PTR MINERALS LTD — Capital/Financing Update 2008

Apr 21, 2008

N E W S • • R E L E A S E

FOR IMMEDIATE RELEASE Tuesday 22 April, 2008

AUSTRALIAN GEOTHERMAL DEVELOPER

SET TO HEAT SPANISH HOMES

Residential and commercial areas of the Spanish capital of Madrid could be heated by leading Australian geothermal developer, Petratherm Limited (ASX code: “PTR”).

The Adelaide-based Petratherm revealed today that a pre-feasibility study into the proposal is due for completion as early as next month.

Being undertaken by French consultancy, GPC Instrumentation Process (GPC IP), the study is assessing the practical application and commercial viability of the “ Madrid Basin Direct Heating ” project.

The project proposes that Petratherm drill into a shallow geothermal reservoir 1,500 metres beneath the Madrid Basin at a site about 40 kilometres northeast of the Spanish capital.

Based on temperature and flow information from existing 1,500 metre deep, exploration and development wells, Petratherm plans to provide within the next two years, a conventional geothermal supply to directly heat selected districts of Madrid within the Australian company’s 330 square kilometre Madrid GEL area.

The move would provide first revenues for Petratherm which has pioneered Australia’s export drive into Spain and China’s emerging geothermal energy sectors.

This is in addition to the Company’s flagship Paralana project in South Australia’s northern Flinders Ranges, in joint venture with Beach Petroleum and which is expected to become the nation’s first commercial geothermal supply by early 2010.

Petratherm’s Managing Director, Mr Terry Kallis, said today that GPC IP already managed several district heating installations across the Paris Basin, which had similar geothermal characteristics to Madrid.

“Geothermal energy, particularly for heating, has been part of the Paris Basin energy mix for more than 20 years,” Mr Kallis said.

“Like Paris, the Madrid Basin sits over a huge shallow geothermal resource with very large aquifers and high flow-rates.

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“The Spanish resource hosts two main geothermal reservoirs, including a shallow reservoir at about 1,500 metres depth where previous drilling to depth has already encountered temperatures of between 70-80ºC – ideal for direct heating application.

“The second reservoir, at 3,400 metres depth, is even more exciting. Results based on previous drilling to depth, show temperatures as high as 156ºC. This creates opportunities for both direct heating and significant power generation.

“If the pre-feasibility study generates a viable outcome, Petratherm will develop a detailed plan to exploit the resource and seek appropriately skilled joint venture partners to realize the full potential of the project.”

Mr Kallis said prospects for the Madrid Basin Direct Heating project were further enhanced by the close proximity of one of Spain’s largest electricity transmission systems – a 5,000-plus MW grid helping service Madrid’s population of 5.5 million.

He added that renewable energy supplies were attracting premium market prices in Spain – as much as twice those available in Australia.

Petratherm usurped significant international competition to secure a first mover advantage in Spain’s modern day geothermal energy sector which includes exposure to new conventional geothermal projects on the Spanish-controlled Canary Islands.

The Company now has seven projects in Spain, including two conventional geothermal exploration projects in the Canary Islands and five Engineered Geothermal Systems (EGS) and hydrothermal projects on the mainland.

If the Madrid Basin Direct Heating project is successful, the Australian energy developer will explore the potential to extend it to Barcelona and other areas of Spain.

Mr Kallis said Petratherm’s Spanish projects continued to attract significant interest from European energy companies and local councils for their capacity to meet Spain’s fast-growing electricity demands without the expense or environmental concerns associated with traditional fossil fuels.

Swiss backing for SA project

Meanwhile, Petratherm also announced today an exclusive agreement with worldleading Swiss company, Geothermal Explorers Limited, to provide high-level management and technical advice for its proposed 30MW Paralana Geothermal Energy Project in South Australia’s Flinders Ranges.

Mr Kallis said Paralana was on track to commence drilling its first well during the second half of 2008. The Joint Venture has secured an MOU for the supply of power to the nearby Beverley uranium mine operated by Heathgate Resources Pty Ltd.

MEDIA CONTACT:

Terry Kallis	Petratherm Limited	(08) 8274 5000 / 0419 810 153
Kevin Skinner	Field Public Relations	(08) 8234 9555 / 0414 822 631

issued through

FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311

231 South Road, MILE END SA 5031 Ph: 08 8234 9555 Fax: 08 8234 9566 admin@fieldpr.com.au