Document:

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE
        SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE [•INSERT
        THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE DISTRIBUTION
        DATE•]."

        THIS
        WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE
        REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
        SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS
        WARRANT MAY NOT BE EXERCISED UNLESS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
        U.S. SECURITIES ACT IS AVAILABLE, AND, UNLESS THE HOLDER IS OR IS EXERCISING ON BEHALF OF
        THE ORIGINAL HOLDER AND IS AN ACCREDITED INVESTOR AS DEFINED IN RULE 501(a) OF REGULATION D
        UNDER THE U.S. SECURITIES ACT, THE HOLDER HAS DELIVERED AN OPINION OF COUNSEL IN FORM AND
        SUBSTANCE SATISFACTORY TO THE COMPANY TO SUCH EFFECT.

        THE
        SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT
        BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
        SECURITIES ACT”) OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH
        SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED,
        SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY: (A) TO THE COMPANY, (B) PURSUANT TO AN
        EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, (C) OUTSIDE THE UNITED
        STATES IN ACCORDANCE WITH RULE 904 OF REGULATIONS UNDER THE U.S. SECURITIES ACT IF
        AVAILABLE, (D) PURSUANT TO AN EXEMPTION FROM REGISTRATION
        UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 OR RULE 144A THEREUNDER, IF AVAILABLE,
        AND IN COMPLIANCE WITH ANY STATE SECURITIES LAWS, OR (E) WITH THE PRIOR WRITTEN CONSENT OF
        THE COMPANY, PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT
        AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT, IN CONNECTION WITH A TRANSFER
        PURSUANT TO (C), (D) OR (E) ABOVE, AN OPINION OF COUNSEL, OF RECOGNIZED STANDING REASONABLY
        SATISFACTORY TO THE COMPANY HAS BEEN PROVIDED TO THE COMPANY TO SUCH EFFECT.

        
        
        

        
        -2-

        
        WARRANTS TO PURCHASE COMMON SHARES

        
        OF

        U.S.
        GEOTHERMAL INC.

         

        
            	
                        
                        __________________

                        
                        CERTIFICATE

                        
                        NUMBER
                        •

                        
                        ___________________

                    	
                        
                         

                    	
                        
                        ___________________

                        
                        •

                        WARRANTS

                        
                        ___________________

                    

        

         

        
        THIS CERTIFIES THAT, for value received, • (the
        "Holder") is entitled, at any time during the Exercise Period (as herein defined), to
        purchase, at the Exercise Price (as herein defined), one share of common stock (a
        “Common Share”) in the capital of U.S. GEOTHERMAL INC., a Delaware corporation
        (the "Company"), in respect of each Warrant evidenced by this Warrant certificate, by
        surrendering to the Company at its principal office located at 1505 Tyrell Lane, Boise,
        Idaho USA, 83706, Attention: Daniel Kunz, this Warrant certificate, together with a
        Subscription Form, duly completed and executed, and a bank draft, certified cheque or wire
        transfer payable to the order of the Company, in an amount equal to the product of the
        Exercise Price multiplied by the number of Common Shares stipulated in the Subscription
        Form as being subscribed for pursuant to the exercise of the Warrants evidenced by this
        Warrant certificate.

        The
        Warrants may not be exercised unless an exemption from the registration requirements of the
        United States Securities Act of 1933, as amended (the “U.S. Securities Act”)
        and applicable state securities laws is available to the holder and the holder has
        furnished an opinion of counsel of recognized standing in form and substance satisfactory
        to the Company to such effect; provided, however, that the undersigned will not be required
        to deliver an opinion of counsel in connection with its exercise of the Warrants on its own
        behalf, or on behalf of the original beneficial purchaser for which it is subscribing for
        Units hereunder (if any), at a time when it, and such original beneficial purchaser (if
        any), are accredited investors as defined under the U.S. Securities Act.

        
            	
                        
                        1.

                    	
                        
                        Definitions

                    

        

        
        1.1       In this Warrant, including the
        preamble, unless there is something in the subject matter or context inconsistent
        therewith, the following expressions shall have the following meanings namely:

        
        
        

        
        -3-

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        "Business Day” means a day which is not a Saturday,
                        Sunday or civic or statutory holiday in Vancouver, British Columbia or
                        Boise, Idaho;

                    

        

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        “Closing Date” means April •, 2008, or such
                        other date as the Company may designate;

                    

        

        
            	
                        
                         

                    	
                        
                        (c)

                    	
                        
                        "Common Shares" means the common shares without par value in
                        the capital of the Company as such shares are constituted on the Closing
                        Date, as the same may be reorganized, reclassified or redesignated pursuant
                        to any of the events set out in Part 10 hereof;

                    

        

        
            	
                        
                         

                    	
                        
                        (d)

                    	
                        
                        “Exercise Period” means at any time during the
                        24 month period of time commencing on the Closing Date;

                    

        

        
            	
                        
                         

                    	
                        
                        (e)

                    	
                        
                        “Exercise Price" means USD$3.00 per Common
                        Share;

                    

        

        
            	
                        
                         

                    	
                        
                        (f)

                    	
                        
                        "Expiry Time" means 4:00 o'clock in the afternoon, Vancouver
                        time, on the last day of the Exercise Period;

                    

        

        
            	
                        
                         

                    	
                        
                        (g)

                    	
                        
                        “person" means an individual, corporation,
                        partnership, unincorporated syndicate, unincorporated organization, trust,
                        trustee, executor, administrator, or other legal representative, or any
                        group or combination thereof;

                    

        

        
            	
                        
                         

                    	
                        
                        (h)

                    	
                        
                        "Subscription Form" means the form of subscription annexed
                        hereto as Appendix "1";

                    

        

        
            	
                        
                         

                    	
                        
                        (i)

                    	
                        
                        “Unit” means a unit of the Company consisting of
                        one (1) common share of the Company and one half of one Warrant;
                        and

                    

        

        
            	
                        
                         

                    	
                        
                        (j)

                    	
                        
                        “Warrants” means the common share purchase
                        warrants of the Company evidenced by, and governed by the terms of, this
                        Warrant certificate.

                    

        

        
        1.2       Reference to "this Warrant
        certificate", "Warrant", "herein", "hereby", "hereof", "hereto", "hereunder" and similar
        expressions mean or refer to this Warrant certificate and any deed or instrument
        supplemental or ancillary thereto and any appendices or schedules hereto or thereto and not
        to any particular article, section, subsection, clause, subclause or other portion
        hereof.

        
            	
                        
                        2.

                    	
                        
                        Exercise Period

                    

        

        
            	
                        
                        2.1

                    	
                        
                        The Warrants shall be exercisable at any time by the Holder
                        during the Exercise Period.

                    

        

        
            	
                        
                        3.

                    	
                        
                        Expiry Time

                    

        

        
        3.1       After the Expiry
        Time, all rights under any Warrants evidenced hereby which remain unexercised at the Expiry
        Time shall wholly cease and terminate and such Warrants shall be null and void and of no
        value or effect.

        
            	
                        
                        4.

