HIGH PEAK ROYALTIES LIMITED — Capital/Financing Update 2008

Jun 19, 2008

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ASX ANNOUNCEMENT, 20 JUNE 2008

Acquisition of Four New Geothermal Exploration Licences, Torrens Project Area, South Australia

HIGHLIGHTS

• Four additional Geothermal Exploration Licences (GELs 407-410) are offered north of Port Augusta, consolidating the northern extension of the Parachilna Prospect.

• Torrens Energy’s extensive landholding now the largest in Australia, bringing to 21 the total number of licences in South Australia, aggregating 9,800 km[2] .

• Dominant position secured proximal to energy infrastructure, providing a potential commercial advantage over companies exploring in areas unsupported by existing power networks.

• Highly prospective geothermal geology with modelled heat temperatures of 200°C+ located at adjacent Parachilna Prospect.

TORRENS PROJECT AREA

Torrens Energy continues its aggressive land acquisition strategy with the acceptance of GELs 407-410, north of Parachilna Prospect (Torrens Project Area), north of Port Augusta, South Australia (right).

Torrens Energy’s current landholding stands at 21 licenses, for a total of around 9,800km[2] , the largest landholding in South Australia.

Exploration drilling completed by Torrens Energy in early 2008, to the south of the newly acquired areas, discovered high heat flow, indicating that heat producing basement exists below the anomalous zone which is open to the north.

The newly offered GELs incorporate this corridor of high heat flow with prospective insulating sedimentary rocks, straddling the national electricity grid.

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----- Start of picture text ----- Leigh CreekNewlyLake Torrens OfferedGELs Power GridParachilnaProspectTorrensProjectAreaHawkerPort AugustaPowerStations----- End of picture text -----

TORRENS ENERGY LTD SUSTAINABLE ENERGY – RENEWABLE ENERGY 64 Thomas Rd, West Perth WA 6005 T: +61 8 9321 4566 E: info@torrensenergy.com PO Box 781, West Perth WA 6872 F: +61 8 9321 4022 W: www.torrensenergy.com

Parachilna Prospect Summary

Geothermal exploration drilling completed by the Company this year at Parachilna defined the highest heat flow values reported in the vicinity of the electricity grid in Australia (ASX Announcement, 15 May 2008).

Best modelled temperatures at 5000m ranged 230-260°C over an area of 800km[2] . This thermally anomalous zone is open to the north, highlighting the potential for a large new “geothermal field” north of Port Augusta. Austherm04

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----- Start of picture text ----- Austherm04IncorporatingNew DataNewly OfferedGELs ParachilnaNationalElectricityGridPort Augusta----- End of picture text -----

These high heat flow values are comparable to those recorded in the Cooper Basin, which has traditionally been the frontier of geothermal exploration activity in Australia.

Modelled temperatures from Parachilna are now incorporated into the new Austherm 04 gridded image (right). The newly offered GELs 407-410 are in the heart of this major anomaly.

Torrens CEO Chris Matthews was delighted that the Parachilna Prospect has been consolidated and secured by the acquisition of these new GELs: “The Parachilna Prospect thermal anomaly is open to the north, and this strategic acquisition means that the Company has now secured the geothermal rights to the ground into which that anomaly extends.”.

For further information please contact:

Chris Matthews Chief Executive Officer Torrens Energy Ltd Level 1, 25 Unley Road Parkside, South Australia 5063 P +61 8 8373 1822 F +61 8 8373 1733 E chris.matthews@torrensenergy.com

The information in this report relating to exploration results is reported in accordance with the Australian Geothermal Energy Group, Geothermal Code Committee “Draft Code for Geothermal Resources and Reserves Reporting”, Version 2.0 (February 2008). The information is based on information compiled by Chris Matthews, who is a Competent Person as defined by the Draft Code. Chris Matthews is a full time employee of the Company and has more than 5 years experience in the reporting of resource exploration and geothermal. Chris Matthews has consented to the inclusion in this report of the numbers based on the information in the form and context in which it appears.

TORRENS ENERGY LTD SUSTAINABLE ENERGY – RENEWABLE ENERGY 1/64 Thomas Rd, West Perth WA 6005 T: +61 8 9321 4566 E: info@torrensenergy.com PO Box 781, West Perth WA 6872 F: +61 8 9321 4022 W: www.torrensenergy.com