PTR MINERALS LTD — AGM Information 2008

Nov 26, 2008

ASX Release PETRATHERM LIMITED

ABN 17 106 806 884

Chairman's Address and Managing Director's Presentation 2008 Annual General Meeting

Chairman's Address

Thank you for your attendance today. Before moving to the formal business I would like to make a few remarks.

Introductory Remarks

In the latter half of the financial year and to an even greater extent in the last five months, as I'm sure you are all aware, market conditions have deteriorated, funds being scarce with capital and project finance difficult to raise. We are consequently reducing expenditure prudently to conserve cash. We are fortunate to have strong joint venture partners at Paralana and we will continue over these uncertain times to share risk where appropriate.

Strong Government support for the Geothermal Energy Industry and the Paralana Project eligible for Round One of the Geothermal r 2008 Drilling Program

Strong government support for the Australian geothermal energy industry was further enhanced in 2007/08 with the announcement of the Federal government $50 million Drilling Fund that aims to support deep drilling for proof of concept projects, such as Paralana. The government's Geothermal Industry Development Framework and the $450 million Renewable Energy Fund also provide further and strong support for the geothermal energy industry, while the new Carbon Pollution Reduction Scheme and Renewable Energy Target will provide a robust long term framework in which geothermal and other renewable energy projects can operate. The Paralana joint venture partners have been fortunate in that we have been advised that we are eligible to apply for up to $7 million from the Drilling Fund and, if successful, will receive funds prior to the commencement of the deep well next year.

27 Novembe

ASX Code: PTR

ABN 17 106 806 884

105-106 Greenhill Road Unley SA 5061

T: +61 8 8274 5000 F: +61 8 8272 8141 W : Hwww.petratherm.com.au/ E : Hadmin@petratherm.com.au

Paralana JV strengthened with TRUenergy's $57M Farm-In

The Paralana joint venture now includes TRUenergy (internationally owned by China Light & Power) who is to farm into the project under an agreement for up to $57 million for 30% for the project, complementing the existing JV with Beach Petroleum (up to $30 million for 36%). Together with Petratherm's geological capabilities, this will provide a formidable collaboration for the success of the Paralana project.

Paralana Deep Drilling to commence in May 2009

A 2000HP drilling rig was secured, post the reporting period, through a drilling services contract with Weatherford Drilling International. We plan to create a geothermal reservoir prior to commencing the drilling of the Paralana 3 well in late 2009/early 2010, thus completing the "proof of concept" stage of the project.

Spanish Projects show very encouraging expected returns with potential for early revenue

In Spain, our direct heating project, Geo-Madrid, is a potentially robust income generator, results of a pre-feasibility study being very encouraging. A full feasibility assessment is now underway, the aim being to produce first project revenues in mid 2010. Recent confirmation that one of the existing two wells at the Geo-Madrid site can be used for injection has resulted in an estimated 30% saving in total capital costs, considerably improving the economics of the project potential. We are receiving strong support from both the local and Provincial governments, not surprisingly since Spain is attempting to conform to the EU guidelines on renewable energy and low CO2 emissions. Terry will describe this project, and the conventional geothermal projects we have in the Canary Islands in his presentation.

China project assessments indicate high quality prospects

In China, we commenced an assessment of potential high quality geothermal projects achieving access to key data through an exclusive agreement with four Chinese government institutions. During the year the Company examined the potential for both conventional and EGS projects in China and through the Federal Government's Asia Pacific Partnership (APP) program, secured the support of the Chinese and Australian Governments to collaboratively "identify" high prospect geothermal projects in China. The Chinese market for power, direct-use heat and renewable energy is enormous and presents a major growth opportunity for the Company.