                    	
                        
                        Exercise Procedure

                    

        

         

        
        
        

        
        -4-

        
        4.1       The Holder may exercise its
        rights hereunder to purchase Common Shares during the Exercise Period by delivering to the
        Company in accordance with Part 24 hereof:

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        this Warrant certificate, with the Subscription Form duly
                        completed and executed by the Holder or its legal representative or
                        attorney, duly appointed by an instrument in writing in form and manner
                        satisfactory to the Company; and

                    

        

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        a bank draft or certified cheque payable, or wire transfer
                        confirmation in writing evidencing payment, to the order of the Company, in
                        an amount equal to the product of the Exercise Price multiplied by the
                        number of Common Shares stipulated in the Subscription Form as being
                        subscribed for pursuant to the exercise of the Warrants evidenced by this
                        Warrant certificate.

                    

        

        
            	
                        
                        5.

                    	
                        
                        Entitlement to Certificate

                    

        

        
        5.1       Upon delivery and payment as
        provided in Part 4, the Company shall cause to be issued to the Holder the Common Shares
        subscribed for up to the maximum number that the Holder is entitled to purchase pursuant to
        this Warrant certificate and the Holder shall become a shareholder of the Company in
        respect of such Common Shares with effect from the date of such delivery and payment and
        shall be entitled to delivery of a certificate or certificates evidencing such Common
        Shares and the Company shall cause such certificate or certificates to be delivered to the
        Holder in accordance with Part 24 hereof within three (3) Business Days of such delivery
        and payment.

        
            	
                        
                        6.

                    	
                        
                        Partial Exercise

                    

        

        
        6.1       The Holder may subscribe for
        and purchase a number of Common Shares less than the number the Holder is entitled to
        purchase pursuant to this Warrant certificate. In the event of any such partial
        subscription and purchase prior to the Expiry Time, the Holder shall be entitled to
        receive, without charge, a new Warrant certificate in respect of the balance of the Common
        Shares of which the Holder was entitled to purchase pursuant to this Warrant certificate
        and which were then not purchased.

        
            	
                        
                        7.

                    	
                        
                        No Fractional Shares

                    

        

        
        7.1       Notwithstanding any adjustments
        provided for in Part 10 hereof or otherwise, the Company shall not be required upon the
        exercise of any Warrants to issue fractional Common Shares in satisfaction of its
        obligations hereunder. To the extent that the Holder would be entitled to purchase a
        fraction of a Common Share, such right may be exercised in respect of such fraction only in
        combination with other rights which, in the aggregate, entitle the Holder to purchase a
        whole number of Common Shares. If the number of Common Shares to which the

        
        Holder would otherwise be entitled upon exercise is not a
        whole number, then the number of Common Shares to be issued shall be rounded down to the
        next whole number.

        
            	
                        
                        8.

                    	
                        
                        Not a Shareholder

                    

        

        
        8.1       Nothing in this
        Warrant certificate or in the holding of the Warrants evidenced hereby shall be construed
        as conferring upon the Holder any right or interest whatsoever as a shareholder of the
        Company.

        
        
        

        
        -5-

        
            	
                        
                        9.

                    	
                        
                        Covenants

                    

        

        
            	
                        
                        9.1

                    	
                        
                        The Company hereby covenants and agrees that:

                    

        

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        so long as any Warrants evidenced hereby remain outstanding,
                        it shall reserve and there shall remain unissued out of its authorized
                        capital a sufficient number of Common Shares to satisfy the maximum right
                        of purchase provided for herein; and

                    

        

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        all Common Shares which shall be issued upon the exercise of
                        any Warrants hereunder shall, upon payment therefor of the Exercise Price,
                        be issued as fully paid and non-assessable Common Shares.

                    

        

        
            	
                        
                        10.

                    	
                        
                        Adjustment to Exercise Price

                    

        

        
        10.1     The Exercise Price in effect at any time
        is subject to adjustment from time to time in the events and in the manner provided in this
        Part 10.

        
            	
                        
                        10.2

                    	
                        
                        If, and whenever at any time after the date hereof, the
                        Company:

                    

        

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        issues Common Shares or securities exchangeable for or
                        convertible into Common Shares to all or substantially all the holders of
                        the Common Shares as a stock dividend; or

                    

        

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        makes a distribution on its outstanding Common Shares
                        payable in Common Shares or securities exchangeable for or convertible into
                        Common Shares; or

                    

        

        
            	
                        
                         

                    	
                        
                        (c)

                    	
                        
                        subdivides its outstanding Common Shares into a greater
                        number of shares; or

                    

        

        
            	
                        
                         

                    	
                        
                        (d)

                    	
                        
                        consolidates its outstanding Common Shares into a lesser
                        number of shares;

                    

        

        (any of
        such events being called a "Common Share Reorganization"), then the Exercise Price will be
        adjusted effective immediately after the effective date or record date, whichever is
        earlier, for the happening of a Common Share Reorganization at which the holders of Common
        Shares are determined for the purpose of the Common Share Reorganization by multiplying the
        Exercise Price in effect immediately prior to such effective date or record date by a
        fraction, the numerator of which is the number of Common Shares outstanding on such
        effective date or record date before giving effect to such Common Share Reorganization and
        the denominator of which is the number of Common Shares outstanding immediately after
        giving effect to such Common Share Reorganization (including, in the case where securities
        exchangeable for or convertible into Common Shares are distributed, the
        number of Common Shares that would have been outstanding had all such securities been
        exchanged for or converted into Common Shares on such effective date or record
        date).

        
        10.3     To the extent that any
        adjustment in the Exercise Price occurs pursuant to Section 10.2 as a result of the fixing
        by the Company of a record date for the distribution of securities exchangeable for or
        convertible into Common Shares, the Exercise Price shall be readjusted immediately after
        the expiry of any relevant exchange or conversion right to the Exercise Price which would
        then be in effect based upon the number of Common Shares actually issued and remaining
        issuable after such expiry and shall be further readjusted in such manner upon
        the

        
        
        

        
        -6-

        expiry
        of any further such right. If the Holder has not exercised all of the Warrants on or prior
        to the record date of any stock dividend or distribution or the effective date of any
        subdivision or consolidation, as the case may be, upon the exercise of such Warrants
        thereafter, the Holder shall be entitled to receive and shall accept in lieu of the number
        of Common Shares then subscribed for and purchased by the Holder, at the Exercise Price
        determined in accordance with Section 10.2, the aggregate number of Common Shares that the
        Holder would have been entitled to receive as a result of such Common Share Reorganization,
        if, on such record date or effective date, as the case may be, the Holder had been the
        holder of record of the number of Common Shares so subscribed for and purchased.

        
        10.4     If, and whenever at any time after the
        date hereof, there is a reclassification or redesignation of the Common Shares outstanding
        at any time or change of the Common Shares into other shares or into other securities
        (other than a Common Share Reorganization), or a consolidation, amalgamation or merger of
        the Company with or into any other corporation or other entity (other than a consolidation,
        amalgamation or merger which does not result in any reclassification or redesignation of
        the outstanding Common Shares or a change of the Common Shares into other shares), or a
        transfer of the undertaking or assets of the Company as an entirety or substantially as an
        entirety to another corporation or other entity (any of such events being referred to as a
        "Capital Reorganization"), the Holder, upon exercising any Warrants after the effective
        date of such Capital Reorganization, will be entitled to receive in lieu of the number of
        Common Shares to which such Holder was theretofore entitled upon such exercise, the
        aggregate number of shares, other securities or other property which the Holder would have
        been entitled to receive as a result of such Capital Reorganization if, on the effective
        date thereof, the Holder had been the registered holder of the number of Common Shares to
        which such Holder was theretofore entitled upon exercise of such Warrants.

