PTR MINERALS LTD — Investor Presentation 2008

Apr 29, 2008

==> picture [221 x 77] intentionally omitted <==

PETRATHERM LIMITED ABN 17 106 806 884

Petratherm uniquely positioned for Success in the Australian & Spain and increasingly Global Energy Sector

Petratherm Managing Director, Mr Terry Kallis, will later this morning present an update on the Company’s activities to first day of the 2008 Paydirt South Australian Resources & Energy Investment Conference in Adelaide.

The key message of his presentation is that the Company is uniquely positioned for success in the geothermal energy sector in Australia & Spain and increasingly globally.

The address to the Investment Conference, entitled ‘Building a Portfolio of Quality Geothermal Energy Projects – Australia and Overseas’ (refer attached and PTR website), outlined Petratherm’s emerging leadership in the geothermal energy sector and covered an number of key points, as follows :

30 April 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 : Hadmin@petratherm.com.au

• Petratherm’s mission is “to explore for and develop, emission free, geothermal energy project, that are commercially sustainable”.

• Petratherm’s business model is “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”.

• Petratherm’s innovative exploration model and process developed in 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 (engineered geothermal systems (EGS), conventional & district heating) – across a variety of geological settings, end use markets and regulatory regimes in various countries.

• The Company’s strength in geothermal energy exploration has enabled it to create a portfolio of 11 quality geothermal energy projects in Australia and Spain, and soon in China – where Petratherm has an exclusive Agreement with four Chinese Government Institutions to identify new projects. Of particular importance has been Petratherm’s move over the past year into Spain where it has secured strategic ‘first mover’ advantage with seven projects, including near the large electricity consumption markets of Madrid and Barcelona.

• Petratherm’s unique Heat Exchanger Within Insulator (HEWI) 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 Company’s seven Spanish projects are very encouraging . This 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 potential for both District heating and EGS developments. The Madrid license area has five wells drilled to depths of between 1.5 to 3.4 kilometres – providing critical temperature, hot water flow rate and geological data. This provides the opportunity for significant and low cost, project advancement and is being utilized in current PreFeasibility of the Madrid Geothermal District Heating (GDH) Project (to be finalized in early May 2008) .

• The Madrid GDH project exhibits similar temperatures and flows at similar depths to those of the Paris basin where district heating has been operating for over 20 years and around 260 MW of thermal capacity is installed in 34 doublets. The Geo-Madrid existing doublet shows temperatures of 75°C, flow rate of 200m3/hour at 1500 metres. The Madrid EGS project will focus on the northern part of the license area where the existing Pradillo deep well (3,400 metres) shows a temperature of 156 °C.

• The Paralana Project has now assembled all the key ‘ingredients for success’ including:

• An excellent thermal resource at shallow depth – estimated at 200°C at 3.6 kilometres.

• The highest recorded heat flow on mainland Australia of 128 mW/m[2]

• A stable geological formation with expected good drilling conditions.

• Close proximity to a willing potential customer, Heathgate Resources – Beverley Uranium Mine, that currently pays ‘off-grid’ prices.

• A joint venture with a leading 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.

• A $5 million Renewable Energy Development Initiative (REDI) Grant from the Federal Government to assist in the creation of the underground heat exchanger.

• Securing, on an exclusive basis specialist Swiss-based EGS consultants – Geothermal Explorers , to assist the development of the HEWI model

• 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 next steps in the development of the Paralana Project include:

• Spudding of the first deep well (up to 4 kilometres) in the second half of 2008

• Application for Federal Government “Drilling Fund” support for the two deep well program – second half of 2008

• Drilling of second deep well – 3 to 6 months after the first well

• Application for Federal Government “ Renewable Energy Fund” – for a 30 MW demonstration plant – in 2009

• Long term circulation test in mid-2009

• Production of first power to Beverley Uranium Mine – early/mid 2010.

• The Paralana Project is considered uniquely positioned to enable 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 ‘offgrid’ 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)

==> picture [335 x 264] intentionally omitted <==

• 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:

• A double circuit 275kV transmission line from Paralana to Port Augusta capable of delivering 520MW into the NEM at Port Augusta . (“Radial network solution”).

• 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.

• Petratherm aims to continually increase shareholder value through:

o 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.

o 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.

o 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.

Yours faithfully

==> picture [94 x 43] intentionally omitted <==

Terry Kallis Managing Director

MEDIA CONTACT:

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

therm petra

SA Resources & Energy Investment Conference 2008 Developing a Portfolio of Quality Geothermal Energy Projects

Presented by: Terry Kallis Managing Director Petratherm Limited 30 April 2008

Key Messages

• Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects - “location, location, location” – resource, market, permits/stakeholders

• The approach has resulted in a portfolio of 11 quality projects in Australia and Overseas – first mover in Spain - EGS, conventional & district heating and commencing in China

• Petratherm’s unique HEWI model has the potential to concurrently and substantially reduce costs and risks – also reducing the time for delivery

• Petratherm has, in its Paralana Project, clear commercial and competitive advantages with a willing potential customer at “off grid” prices and a realistic long term commercialization path – unique path to commercialization

