BLACK ROCK MINING LIMITED — AGM Information 2008

Nov 18, 2008

Green Rock Energy Ltd 2008 Annual General Meeting

19 November 2008

Highlights

• ▐ Olympic Dam

• ▐ Large inferred resource of heat in ground

• ▐ Expression of interest submitted to Federal Government for grant of funds for proof-of-concept drilling

• ▐ Design commenced for proof-of-concept drilling

• Perth Basin

• ▐

• ▐ Preferred applicant for permits as notified by WA Government

• ▐ Awaiting grant of permits by WA Government

• ▐ Submitted application for WA LEED Grant

• ▐ Hungary

• ▐ New company formed to explore Carpathian Basin

• ▐ Locating drill targets in two promising project areas

Slide 2

Green Rock Energy Limited

Green Rock Energy: Our aim

▐ To be a major developer of geothermal energy properties

• Create shareholder value from:

• ▐

• ▐ identifying and securing the right geothermal ground; and

▐ developing that ground into a major geothermal energy producer.

Slide 4

Green Rock Energy: Our 3 Year Plan

▐ Evaluate and develop three major projects:

▐ Olympic Dam Perth Basin ▐

▐ Hungary

▐ Build a geothermal technical and project development team

▐ Identify future projects

Slide 5

Green Rock Energy: Our capital structure

Market Capitalisation

▐ A$7.2 million

Shares on Issue

• 180 million

• ▐

Options on Issue

18 million ▐

Shareholders

▐ 2,300

• ▐ Top 20 (40%)

• ▐ Directors ( 8%)

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• ▐ Cash (at 30 Sep 08) = $2.3m

...... an undervalued company

Slide 6

Geothermal Energy

▐Sources ▐Binary power plants ▐Guilt Free Energy ▐Project Support

www.greenrock.com.au

Geothermal: Sources of geothermal energy

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Slide 8

Geothermal: Binary power plants

Binary power plants have a high production “up time”, typically around 95%

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----- Start of picture text -----

100 Mwe
Binary Power Plant,
Mokai, New Zealand
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...... conventional above ground power plant technology

Slide 9

Geothermal: Guilt free energy

Zero emissions ▐

• Minimal noise

• ▐

• ▐ Minimal physical footprint

• ▐ Minimal visual impact

• ▐ By law is renewable

• Benefits from RECs and carbon credits

• ▐

• ▐ Will assist Australia meet Kyoto protocol obligations

Slide 10

Project Portfolio

▐The Projects ▐Olympic Dam ▐Perth Basin ▐Hungary

www.greenrock.com.au

Green Rock Energy: The projects

Location

The ro ect - the otential p j p

Olympic Dam - South Australia

Immediate proximity to major customer and Eastern Australia electricity grid, massive heat resource, EGS Project, target 400 MWe+ ca acit p y

Perth Basin - Western Australia

Direct Heat (Air-conditioning / Heating commercial buildings), through Perth metropolitan area, target 400 MWt + capacity

Hydrothermal/sedimentary project. Joint Venture with Resource companies, target 100 MWe+ capacity

Hungary

Hydrothermal/sedimentary project, immediate proximity to electricity grid, high feed-in tariff, strong joint venturers, target 100 MWe + ca acit p y

Patchawarra - South Australia

Sedimentary project – currently rated lower priority

Upper Spencer Gulf - South Australia

EGS project - currently rated lower priority

...... a broad geothermal portfolio

Slide 12

Australian projects

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Slide 13

Olympic Dam ▐Heat resource ▐Location ▐Objective ▐Progress ▐Next steps ▐Proof-of-concept

www.greenrock.com.au

Olympic Dam : The heat resource

Projected temp @ 5km depth

...... situated on a major heat anomaly

Slide 15

Olympic Dam: The location

▐ 100% owned by GRK

2,899 sq kms licence area

enormous energy potential

▐ Proximity to national grid & major customer

minimal transmission costs  15km to power grid  20km to mine site

Access to infrastructure ▐

▐ airport, roads, engineering, labour force, medical, town services ▐ Access to water supply

local groundwater aquifers

▐ Enables staged development

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...... the optimum location

Slide 16

Olympic Dam: The objective

▐ Installed Capacity - 400 MWe +

• ▐ Incremental development

• ▐ First electricity production by 2012

• Levelised Cost - $70/MWh

• ▐

• ▐ Electricity Price (including RECs) - $110+/MWh

• ▐ 20%+ Return on Equity

Slide 17

Olympic Dam: The progress

• ▐ Blanche No 1. well drilled, cored & logged to 1,935 m into hot granite

• ▐ In-situ stress analysis (CSIRO)