        
        10.5     If, and whenever at any time after the
        date hereof, there is a Common Share Reorganization, that results in an adjustment pursuant
        to Section 10.2 or a readjustment pursuant to Section 10.3, in the Exercise Price, then the
        number of Common Shares acquirable upon the subsequent exercise of the Warrants shall be
        simultaneously adjusted or readjusted, as the case may be, by multiplying the number of
        Common Shares acquirable upon the exercise of the Warrants immediately prior to such
        adjustment or readjustment by a fraction which shall be the reciprocal of the fraction used
        in the adjustment or readjustment of the Exercise Price.

        
            	
                        
                        11.

                    	
                        
                        Rules Regarding Calculation of Adjustment of Exercise
                        Price

                    

        

        
        11.1     The adjustments provided
        for in Part 10 are cumulative and will, in the case of adjustments to the Exercise Price,
        be computed to the nearest one-tenth of one cent and will be made successively whenever an
        event referred to therein occurs, subject to the following provisions of this Part
        11.

        
        11.2     No adjustment in the
        Exercise Price is required to be made unless such adjustment would result in a change of at
        least 1% in the Exercise Price; provided, however, that any adjustments which, except for
        the provisions of this Section 11.2, would otherwise have been required to be made, will be
        carried forward and taken into account in any subsequent adjustments.

        
        11.3     No adjustment in the
        Exercise Price will be made in respect of any event described in Part 10, other than the
        events referred to in subsections 10.2 (c) and (d), if the Holder is
        entitled

        

        

        
        -7-

        to
        participate in such event on the same terms, mutatis mutandis, as if the Holder had
        exercised its Warrants prior to or on the effective date or record date of such event, or
        if the Company makes adequate provision for the Holder to participate in such event on the
        same terms or with the same effect, mutatis mutandis, upon the subsequent exercise of the
        Warrants (the adequacy of such provisions to be determined by the Holder in its sole
        discretion, acting reasonably).

        
        11.4     No adjustment in the Exercise Price will
        be made under Part 10 in respect of the issue from time to time of Common Shares as
        dividends paid in the ordinary course to holders of Common Shares who exercise an option or
        election to receive substantially equivalent dividends in Common Shares in lieu of
        receiving a cash dividend, and any such issue will be deemed not to be a Common Share
        Reorganization.

        
        11.5     If at any time a dispute arises with
        respect to adjustments provided for in Part 10, such dispute will be conclusively
        determined by the auditors of the Company or if they are unable or unwilling to act, by
        such other firm of independent chartered accountants as may be selected by the board of
        directors of the Company, acting reasonably and in good faith, and any such determination
        will be binding upon the Company, the Holder and the shareholders of the
        Company.

        
        11.6     If, and whenever at any time after the
        date hereof, the Company takes any action affecting the Common Shares, other than action
        described in Part 10, which in the opinion of the board of directors of the Company, acting
        reasonably and in good faith, would materially affect the rights of the Holder, but subject
        to first receiving all necessary stock exchange and regulatory approvals, the Exercise
        Price will be adjusted in such manner, if any, and at such time, by action of the board of
        directors of the Company, acting reasonably and in good faith.

        
        11.7     If the Company sets a record date to
        determine the holders of the Common Shares for the purpose of entitling them to receive any
        dividend or distribution or sets a record date to take any other action and, thereafter and
        before the distribution to such shareholders of any such dividend or distribution or the
        taking of any other action, decides not to implement its plan to pay or deliver such
        dividend or distribution or take such other action, then no adjustment in the Exercise
        Price will be required by reason of the setting of such record date.

        
        11.8     As a condition precedent to the taking of
        any action which would require any adjustment to the Warrants, including the Exercise
        Price, the Company must take any corporate action which may be necessary in
        order that the Company have unissued and reserved in its authorized capital, and may
        validly and legally issue as fully paid and non-assessable, all the shares or other
        securities which the Holder is entitled to receive on the full exercise thereof in
        accordance with the provisions hereof.

        
        11.9     The Company will from time
        to time, immediately after the occurrence of any event which requires an adjustment or
        readjustment as provided in Part 10, forthwith give notice to the Holder specifying the
        event requiring such adjustment or readjustment and the results thereof, including the
        resulting Exercise Price.

        
        11.10   The Company covenants to and in favour
        of the Holder that so long as any Warrants remain outstanding, it will give notice to the
        Holder of its intention to fix a record date for any Common Share Reorganization (other
        than the subdivision or consolidation of the Common

         

        
        
        

        
        -8-

        
        Shares), which may give rise to an adjustment in the Exercise Price, and,
        such notice must specify the particulars of such event and the record date and the
        effective date for such event; provided that the Company is only required to specify in
        such notice such particulars of such event as have been fixed and determined on the date on
        which such notice is given. Such notice must be given not less than fourteen (14) days in
        each case prior to such applicable record date or effective date.

        
            	
                        
                        12.

                    	
                        
                        Consolidation and Amalgamation

                    

        

        
        12.1     The Company shall not enter into any
        transaction whereby all or substantially all of its undertaking, property and assets would
        become the property of any other corporation (herein called a "successor corporation")
        whether by way of reorganization, reconstruction, consolidation, amalgamation, merger,
        transfer, sale, disposition or otherwise, unless prior to or contemporaneously with the
        consummation of such transaction the Company and the successor corporation shall have
        executed such instruments and done such things as, in the opinion of counsel to the Holder,
        are necessary or advisable to establish that upon the consummation of such
        transaction:

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        the successor corporation will have assumed all the
                        covenants and obligations of the Company under this Warrant certificate;
                        and

                    

        

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        this Warrant certificate will be a valid and binding
                        obligation of the successor corporation entitling the Holder, as against
                        the successor corporation, to all the rights of the Holder under this
                        Warrant certificate.

                    

        

        
        12.2     Whenever the conditions of Section 12.1
        shall have been duly observed and performed the successor corporation shall possess, and
        from time to time may exercise, each and every right and power of the Company under this
        Warrant certificate in the name of the Company or otherwise and any act or proceeding by
        any provision hereof required to be done or performed by any director or officer of the
        Company may be done and performed with like force and effect by the like directors or
        officers of the successor corporation.

        
            	
                        
                        13.

                    	
                        
                        Representation and Warranty

                    

        

        
        13.1     The Company hereby
        represents and warrants with and to the Holder that the Company is duly authorized and has
        the corporate and lawful power and authority to create and issue the Warrants represented
        hereby and the Common Shares issuable upon the exercise hereof and to perform its
        obligations hereunder and that this Warrant certificate represents a valid, legal and
        binding obligation of the Company enforceable in accordance with its
        terms.

        
            	
                        
                        14.

                    	
                        
                        If Share Transfer Books Closed

                    

        

        
        14.1     The Company shall not be
        required to deliver certificates for Common Shares while the share transfer books of the
        Company are properly closed, prior to any meeting of shareholders or for the payment of
        dividends or for any other purpose and, in the event of the exercise of any Warrants in
        accordance with the provisions hereof and the making of any subscription and payment for
        the Common Shares pursuant thereto during any such period, delivery of certificates for
        Common Shares may be postponed for a period not exceeding three (3) Business Days
        after

        
        
        

        
        -9-

        the
        date of the re-opening of said share transfer books. Provided however that any such
        postponement of delivery of certificates shall be without prejudice to the right of the
        Holder, if the Holder has exercised any Warrants and made payment during such period, to
        receive such certificates for the Common Shares subscribed for after the share transfer
        books shall have been re-opened.