New Victorian Geothermal Exploration Permit – Eastern Victoria

The Company is also pleased to announce today that it has been successful in being offered - after a very competitive process - a new geothermal exploration permit (No. 24) in Victoria's Gippsland Basin in the eastern part of that state. The Company is aiming to develop a "hot sedimentary aquifer" style geothermal project in the permit area. This style of geothermal development is typically lower risk than engineered geothermal systems (EGS) and in this case has the benefit of closer proximity to large power networks. Importantly, the Victorian Government is also very active in providing support for new and emerging renewable energy projects through its Energy Technology Innovation Strategy that includes their $72 million Large Scale Renewable Energy Demonstration Fund (Refer to concurrent ASX release).

Acknowledgement of Lloyd Taylor's contribution

During the year, one of our founding directors, Lloyd Taylor resigned due to his increasing work load commitments as a consultant. Lloyd was an important contributor to our board and his technical and corporate input will be missed. I would like to thank him for his contribution and of course, wish him well in his new endeavours.

Petratherm's team skills & capabilities have been expanded to meet the growing needs of the Company

Also this year our team expanded its skills base with the appointments of John King (Project Manager, Paralana), Victor Guerrero (Spanish Project Geologist) and Brett Meredith (Tenement and Compliance Manager) to meet the growing needs of the business. I would also welcome Wendy Blackeby, Mathieu Messeiller and Caroline Jasper to the ranks.

In addition to these appointments, the services of a number of skilled consultants were secured. In particular, Swiss based specialist EGS expert consultants, Geothermal Explorers, was engaged on an Australia-exclusive basis, to provide key advice on the Paralana Project while Professor Richard Hillis and Associate Professor Martin Hand, of the University of Adelaide, were retained to assist in the Company's exploration and project development processes.

Finally, my sincere thanks go to all the staff at Petratherm for their efforts over this past year. The results speak for themselves and the Company has made huge advances over this 12 month period. Of course, the team would not be complete without Terry Kallis, our Managing Director and I especially thank him for his contribution this year.

2009 to be a pivotal year for Petratherm

2009 will be a pivotal year for Petratherm with, amongst other things, the drilling of our first deep well at Paralana and the development of our Geo-Madrid direct heating project in Spain. It will be a very exciting period.

Refer Managing Director's presentation attached.

Yours faithfully

Terry Kallis Managing Director

MEDIA CONTACTS:

Terry Kallis	Petratherm Ltd	08 8274 5000
Jenny Brinkworth	Hughes Public Relations	08 8412 4100

Annual General Meeting

Company Update and Overview of Projects

27 November 2008

Presented by Terry Kallis (Managing Director) & Peter Reid (Exploration Manager)

Explorer and Developer of Geothermal Energy

This presentation has been prepared by Petratherm Limited (Petratherm). The information contained in this presentation is a professional opinion only and is given in good faith.

Certain information in this document has been derived from third parties and though Petratherm has no reason to believe that it is not accurate, reliable or complete, it may not have been independently audited or verified by Petratherm.

Any forward‐looking statements included in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Petratherm. In particular, they speak only as of the date of this document, they assume the success of Petratherm's strategies and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document ("Recipients") are cautioned not to place undue reliance on such forward‐looking statements.

Petratherm makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may becomeapparent after this document has been issued.

To the extent permitted by law, Petratherm and its officers, employees, related bodies corporate and agents ("Agents") disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Petratherm and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

All amounts inAustralian dollars (AUD) unless stated otherwise.

Presentation Outline Presentation Outline

• •Key Messages
• •Corporate Overview
• • External Environment
  • Global context for energy and renewables
  • Renewable energy policy and geothermal
  • Paralana Overview and Joint Venturers
• • Exploration / Development Program
  • Paralana
  • Spain Madrid / Tenerife
  • China
  • Victoria "Hot Sedimentary Aquifer"
• •Outlook for Calendar 2009

