PILOT ENERGY LIMITED — Capital/Financing Update 2011

May 17, 2011

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18 May 2011

Significant Resource Upgrade at Copahue

Earth Heat Resources Limited (‘Earth Heat’ or ‘the Company’) is pleased to release the results of the resource Review by SKM of its flagship Copahue project in Argentina.

The summary table below shows the new Canadian Geothermal Code (CanGEA) classified resource estimates for the Copahue concession area, in terms of electricity generating capacity and stored heat in place (based on P50 probability):

Geothermal ResourceClassification	GeneratingCapacity(MWe)	Stored Heat inPlace(PJ)
Measured Resource	19	700
Inferred Resource - Vapour Zone	55	2500
Inferred Resource - Deep Liquid Zone	190	7300

This represents an increase of over 150% in total resources interpreted to be at Copahue, versus historical estimates and provides for significant additional scope of developments to meet the needs of power consumers in the Neuquen Province of Argentina.

Of particular significance is the 'behind pipe' verification which provides a boost to the certainty of the stage 1 plant size and reduces the immediacy of resource extension drilling.

The scope and objectives of the Stage 1 concept study will be released this week, once finalised, in light of the new resource figures received by the Company.

The above resource estimates have been prepared by Jun Seastres and Zim Aunzo under the direction of Brian Lovelock (Practice Leader and Senior Geochemist), full-time employee of Sinclair Knight Merz Limited (SKM), who takes responsibility and is accountable for the report as a Qualified Person in terms of the Canadian Geothermal Code. Brian has 32 years experience in the geothermal industry and is a member of the International Geothermal Association. SKM is a corporate member in good standing with the Canadian Geothermal Energy Association and has a Code of Ethics. SKM has been engaged as Consultant by Earth Heat but holds no financial interest in the project or in Earth Heat.

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For further information please contact: Torey Marshall, Managing Director Victoria Thomas, Six Degrees Investor Communication

+618 8212 0579 +614 31 151 676