PTR MINERALS LTD — Investor Presentation 2009

Nov 26, 2009

ASX Release

PETRATHERM LIMITED ABN 17 106 806 884

MD's presentation to Morgan Stanley Geothermal Investor Forum

Petratherm's Managing Director, Terry Kallis, will present later today an update on the company and its projects to the Morgan Stanley's Geothermal Investor Forum being held in Sydney.

The Geothermal Investor Forum is being held for Morgan Stanley's clients. The Forum is expected to have over 20 funds and institutions in attendance

Key points from the presentation include:

• Key achievements over the past year
• An update on the Paralana drilling campaign and key factors for success of the Paralana 2 deep well
• An outline of the economic assumptions underlying the Paralana geothermal energy project
• An outline of the Paralana joint venture arrangements and an explanation of the mechanics of the joint venture in respect of the 30 MW demonstration project and the recent $62.8 million Renewable Energy Demonstration Program grant
• Longer term solution for transmission for large scale development from Paralana to Olypmic Dam
• Progress in Spain across Madrid, Barcelona and Tenerife
• Outlook for the Company over 2010 and in particular for the Paralana project.

The presentation is attached.

Yours faithfully

Terry Kallis Managing Director

MEDIA CONTACTS: Terry Kallis Petratherm Ltd 08 8274 5000 Kieran Hall / Tim Hughes Hughes Public Relations 08 8412 4100

ASX Code: PTR

27 November 2009

ABN 17 106 806 884

Level 1,129 Greenhill Road Unley SA 5061

T: +61 8 8274 5000 F: +61 8 8272 8141 W: www.petratherm.com.au/ E: admin@petratherm.com.au

Petratherm

Morgan Stanley Geothermal Investor Forum

Company and Projects Update Presented by Managing Director Terry Kallis

27 November, 2009

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.

Presentation Overview

• › Introduction Paralana DVD
• › Company and Projects Update
  • › Recent Achievements
  • › Paralana JV project
  • › East Gippsland
  • › Spain Madrid, Barcelona and Canary Islands
  • › China
• › Outlook for 2010 and beyond

Our company

Our company

• › Leading Australian geothermal exploration and development company
• › Projects spanning Australia, Spain and China
• › Flagship project Paralana

Other growth projects:

• › Madrid
• › Barcelona
• › Canary Islands, Tenerife
• › Victoria"s East Gippsland Basin
• › China exploration agreement

Corporate and financial

Listed ASX:PTR

• › Shares on Issue: 94.45 million
• › Share Price: $0.425 (25 Nov)
• › Market Cap: $40.2 million (25 Nov)
• › Cash Position: $8.7 million (23 Nov)
• › Shareholders: 3,424 shareholders
  • › Minotaur Exploration 22 %
  • › Australian Ethical Investments 4.8 %

Paralana Funding and Grants

• › Awarded Geothermal Drilling Program for $7 million and recently a Renewable Energy Demonstration Program for $63 million
• › JV Funding: up to $87 million plus equity share of project costs

Joint Venture Partners and Alliances

• › Paralana
  • › Beach Petroleum (up to 36 per cent for $30m)
  • › TRUenergy (up to 30 per cent for $57m)
• › Spain and Canary Islands
  • › Advanced discussions with several parties
  • › Cooperative agreement with Spanish Federal and Madrid Regional governments
• › China
  • › Conventional and Engineered Geothermal Systems
  • › Exclusive government supported exploration agreement

Petratherm share price

PTR Share Price and Volume 2009

Share price steady and improving despite an uncertain market. Trading volume has increased significantly

Board of Directors

Derek Carter Chairman

Simon O'Loughlin Director

Richard Hillis Director

Don Stephens Secretary

Board An experienced board with a strong combination of commercial and technical skills

• › Financial management
• › Legal
• › Marketing
• › Project Management
• › Corporate Governance
• › Exploration and development
• › Geology and Geophysics
• › Resources and Energy
• › Government and Stakeholder relations