        
            	
                        
                        15.

                    	
                        
                        Protection of Shareholders, Officers and
                        Directors

                    

        

        
        15.1     Subject as herein provided, all or any of
        the rights conferred upon the Holder may be enforced by the Holder by appropriate legal
        proceedings. No recourse under or upon any obligation, covenant or agreement herein
        contained or in any of the Warrants represented hereby shall be taken against any
        shareholder, officer or director of the Company, either directly or through the Company, it
        being expressly agreed and declared that the obligations under the Warrants evidenced
        hereby, are solely corporate obligations of the Company and that no personal liability
        whatever shall attach to or be incurred by the shareholders, officers, or directors of the
        Company or any of them in respect thereof, any and all rights and claims against every such
        shareholder, officer or director being hereby expressly waived as a condition of and as a
        consideration for the issue of the Warrants evidenced hereby.

        
            	
                        
                        16.

                    	
                        
                        Lost Certificate

                    

        

        
        16.1     If the Warrant certificate evidencing the
        Warrants represented hereby becomes stolen, lost, mutilated or destroyed, the Company may,
        upon delivery to it by the Holder of an appropriate indemnity, issue and countersign a new
        Warrant certificate of like denomination, tenor and date as the certificate so stolen, lost
        mutilated or destroyed.

        
            	
                        
                        17.

                    	
                        
                        Governing Law

                    

        

        
        17.1     This Warrant shall be governed by, and
        construed in accordance with, the laws of the Province of British Columbia and the laws of
        Canada applicable therein but the reference to such laws shall not, by conflict of laws
        rules or otherwise, require the application of the law of any jurisdiction other than the
        Province of British Columbia.

        
            	
                        
                        18.

                    	
                        
                        Severability

                    

        

        
        18.1     If any one or more of the
        provisions or parts thereof contained in this Warrant certificate should be or become
        invalid, illegal or unenforceable in any respect in any jurisdiction, the remaining
        provisions or parts thereof contained herein shall be and shall be conclusively deemed to
        be, as to such jurisdiction, severable therefrom and:

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        the validity, legality or enforceability of such remaining
                        provisions or parts thereof shall not in any way be affected or impaired by
                        the severance of the provisions or parts thereof severed; and

                    

        

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        the invalidity, illegality or unenforceability of any
                        provision or part thereof contained in this Warrant certificate in any
                        jurisdiction shall not affect or impair such provision or part thereof or
                        any other provisions of this Warrant certificate in any other
                        jurisdiction.

                    

        

         

        
        
        

        
        -10-

        
            	
                        
                        19.

                    	
                        
                        Headings

                    

        

        
        19.1     The headings of the Parts of this Warrant
        certificate have been inserted for convenience and reference only and do not define, limit,
        alter or enlarge the meaning of any provision of this Warrant certificate.

        
            	
                        
                        20.

                    	
                        
                        Gender

                    

        

        
        20.1     Whenever used in this Warrant, words
        importing the singular number only shall include the plural, and vice versa, and words
        importing the masculine gender shall include the feminine gender.

        
            	
                        
                        21.

                    	
                        
                        Day not a Business Day

                    

        

        
        21.1     In the event that any day on or before
        which any action is required to be taken hereunder is not a Business Day, then such action
        shall be required to be taken on or before the requisite time on the next succeeding day
        that is a Business Day. If the payment of any amount is deferred for any period, then such
        period shall be included for purposes of the computation of any interest payable
        hereunder.

        
            	
                        
                        22.

                    	
                        
                        Computation of Time Period

                    

        

        
        22.1     Except to the extent otherwise provided
        herein, in the computation of a period of time from a specified date to a later specified
        date, the word "from" means "from and including" and the words "to" and "until" each mean
        "to but excluding".

        
            	
                        
                        23.

                    	
                        
                        Binding Effect

                    

        

        
        23.1     This Warrant and all of its provisions
        shall enure to the benefit of the Holder, and their respective heirs, executors,
        administrators, successors, legal representatives and assigns and shall be binding upon the
        Company and its successors and permitted assigns. The expression the "Holder" as used
        herein shall include the Holder's assigns whether immediate or derivative.

        
            	
                        
                        24.

                    	
                        
                        Notice

                    

        

        
        24.1     Any notice or other
        communication required or permitted to be given hereunder shall be in writing and shall be
        given by facsimile or other means of electronic communication or by delivery as hereafter
        provided. Any such notice or other communication, if sent by facsimile or other means of
        electronic communication, shall be deemed to have been received on the business day
        following the sending, or, if delivered by hand, shall be deemed to have been received at
        the time it is delivered to the applicable address noted below either to the individual
        designated below or to an individual at such address having apparent authority to accept
        deliveries on behalf of the addressee. Notice of change of address shall also be governed
        by this section. Notices and other communications shall be addressed as
        follows:

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        if to the Company:

                    

        

        
        U.S. Geothermal Inc.

        
        1505 Tyrell Lane

         

        
        
        

        
        -11-

        
        Boise, Idaho USA

        
        83706

        
        Attention: Daniel Kunz, Chief Executive Officer

        
        Facsimile: 208-424-1030

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        if to the Holder:

                    

        

        
        To the Holder whose name and address appears on the front page of this
        Warrant certificate.

        
            	
                        
                        25.

                    	
                        
                        Time of Essence

                    

        

        
            
            25.1       Time shall be of
            the essence hereof.

        

        
            	
                        
                        26.

                    	
                        
                        Transferability of Warrants

                    

        

        
        26.1     The Warrants represented by this Warrant
        certificate are may be transferred and assigned by the Holder thereof on notice to the
        Corporation and subject to compliance by the Holder (which compliance shall be to the
        satisfaction of the Corporation and its counsel, acting reasonably, including any
        applicable legal opinions required by the Corporation in connection with such transfer)
        with the legend requirements on the front page this Warrant certificate and applicable
        laws. Any expenses incurred in effecting the transfer of any Warrants will be borne solely
        by the transferee of such Warrants and in no event shall the Corporation be responsible for
        such expenses.

        
            	
                        
                        27.

                    	
                        
                        Legends

                    

        

        
        27.1     Any certificate representing Common Shares
        issued upon the exercise of this Warrant prior to the date which is four months and one day
        after the date hereof will bear the following legends:

        
            	
                        
                         

                    	
                        
                        (i)

                    	
                        
                        “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
                        HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE •,
                        2008.”

                    

        

        
            	
                        
                         

                    	
                        
                        (ii)

                    	
                        
                        “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
                        LISTED ON THE TORONTO STOCK EXCHANGE BUT CANNOT BE TRADED THROUGH THE
                        FACILITIES OF THE EXCHANGE SINCE THEY ARE NOT FREELY TRANSFERABLE AND
                        CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT
                        “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON THE TORONTO
                        STOCK EXCHANGE.”

