,500
shares of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement.
(6) Includes 9,300 shares of common stock and 4,650 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement.
(7) Includes 7,400 shares of common stock and 3,700 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement.
(8) Includes 97,200 shares of common stock issuable upon the
exercise of broker warrants to be issued upon exchange of compensation options.
The broker warrants are exercisable for 24 months at $1.22 per share.
Representatives of this securityholder have advised us that Jim Christodoulis is
the natural person with voting and dispositive power with respect to the common
stock held by this security holder. This selling securityholder acquired the
securities as compensation for underwriting activities in the August 2009
private placement and is affiliated with a registered broker-dealer. In
connection with the private placements, this security holder only conducted
underwriting activities outside of the United States; underwriting activities in
the United States in the August 2009 private placement were conducted by
registered broker-dealers. This selling securityholder also is the holder of
162,754 broker warrants exercisable through April 27, 2010 at an exercise price
of $2.34.
(9)Representatives of this securityholder have advised us that
Downsview Capital, Inc. is the general partner of Cranshire Capital, L.P. and
consequently has voting control and investment discretion over securities held
by Cranshire Capital, L.P. Mitchell P. Kopin, president of Downsview Capital,
Inc., is the natural person with voting and dispositive power with respect to
the common stock held by this securityholder. Each of Mr. Kopin and Downsview
Capital, Inc. 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 Capital, L.P. Includes 80,000
shares of common stock and 40,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement.
(10) Representatives of this securityholder have advised us
that Robert J. Toole is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 180,000
shares of common stock and 90,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement.
(11) Includes 97,200 shares of common stock issuable upon
exercise of broker warrants to be issued upon exchange of compensation options.
The compensation options are exercisable for 24 months at $1.22 per share.
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 security holder. This selling securityholder acquired the
securities as compensation for underwriting activities in the August 2009
private placement and is affiliated with a registered broker-dealer. In
connection with the private placements, this security holder only conducted
underwriting activities outside of the United States; underwriting activities in
the United States in the August 2009 private placement were conducted by
registered broker-dealers.
(12) 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
security holder. Includes 2,190,000 shares of common stock and 1,095,000 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. Representatives
of this security holder have advised us that this security holder is an
affiliate of a U.S. registered broker-dealer; however, this security holder
acquired the securities in the ordinary course of business and, at the time of
the acquisition, had no agreements or understandings, directly or indirectly,
with any party to distribute the securities.
(13) 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 security holder. Includes 88,000
shares of common stock and 44,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in the private
placement. Representatives of this security holder have advised us that this
security holder is an affiliate of a U.S. registered broker-dealer; however,
this security holder acquired the securities in the ordinary course of business
and, at the time of the acquisition, had no agreements or understandings,
directly or indirectly, with any party to distribute the securities.
14
(14) Includes 119,500 shares of common stock and 59,750 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement.
(15) Includes 27,800 shares of common stock and 13,900 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement.
(16) Includes 562,500 shares of common stock and 281,250 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement.
(17) Includes 58,600 shares of common stock and 29,300 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement.
(18) Representatives of this securityholder have advised us
that Doug Campbell is the natural person with voting and dispositive power with
respect to the common stock held by this security holder. Includes 30,500 shares
of common stock and 15,250 shares of common stock issuable upon the exercise of
warrants to be issued upon exchange of subscription receipts sold in the private
placement.
(19) Representatives of this securityholder have advised us
that Cecilia Kershaw is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 250,000
shares of common stock and 125,000 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement.
(20) Includes 5,000 shares of common stock and 2,500 shares of
common stock issuable upon the exercise of warrants to be issued upon exchange
of subscription receipts sold in the private placement.
(21) Includes 660,000 shares of common stock and 330,000 shares
of common stock issuable upon the exercise of warrants to be issued upon
exchange of subscription receipts sold in the private placement. Representatives
of this securityholder have advised us that David George Whetham is the natural
person with voting and dispositive power with respect to the common stock held
by this security holder. Representatives of this security holder have advised us
that this security holder is an affiliate of a U.S. registered broker-dealer;
however, this security holder acquired the securities in the ordinary course of
business and, at the time of the acquisition, had no agreements or
understandings, directly or indirectly, with any party to distribute the
securities.