• • Strong Government Support for Geothermal Energy Industry and Paralana Project is eligible for Round One of the $50 M Geothermal Drilling Program –up to $7 M funding for drilling by March 2009
• • Paralana JV Project has two complementary JV partners Beach Petroleum and TRUenergy recent farminof up to $57 M for 30%
• • Paralana deep drilling (4kms) to commence in May 2009 –Weatherford Drilling International – 2000 HP "Lightning Rig"
• • 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.
• • Spanish Projects show very encouraging expected returns with potential for early revenues – Madrid District Heating Project
• • New Victorian Permit – diversifies risk in Australia with a "Hot Sedimentary Aquifer" project –and supportive Victorian Government

Corporate Overview Corporate Overview

Key Statistics Key Statistics

• ¾ Current shares on issue – 57.9m (plus 13.77 moptions)
• ¾ Market capitalization ‐ $19.0m (at share price of $0.33)
• ¾Cash ‐ $3.7m (end of first quarter)
• ¾ REDI Grant $5.0 M
• ¾ 2925 Shareholders with major shareholder ‐ MinotaurExploration (34%)

Projects Projects

• ¾ 12 projects spanning Australia, Spain and China – EGS, conventional volcanic, hot sedimentary aquifer &direct use heat
• ¾Flagship project – Paralana
• ¾ Exciting growth projects:
  • Direct heat, conventional and EGS geothermal projects covering Madrid, Barcelona, Canary Islands and Victoria's Gippsland Basin
  • Exclusive government supported exploration agreement in China

Joint Venture PartnersJoint Venture Partners

• ¾ Beach Petroleum(up to 36% for $30m)
• ¾TRUenergy (up to 30% for $57m)

Corporate Mission & Business Model Corporate Mission & Business Model

Mission "to explore for and develop, emission free, to explore for and develop, emission free, geothermal energy projects that are geothermal energy projects that are commercially sustainable commercially sustainable"

Business Model

"to develop a portfolio of quality geothermal energy projects to develop a portfolio of quality geothermal energy projects conventional and EGS conventional and EGS –for power and/or heat for power and/or heat –where there where there is a favourable combination of geology and market is a favourable combination of geology and market conditions conditions -and introduce joint venture partners with skills, and introduce joint venture partners with skills, risk appetite and funding ability to further develop projects risk appetite and funding ability to further develop projects through to production through to production"

Petratherm PetrathermBoard & Management Board & Management

Derek CarterChairmanDerek Carter Chairman

Simon O'Loughlin Director

Richard Hillis Director

Lloyd Taylor Director(Retired)

Richard Bonython Director

Terry Kallis Managing Director

Donald Stephens Company Secretary

Peter ReidExploration Manager

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

Beach Petroleum

• TRUenergy -

• Geothermal Explorers -

• Expert Consultants

• Subsurface – well design, drilling and fraccing

• Power generation, transmission and sales

• EGS reservoir/project development

• Prof. Richard Hillis and Dr Martin Hand

Petratherm PetrathermShare Price Share Price –past 4 years past 4 years

PetrathermPetratherm'sAchievements Achievements –past 2 years past 2 years

• ¾Petratherm has demonstrated its ability to deliver on its objectives.
• ¾ The achievements over the past two years have created the platform for substantial activity andvalue creation over the coming 12 months.

Petratherm Key Points of Differentiation Petratherm Key Points of Differentiation

• • Unique approach to "exploration for heat" and its commercial assessment of projects - "location, location, location" – resource, market, permits/stakeholders
• • HEWI model approach to resource exploitation process for EGS/hot rock that aims reduce costs and risks – also reducing the time for delivery
• • Flagship Paralana Project, clear commercial and competitive advantages with a willing potential customer at "off grid" prices and a realistic, long term and unique path to commercialization and two quality, complementary JV partners
• • Quality portfolio of 12 projects across geothermal technologies –EGS, District Heating and Volcanic sources – electricity and heat – Australia and Overseas (Spain & China)
• • Clear business model aimed at introducing quality JV partners coupled with a strongly skilled Board, Management team and consultants track record of successfully delivering projects

