PTR MINERALS LTD — Capital/Financing Update 2005

Sep 26, 2005

Petratherm Ltd

247 Greenhill Road, Dulwich, 5065, South Australia Tel: +61 8 8366 6055 Fax: +61 8 8366 6056 Website www.petratherm.com.au Email admin@petratherm.com.au A.C.N. 106 806 884

$27^th$ September 2005

Petratherm Successfully Completes 2^nd Hot Rocks Well

Petratherm Limited – a developer of 'hot rocks' energy - is pleased to announce that the drilling of the geothermal evaluation well, Paralana-1B, at the Paralana Project Area (GEL's 156, 178,180) in South Australia, has been successfully completed. This is the second well in Stages 1 and 2 of the hot rock energy exploration program outlined by Petratherm at the time of its IPO in July 2004. Paralana-1B is located 130 kilometres east of Leigh Creek where existing transmission lines are anticipated to be capable of taking 125 MWe of power from any commercial development at Paralana of this potential energy source for electricity generation.

The unstable well conditions previously encountered in Paralana-1A were overcome in Paralan-1B with the use of a higher capacity rig. The latest well was drilled to a depth of 491 metres, into the sedimentary section below the artesian aquifer, and was cased preparatory to logging. Temperature measurements of the mud system during drilling are encouraging, suggesting the presence of a significant hot rock resource at depth. After temperatures in the well have re-equilibrated with the adjacent rock formations and subject to contractor availability, temperature logging will be undertaken, expected to be in10 days time.

If the resultant projections of the temperature gradient to target depth are in line with Petratherm's business model, to locate hot rock resources in excess of 200 degrees Celsius at 3.5 kilometre depth, the well will be deepened, using a diamond rig, to about 1,500 metres to gain further temperature, rock physical property and stress measurements. Additional diamond drilling beyond its present depth will be undertaken around the same time as anv deepening _of Yerila-1.

Figure 1 Location map of Paralana-1B (Paralana Project) and Yerila-1 (Callabonna Project) geothermal evaluation wells and Petratherm licence areas.