(22) Includes 48,600 shares of common stock issuable upon
exercise of compensation options. The compensation options are exercisable for
24 months at $1.22 per share. Representatives of this securityholder have
advised us that Rodger Gray and Marc Bouchard are the natural persons with
voting and dispositive power with respect to the common stock held by this
security holder. This selling securityholder acquired the securities as
compensation for underwriting activities in the August 2009 private placement
and is affiliated with a registered broker-dealer. In connection with the
private placements, this security holder only conducted underwriting activities
outside of the United States; underwriting activities in the United States were
conducted by registered broker-dealers. Total number of shares beneficially
owned includes 19,147 shares of common stock issuable upon exercise of warrants
issued in the April 2008 private placement. The warrants are exercisable for 24
months at $2.34 per share.
(23) Representatives of this securityholder have advised us
that Thomas A. Starkey is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 247,500
shares of common stock and 123,750 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement. Representatives of this security holder have advised us
that this security holder is an affiliate of a U.S. registered broker-dealer;
however, this security holder acquired the securities in the ordinary course of
business and, at the time of the acquisition, had no agreements or
understandings, directly or indirectly, with any party to distribute the
securities.
(24) Representatives of this securityholder have advised us
that Thomas A. Starkey is the natural person with voting and dispositive power
with respect to the common stock held by this security holder. Includes 157,200
shares of common stock and 78,600 shares of common stock issuable upon the
exercise of warrants to be issued upon exchange of subscription receipts sold in
the private placement. Representatives of this security holder have advised us
that this security holder is an affiliate of a U.S. registered broker-dealer;
however, this security holder acquired the securities in the ordinary course of
business and, at the time of the acquisition, had no agreements or
understandings, directly or indirectly, with any party to distribute the
securities.
PLAN OF DISTRIBUTION
Each selling securityholder of our common stock and any of
their pledgees, donees, transferees, assignees and successors-in-interest may,
from time to time, sell any or all of their shares of common stock on the NYSE
Amex, Toronto Stock Exchange 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 securityholder may
use any one or more of the following methods when selling shares:
15
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;
broker dealers may agree with the selling securityholders to sell a
  specified number of such shares at a stipulated price per share;
a combination of any such methods of sale;
through the writing or settlement of options or other hedging
  transactions, whether through an options exchange or otherwise; or
any other method permitted pursuant to applicable law.
The selling securityholders may also sell shares under Rule 144
under the Securities Act, if available, rather than under this prospectus.
Broker-dealers engaged by the selling securityholders may
arrange for other brokers-dealers to participate in sales. Broker-dealers may
receive commissions or discounts from the selling securityholders (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 NASD Rule 2440; and in the case of a
principal transaction a markup or markdown in compliance with NASD IM-2440.
In connection with the sale of the common stock or interests
therein, the selling securityholders 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 securityholders 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 securityholders may also enter into option or other
transactions with broker-dealers or other financial institutions or the creation
of 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 securityholders and any broker-dealers or agents
that are involved in selling the common stock may be deemed to be "underwriters"
within the meaning of the Securities Act 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 common stock purchased by them may be deemed to be
underwriting commissions or discounts under the Securities Act. Each selling
securityholder has informed us that it does not have any written or oral
agreement or understanding, directly or indirectly, with any underwriter or
other person to distribute the common stock. In no event shall any broker-dealer
receive fees, commissions and markups which, in the aggregate, would not exceed
customary fees and commissions.
The selling securityholders may from time to time pledge or
grant a security interest in some or all of the shares of common stock owned by
them and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock from
time to time under this prospectus after we have filed an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities
Act amending the list of selling securityholders to include the pledgee,
transferee or other successors in interest as selling securityholders under this
prospectus.
16
The selling securityholders also may transfer the shares of
common stock in other circumstances, in which case the transferees, pledgees or
other successors in interest will be the selling beneficial owners for purposes
of this prospectus and may sell the shares of common stock from time to time
under this prospectus after we have filed an amendment to this prospectus under
Rule 424(b)(3) or other applicable provision of the Securities Act amending the
list of selling securityholders to include the pledgee, transferee or other
successors in interest as selling securityholders under this prospectus.
