PTR MINERALS LTD — Investor Presentation 2008

Aug 17, 2008

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PETRATHERM LIMITED ABN 17 106 806 884

Company Update Australian Geothermal Energy Conference

Petratherm’s Managing Director, Mr. Terry Kallis and Exploration Manager, Mr. Peter Reid, will present on Wednesday morning an update on the Company’s activities on the first day of the 2008 Australian Geothermal Energy Conference.

The key message from the presentation is that the Company’s flagship Paralana Geothermal Energy JV Project is expected to be commercially viable at all stages of capacity development and able to successfully compete with other renewable energy technologies, including wind projects.

The attached presentation includes;

• An overview of the Beach Petroleum and TRUenergy farmin agreements

• A brief outline of current cost estimates for key stages of the Paralana Project to 30 MW

• A cost comparison of the Paralana project with a typical wind technology project.

18 August 2008

ASX Code: PTR

ABN 17 106 806 884

105 Greenhill Road Unley 5061 South Australia Tel: +61 8 8274 5000 Fax: +61 8 8272 8141

W : www.petratherm.com.au E : admin@petratherm.com.au

Petratherm’s Spanish Manager, Mr. Raul Hidalgo will present later at the conference on Thursday morning. He will provide a detailed update on the Company’s Madrid Geothermal District Heating project. A copy of his presentation will be made available as an ASX release.

Yours faithfully

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Terry Kallis Managing Director

MEDIA CONTACT:

Terry Kallis Petratherm Ltd 08 8274 5000 Kevin Skinner Field Public Relations 08 8234 9555 / 0414 822 631

therm petra

20 August 2008

Australian Geothermal Energy Conference

Presented by: Terry Kallis - Managing Director & Peter Reid - Exploration Manager Petratherm Limited

Disclaimer

This presentation has been prepared by Petratherm Limited (Petratherm). The information contained in this presentation is a professional opinion only and is given in good faith.

Certain information in this document has been derived from third parties and though Petratherm has no reason to believe that it is not accurate, reliable or complete, it may not have been independently audited or verified by Petratherm.

Any forward-looking statements included in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Petratherm. In particular, they speak only as of the date of this document, they assume the success of Petratherm’s strategies and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (“Recipients”) are cautioned not to place undue reliance on such forward-looking statements.

Petratherm makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued.

To the extent permitted by law, Petratherm and its officers, employees, related bodies corporate and agents (“Agents”) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Petratherm and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

All amounts in Australian dollars (AUD) unless stated otherwise.

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“ Mission to explore for and develop, emission free, geothermal energy projects that are commercially sustainable ”

Business Model

“ to develop a portfolio of quality geothermal energy projects conventional and EGS – for power and/or heat – where there is a favourable combination of geology and market conditions - and introduce joint venture partners with skills, risk appetite and funding ability to further develop projects through to production”

Corporate Overview

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• ASX listing July 2004

• Minotaur Exploration ~ 34%

• Market Cap of $ 35 M; current price $0.60 with 57.9 M shares on issue; cash $4.5 M

• 4 projects in South Australia and 7 projects in Spain

• Flagship Project - Paralana

• Exclusive government supported exploration agreement in China

- petra therm Strategic Skills Base

Combined skills and experience of the Board, Management, Partners and Consultants capable of delivering successful geothermal energy projects – from underground resource through to market

Petratherm

geological, renewable energy, exploration, project development

Beach Petroleum

subsurface – well design ,drilling & fracture stimulation

TRUenergy

Geothermal Explorers

generation, transmission and energy sales & marketing EGS technology, drilling and reservoir development

Paralana Project Joint Venture

– Beach Petroleum Farmin (Jan 2007) for up to $30M for 36% • $5M first well and stimulation

• $5M second well and stimulation – earns 21%

• After HEWI - Option to earn a further 15% for $20M • Plus equity share of project costs at every stage

– TRUenergy Farmin (Aug 2008) for up to $57M for 30% • $3M first well and stimulation

• $3M second well and stimulation – earns 10%

• After HEWI, have an Option to earn a further 5% for $7M • After 7.5 MW pilot plant - Option to earn a further 15% for $44M • Plus equity share of project costs at every stage

Beach Petroleum, TRUenergy and Petratherm have complementary sets

Paralana Project – Plan to be commercially viable at all Stages !

