Ram Power Announces Record First Quarter 2012 Results

RENO, NV--(Marketwire - May 15, 2012) - Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to announce its operating results for the first quarter ended March 31, 2012. This earnings release should be read in conjunction with Ram Power's MD&A and financial statements, which are available on the Company's website at www.ram-power.com and have been posted on SEDAR at www.sedar.com.

QUARTER HIGHLIGHTS

The achievement of commercial operation of the Phase I expansion at San Jacinto led to a major improvement in the financial performance of the Company. With $6.3 million in revenue and $2.7 million of earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter, the Company took a major step toward generating the levels of cash flow necessary to be able to allocate resources to pipeline projects including Casita and the Geysers. In addition, cost controls implemented in the second half of 2011 have contributed to the increased level of profitability.

Additional highlights for the three months ended March 31, 2012 include:

• In January, the Phase I expansion at San Jacinto was placed into commercial operation;
• Total revenue for the three months was $6.3 million, up $5.3 million from the prior year quarter;
• EBITDA for the three months was $2.7 million, up $8.3 million from the prior year quarter;
• General and administrative expenses for the three months decreased $3.2 million, or 53%, from the prior year quarter; and
• The Company entered into a letter of intent with SNC-Lavalin for the construction of the Geysers Project.

FINANCIAL OVERVIEW

The financial results of Ram Power for the three months ended March 31, 2012 and 2011 are summarized below:

		For the three months ended
(all figures in U.S dollars)		March 31, 2012				March 31, 2011
Total revenue		$	6,342,852			$	1,003,256
Direct cost of energy production			794,705				506,063
Gross profit			5,548,147				497,193
General and administrative expenses			(2,893,025	)			(6,146,534	)
EBITDA			2,655,122				(5,649,341	)
Depreciation and amortization			(3,213,404	)			(518,631	)
Operating loss			(558,282	)			(6,167,972	)
Other loss			(1,816,093	)			(513,270	)
Deferred taxes			-				836,664
Total loss and comprehensive loss			(2,374,375	)			(5,844,578	)
Total loss and comprehensive loss per share			(0.01	)			(0.04	)
		As at March 31, 2012				As at December 31, 2011
Cash		$	53,610,418			$	57,195,330
Total assets			529,060,564				510,825,081
Long-term debt			233,891,068				212,984,403
Total liabilities			269,123,274				248,321,132
Working capital			45,426,205				45,918,495

For the three months ended March 31, 2012, the Company reported revenue of $6.3 million and a net loss of $2.4 million ($0.01 per share) versus revenue of $1 million and a net loss of $5.8 million ($0.04 per share) for the same period of the prior year. Increased revenue resulted from the San Jacinto-Tizate Phase I expansion being placed in service in January 2012.

EBITDA increased to $2.7 million for the current quarter versus negative EBITDA of $5.6 million in the prior year's comparable period. The $8.3 million increase in EBITDA resulted from a $5.1 million increase in gross profit from San Jacinto operations, and a $3.2 million decrease in general and administrative expenses. Although EBITDA is a non-GAAP measure, the Company believes that many of its financial readers find it to be a useful in assessing the Company's performance.

For the current period, the Company used $3.8 million for operating activities and $20.7 million for additions to geothermal properties and capital assets, including $20 million for the Phase I and II San Jacinto-Tizate expansion and $0.7 million for other exploration and development projects, with $21 million provided by the San Jacinto Phase II credit facility. At March 31, 2012, the Company had free cash of approximately $53.6 million, of which $40.9 million was held for use in the San Jacinto project.

Concurrent with today's release, Shuman Moore, President and CEO of Ram Power, stated, "We are proud of the consistent operational results to date of our 36 MW net Phase I expansion of San Jacinto-Tizate, which commenced commercial operations this past January. Equally important, the Company continues to develop the San Jacinto-Tizate Phase II, 36 MW net expansion on time and on budget which when completed by year-end will provide another significant increase to revenue and EBITDA for fiscal year 2013. In addition, I am very pleased with the progress we have made with the Geysers project, and we are looking forward to finalizing the EPC contract for this project with SNC-Lavalin in the near term."

Ram Power, Corp. will hold its earnings call to discuss the first quarter ending March 31, 2012 financial and operating results on Wednesday, May 16, 2012 at 10:00 am EDT (7:00 am PDT). To listen to the call, please dial 1-888-789-9572 by entering the participant pass code 5631014, or on the web at http://bellwebcasting.ca/audience/index.asp?eventid=94359987.

About Ram Power, Corp.

Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties, and has interests in geothermal projects in the United States, Canada, and Latin America.

Cautionary Statements

This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenues, requirements for additional capital, revenue and production costs, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities or in the commencement of operations; as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Such forward-looking information is made as of the date of this news release and, other than as required by applicable securities laws, Ram Power assumes no obligation to update or revise such forward-looking information to reflect new events or circumstances.