PTR MINERALS LTD — Investor Presentation 2007

Apr 30, 2007

Petratherm Ltd

105-106 Greenhill Road, Unley, 5061, South Australia Tel: +61 8 8274 5000 Fax: +61 8 8272 8141 Website www.petratherm.com.au Email admin@petratherm.com.au A.C.N. 106 806 884

Tuesday 1 May 2007

ASX Announcement

Petratherm Uniquely Positioned for Success in the Australian and increasingly global Geothermal Energy Sector

Hot rock developer, Petratherm Limited, (ASX : PTR) says the Company will enter the new financial year uniquely positioned for success in the geothermal energy sector in Australia, and increasingly globally.

The upbeat outlook was contained in a presentation by Petratherm Managing Director, Mr Terry Kallis, today, to the second day of the 2007 Paydirt South Australian Resources & Energy Investment Conference in Adelaide.

In his address, titled 'Building a Portfolio of Quality Geothermal Energy Projects - Australia and Overseas' (refer attached and PTR website), Mr Kallis said Petratherm's emerging leadership in the "hot rock" energy sector could best be summarized by the following key points:

• Petratherm's unique exploration model and process developed in $\bullet$ collaboration with the University of Adelaide has positioned the Company to be able to "explore for heat" and to quickly assess the viability of geothermal projects – across a variety of geological settings, end use markets and regulatory regimes in various countries.
• The Company's strength in hot rock exploration has enabled it to create a portfolio of quality geothermal energy projects in Australia and Spain, with more to come in those countries, and soon in China – where Petratherm has the support of the Chinese and Australian governments through the Asia-Pacific partnership. Of particular importance has been Petratherm's move this year into Spain where it has secured strategic 'first mover' advantage with projects near the large electricity consumption markets of Madrid and Barcelona.
• Petratherm's unique Heat Exchanger Within Insulator (HEWI) $\bullet$ Exploration Model has the potential to considerably reduce cost and risk, and thus bring forward the viability of large-scale geothermal projects in Australia and indeed overseas - a key point acknowledged by the Federal Government in awarding Petratherm a \$5M REDI Grant towards developing the HEWI Model at the Company's flagship Paralana Geothermal Project site near Leigh Creek in South Australia.
• The prospects for the two Spanish projects are very encouraging. This $\bullet$ assessment was made following visits to the sites by Petratherm's Australian and Spanish representatives and the recent confirmation of

the availability of data from previous deep oil and gas wells. In particular, the Madrid project has three wells drilled to depths of 3.1 to 3.5 kilometres – providing critical temperature, hot water flow rate and geological data. This provides the opportunity for significant and low cost, project advancement over the next several months.

• The Paralana Project has now assembled all the key 'ingredients for success' including:
• o An excellent thermal resource at shallow depth estimated at 200°C at 3.6 kilometres.
• o A stable geological formation with expected good drilling conditions.
• $\circ$ Close proximity to a willing potential customer that currently pays 'off-grid' prices.
• o A joint venture with Top 5 Australian oil and gas explorer and producer, Beach Petroleum Limited, for up to \$30 million in which Beach will take the lead role in the drilling operations required to create the underground heat exchanger.
• o A \$5 million Renewable Energy Development Initiative (REDI) Grant from the Federal Government to assist in the creation of the underground heat exchanger.
• o A unique and realistic long-term commercialization path that provides the potential for commercial viability at all stages including small scale (i.e. 7.5MW), local market (up to 30MW) and into the National Electricity Market (NEM) (between 260 and 520MW).
• The Paralana Project is considered uniquely positioned to enable $\bullet$ commercial viability at small scale (7.5MW building over time to 30MW), an important factor in the development and "bedding down process" of any new technology. This is a direct result of the close proximity of the Beverly Uranium Mine and the current 'off-grid' prices.
• Large-scale development of the Paralana site following the development and "bedding down process" - also provides a unique opportunity for Petratherm's Paralana Project with flexibility and significant cost benefits associated with potential large-scale transmission network solutions to competitively access the NEM at Port Augusta and/or Olympic Dam (refer below)

