PTR MINERALS LTD — Capital/Financing Update 2005

Sep 13, 2005

Petratherm Ltd

247 Greenhill Road, Dulwich, 5065, South Australia Tel: $\pm 61883666055$ Fax: $\pm 61883666056$ Website www.petratherm.com.au Email admin@petratherm.com.au A.C.N. 106 806 884

14^th September 2005

High temperature gradient recorded in Yerila-01

Kev Points

• First phase temperature gradient profile of Yerila-01 compares favorably with $\bullet$ the recorded temperature gradient of the world-class Cooper Basin hot rock occurrence.
• Temperature results over first 693.5 metres drilled support Petratherm's initial $\bullet$ model for locating shallow geothermal resources in SA in excess of 200 degrees centigrade at around 3.5 kilometres depth.
• Yerila-01 records bottom of hole (693.5 metres) temperature of 64 degrees $\bullet$ centigrade.
• In addition, evaluation well spudded this week on nearby Paralana geothermal $\bullet$ target.

Yerila-01 Temperature Results

Phase-1 of Yerila-01 was drilled to 693.5 metres to evaluate the geothermal potential of the Callabonna Gravity Low interpreted to represent a possible high heat producing granite at 2.5 kilometres depth. Bottom of hole temperature at 693.5 metres was 64 degrees; a continuous temperature log is shown in Figure 1. The raw mean gradient is 56 degrees per kilometre, with the mid-hole gradient as high as 66 degrees per kilometre. Figure 2 records the rate of temperature increase in comparison to other "hot rock" provinces. The results from the well are consistent with those modelled by the Company which indicate temperatures in excess of 200 degrees may be achieved at 3.5 kilometres depth.

The Callabonna geothermal body, defined by the regional gravity that clearly marks its boundary, spans an area of approximately 1200 square kilometers (Figure 3). Petratherm holds two licenses covering 1000 square kilometres over the centre of this body. Callabonna is 90 kilometres northeast of Arkaroola which in turn is about a similar distance east of Leigh Creek, the terminal of existing main grid power transmission lines.

Other down-hole geophysical logs of Yerila-01 undertaken to determine the way in which a potential hot rock reservoir would form at Callabonna, are currently being processed.

The Company proposes to extend Yerila-01 to a total depth of approximately 1500 metres with diamond drilling. The second drilling phase will determine the thermal properties of underlying strata, and confirm the subsurface model established in the first phase.

Paralana Geothermal Well Spudded

Phase-1 of the Paralana geothermal evaluation well (Paralana-01B), located 40 kilometres east northeast of Arkaroola (Figure 3) on the Frome Plains spudded last weekend is currently at a depth of 134 metres.

Like Yerila-01, Paralana-01B will be drilled through the artesian aquifer which is estimated to be located at 460 metres, and into underlying rock sequence. A total depth of around 550 metres is projected for the first phase of drilling.

On completion the hole will be cased to isolate the artesian flow. Projections of the temperature gradient will be made to the target depth of around 3.5 kilometres. If encouraging, the hole will be deepened using a diamond rig to about 1500 metres to gain further temperature, rock physical property and stress measurements.

Paralana Background

The Paralana project covers three tenements totaling 1500 square kilometres immediately east of the outcropping thermally anomalous Mt Painter granites (Figure) 4). Interpretation of historical seismic data indicates these high heat producing granites may extend under favourable insulating cover to the east in an area informally termed the Poontana Basin (Figure 4).

Evidence of elevated sub-surface temperatures includes the Paralana Hot Springs where surface water temperatures have been measured at 62 degrees. Numerous shallow wells (180-200 metres) in the area also record significant thermal anomalism.

Conclusion

Petratherm is greatly encouraged by the temperature gradient result at Callabonna. It is hoped the ongoing drilling at Paralana will demonstrate the Mt Painter area, which umbrellas both the Callabonna and Paralana projects, represents a major new hot rock province for Australia. The planned two phase drilling evaluation program will identify and quantify this potential resource prior to the commitment of higher cost deep drilling into the thermal resource (Stage three of Petratherm's work program (see prospectus)).

The Board of Petratherm wishes to express its thanks to PIRSA for the assistance received under the PACE scheme in drilling Yerila-01, and to the University of Adelaide for its ongoing support.

Figure 1

Hot Rock Projects - Average Temperature Gradient Comparison

(*Gradient data extrapolated from published temperature data released by Geodynamics and Geothermie Soultz, assuming a 25°C surface temperature. Geodynamics data based on recorded temperatures through overlying insulator)

Figure 2

Figure 3 Regional 1VD Gravity Image, highlighting extent of Callabonna Gravity Low (northern dark blue area) and Petratherm's Licence Areas.

Figure 4 - Paralana 1 Locality Map outlining Licence areas, outcropping thermally anomalous granite, and extent of insulating (Poontana Basin) cover.