                    

        

        
        And

        
            	
                        
                         

                    	
                        
                        (iii)

                    	
                        
                        THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                        UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
                        SECURITIES ACT”) OR ANY

                    

        

        
         

        
        
        

        
            
            -12-

        

        
            	
                        
                         

                    	
                        
                         

                    	
                        
                        STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH
                        SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY
                        BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY: (A) TO THE
                        COMPANY, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S.
                        SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904
                        OF REGULATIONS UNDER THE U.S. SECURITIES ACT IF AVAILABLE, (D) PURSUANT TO
                        AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY
                        RULE 144 OR RULE 144A THEREUNDER, IF AVAILABLE, NAD IN COMPLIANCE WITH ANY
                        STATE SECURITIES ALWS, OR (E) WITH THE PRIOR WRITTEN CONSENT OF THE
                        COMPANY, PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S.
                        SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT, IN
                        CONNECTION WITH A TRANSFER PURSUANT TO (C), (D), OR (E) ABOVE, AN OPINION
                        OF COUNSEL, OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE COMPANY
                        HAS BEEN PROVIDED TO THE COMPANY TO SUCH EFFECT.

                    

        

        
        provided that at any time subsequent to the date which is four months and
        one day after the date hereof any certificate representing such Common Shares may be
        exchanged for a certificate or certificates bearing neither legend in paragraphs (i) and
        (ii) above. The Company hereby covenants and agrees that it will use the best efforts
        thereof to deliver or to cause to be delivered a certificate or certificates representing
        such Common Shares bearing no such legends as soon as practicable, but in any event, within
        five business days after receipt of the legended certificate or certificates.

         

        
        [Remainder of page intentionally left blank]

        

         

        
        
        

        
        -13-

        
        IN WITNESS WHEREOF the Company has caused this
        Warrant certificate to be signed by its duly authorized officer as of this ___
        day of _____________, 2008.

         

        
            	
                        
                         

                    	
                        
                        U.S. GEOTHERMAL INC.

                    

        

        
            	
                        
                         

                    	
                        
                        Per:__________________________

                                Authorized
                        Signatory

                    

        

         

         

        
        
        

        
        -14-

        
        APPENDIX "1"

        
        SUBSCRIPTION FORM

        
            	
                        
                        TO:

                    	
                        
                        U.S. GEOTHERMAL INC.

                    

        

        
        The undersigned holder of the attached Warrant certificate hereby
        irrevocably subscribes for _______________ Common Shares of U.S. Geothermal Inc. (the
        "Company") pursuant to the attached Warrant certificate at the Exercise Price per share
        specified in the said Warrant certificate and encloses herewith payment of the subscription
        price therefor in accordance with the terms of the Warrant certificate.

        The
        Warrants may not be exercised unless an exemption from the registration requirements of the
        United States Securities Act of 1933, as amended (the “U.S. Securities Act”)
        and applicable state securities laws is available to the holder and the holder has
        furnished an opinion of counsel of recognized standing in form and substance satisfactory
        to the Company to such effect; provided, however, that the undersigned will not be required
        to deliver an opinion of counsel in connection with its exercise of the Warrants on its own
        behalf, or on behalf of the original beneficial purchaser for which it is subscribing for
        Units hereunder (if any), at a time when it, and such original beneficial purchaser (if
        any), are accredited investors as defined under the U.S. Securities Act.

        By
        executing this subscription form the undersigned represents and warrants to the Company
        that the undersigned (Please check the ONE
        box applicable):

        
            	
                        
                        □

                    	
                        
                        1.             is
                        tendering with this subscription form a written opinion of counsel
                        satisfactory to the Company to the effect that the securities to be
                        delivered upon exercise of the Warrants have been registered under the U.S.
                        Securities Act and the securities laws of all applicable states of the
                        United States or are exempt from registration thereunder; or

                    

        

        
            	
                        
                        □

                    	
                        
                        2.             the
                        undersigned purchased the Warrants from the Company pursuant to a
                        subscription agreement, including a U.S. accredited investor certificate
                        and (i) is exercising the Warrants on its own behalf at a time when it is
                        an “accredited investor”, as defined in Rule 501(a) under the
                        U.S. Securities Act, (ii) has had access to such current public information
                        concerning the Company as it considered necessary in connection with its
                        investment decision, (iii) understands that the Common Shares are
                        “restricted securities” as defined under the U.S. Securities
                        Act, and (iv) agrees to the restrictions on transfer and resale as set
                        forth in the legend included on the certificate(s) representing the Common
                        Shares subscribed for hereby.

                    

        

        If any
        Warrants represented by the attached Warrant certificate are not being exercised, a new
        Warrant certificate will be issued and delivered with the Common Share
        certificates.

         

        
        
        

        
        -15-

        Please
        issue a certificate for the shares being purchased as follows in the name of the
        undersigned:

        
            	
                        
                         

                    	
                        
                        NAME:        
                        _____________________________________________

                        
                         

                        
                                              
                        (please print)

                        
                         

                        
                        ADDRESS: 
                        _____________________________________________

                        
                         

                        
                                        
                        _____________________________________________

                        
                         

                        
                                             
                        _____________________________________________

                    

        

         

        
                        
         

        
            	
                        
                        DATED this ____ day of
                        _________________, ____________.

                    	
                        
                         

                    

        

         

        
            	
                         

                    	
                        
                        ______________________________

                        (Signature)"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE
        SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE [•INSERT
        THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE DISTRIBUTION
        DATE•]."

        THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
        ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR ANY STATE SECURITIES
        LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF U.S.
        GEOTHERMAL INC. (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD,
        PLEDGED OR OTHERWISE TRANSFERRED ONLY: (A) TO THE CORPORATION, (B) PURSUANT TO AN EFFECTIVE
        REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN
        ACCORDANCE WITH RULE 904 OF REGULATIONS UNDER THE U.S. SECURITIES ACT IF AVAILABLE, (D)
        PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE
        144 OR RULE 144A THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY STATE SECURITIES
        LAWS, OR (B) WITH THE PRIOR WRITTEN CONSENT OF THE CORPORATION, PURSUANT TO ANOTHER
        EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACE AND ANY APPLICABLE STATE,
        SECURITIES LAWS; PROVIDED THAT, IN CONNECTION WITH A TRANSFER PURSUANT TO (C), (D) OR (B)
        ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE
        CORPORATION HAS BEEN PROVIDED TO THE CORPORATION TO SUCH EFFECT.

        BROKER
        WARRANT

        TO
        PURCHASE UP TO • COMMON SHARES

        OF
        U.S. GEOTHERMAL INC.

        THIS IS
        TO CERTIFY THAT for valuable consideration, • (the
        “Holder”) is entitled, at any time prior to 5:00 p.m., Vancouver time, on April
        27, 2010, upon and subject to the terms and conditions set forth herein and in the
        schedules attached hereto, including the execution of the Representation Letter attached
        hereto as Schedule “C” which schedules form an integral part hereof and shall
        be deemed to be incorporated herein (the whole being referred to herein as this
        “Broker Warrant Certificate” and the rights of the Holder represented by this
        Broker Warrant Certificate being referred to herein as this “Broker Warrant”),
        to subscribe in whole or in part for up to • shares of common
        stock (“Common Shares” and which term shall include any other shares or
        securities to be issued in addition, thereto or in substitution or replacement therefor as
        provided herein) of U.S. Geothermal Inc. (the “Corporation”), a corporation
        incorporated pursuant to the laws of the State of Delaware.