• The planned delivery of large-scale power (up to 520MW) has taken into account the capacity of the market to digest large increments of generation competition from other geothermal and indeed traditional sources of power generation and the cost of delivery (transmission network) of electricity to the 'on-grid' market (NEM).
• Petratherm's two basic network solutions include:
• o A double circuit 275kV transmission line from Paralana to Port Augusta capable of delivering 520MW into the NEM at Port Augusta. ("Radial network solution").
• o A single circuit 275kV transmission line from Paralana to Port Augusta and a single circuit 275kV transmission line from Paralana to Olympic Dam, each capable of delivering 260MW to those entry points. ("Meshed network solution").
• The latter network arrangement would create a "meshed" transmission network in the north of the State and provide a backbone of electricity infrastructure for the remote community, but in particular the State's growing resources sector. Importantly, the "meshed" network solution has the potential to provide substantial broader community benefits and hence has the potential for the inclusion of a proportion of assets (and costs) into the regulated asset base of a registered transmission owner under the Australian National Electricity Rules (NER). Accordingly, there is unique opportunity for substantially reducing the overall project network connection costs.
• Similar opportunities exist for the radial network connection where the prime cost reduction occurs through the utilization of a single electricity tower carrying both 275kV electricity circuits.

• Petratherm's strategic approach has been to apply the skills of a multidisciplinary team (internal and external) to understand and assess the market, regulatory regime, technology and geological characteristics of potential projects in order to maximize potential value of those projects whilst concurrently minimizing project risks. Petratherm's 'exploration for heat' and HEWI models were created as a result of that strategic approach and Petratherm is committed to find ways to continue to reduce costs and risks.

SA Resources and Energy Investment Conference

MEV 2007

Petratherm Limited - "Building a portfolio of quality geothermal Energy projects - Australia and Overseas'

Presented By: Terry Kallis, Managing Director

Explorer and Developer of Geofferinal Energy

The Committee of the Committee of the Committee of the Committee of the Committee of the Committee of the Comm

Presentation Outline

• Corporate Overview nasy.
  Matuk
• Petrationis Projects enna
  Smith
• Key Achievements 2006/2007 yng
  kwili
• Economics of Geothermal Energy Generation aras
  balli
• Geothermal Energy and Electricity Markets ayan
  Tarihin
• SA EGGIRGIV Market and Geothernal Projects ana.
  Tanàna
• Petrathern's unique Exploration and HEWI Models e
• Geothernal Project Economics and Development yna
  Willi
• Peralana short/long term Commercialization Plans ena
  Maria
• STILLER ang
  Mali

Corporate Overview

• Established in 2008 and listed on the ASX in July 2004 gereza
  Galilla
• Major shareholder is Minotaur Exploration 35% anas
  Baadh
• Current Captal Raising Placement & SPP gangan
  Tanggalan
• De States on Issue 4973751000 Guitenual de Gregoria en Is
• Market Capitalization of \$44 million en
  Milio
• MISSION To explore and develop, emission free, en de la familie de la familie de la familie de la familie de la familie de la familie de la familie de la fa
  Seglection de la familie de la familie de la familie de la familie de la familie de la familie de la familie d geothermal energy projects that are commercially sustainable"
• Strategy "shallow hot rocks close to market" nani
  Matuki

Board & Management

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DOREIGES COLORS Cionnella Risacene

TAUSAN TURK OT SERVEL SERVED SER

Petratherm's SA Projects

Temperamenta presidente prediciones de 2007 de personal e el 200

Renewable Energy Country Attractiveness Tricitess

· Tariffs

• · Resource Potential
• · Growth
• Grid Capacity

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3.	Germany	62	56
4	India	61	66
5	UK	60	61
6.	Italy	58	63
7	France	57	55
8	Portugal	56	63
9	China	56	59
10	Canada	55	63
11	Netherlands	54	56
12	Ireland	54	61
13	Greece	53	56
14	Sweden	52	53
15	Australia	50	51
16	Denmark	49	58
17 1	Norway	49	56
18	Belgium	48	53
19	Finland	38	39
20	Austria	33	49

Wadrid Project - Wadrid Basin

• Tenement Area 300 km²
• Londrik to Ekk and to herbed y
• v iterate to Will OOOS < end we terring states < SOOO NIW of capacity

• Known low enthalpy aquifer (35°C) resource at 1500m and very high flow rates.

