PILOT ENERGY LIMITED — Capital/Financing Update 2011

Apr 20, 2011

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21 April 2011

Progress Update

Earth Heat Resources Limited (‘Earth Heat’ or ‘the Company’), has made significant progress on its projects over the last month.

The Socius Capital investment has allowed the commencement of various studies related to the Copahue project in Argentina, namely:

• Independent Resource Assessment - SKM are well advanced on this process and have provided an incomplete draft. Once the review is finalised a release will be made to the market.

• Engineering studies are due to commence in the next 3 weeks following the completion of the resource assessment.

• Environmental Impact Study (EIS) phase 1 commenced in the Copahue region recently, and the preliminary field work has been completed. The Company is looking forward to receiving a draft report in June of this year.

• Team building - via the appointment of strategic employees to advance the project on a daily basis in Argentina.

• Joint venture discussions are proceeding very well, with a number of parties expressing keen interest in the project. The Company is presently focussing on the parties that would add the most strategic value to the project and its execution. Further announcements will be made in due course on any agreements reached.

With respect to Djibouti a significant number of strategic Joint Venture discussions have continued with parties external to the Company and to the country of Djibouti. The Company expects that these discussions will take more time before any final agreement is reached. However the number of parties interested in this project has been a pleasant surprise for the board and management of EHR.

From a corporate perspective:

• Strategic investor discussions have continued and additional parties have executed CA's to examine information. The complexity of the value proposition of Geothermal projects in addition to the scale of some parties can make progress slow.

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• The TSX Venture Exchange ('TSXV') intentions are intact and the Company continues to prepare documentation to be submitted for consideration. Listing will be subject to meeting all of the listing requirements of the TSXV and consequently there can be no assurance that a listing will be obtained.

Earth Heat Managing Director Mr. Torey Marshall said, “ The depth and breadth of strategic discussions at both the corporate and project levels is extremely active which pleases the board and management of EHR. Our challenge is to crystallize benefits from any discussion, always with the intention to significantly enhance shareholder value. The parallel progress of our project work is extremely good with reports initiated some time ago almost complete. EHR is particularly pleased that the EIS has commenced as this will be incredibly important to the design, structure and staged development of the entire Copahue resource. That resource is the linchpin of our future progress towards first cashflow, thus proper systematic execution is of paramount importance... ."

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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

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