        The
        purchase price (the purchase price in effect from time to time being called the
        “Exercise Price”) payable for each Common Share subscribed for upon the
        exercise of this Broker Warrant shall be U.S.$• [NTD – being
        the United States dollar equivalent of Cdn$2.37], subject to adjustment in the events and
        in the manner set forth herein. No fractional Common Shares will be issuable upon any
        exercise of this Broker Warrant and the Holder will not be entitled to any cash payment or
        compensation in lieu of a fractional Common Share.

        
        
        

        - 2
        -

         

        This
        Broker Warrant shall become wholly void and the unexercised portion of the subscription
        rights represented hereby will expire and terminate at 5:00 p.m., Vancouver time, on April
        27, 2010 (the “Expiry Time”).

        All
        Common Shares which are to be issued upon the exercise of this Broker Warrant shall be
        issued to the Holder, upon payment therefor of the amount for which the Common Shares which
        may at the time be purchased pursuant to the provisions hereof, and the Holder shall be
        deemed to have become the holder of record of such Common Shares, on the date of delivery
        of this Broker Warrant Certificate together with payment for, the Common Shares so
        subscribed for, unless the transfer books of the Corporation shall be closed on such date,
        in which event the Common Shares so subscribed for shall be deemed to be issued, and the
        Holder shall be deemed to have become the holder of record of such Common Shares, on the
        date on which such transfer books are reopened and such Common Shares shall be issued at
        the purchase price in effect on the date of delivery of this Broker Warrant Certificate
        together with payment for the Common Shares subscribed for by the Holder.

        The
        Holder may purchase less than the number of Common Shares which the Holder is entitled to
        purchase hereunder on delivery of this Broker Warrant Certificate, in which event a new
        certificate, in form identical hereto but with appropriate changes, representing the Common
        Shares not purchased, shall be issued to the Holder.

        This
        Broker Warrant does not entitle the Holder to any rights or interest whatsoever as a
        shareholder of the Corporation or any other rights or interests except as expressly
        provided in this Broker Warrant Certificate.

        This
        Broker Warrant may not be assigned or transferred by the Holder.

        If this
        Broker Warrant Certificate or any replacement hereof becomes stolen, lost, mutilated or
        destroyed, the Corporation shall, on such terms as it may in its discretion impose, acting
        reasonably, issue and deliver a new certificate, in form identical hereto but with
        appropriate changes, representing any unexercised portion of the subscription rights
        represented hereby to replace the certificate so stolen, lost, mutilated or
        destroyed.

        By
        acceptance hereof, the Holder hereby represents and warrants to the Corporation that the
        Holder is acquiring this Broker Warrant as principal for its own account and not for the
        benefit of any other person.

        All
        amounts of money referred to in this Broker Warrant Certificate refer to lawful money of
        the United States of America.

        This
        Broker Warrant shall enure to the benefit of, and shall be binding upon, the Holder and the
        Corporation and their respective successors.

        
        
        

        - 3
        -

         

        IN
        WITNESS WHEREOF the Corporation has caused this Broker Warrant Certificate to be issued
        under the signature of a properly authorized officer of the Corporation.

        DATED
        as of the ____ day of April, 2008.

        
            	
                        
                         

                    	
                        
                         

                    	
                        
                        U.S. GEOTHERMAL INC.

                    
	
                        
                        Per:

                    	
                        
                         

                    
	
                        
                         

                    	
                        
                        Name:

                    
	
                        
                         

                    	
                        
                        Title:

                    
	
                        
                         

                    	
                        
                         

                    

        

         

        
        
        

        
        SCHEDULE A

        
        Additional Terms and Conditions of this Broker
        Warrant

        
            	
                        
                        1.

                    	
                        
                        Exercise:
                        In the event that the Holder desires to exercise the right
                        to purchase Common Shares conferred hereby, the Holder shall (a) complete
                        to the extent possible in the manner indicated and execute a subscription
                        form in the form attached as Schedule B to this Broker Warrant Certificate,
                        (b) surrender this Broker Warrant Certificate to the Corporation in
                        accordance with section 7 of Schedule A to the Broker Warrant Certificate,
                        and (c) pay the amount payable on the exercise of this Broker Warrant in
                        respect of the Common Shares subscribed for by certified cheque, bank draft
                        or money order in lawful money of the United States of America payable to
                        the Corporation or by transmitting same day funds in lawful money of the
                        United States of America by wire to such account as the Corporation shall
                        direct the Holder. Upon such surrender and payment as aforesaid, the Holder
                        shall be deemed for all purposes to be the holder of record of the number
                        of Common Shares to be so issued and the Holder shall be entitled to
                        delivery of certificates representing such Common Shares and the
                        Corporation shall cause such certificate or certificates to be delivered to
                        the Holder at the address specified in the subscription form, as soon as
                        practicable, but in any event, within five business days of such surrender
                        and payment as aforesaid. No fractional Common Shares will be issuable upon
                        any exercise of this Broker Warrant and the Holder will not be entitled to
                        any cash payment or compensation in lieu of a fractional Common
                        Share.

                    

        

        
            	
                        
                        2.

                    	
                        
                        Covenants, Representations and
                        Warranties: The
                        Corporation hereby covenants and agrees that it is authorized to issue the
                        Common Shares from time to time subscribed for and purchased in the manner
                        provided in this Broker Warrant Certificate and the certificates
                        representing such Common Shares to be issued and that, at all times prior
                        to the Expiry Time, it will reserve and there will remain unissued a
                        sufficient number of Common Shares to satisfy the right of purchase
                        provided in this Broker Warrant Certificate. The Corporation hereby further
                        covenants and agrees that it will at its expense expeditiously use its best
                        efforts to obtain the listing of such Common Shares (subject to issue or
                        notice of issue) on each stock exchange or over-the-counter market on which
                        the Common Shares may be listed from time to time. All Common Shares which
                        are issued upon the exercise of the right of purchase provided in this
                        Broker Warrant Certificate, upon payment therefore, of the amount at which
                        such Common Shares may be purchased pursuant to the provisions of this
                        Broker Warrant Certificate; shall be and be deemed to be fully paid and
                        non-assessable shares and free from all taxes, liens and charges with
                        respect to the issue thereof. The Corporation hereby represents and
                        warrants that this Broker Warrant Certificate is a valid and enforceable
                        obligation of the Corporation, enforceable in accordance with the
                        provisions of this Broker Warrant Certificate.

                    

        

        
            	
                        
                        3.

                    	
                        
                        Adjustment
                        Provisions: In
                        case of any reclassification, capital reorganization, stock dividend, or
                        other change of outstanding Common Shares, or in case of any consolidation
                        or merger of the Corporation with or into another corporation (other than a
                        consolidation or merger in which the Corporation is the continuing
                        corporation and which does not result in any reclassification, capital
                        reorganization, stock dividend, or other change of outstanding Common
                        Shares), or in case of any sale or conveyance to another
                        corporation

                    

        

        
        
        

        - 2
        -

         

        
        of the property of the Corporation as, or substantially as, an entirety
        (other than a sale/leaseback mortgage or other financing transaction), the Corporation
        shall cause effective provision to be made so that the Holder shall have the right
        thereafter, by exercising this Broker Warrant, to purchase the kind and number of Common
        Shares other securities or property (including cash) receivable upon such reclassification,
        capital reorganization, stock dividend, or other change, consolidation, merger, sale or
        conveyance as the Holder would have been entitled to receive had the Holder exercised this
        Broker Warrant in full immediately before such reclassification, capital reorganization,
        stock dividend, or other change, consolidation, merger, sale or conveyance. Any such
        provision shall include provision for adjustments that shall be as nearly equivalent as may
        be practicable to the adjustments provided for in this Section 3. The foregoing provisions
        shall similarly apply to successive reclassifications, capital reorganizations, stock
        dividends, and other changes of outstanding Common Shares and to successive consolidations,
        mergers, sales or conveyances. The Corporation shall have the exclusive authority to make
        all such adjustments.