• V High heat production granites outeropoing in the range and likely to underpin the basin, similar setting to Paralana

• · Basin thickness approximately 4000 metres

Barcelona Project Valles Basio

• Central to major electricity intrastructure, >2000 MW of capacity?
• Area of known high head ilow
• Local hot aculic repurcing a dis-130°C shallow reservoir at
• Figh heat production granites underpin the basin & outerop in adlacent ranges
• Basin Indeness approximately 6500 metres

Ghina - AP6 Program

ASIS EN 16 PHOTO SHIP AND SVEIL PROBEK (APIS) WILL ARE Mhe Chinese and Australian Covernments

Cyer 240 recorded geothernal sites

• Conventional Geothermal Potential ~1400 MW

A FROMMOUS EGS (HOUD YEGGA) Portfulal

Hot Water and Hediricity Plays in a number of growness

Joint Venture discussions under way with interested parties

Ningzhong - Tibet

Petratherm - Key Achlevements

• Discovery of world-class heat resource at Paralana, South Australia.
• $\sim$ Established an MOU with Heathgate Resources to provide their Beverley Uranium Mine with electricity to meet their growing needs.
• · Secured approval to investigate China's High Rock potential through Asia Pacific Partnership on Clinate and Clean Development (AP6)
• \$30 million dollar Joint Venture with Beach Petroleum to test and build Phase-1 commercial plant at the Paralana Hot Rock Resource.
• 85 million dollar Federal Government grant to support development of a new lower risk heat extraction process (HEWI Model) - i
• New Hot Rock Projects announced near Madrid and Barcelona, Spain $($ anone to come)

Litoion Gallabonna Lochte Chaal Sonn Manarath

Peirainerm - Share Price

Petribern Sunnitry

• Bulle on the Company's key strength of exploring for heat na
  M and adding project development to its capabilites and seeking to continually lower costs and risks
• Continue to expanding its portfolio of quality projects in Australia and Overseas (Spain and China).
• Paralana Project exhibits the key ingredients for ENGAL A
• A Excellent themel resource at shallow depths
• Stable geologieal formation expect good drilling CONGINORS
• Proximity to the "off-cricl" Beverley Uranium Mine
• SSO MJV Win Beach Patoleum and S5 M Faceral Grant
• A unique and realistic, long term commercialization plan

Economics of Geothernal Energy Generation

Georgerine Lenery and Electrotey Warkers

Internonal

• The global renewable energy market (all forms) represents only 4% of ling
  Sid electricity production but is growing at 25% per annum.
• Geothermal energy has largest technical potential of all renewable J SOUICES (source: World Energy Assessment UNPD 2000).
• MIT Reportsuccests that EGS can provide 10% of US power by 2050 egan
  Walio
• ERenewable energy policies with favourable fargets and "in-feed farifis" n
  Bailt some over \$140 per MMh

HEuropean Union target of 20% by 2020 -China larget of 10% by 2020 Hindreiche Gestellten (1975-1974)

-California target of 20% by 2017

Geoineral Energio Ferdering Werkers

AUSTRALIA

• Review of the Energy White Paper and ourrent policy on renewable and enne
  Stadt low emission energy technologies.
• Strong support for geothernal energy due to competitive, large scale, en en de la segonia.
  Constituir base load potential -SA Govt: PAGE initiative, AGEG and recent Federal Govt. Geothermal Energy Industry Roundtable.
• The Ministerial Council on Energy considering the Energy Reform anan
  Badal Implementation Group review of the National Electricity Market (NEM).
• The interconnected NEM in Australia is projected to require 5,000MW ya
  Mil of new capacity over the next 10 years (source: NEMMCO Statement of Obsorunues

SA Electricity Market

• O SANTEM REGION EIERITGING GEREIN BERGEBURG EIER EIER SODINW GEREW Ciones
• Does not include potential increase of over 400MW from Olympic Dam.

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• Nor the effect of depleting Leigh Greek coal.
• SIDE MENERI TIKA UNGA KAWA NGA BELIKU SA MGA KATIKA NGOMIYA WA

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EXECUTION DG ar a bha an an an a South Australia (source SA ESPOAPRZOOS

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SA Geothermal Projects

• · Many players
• Large resources na.
  Daoine
• Exploiting different en de la familie de la familie de la familie de la familie de la familie de la familie de la familie de la fam
  De la familie de la familie de la familie de la familie de la familie de la familie de la familie de la famili geothermal resources
• 2 Flot Rock plays
• ^{o "H}or Water" plays
• · Different market / connection plays

Geothermal Energy Cost Considerations Petritierin's Exploration Model

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• Temperature Differential
• SEPTIMING DESCRIPTION
• HE HOW THE
• ENGIVER CONTRESS
• Home and Communications

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

Optimization of Key Underground Parameters

Heat Exchanger Within Insulator (HEWI) Model

• Chioner Perneality
• SCREMCEIVSCRIE
• MARTINIE REGION Billion
• ELECTRIC ENTRETT
• Phonon Power!