We are required to pay certain fees and expenses incurred by us
incident to the registration of the shares, but we will not receive any proceeds
from the sale of the common stock by the selling securityholders. We have agreed
to indemnify the selling securityholders against certain losses, claims, damages
and liabilities, including liabilities under the Securities Act.
Because selling securityholders may be deemed to be
"underwriters" within the meaning of the Securities Act, they will be subject to
the prospectus delivery requirements of the Securities Act. In addition, any
securities covered by this prospectus which qualify for sale pursuant to Rule
144 under the Securities Act may be sold under Rule 144 rather than under this
prospectus. Each selling securityholder has advised us that they have not
entered into any written or oral agreements, understandings or arrangements with
any underwriter or broker-dealer regarding the sale of the common stock. There
is no underwriter or coordinating broker acting in connection with the proposed
sale of the common stock by the selling securityholders.
We agreed to keep this prospectus effective until the earlier
of (i) two years following closing, or (ii) such time as all shares covered by
the registration statement have been sold publicly. The common stock will be
sold only through registered or licensed brokers or dealers if required under
applicable state securities laws. In addition, in certain states, the common
stock 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 (the "Exchange Act"), any person engaged in the
distribution of the common stock 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. We have advised each selling securityholder that it may not use
shares registered under this registration statement to cover short sales of
common stock made prior to the date on which this registration statement shall
have been declared effective by the Securities and Exchange Commission. In
addition, the selling securityholders will be subject to applicable provisions
of the Exchange Act 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 securityholders or any other person. We will make
copies of this prospectus available to the selling securityholders 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.
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 October 30, 2009, there were 62,131,882 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
The shares of common stock registered for resale under this
registration statement include (i) 4,050,000 shares of our common stock issuable
upon the exercise of warrants at the exercise price of $1.75 per share for a
period of 24, months from the date of closing of the private placement of
subscription receipts on August 17, 2009, and (ii) up to 243,000 shares of our
common stock issuable upon the exercise of broker warrants at the exercise price
of $1.22 per share for a period of 24 months from date of closing of the private
placement of subscription receipts on August 17, 2009. The warrants are issuable
upon the exchange of the subscription receipts on the exchange date. The
exchange date is the earlier of the date on which the receipt for a final
prospectus is issued in Canada qualifying the distribution of the common stock
and warrants issuable upon exchange of the subscription receipts, and December
18, 2009. In the event that this 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 broker warrants are issuable
pursuant compensation options issued to the agents in the private placement of
subscription receipts on August 17, 2009.
17
The Form of Warrant for the common stock issuable upon exercise
of warrants pursuant to this registration statement provides that the warrant
exercise price is subject to adjustment from time to time if we (i) issue common
stock or securities exchangeable or convertible into common stock to all or
substantially all of our stockholders, (ii) make a distribution on our
outstanding common stock that is paid in shares or securities convertible into
shares, (iii) subdivide or consolidate our common stock into a greater or lesser
number of shares, as applicable. In addition, if we reclassify or redesignate
our outstanding common stock or change our common stock into other securities
(other than in (i)-(iii) above), or enter into a consolidation, amalgamation or
merger with another entity, or if we transfer our undertaking or all or
substantially all of our assets, then any warrant holder that exercises warrants
after such time, 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 consolidation, amalgamation or merger 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 on the effective date of the
consolidation, amalgamation or merger, unless the consolidation, amalgamation or
merger does not result in any reclassification or redesignation of our
outstanding common stock.
18
MARKET FOR COMMON EQUITY AND RELATED SECURITYHOLDER MATTERS
Market Information and Holders
As of October 30, 2009, there were 62,131,882 shares of our
common stock issued and outstanding and 3,625,725 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
(formerly the American Stock Exchange)
Toronto 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 (through November 23, 2009)
1.71
1.45
1.80
1.55
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 will be 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 by reference into this prospectus have been so included 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 and for the
  quarterly period ended September 30, 2009 filed on November 10, 2009;
Our Current Reports on Form 8-K filed June 15, 2009, July 2, 2009, July
  31, 2009, August 17, 2009, October 21, 2009, and November 4, 2009;
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 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
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.