        
            	
                        
                        4.

                    	
                        
                        Further
                        Assurances: The
                        Corporation hereby covenants and agrees that it will do, execute,
                        acknowledge and deliver, or cause to be done, executed, acknowledged and
                        delivered, all and every such other act, deed and assurance as the Holder
                        shall reasonably require for the better accomplishing and effectuating of
                        the intentions and provisions of this Broker Warrant
                        Certificate.

                    

        

        
            	
                        
                        5.

                    	
                        
                        Time:
                        Time shall be of the essence of this Broker Warrant
                        Certificate.

                    

        

        
            	
                        
                        6.

                    	
                        
                        Laws:
                        This Broker Warrant Certificate shall be construed in
                        accordance with the laws of the Province of British Columbia and the laws
                        of Canada applicable therein’.

                    

        

        
            	
                        
                        7.

                    	
                        
                        Notices:
                        All notices or other communications to be given under this
                        Broker Warrant Certificate shall be delivered by hand or by telecopier and,
                        if delivered by hand, shall be deemed to have been given on the delivery
                        date and, if sent by telecopier, on the date of transmission if sent before
                        4:00 p.m. on a business day or, if such day is not a business day, on the
                        first business day following the date of transmission.

                    

        

        
        Notices to the Corporations shall be addressed to:

        
        U.S. Geothermal Inc.

        
        1505 Tyrell Lane

        
        Boise, Idaho USA

        
        83706

        
            	
                        
                         

                    	
                        
                        Attention:

                    	
                        
                        Daniel Kunz, Chief Executive Officer

                    

        

        
            	
                        
                         

                    	
                        
                        Telecopier:

                    	
                        
                        208-424-1030

                    

        

        
        Notices to the Holder shall be addressed to:

        
        •

        
            	
                        
                         

                    	
                        
                        Attention:

                    	
                        
                        •

                    

        

        
            	
                        
                         

                    	
                        
                        Telecopier:

                    	
                        
                        •

                    

        

        
        
        

        - 3
        -

         

        The
        Corporation or the Holder may change its address for service by notice in writing to the
        other of them specifying its new address for service under this Broker Warrant
        Certificate.

        
            	
                        
                        8.

                    	
                        
                        Legends on Common
                        Shares:

                    

        

        
            	
                        
                         

                    	
                        
                        (1)

                    	
                        
                        Common Shares: Any certificate representing Common Shares
                        issued upon the exercise of this Broker Warrant prior to the date which is
                        four months and one day after the date hereof will bear the following
                        legends:

                    

        

        
            	
                        
                         

                    	
                        
                        (i)

                    	
                        
                        “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
                        HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
                        •, 2008.”

                    

        

        
            	
                        
                         

                    	
                        
                        (ii)

                    	
                        
                        “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
                        LISTED ON THE TORONTO STOCK EXCHANGE BUT CANNOT BE TRADED THROUGH THE
                        FACILITIES OF THE EXCHANGE SINCE THEY ARE NOT FREELY TRANSFERABLE AND
                        CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT
                        “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON THE TORONTO
                        STOCK EXCHANGE.”

                    

        

        
        And

        
            	
                        
                         

                    	
                        
                        (iii)

                    	
                        
                        THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                        UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S.
                        SECURITIES ACT”) OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY
                        PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT
                        SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
                        ONLY: (A) TO U.S. GEOTHERMAL INC. (THE “CORPORATION”), (B)
                        PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES
                        ACT, (C) OUTSIDE THE UNITED STATES IN ACCORDANCE V. RULE 904 OF REGULATIONS
                        UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, (D) PURSUANT TO AN EXEMPTION
                        FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 OR
                        RULE 144A THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY STATE
                        SECURITIES LAWS, OR (E) WITH THE PRIOR WRITTEN CONSENT OF THE CORPORATION,
                        PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S.’
                        SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT, IN
                        CONNECTION WITH A TRANSFER PURSUANT TO (C), (D) OR (E) ABOVE, AN OPINION OF
                        COUNSEL, OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE CORPORATION
                        HAS BEEN PROVIDED TO THE CORPORATION TO SUCH EFFECT.

                    

        

        
        
        

        - 4
        -

         

        
        provided that at any time subsequent to the date which is four months and
        one day after the date hereof any certificate representing such Common Shares may be
        exchanged for a certificate or certificates bearing neither legend in paragraphs (i) and
        (ii) above. The Corporation hereby covenants and agrees that it will use the best efforts
        thereof to deliver or to cause to be delivered a certificate or certificates representing
        such Common Shares bearing no such legends as soon as practicable, but in any event, within
        five business days after receipt of the legended certificate or certificates.

        
        
        

        
        SCHEDULE B

        
            	
                        
                        TO:

                    	
                        
                        U.S. GEOTHERMAL INC.

                    

        

        
        SUBSCRIPTION FORM

        The
        undersigned hereby subscribes for ________ shares of Common stock of U.S. Geothermal Inc.
        (the “Corporation”) (or such other number of Common Shares or other securities
        to which such subscription entitles the undersigned in lieu thereof or in addition thereto
        pursuant to the provisions of the broker warrant certificate (the “Broker Warrant
        Certificate”) dated as of the 25th day of April, 2008 issued by the Corporation to
        the Holder) at the purchase price of U.S.$• per Common Share (or at
        such other purchase price as may then be in effect under the provisions of the Broker
        Warrant Certificate) and on and subject to the other terms and conditions specified in the
        Broker Warrant Certificate and hereunder and encloses herewith a certified cheque, bank
        draft or money order in lawful money of Canada payable to the Corporation or has
        transmitted same day funds in lawful money of Canada by wire to such account as the
        Corporation directed the undersigned in payment of the subscription price.

        By
        executing this subscription form the undersigned represents and warrants that the
        undersigned acknowledges the restrictions on transfer applicable to the common shares under
        the United States Securities Act of 1933, as amended).

        The
        undersigned represents it is acquiring the Common Shares solely for its own account and not
        as a nominee for any other party and not with a view toward the resale or distribution
        thereof except in compliance with applicable securities laws.

        The
        undersigned represents and warrants that it received the Broker Warrant directly from the
        Corporation as partial payment for agency services rendered in connection with the offering
        of Common Shares of the Corporation which closed on June 5, 2007, and (i) is on the date of
        exercise, and was on the date of acquisition of the Broker Warrant, an institutional
        “accredited investor” (“Institutional Accredited Investor”) that
        satisfies one or more of the criteria set forth in Rule 501(a)(1), (2), (3) or (7) of
        Regulation D under United States Securities Act of 1933, as amended (the “U.S.
        Securities Act”), and is exercising the Broker Warrant for its own account, (ii) has
        had access to such current public information concerning the Corporation as: considered
        necessary in connection with its investment decision, (iii) understands that the common
        shares have not been registered under the U.S. Securities Act, (iv) agrees to the
        restrictions on transfer and resale more fully described in the Broker Warrant
        Certificate.