• Petratherm’s business focus is to increase shareholder value through a clear combination of strategies that reduce cost, reduce risk and optimize revenue

Petratherm Mission and Business Model

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”

Engineered or Enhanced Geothermal Systems

==> picture [545 x 409] intentionally omitted <==

Petratherm Limited Geothermal Energy Explorer & Developer

• MEP major shareholder 34%

• • Market Cap $44 M, current price $0.77

• Four Australian projects in SA

• Seven Spanish projects

• • Exclusive agreement to identify projects in China

• Flagship Paralana Project

• Up to $30M JV with Beach Petroleum

• Federal grant of $5M

• MOU with Heathgate Resources to supply power

• Next step drilling of deep wells

Almazan

Petratherm Limited Geothermal Energy Explorer & Developer

• Seven Spanish projects

• Conventional & EGS

• Potential for electricity production and direct use heating

• First mover advantage

• Geology is conducive to EGS

• High electricity prices

• Strong Corporate interest

• Expanding project portfolio

==> picture [318 x 226] intentionally omitted <==

----- Start of picture text -----

Almazan
Almazan Barcelona
Madrid
Alicante
Seville
Tenerife
Gran Canaria
----- End of picture text -----

• Leading policy development

petra therm Board & Management

==> picture [124 x 166] intentionally omitted <==

==> picture [120 x 167] intentionally omitted <==

==> picture [128 x 166] intentionally omitted <==

==> picture [120 x 166] intentionally omitted <==

Derek Carter Chairman

Simon O’loughlin Director

Prof. Richard Hillis Director

Dr Lloyd Taylor Director

==> picture [124 x 166] intentionally omitted <==

==> picture [116 x 166] intentionally omitted <==

==> picture [124 x 166] intentionally omitted <==

==> picture [123 x 166] intentionally omitted <==

Corporate Overview

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

Beach Petroleum - subsurface – well design , drilling & fraccing Geothermal Explorers– EGS reservoir/project development Expert Consutlants – Prof. Richard Hillis & Dr. Martin Hand

Petratherm’s Exploration Model “Shallow Hot Rocks close to Market"

“Hot Rocks” are EGS , i.e. Engineered Geothermal Systems Prime Cost Drivers

• Temperature Differential

• Drilling Depth

• Flow Rate

• Network Connection

• Generation Plant

==> picture [219 x 256] intentionally omitted <==

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

Heat Exchanger Within Insulator (HEWI) Model

EGS - engineered geothermal system i.e. underground heat exchanger

• Higher Permeability

• Chemically Stable

• No Potential Radon build up

• Lower Risk

• = Cheaper Power !

==> picture [366 x 358] intentionally omitted <==

==> picture [720 x 540] intentionally omitted <==

----- Start of picture text -----

Phase 3 drilling
Paralana Work Program
109 [o] C
petra therm Temperature measurements indicate 200 degrees C at 3.6km
----- End of picture text -----

Paralana Geothermal Energy JV Project

Key Ingredients for Success

– Excellent thermal resource 200ºC at 3600m – Highest mainland heat flow 128mW/m2 – Stable geological formation – drilling conditions – Close proximity to willing customer – Beverley Uranium Mine – off grid prices – Up to $30 M JV with Beach Petroleum – $ 5 M Federal REDI Grant for HEWI – EGS Specialists –Geothermal Explorers – Unique path to long term commercialization

Paralana Geothermal Energy JV Project

Development Summary

• Spud first well in second half of 2008

– Apply for Federal Govt. drilling funding for 2 well program – second half of 2008

• Apply for Fed Govt. Renewable Energy Fund, 30 MW demonstration -2009

• Drilling second well – 3 to 6 months after first well

• – Long term circulation tests mid 2009

• Produce first power to Beverley – early/mid 2010

– Upscale to from 7.5 MW to 30 MW and then large scale development of 260 MW to 520 MW

Paralana Commercialization Plan

==> picture [546 x 430] intentionally omitted <==

Madrid Geothermal Projects GDH & EGS

Geo-Madrid existing well doublet with temperatures of 75ºC, flow rate of 200m3/h 1500m, potential capacity of 8 MWt or 45 GWth/a - Pradillo well 3,400 m at 156 º

Exclusive Cooperative Agreement to identify high prospect geothermal energy projects in China with four Chinese Government Institutions

• Chinese Geothermal Energy Society

• Geological Survey of China

• Chinese Academy of Sciences

• China Institute of Geo-Environment Monitoring

==> picture [720 x 109] intentionally omitted <==

==> picture [720 x 72] intentionally omitted <==

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

Summary

• Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects - “location, location, location” – resource, market, permits/stakeholders

• The approach has resulted in a portfolio of 11 quality projects in Australia and Overseas – first mover in Spain - EGS, conventional & district heating and commencing in China

• Petratherm’s unique HEWI model has the potential to concurrently and substantially reduce costs and risks – also reducing the time for delivery

• Petratherm has, in its Paralana Project, clear commercial and competitive advantages with a willing potential customer at “off grid” prices and a realistic long term commercialization path – unique path to commercialization