External Environment External Environment – – key drivers key drivers (extract PTR Business Plan 2007) (extract PTR Business Plan 2007)

• • Operating in an uncertain global economy and with more volatile financial markets - expect European economies expected to slow, Asian economies to continue to grow strongly, Australian economy to remain strong but weakness (recession?) in the US economy
• • Increasing cost of energy/power globally, combination of increased electricity demand , increasing cost of fuel and water, pressure on manufacturers and providers of raw materials (developing and developed countries)
• • Global political and social pressure to implement major greenhouse gas reduction and renewable energy programs, Europe underway, Australia about to expand, parts of Asia moving and more expected from the US
• • The above issues will combine to drive toward the need for low cost, large scale (preferably base load) renewable/low emission technology
  • geothermal, solar, wind and in some countries nuclear and gas

Global Wind & Geothermal Power GrowthGlobal Wind & Geothermal Power Growth

Wind growth >20% P.A. - Geothermal ~ 9% in last 3 years.

Renewable Energy Policy & Geothermal Renewable Energy Policy & Geothermal Renewable Energy Policy & Geothermal

• • Commonwealth Government - strong support
  • ratified Kyoto protocol
  • commenced the Carbon Pollution Reduction Scheme (CPRS) leading to Emissions Trading in 2010/11
  • established the 20% Renewable Energy Target (RET) by 2020
  • $450 M Renewable Energy Demonstration Program REDP
  • $50 M Geothermal Drilling Program GDP
  • Geothermal Industry Development Framework
• • Paralana eligible for up to $7M grant in Round One of GDP applications due on 5 January 2009 – successful applicants notified in March 2009
• • Paralana to assess opportunity for $50 M grant under REDP – applications in mid/late 2009
• • Ministerial Council of Energy review by the Australian Energy Market Commission (AEMC) of Australian electricity and gas frameworks in light of CPRS and RET
• • Australian Geothermal Energy Association (AGEA) active in all policy areas and represented on AEMC Stakeholder Advisory Committee

Geothermal Energy Cost Comparison Geothermal Energy Cost Comparison Energy Cost Comparison

AGEA Report conducted by McLennan AGEA Report conducted by McLennan Magasanik Magasanik & Associates & Associates -findings findings

• • Australian Geothermal Energy Industry can be expected to provide up to 2,200 MWs of base ‐load capacity by 2020 into National Electricity Market;
• • Represents up to 40% of the Federal Government's 2020 Renewable Energy target of 45,000 GWh ‐ the equivalent of the output of around 6,000 MW of wind farms;
• • An estimated $12 billion would be invested to develop 2,200 MW of installedcapacity;
• • The cost of generating electricity from geothermal resources is expected to move rapidly down the cost curve through to 2020 commencing from around $120 /MWh at small scale (10 MW to 50 MW) and decreasing to around$80/MWh at large scale (300 MW or greater) by 2020; and
• • Most of the capacity is expected to come from developments in SA other statesincreasing their contribution toward by 2020

Paralana ParalanaProject Project -Overview Overview

Has the unique ingredients to be commercially viable at all Stages!

• 9Temperature and target flow rate.
• 9 Very close to market for initial plant (up to 7.5MW).
  • Off grid market ~ Heathgate Resources' Beverley Uranium Mine (10km) and Four Mile.
• 9 Subsurface and above surface expertise.
• 9 After HEWI potentially fully funded toinitial commercial scale plant.
• 9 Endorsement from major industry participants.
• 9$5M Federal REDI Grant.
• 9 Ability to scale‐up in commercially viable increments (7.5, 30, 260 and 520MW) reduces risk
• 9 Next step is drilling 4 km HEWI wells.