        The
        undersigned represents and warrants that it is an “accredited investor” as that
        term is defined in National Instrument 45-106 of the Canadian Securities
        Administrators.

        All
        amounts referred to in this subscription form refer to lawful money of the United States of
        America.

        
        
        

        - 2
        -

         

        The
        undersigned hereby directs that the Common Shares subscribed for be registered and
        delivered as follows:

        
            	
                        
                         

                    	
                        
                        Address

                    	
                        
                        Number of

                    	
                        
                         

                    
	
                        
                            
                            Name in Full

                        

                    	
                        
                            
                            Address

                            (include Postal Code)

                        

                    	
                        
                            
                            Number of

                            Common Shares

                        

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                         

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                         

                    
	
                    	
                    	
                    	
                    	
                    	
                    

        

         

        DATED
        this _____ day of ____________ 200___.

        
            	
                        
                         

                    	
                        
                         

                    	
                        
                         

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                        (Print Name of Holder)

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                         

                    
	
                        
                         

                    	
                        
                        By:

                    	
                        
                         

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                        Name:

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                        Title:

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                         

                    

        

         

        
        
        

        
        SCHEDULE C

        
        REPRESENTATION LETTER

        
            	
                        
                        TO:

                    	
                        
                        U.S. Geothermal Inc. (the
                        “Corporation”)

                    

        

        
            	
                        
                        1.

                    	
                        
                        As consideration for the services provided as underwriter in
                        connection with the issue and sale of shares of common stock of the
                        Corporation (the “Offering”) closing on April
                        •, 2008 (the “Closing Date”), the
                        Corporation has agreed to issue to • (the
                        “Underwriter”) on the Closing Date, a broker warrant (the
                        “Broker Warrant”) which will entitle the Underwriter to
                        purchase up to • shares of common stock of the
                        Corporation, US$ 0.001 par value (the “Common Shares”) at a
                        price per Common Share of U.S.$• at any time prior to
                        5:00 p.m. (Vancouver time) on April 27, 2010. The Broker Warrant and the
                        Common Shares are collectively referred to herein as the
                        “Securities.”).

                    

        

        
            	
                        
                        2.

                    	
                        
                        By executing this Representation Letter, the Underwriter
                        represents, warrants and covenants to the Corporation, (and acknowledges
                        that the Corporation is relying thereon) as follows:

                    

        

        
            	
                        
                         

                    	
                        
                        (a)

                    	
                        
                        it understands that the Securities have not been registered
                        under the United States Securities Act of 1933, as amended (the “U.S.
                        Securities Act”), or any applicable state securities laws and that
                        the offer and sale of the Broker Warrant to it will be made in reliance
                        upon an exemption from registration available to the Corporation for offers
                        and sales to institutional “accredited investors”
                        (“Institutional Accredited Investors”) that satisfy one or more
                        of the criteria set forth in Rule 501(a)(1), (2), (3) or (7) of Regulation
                        D under U.S. Securities Act;

                    

        

        
            	
                        
                         

                    	
                        
                        (b)

                    	
                        
                        it has such knowledge and experience in financial and
                        business matters as to be capable of evaluating, the merits and risks of
                        its investment in the Securities;

                    

        

        
            	
                        
                         

                    	
                        
                        (c)

                    	
                        
                        it is an “accredited investor” as that term is
                        defined in National Instrument 45-106 of the Canadian Securities
                        Administrators;

                    

        

        
            	
                        
                         

                    	
                        
                        (d)

                    	
                        
                        it is an Institutional Accredited Investor and is acquiring
                        the Securities for its own account and not on behalf of any other person
                        for investment purposes only and not with a view to any resale,
                        distribution or other disposition of the Securities in violation of United
                        States federal or state securities laws;

                    

        

        
            	
                        
                         

                    	
                        
                        (e)

                    	
                        
                        it acknowledges that it has not received the Broker Warrant
                        as a result of any general solicitation or general advertising (as those
                        terms are used in Regulation D under the U.S. Securities Act), including
                        any . advertisements, articles, notices or other communications published
                        in any newspaper, magazine or similar media or broadcast over radio or
                        television, or any seminar or meeting whose attendees have been invited by
                        general solicitation or general advertising;

                    

        

        
            	
                        
                         

                    	
                        
                        (f)

                    	
                        
                        it understands and acknowledges that the Securities are
                        currently “restricted securities” within the meaning of Rule
                        144 under the U.S. Securities Act and that if it decides to offer, sell or
                        otherwise transfer any of the Securities, the Securities may be offered,
                        sold or otherwise transferred only: (i) to the Corporation,

                    

        

        
        
        

        - 2
        -

         

        
        (ii) pursuant to an effective registration statement under the U.S.
        Securities Act (iii) outside the United States in compliance with the requirements of
        Rule 904 of Regulation S under the U.S. Securities Act and in compliance with applicable
        local laws and regulations, (iv) in compliance with an exemption from registration under
        the U.S. Securities Act provided by Rule 144 or Rule 144A thereunder, if available, and, in
        either case, in compliance with any applicable state securities laws, or (v) in a
        transaction that does not require registration under the U.S. Securities Act or any
        applicable state, securities laws, and, in the case of a proposed transfer pursuant to (iv)
        or (v) above, it has furnished to the Corporation an opinion of counsel or other evidence
        of exemption in form and substance satisfactory to the Corporation to such
        effect;

        
            	
                        
                         

                    	
                        
                        (g)

                    	
                        
                        it will provide to the Corporation, an exercise of the
                        Broker Warrant prior to effectiveness of any registration statement
                        covering the Common Shares, a written. certification that it received the
                        Broker Warrant directly from the Corporation in connection with the
                        Offering and (i) is on the date of exercise, and was on the date of
                        acquisition of the Broker Warrant, an Institutional Accredited Investor,
                        and is exercising the Broker Warrant for its own account, (ii) has had
                        access to such current public information concerning the Corporation as it
                        considered necessary in connection with its investment decision, (iii)
                        understands that the common shares have not been registered under the U.S.
                        Securities Act, (iv) agrees to the restrictions on transfer and resale
                        more fully described in this Broker Warrant Certificate;

                    

        

        
            	
                        
                         

                    	
                        
                        (h)

                    	
                        
                        it understands that the certificates representing the Common
                        Shares issued upon exercise of the Broker Warrant prior to effectiveness of
                        any registration statement covering the Common Shares will bear a legend
                        restricting transfer without registration under the U.S. Securities Act and
                        applicable state securities laws unless an exemption from registration is
                        available;

                    

        

        
            	
                        
                         

                    	
                        
                        (i)

                    	
                        
                        it consents to the Corporation making a notation on its
                        records Or giving instructions to any transfer agent of the Securities in
                        order to implement the restrictions on transfer set forth and described
                        herein; and

                    

        

        
            	
                        
                         

                    	
                        
                        (j)

                    	
                        
                        it understands and acknowledges that it is making the
                        representations and warranties and agreements contained herein with the
                        intent that the they may be relied upon by the Corporation in determining
                        its eligibility to receive the Broker Warrant.

                    

        

        
            	
                        
                        Dated:

                    	
                        
                        [Name of Holder]

                    

        

        
            	
                        
                         

                    	
                        
                        By:

                    	
                        
                         

                    
	
                        
                         

                    	
                        
                         

                    	
                        
                        Title:

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