PTR MINERALS LTD — AGM Information 2007

Nov 28, 2007

therm petra

Annual General Meeting 2007 Petratherm Business and Projects Overview

Presented by: Terry Kallis, Managing Director Petratherm Limited

Hilton Hotel Adelaide, 29 November 2007

Presentation Outline

• Key Messages

• Corporate Overview

• Climate Change and Renewable Energy

• • EGS & Geothermal Energy Project Economics

• Petratherm’s Market Differentiation - Exploration and HEWI Models

• Australian Projects – Paralana JV Project

• • International Projects - Spain & China

• Key Challenges for EGS Projects

• Increasing Shareholder Value

• • Summary

Key Messages

• Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects - “location, location, location”.

• The approach has resulted in a portfolio of quality projects in Australia and Overseas – first mover in Spain for “Hot Rocks”.

• Petratherm’s unique HEWI model has the potential to concurrently and substantially reduce costs and risks – also reducing the time for delivery

• Petratherm has, in its Paralana Project, clear commercial and competitive advantages with a willing potential customer at “off grid” prices and a realistic long term commercialization path – unique path to commercialization

• Petratherm’s business focus is to increase shareholder value through a clear combination of strategies that reduce cost, reduce risk and optimize revenue

Corporate Overview

• Established in 2003 and listed on the ASX in July 2004

• Major shareholder is Minotaur Exploration – 34%

• Around 2600 shareholders

• Shares on Issue - 57,850,000 – Current Price of $ 0.89

• Market Capitalization of $ 51.5 million

• $7.5 M in cash as at end Sept. 2007, $5M grant and up to $ 30 M JV with Beach Petroleum

• “

• • Mission – to explore and develop, emission free, geothermal energy projects that are commercially sustainable ”

• “ ” –

• • Strategy – shallow hot rocks close to market deeply buried granites (5-6 kms) with good insulating cover (2-3 kms)

petra therm Board & Management

==> picture [124 x 166] intentionally omitted <==

==> picture [120 x 167] intentionally omitted <==

==> picture [128 x 166] intentionally omitted <==

==> picture [120 x 166] intentionally omitted <==

Derek Carter Chairman

Simon O’loughlin Director

Prof. Richard Hillis Director

Dr Lloyd Taylor Director

==> picture [124 x 166] intentionally omitted <==

==> picture [116 x 166] intentionally omitted <==

==> picture [124 x 166] intentionally omitted <==

==> picture [123 x 166] intentionally omitted <==

Corporate Overview

• Portfolio of Quality Projects – four in Australia, five in Spain, China under examination – portfolio under expansion – expect 7 to 8 projects in Spain

• Projects include Engineered Geothermal Systems (EGS) and Conventional Projects – products include electricity and direct use heat

• Combined skills and experience of the Board, Management, Partners and Consultants capable of delivering successful geothermal energy projects – from underground resource through to market

• Focus on continually increasing Shareholder Value through a combination of cost reduction, risk reduction and revenue optimization

Petratherm - 2006/2007 Key Achievements

• Discovery of world-class heat resource at Paralana, South Australia.

• MOU with Heathgate Resources to provide their Beverley Uranium Mine with electricity to meet their growing needs.

• Federal Government approval and exclusive Agreement to investigate China’s Hot Rock potential through Asia Pacific Partnership on Climate and Clean Development (AP6)

• Up to $30 million Joint Venture with Beach Petroleum to test and build Phase-1 commercial plant at the Paralana Hot Rock Resource ($10 M for 21% equity and option for additional 15% equity for a further $20 M)

• $5 million Federal Government grant to support development of a new lower risk heat extraction process (HEWI Model)

• New Spanish Hot Rock Projects announced near Madrid & Barcelona - Conventional Geothermal in Tenerife, Canary Islands

Climate Change and Renewable Energy

• Stern report – “Economics of Climate Change”

• Al Gore’s documentary - “An Inconvenient Truth”

• Renewed emphasis – Globally and Nationally

• Australia – Major policy shift in the past year

• IPCC Synthesis Report - very strong messages

• New Labor Federal Government – “Clean Energy Plan”

Renewable Energy Policy & Geothermal

• Federal Labor Government Clean Energy Plan to ratify Kyoto, Emissions Trading by 2010, 20% Renewable Energy target by 2020, $500 M Renewable Energy Fund ($50 M drilling initiative fund - 5 projects, demonstration project funding) & $150 M Energy Innovation Fund

• The Australian Geothermal Energy Group (AGEG), developers/companies, academic/research institutions and government departments federal/state – collaborative work

• • The Australian Geothermal Energy Association (AGEA) – developers/companies and service companies – Policy and Advocacy notably to governments.