• Petratherm’s business focus is to increase shareholder value through a clear combination of strategies that reduce cost, reduce risk and optimize revenue

Thank You

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

==> picture [360 x 473] intentionally omitted <==

Overview of Geothermal Energy Industry

• Geothermal Energy Policy in Australia

• Engineered Geothermal Systems and Energy Cost Comparisons

• Geothermal Energy and Electricity Markets

• South Australian Projects

• Geothermal Energy Project Economics

• Key Challenges for EGS Projects

Renewable Energy Policy & Geothermal

• Federal Labor Government Clean Energy Plan to ratify Kyoto, Emissions Trading by 2010, 20% Renewable Energy target by 2020, $500 M Renewable Energy Fund including a $50 M drilling initiative fund

• The Australian Geothermal Energy Group (AGEG) – South Australian Government initiative, developers/companies, academic/research institutions and government departments federal/state – collaborative work

• The Australian Geothermal Energy Association (AGEA) – developers/companies and service companies – Policy and Advocacy notably to governments.

Geothermal Energy Cost Comparison

1600 Brown Coal PF 420MW (CF85%) Electricity Supply Industry Planning Council Brown Coal PF 420MW (CF85%) + GS 1400 • 6.8% Australia’s base-load from hot rocks Black Coal PF 420MW (CF85%) Black Coal PF 420MW (CF85%) + GS by 2030 1200 • “significant potential impact” Black Coal Supercritical 860MW (CF85%) Brown Coal Gas Combined Cycle 130MW (CF65%) 1000 Gas Combined Cycle 250MW (CF65%) Black Coal 800 Gas Comb’d Cycle 250MW (CF65%) + GS Black Coal Gas Combined Cycle 400MW (CF60%) 600 Wind 90 MW (CF35%) Geothermal is: Gas Geothermal 550 MW (CF70%) 400 • Nuclear CANDU 6 1450 MW (CF 85%) CHEAP • Brown Coal + CO2 capture LARGE SCALE Black Coal + CO2 capture 200 • BASE LOAD Gas + CO2 capture Geothermal Wind 0 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 AUS Generation Cost AUS$/MWhr

Global Geothermal Energy Installed Capacity in MW

==> picture [664 x 367] intentionally omitted <==

Total 10,000 MW (2006)

Geothermal Energy and Electricity Markets

Australia

• Australia has the ideal conditions for EGS – high heat producing granites and a continent that is under compression

• 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 Opportunities).

SA Geothermal Projects

• Many players – 33 Companies, 10 ASX listed

• 277 GELs mostly in SA – PACE grants

• Very large resources

• Exploiting different geothermal resources mainly Hot Rock but also “Hot Water”

==> picture [442 x 463] intentionally omitted <==

----- Start of picture text -----

South Australian heat flow
anomaly
Pacific Hydro
Habanero 1,2
Geodynamics
Eden
Eden
Geodynamics Osiris
Proactive
Eden
Petratherm Yerila 1
Proactive
Petratherm
Blanche 1
Green Rock Eden
Paralana 1B
Proactive
Torrens
Regional power grid
Geothermal
Green Rock
Eden
Torrens
200 km Petratherm
Geothermal
Heat Flow 1,3,4 Osiris
Sedimentary basin (thermal blanket) Scopenergy
----- End of picture text -----

Geothermal Energy Project Economics

• Temperature (differential, quality and type of resource) • Drilling Costs (depth, size, geological formation, availability) • Energy Flow Rates (volume, pressure, energy transfer) • Plant Capital Costs and related efficiencies • Connection and Access to markets • Operating Costs

• Economies of Scale/Production

• Revenue/Product Pricing in a Competitive Market • Regulatory Regime – carbon pricing

• Critical Project Parameters are Revenue (grid/off grid & carbon prices), Capital Costs (drilling, plant, connection) and Thermal Resource (temperature differential, volume and flow)

Network Access & Connection

==> picture [591 x 375] intentionally omitted <==

----- Start of picture text -----

�
�
�
�
�
�
� [= Wind Farm]
�
= Best Wind Resource
therm �
petra
Transmission Data Courtesy of ElectraNet �
----- End of picture text -----

• Transmission Costs

• Transportation losses

• Margin Loss Factor

• System Stability

• Development Approvals, Licensing, Easements and Permits

• Network Capacity at connection point

Challenges for EGS Projects

• Securing a quality site – the three locations – resource, market, permits – optimizing economics in a competitive market – primary project risk reduction

• Confirming the quality of the potential resource – temperature differential, stress regime / permeability.

• Deep drilling of wells – well design, drilling rig availability and costs.

• Establishing long-term circulation between injection and production wells - permeability, fracturing, flow rate.

• Integration of above-ground generation plant with below-ground thermal resource, achieving reliable power plant output – then followed by up scaling of generation capacity.

• Electrical connection (transmission) to the National Electricity Market.

• Water quality, usage, net losses, rights, obligations, accessibility, environmental impacts – short and long term – small and large scale.