Paralana ParalanaParalana 2 Well Drilling Rig 2 Well Drilling Rig 2 Well Drilling Rig

• • Comprehensive assessment of drilling options – existing Australian rig, existing overseas rig, consortia approach. Focus to obtain lowest cost – "fit for purpose"
• •Contract 2000 HP Drilling Rig # 828 from Weatherford International Drilling
• • Le Tourneau" Lightning Rig" being built in Houston, Texas, USA
• •Secured under a binding drilling services contract (Beach/Petratherm)
• • Paralana2 well to spud in May 2008 – first to use in Australia

Paralana ParalanaProject Joint Venture Project Joint Venture

¾Beach PetroleumFarmin (Jan 2007) for up to $30M for 36%

• $5M first well and stimulation
• $5M second well and stimulation – earns 21%
• After HEWI ‐ Option to earn a further 15% for $20M
• Plus equity share of project costs at every stage

¾TRUenergy Farmin (Aug 2008) for up to $57M for 30%

• $3M first well and stimulation
• $3M second well and stimulation – earns 10%
• After HEWI, have an Option to earn a further 5% for $7M
• After 7.5 MWpilot plant ‐ Option to earn a further 15% for $44M
• Plus equity share of project costs at every stage

Beach Petroleum, TRUenergy and Petratherm have complementary sets of skills and represent a formidable collaboration for the Paralana Project

With the $5.0 M REDI grant, the first $10.5 M for each well is sourcedfrom Beach $5.0 M, TRUenergy $3 M & $2.5 M from REDI.

Project Costs and Wind Comparison Project Costs and Wind Comparison

• ¾Stage 1 ‐ HEWI model $25M to $30M
• ¾Stage 2 ‐ 7.5 MW pilot plant – add'nl $40M to $45M
• ¾Stage 3 ‐ 30 MW demo. plant –add'nl $125M to $130M
• ¾ Total 30 MWProject estimate* around $190M to $200M

(*total current cost estimates and includes all transmission/substation costs)

• ¾ Paralana Project cost per MW of installed capacity is around $6M for a 30 MW base‐load project operating 24/7 – capacity factor of around 95% would produce about 250 GWh annually
• ¾ Wind Project cost per MW of installed capacity is around $2M for a project size of greater than 30 MW and typically only operates for 1/3rd of the time – capacity factor of 33% and producing around87 GWh annually
• ¾ For a comparable annual output of 250 GWh the wind farm would need to be almost 90 MW (3 times larger than Paralana 30 MW) and hence overall capital costs to produce would be very similar at around$180M
• ¾Off grid pricing for Paralana enhances the overall project economics.

Project Portfolio Project Portfolio

• • International Geothermal International Geothermal Explorer and Developer Explorer and Developer
• •Specialist Heat Explorer Specialist Heat Explorer
• • EGS, Conventional and Direct EGS, Conventional and Direct Heat
• • **Strategy Strategy –shallow hot rocks shallow hot rocks close to market close to market & chance & chanceof flow!of flow!

Engineered Geothermal Systems (EGS)

Paralana 2008 Paralana 2008 2008 - Development Path -Development Path Development Path

• 2D Reflection Seismic and MT Surveys
• Installed Passive Seismic Array (IESE)
• Cleared 1kmX 2km development site
• Casing and well head ordered
• Drilling contract in place

Paralana 2009 Development Plan Paralana 2009 Development Plan

• Second Quarter 09 First Deep Well to ~ 4 Kms
• Well testing and stimulation program

• First Quarter 2010Second Deep Well

Heat Exchanger Within Insulator (HEWI) Model Heat Exchanger Within Insulator (HEWI) Model Heat Exchanger Within Insulator (HEWI) Model

Paralana ParalanaParalana Project Area Project Area Project Area

petratherm

Petratherm Espana Petratherm Espana Petratherm Espana

• • Right Geological •Geology is conducive to EGS
• environment for geothermal technologies •Expanding Project Portfolio
• •Strong Corporate Interest
• •High Electricity Prices
• High Electricity Prices •Leading Policy Development
• • Eight Projects – Conventional Geothermal, direct heat use & • Conventional geothermal and direct useoptions
• Engineered Geothermal (EGS) • Lower Cost andRisk!