Engineered or Enhanced Geothermal Systems

==> picture [545 x 409] intentionally omitted <==

Geothermal Energy Cost Comparison

1600 Brown Coal PF 420MW (CF85%) Electricity Supply Industry Planning Council Brown Coal PF 420MW (CF85%) + GS 1400 • 6.8% Australia’s base-load from hot rocks Black Coal PF 420MW (CF85%) Black Coal PF 420MW (CF85%) + GS by 2030 1200 • “significant potential impact” Black Coal Supercritical 860MW (CF85%) Brown Coal Gas Combined Cycle 130MW (CF65%) 1000 Gas Combined Cycle 250MW (CF65%) Black Coal 800 Gas Comb’d Cycle 250MW (CF65%) + GS Black Coal Gas Combined Cycle 400MW (CF60%) 600 Wind 90 MW (CF35%) Geothermal is: Gas Geothermal 550 MW (CF70%) 400 • Nuclear CANDU 6 1450 MW (CF 85%) CHEAP • Brown Coal + CO2 capture LARGE SCALE Black Coal + CO2 capture 200 • BASE LOAD Gas + CO2 capture Geothermal Wind 0 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 AUS Generation Cost AUS$/MWhr

Geothermal Energy Project Economics

• Temperature (differential, quality and type of resource) • Drilling Costs (depth, size, geological formation, availability) • Energy Flow Rates (volume, pressure, energy transfer) • Plant Capital Costs and related efficiencies • Connection and Access to markets • Operating Costs

• Economies of Scale/Production

• Revenue/Product Pricing in a Competitive Market • Regulatory Regime – carbon pricing

• Critical Project Parameters are Revenue, Capital Costs (drilling, plant, connection) and Thermal Resource (temperature differential, volume and flow)

Petratherm’s Exploration Model “Shallow Hot Rocks close to Market"

“Hot Rocks” are EGS , i.e. Engineered Geothermal Systems Prime Cost Drivers

• Temperature Differential

• Drilling Depth

• Flow Rate

• Network Connection

• Generation Plant

==> picture [219 x 256] intentionally omitted <==

Petratherm is seeking to optimize the key drivers to achieve the lowest long run average cost electricity delivered while minimizing project risks.

Heat Exchanger Within Insulator (HEWI) Model

EGS - engineered geothermal system i.e. underground heat exchanger

• Higher Permeability

• Chemically Stable

• No Potential Radon build up

• Lower Risk

• = Cheaper Power !

==> picture [366 x 358] intentionally omitted <==

Petratherm’s SA Projects

==> picture [415 x 444] intentionally omitted <==

==> picture [720 x 540] intentionally omitted <==

----- Start of picture text -----

Phase 3 drilling
Paralana Work Program
109 [o] C
petra therm Temperature measurements indicate 200 degrees C at 3.6km
----- End of picture text -----

Paralana Geothermal Energy JV Project Paralana Key Features

– Excellent thermal resource at shallow depths with stable geological formation - expect good drilling conditions – Close proximity to the “off-grid” Beverley Uranium Mine – $30 M JV with Beach Petroleum and $5 M Federal Grant – A unique and realistic, long term commercialization plan Paralana Recent Matters

• Seismic study recently completed & Magneto-telluric survey almost complete

– Number of well design scenarios and related rig options assessed – for various drill depths and well outputs (MW) – Assessed by previous Federal Government as most commercially advanced geothermal project – election commitment for LETDF grant funds for 30 MW demonstration plant ($50 M)

Paralana Commercialization Plan

==> picture [546 x 430] intentionally omitted <==

Paralana Seismic Survey

Seismic & MT Survey Lines

==> picture [660 x 442] intentionally omitted <==

----- Start of picture text -----

Paralana Hot Springs
----- End of picture text -----

Paralana Geothermal Energy JV Project

Recent & Next Steps

– Deep well design/drilling rig selection completed – Letter of Intent signed with Ensign International Energy Services – Subject to confirmation of well design parameters and commercial arrangements

– Optimal solution well design/ rig solution selected – spud first well in second half of 2008

– Apply for up to $10 M in drilling funding for 2 well program – Apply for $ 50 M, 30 MW demonstration plant funding – Drilling second well – 3 to 6 months after first well – Long term circulation tests early/mid 2009

• Produce first power to Beverley – early 2010

Petratherm Espana

• Geology is conducive to EGS

• Expanding Project Portfolio

• Strong Corporate Interest

• High Electricity Prices

• Leading Policy Development

• Conventional geothermal and direct use options

• Lower Cost and Risk!

