Petratherm Annual General Meeting

Company and Projects Update

Managing Director Terry Kallis

Exploration Manager Peter Reid

29 November 2013

Disclaimer and competent persons statement

Disclaimer

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 become apparent 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 in Australian dollars (AUD) unless stated otherwise.

The information in this presentation that relates to Exploration Results, is based on information compiled by Peter Reid, who appears on the Register of Practicing Geothermal Professionals maintained by the Australian Geothermal Energy Group Incorporated at the time of the publication of this report. Peter Reid is a full time employee of the Company. Peter Reid has sufficient experience which is relevant to the style and type of geothermal play under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the Second Edition (2010) of the Australian Code for Reporting Exploration Results, Geothermal Resources and Geothermal Reserves. Peter Reid has consented in writing to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

Paralana Project Milestones

› Drilled Paralana 2 to depth 4003m (G.L. A.H.D.)
› Confirmed optimum bottom hole temperatures ~ 190^oC at 4000m
› High pressure geothermal brines intersected and natural fractures intersected from 3680m – may assist flows
› Fracture stimulation produced a large complex fracture cloud extending (1100m)
› Initial injection rates of 27 l/sec with scope to increase to commercial rate
› Successful flow test produced 1.3 million litres due to natural overpressure

Paralana – Next Stage Project Funding

› Next stage of works budgeted at around \$26 million
› Covers drilling Paralana 3, fracture stimulation and demonstration of commercial flows. This work is the immediate precursor to building/connecting a 3.5 MW pilot plant (\$15.9 million)
› The Paralana project has been granted \$13 million Emerging Renewable Program (ERP) to fund half of the total costs of the project – conditions are Beach remain committed and Petratherm secures \$5m in equity (market/JV)
› Beach Energy Paralana JV partner- have 21% project equity share
› Petratherm project equity share is 79% with ERP grant, PTR funding need for next stage of works is around \$10 million.
› Petratherm could receive up to \$7.2 million in cash rebates* for eligible expenditures under the R&D Tax Incentive scheme (* post eligible spend & assessment)
› Net cost to Petratherm to achieve Demonstration of Commercial Flows (DCF) potentially around \$3 million. If DCF is successful, then this will unlock the Renewable Energy Demonstration Grant to fund one third of pilot plant and enable gross annual revenues of around \$4.5 million

Tasmania – Petroleum Licence Application

Exploration licence application EL3/2013, covers 3840km² of the Tasmania Basin

Very little exploration has been carried out – true potential of the basin is still to be discovered

The licence is traversed by the Tasmanian Gas Pipeline, low cost connection to the market

Source rocks include the Woody Island Formation, in excess of 200m thick, with Total Organic Carbon (TOC) between 0.4% and 2.8%. Includes Tasmanite Oil Shale at its base, which comprises thin organicrich bands with a recorded average TOC of 21.6%

Kerogen ranges from oil-prone Type I/II to dry gas prone Type IV

Mature for oil and gas