• ▐ Confirmed horizontal compressional stress

• ▐ Hydro-fracture testing (GEO-Meβ-Systeme GmbH)

• ▐ Successfully opened fractures at expected operating pressures

• ▐ Well productivity capability (GeothermEx)

• ▐ Potential of up to 7 MWe/well

• ▐ Inferred Resource (SKM)

• ▐ 120,000 PJ of heat in place in 460 square kilometre area

• ▐ Just 3% of a 460 km² target area has enough heat to deliver 400 MWe for 30 years (this is just a portion of the 2,899 km² of geothermal exploration licence area)

Slide 18

Olympic Dam: The next steps

2008 2009 2010 2012 2014 2015 2016 2020

Compile Proof-of- Concept work program	Joint venturer	Hydro- fracture & water circulation testing	Commission 3-5 MWe power plant	Commission 20 MWe power plant (cumulative 25 MWe)	Commission 25 MWe power plant (cumulative 50 MWe)	Commission 50 MWe power plant (cumulative 100 MWe)	Project Portf Cumulative 400 MWe
	Contract Drill Rig	Order power plant (3-5 MWe)					olio
	Drill 1st & 2nd evaluation wells	Commence production drilling program

Slide 19

Olympic Dam Project: Proof of Concept

▐ Expression of interest lodged for $7 million grant from Federal Government’s Geothermal Drilling Fund for two deep proof-of- concept wells

• ▐ Well design has commenced

• ▐ Discussions underway with drilling companies for drilling rigs & sharing of rig mobilisation costs

• ▐ Timing of drilling subject to farm-out

Slide 20

Perth Basin

▐Geology ▐Heat flow ▐Permit application areas

www.greenrock.com.au

Perth Basin:

Geology

▐ 1000 km long half-graben

▐ Up to 15 km deep sediment fill

• ▐ Substantial deep aquifers

• ▐ Similarities to Rhine graben

• ▐ Expect convective heat flows in thick aquifers

• Close to markets &

• ▐ infrastructure

Source: Hot Dry Rocks Pty Ltd

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Slide 22

Perth Basin: Heat flow

▐ Locating hot spots by measuring heat flow

Heat flow measurements ▐ calculated from petroleum & water wells

• ▐ Expect conductive & convective heat flows

Figure source: Hot Dry Rocks Pty Ltd

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Slide 23

Perth Basin:

5 geothermal permit application areas

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Perth ▐

▀ Perth metropolitan area

▀ 250 km² of geothermal permits

▀ Low temperature geothermal

Alkimos ▐

▀ Desalination potential

• ▀ 250 km[2 ] of geothermal permits

▐ Dongara

▀ J.V. with petroleum producer

▀ 2,200 km² of geothermal permits

▀ Higher temperature potential

Collie ▐

▀ J.V. with major mining company

▀ 750 km² of geothermal permits

Eneabba/Urella ▐

• ▀ Electricity generation potential

• ▀ 500 km² of geothermal permit

Slide 24

▐ CO2e abatement ▐ Progress Timetable ▐

Perth Geothermal Project: The technology

▐ Geothermal heat powering chillers for air-conditioners

• Geothermal water around 75°C to 100°C

• ▐

• ▐ Environmentally benign (water is the refrigerant)

• ▐ Replaces electricity as energy source for air-conditioner & heater

• ▐ Provides base load in large commercial / industrial buildings

Geothermal heat source ▐

• ▐ The heat contained in major aquifer 2km to 3 km below Perth

• ▐ The heat is extracted from the water which is then re-injected into the aquifer