Petratherm Spanish Projects

Madrid – District Heating Resource District Heating Resource

• ¾ Three 2000m wells have been drilled, defining an area of at least 50km2, around 80oC fluid at 200m3/hr at ~ 1500‐2000m depth.
• ¾ Geomadrid Prefeasibility Study indicates – doublets Producing 8MWt with an annual production in excess of 45,000MWh (thermal).
• ¾ Strong government support for renewables and energy efficiency (particularly buildings) at all levelsof government.
• ¾ Potential for multiple projects from the geothermal resource.
  • Geomadrid is only the first application.
  • Expected to be an economic project with attractive returns!

Madrid District Heating – Madrid District Heating Madrid District Heating

Low Enthalpy Reservoir Low Enthalpy Reservoir Low Enthalpy Reservoir

Four existing wells ~ flows 200m3/h, temperatures of 80-85ºC enable to estimate a sustainable heat production of 30TWth over the next 75 years

GeoMadrid GeoMadrid Economics Economics

Key Project Parameters Key Project Parameters(1)

Pateramer	iUnts	hePetrtarmioAstsumpn
Tetumperare	ºC	75
hDetp	km	2
lowF	3/homur	200
lduAniotnuaprocn	/hMWannum	45,000
llDriingCapex	$€	4.8
lanPCatpex	$€	1.8
issioCaTransmnpex	$€	3.1
lToCatapex	$€	9.7
Price	/h€MW	45
()Cai2010typac	MW	8
/(dd)IRRungearegeare	%	/(2)13%19%

(1) Based on the pre‐feasibility report (by GPC‐IP) and the well assessment report. (2) Basedon one additional production well.

There is significant potential for further upside in the Geo‐Madrid project through the following opportunities;

• • Increased demand with the development of two new building complexes – expanding theannual production and sales to 54,000 MWh from the doublet system;
• Reduction in per MWh reticulation costs with larger demand and no retro‐fitting costs for newbuildings;
• • Increased sale price per MWh due to the increased cost of alternate heating sources – potential to double sale price of heat output; and
• Potential for energy efficiency subsidies associated with improved energy use in buildings

Tenerife Project Tenerife Project Tenerife Project

• • Active Volcanic Island, MT indicates magma chamber 3-4 km below surface
• • Tenerife Population ~ 1 Million; load > 800 MW; (Diesel & Wind)
• • Geochemistry indicates presence of a hydrothermal system with 250-350 ºC and 30-40 bars pressure.

•50 MWe development targeted

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

petratherm

• Chinese Geothermal Energy Society • Geological Survey of China • Chinese Academy of Sciences •China Institute of Geo-Environment Monitoring

Boiling Springs – Yunnan Province, China

East Gippsland Gippsland Licence Licence Area

Exploration Model for East Exploration Model for East Gippsland Gippsland

petratherm

Outlook for Calendar 2009 Outlook for Calendar 2009

• • Apply for Round One of the $50M Geothermal Drilling Program by 5 January 2009 and secure up to $7M funding for drilling by March 2009
• • Complete Madrid GDH feasibility assessment by February/March concurrently seek JV partner(s)
• • Spud Paralana 2 deep well (4kms) in May 2009, drill/complete well (around 2 to 3 months) followed by , testing logging, fracturing and stimulation program in second half of 2009
• • Complete China generative program and establish JV in first half of 2009
• • Assess opportunity for $50M of REDP funding for Paralana first half of 2009 for 30 MW development
• • Continue to assess and review current & new project opportunities – including new JVs

ThankYou

105‐106 Greenhill RdUnley, Sth Australia, 5061

Tel: +618 8274 5000

ASX code: PTRwww.petratherm.com.au