SODA LAKE GEOTHERMAL POWER PLANT

• Soda Lake - Nevada
• 100% owned
• Nameplate capacity 23 MW - currently operating at 13.5 MW
• Team of experienced geothermal plant operators
• 30 year power purchase agreement
• Geothermal Reporting Code 20 MW Reserves, 41 MW Indicated Resources

• Target Power Purchase Agreement re-price to market
• Elimination of administration, legal, head office charges
• Plans to increase plant output to 37 MW
  • Optimization of current production and reinjection strategy
  • Plant refurbishment and upgrades completed

Soda Lake Geothermal Plant

The Soda Lake Operation is located in the southwest portion of Churchill County, Nevada, approximately 11 km northwest of the city of Fallon and 115 km east of Reno. The Soda Lake Operation consists of 2,881 hectares (7,119 acres) of private and federal lands.

The Soda Lake Operation is accessible by paved and gravel roads. Two major highways, Interstate 80 and U.S. Highway 50, are located in close proximity to the project area. The power plants and all production and injection wells are accessible on all weather gravel and dirt roads.

The Soda Lake Operation is in close proximity to 120 kilovolt ("kV"), 230 kV and 345 kV transmission lines. Additionally, the area is served by a regional railroad line, which passes immediately to the south.

The Soda Lake Operation sells all electricity to NV Energy Company, a wholly owned subsidiary of Sierra Pacific Resources Company, Reno, Nevada, under two 30-year power purchase agreements.

Our Soda Lake Operation is comprised of two power producing facilities, Soda Lake 1 and Soda Lake 2, with a total installed gross nameplate capacity of 23.1 MW. Soda Lake I has an installed gross nameplate generation rating of 5.1 MW and is equipped with a water-cooled condensing system. Soda Lake II has an installed gross nameplate generation rating of 18 MW and is equipped with an air-cooled condensing system. Soda Lake 1 and Soda Lake 2 came on line in 1987 and 1991, respectively.

Electricity sales from the Soda Lake Operation have averaged 8 MW net over the period 2005 to 2008. We intend to increase output to the nameplate capacity of 23 MW by the end of 2010 by drilling new production and injection wells and upgrading surface piping and existing equipment. By 2013 Magma intends to add additional power generation units to increase the facility's output to at least 37 MW.

A Geothermal Reporting Code estimate was prepared for Soda Lake with GeothermEx acting as the Qualified Person. The recent field optimization study resulted in a comprehensive data set that was used for the reservoir estimate. Proved Reserves of 20 MW and Indicated Resources of 41 MW have now been established for the property. This compares with a previous P90 estimate of the geothermal reservoir's gross generating capacity of 29 MW.