HIGH PEAK ROYALTIES LIMITED — Capital/Financing Update 2007

Apr 16, 2007

ASX ANNOUNCEMENT, 17 APRIL 2007

Acquisition of Geothermal Exploration Licence 278 Torrens Project Area, South Australia

HIGHLIGHTS

• Additional Geothermal Exploration Licence (GEL) acquired at Torrens Project Area bringing total to 15 licence areas for 7200 km²
• New GEL located close to infrastructure and markets, on a major road and the National Power Grid
• Highly prospective area known for high heat flow and coincident insulating sedimentary cover
• GEL is strategically located close to Port Augusta power plant supplied by dwindling coal reserves from Leigh Creek

Torrens Energy Limited (Torrens) is pleased to announce the award of Geothermal Exploration Licence 278 (GEL278) in South Australia. Torrens's acceptance of the GEL takes the Company's 100% owned land holdings in South Australia to 15 blocks for 7200km², aiving Torrens the second largest geothermal holding in Australia.

The new GEL is contiguous to and forms a part of the existing Torrens Project.

The GEL is located north of Port Augusta, in an area known for high heat flow and coincident with an overlying layer of insulating sedimentary cover. In addition to these factors required for high temperatures these highly prospective areas are located on the National Power Grid, close to energy markets and infrastructure.

The coal-fired Port Augusta power station currently supplies around 500MW of electricity to energy hungry South Accentuating Australia. the energy shortfalls faced by SA, the power station is supplied by the Leigh Creek coal field which is expected to be exhausted of its reserves within the next 10 to 15 years.

This underscores the strategic importance of the Torrens Project Area which begins just 30kms from Port Augusta in the south and 60km from Leigh Creek in the north (see attached map).

31 Ord St. West Perth WA 6005 PO Box 781, West Perth WA 687 T: +61 8 9420 9333 F: +61 8 9321 2477

Chief Executive Chris Matthews was enthused by being offered the new GEL:

"We have secured a new tenement where we know there is insulating cover and the potential for high heat flow", he said. "The grea is on the National Grid and there are prospective drilling targets just a few hundred metres from the grid and main hiahway."

"We believe the Torrens Project Area has the potential to meet future electricity requirements through the provision of sustainable, renewable, emissions-free aeothermal energy, establishing the Company as a dominant player in an efficient, reliable clean electricity supply market".

BACKGROUND

Torrens Energy Limited (TEY) was successfully listed on the ASX on March 30 to raise \$6,000,000. The offer, which comprised 30 million shares at \$0.20 (TEY), with one free attaching option for every two shares (TEYO), was heavily oversubscribed and opened at a 67% premium to its IPO Price.

The company has three project areas in South Australia - the Adelaide, Barossa-Clare and Torrens Projects, and has begun work on land access and compliance with statutory regulations. The company will shortly implement a mapping programme to outline drilling targets in the Barossa-Clare Project.

Following this work a comprehensive heat flow drilling programme is scheduled to commence in September, with assistance from grant funding awarded to the company under the South Australian Plan Government's for Acceleratina Exploration (PACE).

GEL 278 has been offered by PIRSA (Primary Industries and Resources SA) and accepted by Torrens, and is scheduled to be aranted in early July.

For further information please contact Chris Matthews Chief Executive Officer Torrens Eneray Ltd Level 1, 25 Unley Road, Parkside, South Australia 5063 P 61 8 8373 1822 E chris.matthews@torrensenergy.com

31 Ord St. West Perth WA 6005 PO Box 781, West Perth WA 687 T: +61 8 9420 9333 F: +61 8 9321 2477