BLACK ROCK MINING LIMITED — Capital/Financing Update 2009

Dec 13, 2009

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Green Rock Energy Limited ABN 59 094 551 336

Unit 6, 38 Colin Street West Perth WA 6005 Australia

ASX

Announcement

PO Box 1177 West Perth WA 6872 Australia

Tel (+61 8) 9482 0482 Fax (+61 8) 9482 0499 Email info@greenrock.com.au Web www.greenrock.com.au

14 December 2009

Green Rock Energy offered $7 million Geothermal Drilling Program Grant

Green Rock Energy is on track to develop the first geothermal energy project undertaken under Western Australia’s new geothermal legislation, the first geothermal powered absorption chiller in Australia and the first major geothermal project in Western Australia.

Green Rock Energy has been offered a $7 million grant under the Federal Government’s Geothermal Drilling Program to fund the Company’s Perth Urban Geothermal Energy Project. The Project is designed to demonstrate the commercial use of medium temperature geothermal resources, in particular the replacement of electricity powered compression chillers (that produce cold water for air-conditioning) with geothermal powered absorption chillers. The Project will be within WA Geothermal Exploration Permit GEP1 jointly held by Green Rock Energy (50%) and the University of Western Australia (50%).

Green Rock Energy’s Managing Director said “This government grant will assist Green Rock Energy in realising the enormous potential of the geothermal energy below the Perth Metropolitan area to reduce carbon emissions and simultaneously reduce peak power loads through district heating and cooling”.

Heating and cooling are typically a building’s largest energy loads, accounting for more than 50 per cent of the energy consumed in most commercial buildings, nearly all of which are presently powered by fossil fuels and fossil fuel generated electricity.

District heating and cooling is the production and delivery of thermal energy, in the form of reticulated hot and chilled water, to multiple buildings, for space and process heating and cooling from a central plant eliminating the need for separate systems in individual buildings. It is a reliable, efficient, low-maintenance, cost-effective way to provide climate control without on-site hot water boilers, heaters, chillers, or air conditioners.

Major residential, commercial buildings and complexes, such as shopping centres, hospitals, airports, apartment buildings, data centres and cold storage facilities are ideal sites for the application of this technology. Many large commercial and government buildings and building complexes in Australia are already using district heating or cooling powered by electricity, or gas, using fossil fuels, rather than geothermal energy.

For this initial Perth Urban Geothermal Energy Project the Company will drill two geothermal wells, to a depth of approximately 3,000 metres, to provide the targeted 100°C geothermal water to power the absorption chiller. (Refer to Appendix 1 which describes the difference between an absorption chiller and a conventional compression chiller). One well, a production well, will be used to access and obtain the hot geothermal water and the other, an injection well, used to return the cooler geothermal water following the extraction of the geothermal energy (in the form of heat) by the absorption chiller. By replacing conventional compression chiller plants that use electrical energy, buildings can be air-conditioned using geothermal water as the principal power source. This is particularly so in Perth which sits on a deep sedimentary basin up to 15km deep with multiple heated aquifers.

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GREEN ROCK ENERGY LIMITED ABN 59 094 551 336

ASX Announcement

Green Rock Energy offered $7 million Geothermal Drilling Program Grant 14 December 2009

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Following completion of the Perth Urban Geothermal Energy Project the aim is to replicate the concept throughout the Perth metropolitan area. The Stirling City Centre project, a high density combined residential and commercial project with a planned 30,000 population 6.5 kms north-west of the Perth CBD and Alkimos, a 60,000 residential and commercial centre being prepared as a carbon neutral development 40 kms north of the Perth CBD, alone would result in a reduction in electricity generation capacity by around 50MWe if geothermal district heating and cooling were fully installed.

Geothermal energy is a renewable energy source that provides power 24 hours a day, 365 days a year, emits zero green house gases and plants using this energy source have a very small footprint. This contrasts with other renewables such as wind, wave and solar where energy is only available intermittently.

About Green Rock Energy

Green Rock Energy is an Australian company focused on developing commercially sound renewable geothermal energy projects. The Company has projects in Australia and Europe and is a member of the Australian Geothermal Energy Association, the Australian Geothermal Energy Group and is a sponsor member of the International Energy Agency’s Geothermal Implementing Agreement and supporter of the Western Australian Geothermal Centre of Excellence.

Nigel Hodder Company Secretary

Investors & Media

Adrian Larking Managing Director W: +61 (0)8 9482 0401 M: +61 (0)417 927 767 E: alarking@greenrock.com.au

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GREEN ROCK ENERGY LIMITED ABN 59 094 551 336

ASX Announcement

Green Rock Energy offered $7 million Geothermal Drilling Program Grant 14 December 2009

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Appendix 1 : Absorption Chiller Diagram

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GREEN ROCK ENERGY LIMITED ABN 59 094 551 336

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