PTR MINERALS LTD — Capital/Financing Update 2005

May 3, 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

4 May 2005

PACE Funding Awarded for Upcoming Drilling at Callabonna

Petratherm is pleased to announce that it has been successful in obtaining a \$140,000 South Australian Government "Plan For Accelerating Exploration" (PACE) grant to support the drilling of its geothermal evaluation well at Callabonna. Drilling of the Callabonna target will begin in approximately four weeks time. The well, to be called Yerila-1, is named after the granite of the same name which outcrops just 40 kilometres southwest of the drilling site and is one of the highest heat producing granites known (over 20 times more than normal granites).

Yerila-1, to be drilled to approximately 1 kilometre depth, will pass through the artesian aquifer modelled at 620 metres, and then penetrate into the interpreted Cooper Basin equivalent strata below. Data collected from the well will enable calculation of inherent stress characteristics and a temperature gradient profile, as part of the hot rock evaluation process.

On completion of the Callabonna Program the rig will be moved to the Paralana-1 (GEL178) site to complete the Paralana geothermal evaluation well to 600m. Paralana-1 was spudded in mid January but encountered unstable hole conditions and was halted at 306 metres. The larger capacity rig commissioned for Yerila-1 is rated to 2000 metres, and able to drill with a weighted mud system, overcoming hole instabilities found at Paralana-1.

Temperature gradient data gathered from the geothermal evaluation wells at Callabonna and Paralana will determine if there are significant geothermal resources at these sites.