==> picture [382 x 103] intentionally omitted <==

==> picture [382 x 103] intentionally omitted <==

==> picture [382 x 102] intentionally omitted <==

==> picture [382 x 103] intentionally omitted <==

==> picture [382 x 83] intentionally omitted <==

Petratherm Spanish Projects

==> picture [636 x 441] intentionally omitted <==

----- Start of picture text -----

Barcelona
Almazan
Madrid
Tenerife
Islands
Gran Canaria
----- End of picture text -----

China – APP Program

• Asia Pacific Partnership Approved Project (APP) with the support of the Chinese and Australian Governments

• • Over 240 recorded geothermal sites

• Conventional Geothermal Potential ~1400 MW

• Enormous EGS (Hot Dry Rock) Potential

• Hot Water and Electricity Plays in a number of provinces

• Agreement with Chinese Geology and Geothermal groups

• Joint Venture discussions under way with interested parties

Exclusive Cooperative Agreement to identify high prospect geothermal energy projects in China with four Chinese Government Institutions

• Chinese Geothermal Energy Society

• Geological Survey of China

• Chinese Academy of Sciences

• China Institute of Geo-Environment Monitoring

==> picture [720 x 109] intentionally omitted <==

==> picture [720 x 72] intentionally omitted <==

Challenges for EGS Projects

• Securing a quality site – the three locations – optimizing economics in a competitive market.

• Confirming the quality of the potential resource – temperature differential, stress regime / permeability.

• Deep drilling of wells – well design, drilling rig availability and costs.

• Establishing long-term circulation between injection and production wells -permeability, fracturing, flow rate.

• Integration of above-ground generation plant with below-ground thermal resource, achieving reliable power plant output – then followed by up scaling of generation capacity.

• Electrical connection (transmission) to the National Electricity Market.

• Water quality, usage, net losses, rights, obligations, accessibility, environmental impacts – short and long term – small and large

Increasing Shareholder Value

• Cost Reduction

• HEWI Model - shallower wells reducing drilling costs

• Competitive sourcing of plant and equipment – “no ties” to a plant manufacturer – “ fit for purpose” – conventional, lower cost plant

• Risk Reduction

• Initial project selection – targeting lowest cost to relevant market

• – HEWI Model – shallower wells, less drilling, greater permeability

• – Several quality projects and a continuous pipeline of projects

• Project portfolio spread across jurisdictions – local and overseas

• – Partner selection – key skills and capabilities – Beach Petroleum

• – EGS and lower risk conventional geothermal projects

• Revenue Optimization

• Target local “off grid” opportunities – nearby mines

• Exploit multiple products – electricity and direct use heat

• Focus on attractive jurisdictions price and growth – Spain/China

Petratherm - 2007/2008 Achievements & Progress

• Two new Spanish Projects announced Almazan Basin - Conventional Geothermal in Gran Canaria, Canary Islands

• Consolidated first mover advantage in Spain with 5 projects –up to 8 planned – creating significant interest in Spain (energy, renewable & government sectors)

• Three EGS & two Conventional – with electricity and hot water products

• Exclusive Agreement with four Chinese Geothermal/Geological Institutions to identify high prospect projects in China

• Paralana well design and rig selection process – nearing completion

• Leadership roles in AGEA, AGEG & AGIDF – and highly successful policy advocacy role as a Director of REGA

• Recognition of Paralana Project – assessed as the most commercially

Petratherm - Share Price History

==> picture [634 x 318] intentionally omitted <==

----- Start of picture text -----

160
New Conventional Almazan
Geothermal Project project in
140 for Tenerife Paralana Seismic Survey Spain
Spanish media coy Completed & Exclusive secured
becomes 1% stakeholder Agreement with Chinese
120 Govt.
Federal Govt.
$5M REDI Grant $6M Placement
100
80 Heat Flow
Measurement
High Well Temperature
60 B.D. Manager New Conventional
Madrid Geothermal Project
Barcelona Appointed
Project & for Gran Canaria $50M Coalition
40 Project Paralana Project Election Commitment
Beach JV
moves to Well Design
& Rig Selection
20
Heathgate MOU / AP6
China Grant
0
Month
Sept 06 Oct 06 Nov 06 Dec 06 Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sept 07 Oct 07 Nov 07
Cents ($AUD)
----- End of picture text -----

Summary of Key Messages

• Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects - “location, location, location”.

• The approach has resulted in a portfolio of quality projects in Australia and Overseas – first mover in Spain for “Hot Rocks”.

• Petratherm’s unique HEWI model has the potential to concurrently and substantially reduce costs and risks – also reducing the time for delivery

• Petratherm has, in its Paralana Project, clear commercial and competitive advantages with a willing potential customer at “off grid” prices and a realistic long term commercialization path – unique path to commercialization

• Petratherm’s business focus is to increase shareholder value through a clear combination of strategies that reduce cost, reduce risk and optimize revenue

Thank You

petra therm ASX Code: PTR www.petratherm.com.au Phone: (08) 8274 5000

==> picture [360 x 473] intentionally omitted <==