No loss of water from the aquifer – simply extraction of heat

Slide 26

Perth Geothermal Project: The participants

Joint Venturers ▐

• ▐ Green Rock Energy Ltd

▐ University of Western Australia

• Users

• ▐

• ▐ Organisations seeking initial project

  • ▐ University of Western Australia

  • ▐ Curtin University

  • Australian Resources Research Centre

  • ▐

▐ Potentially 100+ commercial sites in metropolitan Perth

Contributors ▐

• Joint Venturers

• ▐

W.A. Geothermal Centre of Excellence ▐

Slide 27

Perth Geothermal Project: The CO abatement 2e

• ▐ The commercial demonstration plant

• ▐ replaces 5 MWth or 1.5 MWe

• ▐ equates to 12,240 MWh p.a.

• at a conservative 0.85 tonnes CO /MWh

• ▐ 2e

• ▐ CO2e abatement estimated at 10,400 tonnes p.a.

• ▐ Wider application (and potential) across Perth metropolitan area

• ▐ 100 buildings with similar size plant

• ▐ CO2e abatement would be approximately 1 million tonnes p.a.

Slide 28

Perth Geothermal Project: Progress to date

• ▐ Geothermal exploration permits

• ▐ Support from three commercial building owners for commercial demonstration plant

• ▐ Geothermal temperature modelling underway

• ▐ Supplier for geothermal air-conditioner identified ▐ W.A. Low Emission Energy Development Fund

• ▐ Application lodged for $2.5 million grant

Slide 29

Perth Geothermal Project: The timetable

• 2008 December

• ▐

• ▐ Project site selection from UWA, Curtin University and ARRC

• ▐ Engineering firm selection

• ▐ 2009 May

• ▐ Environmental approval

• ▐ Engineering & design of geothermal wells

2009 December ▐

Drilled production and injection wells

• ▐ 2010 January

• ▐ Engineering, design & order sorption chiller and heating unit

• ▐ 2011 February to August

• ▐ Installation and commissioning

Slide 30

Hungary ▐Prospectivity ▐The location ▐Next steps

www.greenrock.com.au

European Project: Hungary – 33% interest

• ▐ Hungary is known hot geothermal region

▐ Excellent resource potential known from

• 5,000 MOL wells & seismic surveys

▐ New company established in August with MOL and Enex

• ▐ Aim to develop geothermal projects in Carpathian Basin

• ▐ Prospects 140°C to over 200°C

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Slide 32

Hungary: The location

• ▐ Member of European Union

• ▐ Proximity to international grid

• ▐ minimal transmission costs

• Access to infrastructure

• ▐

• ▐ roads, engineering, labour force

Feed-in tariff ▐

• ▐ electricity price €110/MWh

▐ Enables staged development

...... close to market

Slide 33

Hungary: The next steps

• ▐ Detailed modelling (for two target areas):

• ▐ Using extensive 2D, MT and drill log data

Determine need for addition seismic or MT ▐

• ▐ Upon granting of permits

• ▐ Environmental and anthropological approvals

• ▐ Well and engineering design

Slide 34

Disclaimer

▐ This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security.

• ▐ Reliance should not be placed on the information or opinions contained in this presentation which does not take into account the particular needs or financial situation of any particular investor.

• ▐ Green Rock Energy Limited has taken reasonable care in producing the text and images contained in this presentation but does not represent or warrant that the information contained herein is fair, correct, accurate, complete or up to date.

• ▐ The information on these slides is based on publicly available information, internal data and information from other sources. It is not intended to give investment or other advice to anyone and the information is not a substitute for detailed investigation or analysis.

• ▐ To the extent permitted by law Green Rock Energy Limited will not be responsible for any loss or damage (direct or indirect, consequential or otherwise) resulting from the use of information provided in this presentation.

• ▐ Any forward looking statements made relate to future events and expectations and involve known and unknown risks and uncertainties many of which are outside the control of the Company. Green Rock does not undertake any obligation to update or revise any of the forward looking statements in this presentation.

Slide 35

..... powering a cleaner future