PTR MINERALS LTD — Investor Presentation 2007

Oct 23, 2007

petratherm Explorer and Developer of Geothermal Energy citi smith barney Client Seminar "Building a portfolio of quality geothermal energy projects – Australia and Overseas" Presented by: Terry Kallis, Managing Director Petratherm Limited Italian Centre Adelaide, 23 October 2007

Presentation Outline Presentation Outline

• Key Messages
• Corporate Overview
• Petratherm's Exploration and HEWI Models
• Key Projects Australia, Spain & China
• Geothermal Energy and Electricity Markets
• SA Electricity Market and Geothermal Projects
• Geothermal Project Economics and Development
• Paralana short/long term Commercialization Plans
• Key Challenges for Australian EGS Projects
• Summary

Director

Managing Director

Donald Stephens Company Secretary

Peter Reid Operations Manager

3

"Shallow Hot Rocks close to Market" Petratherm Petratherm's Exploration Model 's Exploration Model s Exploration

"Hot Rocks" are EGS , i.e. Enhanced Geothermal Systems

Prime Cost Drivers

• Temperature Differential
• Drilling Depth
• Flow Rate
• Network Connection
• Generation Plant

Petratherm is seeking to optimize the key drivers to achieve the lowest long run average cost electricity delivered while minimizing project risks.

RenewableRenewableRenewableEnergy	Ranking	Country	AllRenewablesIndex	RenewablesInfrastructureIndex
Energy	1	Spain	69	80
CountryCountryCountry	2	USA	67	70
	3	Germany	62	56
AttractivenessAttractivenessAttractiveness	4	India	61	66
IndicesIndices	5	UK	60	61
	6	Italy	58	63
	7	France	57	55
Tariffs•	8	Portugal	56	63
	9	China	56	59
	10	Canada	55	63
•Resource Potential	11	Netherlands	54	56
	12	Ireland	54	61
	13	Greece	53	56
•Growth	14	Sweden	52	53
	15	Australia	50	51
•Grid Capacity	16	Denmark	49	58
	17	Norway	49	56
Source : Ernst & Young 2006	18	Belgium	48	53
	19	Finland	38	39
petratherm	20	Austria	33	49

Wholesale Renewable Power Price's cents per KWh (Aus) Wholesale Renewable Power Price Wholesale Power Price's cents per KWh (Aus) cents per KWh (Aus)

Spain	11.4 –14.5
USA	10 –11.5
China	8.6 –9.5
India	7.8 –10.1
Australia	7.5 –8.5
	petratherm

Increasing Shareholder Value Increasing Shareholder Value

• Cost Reduction

• HEWI Model shallower wells reducing drilling costs
• Competitive sourcing of plant and equipment "no ties" to a plant manufacturer – " fit for purpose" – conventional, lower cost plant

• Risk Reduction

• Initial project selection targeting lowest cost to relevant market
• HEWI Model shallower wells, less drilling, greater permeability
• Several quality projects and a continuous pipeline of projects
• Project portfolio spread across jurisdictions local and overseas
• Partner selection key skills and capabilities Beach Petroleum
• EGS and lower risk conventional geothermal projects

• Revenue Optimization

• Target local "off grid" opportunities nearby mines
• Exploit multiple products electricity and direct use heat
• Focus on attractive jurisdictions price and growth Spain/China

Geothermal Energy and Electricity Markets Geothermal Energy and Electricity Markets International

• The global renewable energy market (all forms) represents only 4% of electricity production but is growing at 25% per annum.
• Geothermal energy has largest technical potential of all renewable sources (source: World Energy Assessment UNPD 2000).
• MIT Report suggests that EGS can provide 10% of US power by 2050
• Renewable energy policies with favourable targets and "in-feed tariffs" some over $140 per MWh
  • −European Union target of 20% by 2020
  • −China target of 10% by 2020
  • −India target of 10% by 2020

petratherm

−California target of 20% by 2017

Geothermal Energy and Electricity Markets Geothermal Energy and Electricity Markets Australia • Review of the Energy White Paper and current policy on renewable and low emission energy technologies – Emissions Trading and Renewable Energy • Strong support for geothermal energy due to competitive, large scale, base load potential –SA Govt. PACE initiative, AGEG and Federal Govt. Geothermal Energy Industry Development Framework, REDI & LETDF and Labor Party Policy and Program announcements ($ 50 million for drilling – 5 projects and MLET?) • Geothermal Energy potential is vast and could meet Australia's electricity needs for many centuries. The Paralana thermal resource potential alone is estimated at 13,000 MW • ESAA estimates that 8% (around 3500 MW) of national demand could be met by 2030. Geothermal Energy Industry formulating a bold, yet realistic Vision with objectives for 2010, 2020 and 2030. • The interconnected NEM in Australia is projected to require 5,000 MW of new capacity over the next 10 years (source: NEMMCO Statement of

petraOpportunities). therm

• Staged local expansion from 7.5 MW to 30.0 MW (from end 2009/early 2010) – network capital costs range between 8% and 10% of total capital costs – uniquely positioned with a willing potential customer at "off grid" prices
• Realistic large-scale, long term plans over 15 years for 520 MW of power generation, incorporating market digestion, competition from geothermal/traditional sources and the cost of delivery to market (transmission costs) to the "on grid" market (NEM)
• Connection to the SA power system at Port Augusta and/or Olympic Dam, via a "meshed" 275 kV transmission network or individual double circuit 275 kV transmission lines - unique opportunity for meshed network community benefits leading to lower project costs.
• Competitive network capital connection costs range between 10% and 13% of total project costs (potentially as low as 5%)

Thank You Thank You

ASX Code: PTR www.petratherm.com.au Phone: (08) 8274 5000