Geoinemal Energy Project Economics

• Temperature (differential, quality and type of resource) en en de la familie de la familie de la familie de la familie de la familie de la familie de la familie de la
  Constitution de la familie de la familie de la familie de la familie de la familie de la familie de la familie
• Drilling Costs (depth, size) en
  Konsta
• Energy Flow Rates (volume, energy transfer) gma
  M
• Plant Capital Costs and related efficiencies an
  Mariti
• Connection and Access to markets en
  Luis
• Ocerating Costs e
  Malala
• Economies of Scale/Production ya
  W
• Revenue/Product Pricing in a Competitive Market en
  Stadt
• Regulatory Regime carbon pricing e
  Salah
• Critical Project Parameters are Revenue, Capital Costs ana.
  Matukio (drilling, plant, connection) and Thernal Resource (temperature differential, volume and flow)

Geoghernal Energy Project Assessment & Development Process

• Key Development Areas induce: nganya
  Waliofari
• Thermal Resource potential and accessibility
• Reservoir & Heat Exchanger
• Tenement & Land Owner matters
• Geornernal Electricity Generation technology
• Network Access & Connection
• Development Approvals ( Production Site and Network Connection)
• Siakeholder Issues
• Electricity Market and Regulatory Regine
• Financial and Risk Assessments

Network Access & Connection

• 2 Transmission Cosis
• 2 Transportation losses
• Margin Loss Factor anan
  Gundê
• 2 System Stability
• Development Approvals, Licensing, Easements and Permits
• · Network Capacity at CONNECTION OCINI

Market & Network Issues

• Proximity to market network connection costs 132kV or 275kV for large r
  Imil scale and/or distant locations
• Network Capital Costs target around 10% to 15% of total project capital yn. GOSIS
• Market constraints local, regional, interstate transmission and market e
  Louis operations
• Marcinal Loss Factors and Revenue B
• Market on-grid or off-grid pricing enang
  Secara
• Development & Scaling Up en.
• New Entrant Pricing SA combined cycle gas W

Paralana Commercialization Plan

The St

Paralana Commercialization Plans

• Staged local expansion from 7.5 MW to 30.0 MW (from end 2009) nelwork capital costs range between 8% and 10% of total capital.
  Gosts – uniquely positioned with a willing potential customer at "off ond and a clear
• Realistic large-scale, long term plans over 15 years for 520 MW of power generation, incorporating market digestion, competition from depthemal/traditional sources and the cost of delivery to market (trains) ans de la construction de la construction de la construction de la construction de la construction de
• Connection to the SA power system at Port Auguste and/or Olympic e Dah Nasihidi (1999) Asiya kata shekara na wokon komunista double circuit 275 kV transmission lines - unique opportunity for meshed network community benefits leading to lower project costs.
• NGC 2009 NAVELOS MORALENS KOLONOMIST STRICH STRICH SCHOOL SAVES DIE NAVEL s. and 13% of total project costs (potentially as low as 5%)

Summary

• Machines (Sin) San (Cyasticalina) transformation terminal components (Sin) of the set nan
  Mali heat and its commercial assessment of projects.
• The approach frashes in a finite contohology of thy projects in ganes
  Gandhi Australia and Overseas - first mover in Spain for "Hot Rocks",
• Earainem s ninutal piwy model nasina potanta no konduciniy ngan
  Baddh and substantially reduce costs and risks - also reducing the time for CEIMEN
• Petratherm has, in its Paralana Project, clear commercial and yang competitive advantages with a willing potential customer at "off grid" prices and a realistic long temp commercialization path – unique parta lo commercialization
• Sound understanding of the market competition, product, pricing, en en de la posterior de la posterior de la posterior de la posterior de la posterior de la posterior de la po
  La posterior de la posterior de la posterior de la posterior de la posterior de la posterior de la posterior d delivery to customers, etc - is essential to commercial success.

Thenk You

ASX Code: PTR www.joei/ai/rein.com.cu Phone: (08) 8274 5000