20
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.
21
U.S. GEOTHERMAL INC.
Common Stock
__________________
PROSPECTUS
__________________
The date of this prospectus is , 2009
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and
      Distribution.
Securities and Exchange Commission
      Registration Fee*
$
1,121.63
Legal Fees and Expenses
20,000
Accounting Fees and Expenses
20,000
Miscellaneous Expenses
4,000
Total
$
45,212.63
* 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 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. Each subscription receipt
will, subject to adjustment, be automatically exchanged on the exchange date (as
described below), 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 is the date that is 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 18,
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.
II-1
The proceeds of the private placement will be used for drilling
and exploration at Neal Hot Springs and for general working capital.
B. 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.
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.
C. 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.
D. 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.
E. On January 22, 2007, the Board of Directors approved an
action to grant 235,000 incentive stock options to purchase capital stock at a
price of $1.12 for a five year period. The options were granted to two employees
and a director. The securities were issued in reliance on Section 4(2) of the
Securities Act.
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)
II-2
EXHIBIT
NUMBER
DESCRIPTION
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 Subscription Agreement
      for Subscription Receipts relating to private placement of August 2009
4.4
Subscription Receipt Agreement dated August 17,
      2009 among U.S. Geothermal Inc., Dundee Securities Corporation, Clarus
      Securities Inc., Toll Cross Securities Inc. and Computershare Trust
      Company of Canada
4.5
Form of Warrant used in private
      placement of August 2009
4.6
Form of Broker Warrant
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 to "Agreement by and between
      U.S. Geothermal Inc. and Vulcan Power Company" dated December 30, 2003
      (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)
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)
II-3
EXHIBIT
NUMBER
DESCRIPTION
10.8
Geothermal Lease and Agreement
      dated December 1, 2004, between Reid S. Stewart and Ruth O. Stewart and US
      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 US 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 US 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 US 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 US 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)
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)
II-4
EXHIBIT
NUMBER
DESCRIPTION
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 10.2 to the registrant's Form
      8-K as filed on August 23, 2006).
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 10.3 to the
      registrant's Form 8-K as filed on August 23, 2006)
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)
10.36
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-QSB as filed on February 20, 2007).
10.38
Geothermal Lease and Agreement
      dated August 1, 2007, between Bureau of Land Management and U.S.
      Geothermal Inc. (Incorporated by reference as exhibit 10.38 to the
      registrant's Form 10-K as filed on June 16, 2008)
II-5
EXHIBIT
NUMBER
DESCRIPTION
10.39
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)
10.40
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 as exhibit 10.1 to the registrant's Form 8-K current report as
      filed on May 2, 2008)
10.41
Water Rights Purchase Agreement
      Michael B. Stewart and U.S. Geothermal Inc. dated March 31, 2008
      (Incorporated by reference as exhibit 99.2 to the registrants Form 8-K
      current report as filed on April 7, 2008.)
10.42
Agency Agreement dated August 17, 2009 among
      U.S. Geothermal Inc., Dundee Securities Inc., and Toll Cross Securities
      Inc.
21.1
Subsidiaries of the Registrant (Incorporated by
      reference as exhibit 21.1 to the registrants 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*
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)
*To be filed by amendment.
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;
II-6
(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.
(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-7
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 Novermber 25, 2009.
U.S. Geothermal Inc.
(Registrant)
By:
/s/ Daniel J.
      Kunz
Daniel J. Kunz
Chief Executive Officer and President
(Principal Executive 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
Novermber 25, 2009
Daniel J. Kunz
(Principal Executive Officer)
/s/ Kerry D. Hawkley
Chief Financial Officer (Principal Financial
      and
Novermber 25, 2009
Kerry D. Hawkley
Accounting Officer)
/s/ Douglas J. Glaspey
Chief Operating Officer and Director
Novermber 25, 2009
Douglas J. Glaspey
/s/ John H.
      Walker
Chairman and Director
Novermber 25, 2009
John H. Walker
/s/ Paul A.
      Larkin
Director
Novermber 25, 2009
Paul A. Larkin
/s/ Leland R. Mink
Director
Novermber 25, 2009
Leland R. Mink
II-8