• $5M Federal REDI Grant

• Beach and TRUenergy Farm-ins

• – Off grid Market ~ Heathgate’s Beverley Uranium Mine

• – Staged capacity 7.5, 30, 260 and 520 MW

• – Next step is drilling 4 km HEWI wells

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Project Costs and Wind Comparison

• Stage 1 - HEWI model $25M to $30M

• Stage 2 - 7.5 MW pilot plant – add’nl $40M to $45M

• Stage 3 - 30 MW demo. plant –add’nl $125M to $130M

• Total 30 MW Project estimate* around $190M to $200M

• (*total current cost estimates and includes all transmission/substation costs)

• Paralana Project cost per MW of installed capacity is around $6M for a 30 MW base-load project operating 24/7 – capacity factor of around 95% would produce about 250 GWh annually

• Wind Project cost per MW of installed capacity is around $2M for a project size of greater than 30 MW and typically only operates for 1/3[rd ] of the time – capacity factor of 33% and producing around 87 GWh annually

• For a comparable annual output of 250 GWh the wind farm would need to be almost 90 MW (3 times larger than Paralana 30 MW) and hence overall capital costs to produce would very similar at around $180M

Petratherm Key Points of Differentiation

• Unique approach to “exploration for heat” and its commercial assessment of projects - “location, location, location” – resource, market, permits/stakeholders

• HEWI model approach to resource exploitation process for EGS/hot rock that aims reduce costs and risks – also reducing the time for delivery

• Flagship Paralana Project, clear commercial and competitive a

• advantages with a willing potential customer at “off grid” prices and realistic, long term and unique path to commercialization and two quality, complementary JV partners

• –

• Quality portfolio of 11 projects across geothermal technologies –

• EGS, District Heating and Volcanic sources – electricity and heat Australia and Overseas (Spain & China)

• Clear business model – aimed at introducing quality JV partners coupled with a strongly skilled Board, Management team and consultants - track record of successfully delivering projects

Project Portfolio

• International Geothermal Explorer and Developer

• Specialist Heat Explorer

• EGS, Conventional and Direct Heat

• –

• Strategy shallow hot rocks close to market & chance of flow!

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TAG
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Paralana Project
109 [o] C
• Heat flow of 128 mWm [-2]
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• Modeled 200 [o] c at 3.6km
(Seismic Line 84 SPG)
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Paralana 2008 - Development Path

• 2D Reflection Seismic and MT Surveys

• Installed Passive Seismic Array (IESE)

• • Cleared 1kmX 2km development site

• Casing and well head ordered

• Drilling contract –

• watch this space !

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Paralana 2009 Development Plan

• Last Q08 / First Q09 1[st ] Deep Well to ~ 4 Kms

• Well testing and stimulation program

• 4[th ] Quarter 2009 2[nd ] Deep Well

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Heat Exchanger Within Insulator (HEWI) Model

Petratherm Espana

• Right Geological environment for geothermal technologies

• First Mover Advantage

• High Electricity Prices

• Eight Projects – Conventional Geothermal, direct heat use & Engineered Geothermal (EGS)

• Strong Corporate and Government Interest

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Petratherm Spanish Projects

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Barcelona
Barcelona
Almazan
Madrid
Madrid
Murcia
Andalucia
Tenerife
Islands
Tenerife
Gran Canaria
Gran Canaria
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Tenerife Project

• Active Volcanic Terrain

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• Tenerife Population ~ 1 Million; load > 800 MW; Off-grid - (Diesel & Wind)

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• MT data consistent with magma chamber at 3-4 km below surface

• Recent analysis by ITER indicates presence of a hydrothermal system with 250-350 ºC and 30-40 bars pressure.

~~Bottom hole gradient~~ 94[o] C/Km

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(source ITER 2008)

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Madrid - District Heating Project

• Three 2000m wells have been drilled, defining an area of at least 50km[2] , 80[o] C fluid at 200 m[3] /hr at approximately 1500-2000m depth.

• Geomadrid Prefeasibility Study indicates – doublets Producing 8MWt with an annual production in excess of 45,000MWh (thermal)

• Expected to be an Economic Project with Attractive Returns !

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Finding Hot Rocks in China

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Yunnan Potential temperatures at 5km

Thank You

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

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