Alternative Earth Resources Completes Sale of Geothermal Projects to Ormat

Alternative Earth Resources Inc. (AER) is pleased to announce that it has completed the sale of certain geothermal projects to Ormat Nevada Inc. pursuant to a Purchase and Sale Agreement dated August 5, 2014 (the "Transaction"). Under the Transaction, Ormat also has the option, exercisable for four years, to acquire an additional geothermal lease. Shareholder approval for the Transaction was obtained at the annual and special meeting of shareholders held on August 22, 2014 (the "Meeting").

The benefits to AER resulting from the Transaction include: receipt of US$1,490,000 to the treasury; freeing up US$175,000 of cash that is currently pledged for geothermal well bonds; removal of liability for geothermal well abandonment costs of approximately US$450,000; and elimination on-going geothermal lease payment obligations.

Alternative Earth Resources Inc.
www.alternative-earth.com