Richard Bonython Director

Terry Kallis Managing Director

Our business model

"To explore for and develop emission free geothermal energy projects that are commercially sustainable"

• › To develop a portfolio of quality geothermal energy projects
• › Explore both conventional and engineered geothermal systems – for power and heat
• › Find a favorable combination of geology and market conditions - "shallow hot rocks close to market"
• › Introduce joint venture partners with the right skills, risk appetite and funding ability

Recent achievements

• › Emerged from a challenging financial year in a strong position
• › Drilling commenced with Ministerial Launch and has now reached target depth of 4012 metres – casing is being planned
• › TRUenergy signs as a joint venture partner
• › Paralana JV is awarded a $7 million geothermal drilling grant

Recent achievements

• › Paralana awarded $62.8 million Renewable Energy Demonstration Program Grant
• › $7.3 million raised in placement and Share Purchase Plan
• › Cooperative Agreement with Spanish Governments on the Geo-Madrid project
• › Exploration/assessments continue in Spain, China and Victoria

Geothermal energy technologies and cost drivers

Cost Drivers

• › Temperature
• › Drilling Depth
• › Flow Rate
• › Network Connection
• › Generation Plant
• › High upfront costs – drilling, fracture stimulation, connection, plant
• › Project economics are geology and location specific

Renewable energy policy and geothermal

Strong Federal and State Government support

• › $50 million geothermal drilling program with a maximum $7 million per project
• › $300 million Renewable Energy Demonstration Program
• › Review of electricity and gas networks by the Australian Energy Market Commission (AEMC)
• › Emissions Trading Scheme (CPRS)
• › Renewable Energy Target of 45,000 GWh by 2020
• › An increase in the REC penalty price from $40/MWh to $65/MWh and extending to 2030 improves revenue

Strong industry networks

• › Geothermal energy industry development framework
• › Australian Geothermal Energy Association (AGEA)
• › Australian Geothermal Energy Group (AGEG)

Our Australian projects

• › Paralana project
  • › 2000 HP drilling rig brought into Australia by Petratherm and our JV partners - now available to geothermal industry enabling other projects
  • › Drilling campaign of Paralana 2 well drilling finished at our site 600km north of Adelaide
  • › Temperature measurements 4 weeks after casing completed
• › East Gippsland in Victoria
  • › Awarded a 9,000km2 geothermal exploration permit to develop a Hot Sedimentary Aquifer
• › Renmark in South Australia
  • › Two geothermal exploration licenses (GELs), located 26 km northwest of Renmark in the Riverland region
  • › Close to two major transmission lines capable of carrying in excess of 220 MW of power

Paralana geothermal energy JV project - snapshot

Our Paralana project 600km north of Adelaide in South Australia

• › Anecdotal evidence from the Paralana hot springs in the nearby Flinders ranges
• › High heat flow 128 mW/m²
• › Measured temperature of 109˚C at 1807m
• › Mature basin, stable formations, no hydrocarbons
• › Inferred geothermal resource of 230,000 PJ – independent assessment by competent person - HDRPL
• › Customer for initial 3.75MW plant at nearby Beverley Mine
• › Potential commercial viability at all stages - scale up plan to 30MW and beyond

Paralana 2 well drilling – key success factors

• › The well was terminated at a depth of 4,012m, took longer and cost more than originally planned – logging under way and to be cased.
• › Key success factors developed to guide Paralana project and incorporated in JV decision-making, GDP grant contract and REDP grant application.
• › Key success factors for the Paralana 2 well are:
  • › Equal/better industry safety & environment benchmarks
  • › Target a minimum drill depth of 3600m and maximum drill depth of 4000m
  • › Achieve a minimum temperature of 170˚C at 4000m expect to meet/exceed (measured in 4 weeks after casing)
  • › Formation evaluation and selection of zones for stimulation – permeability/in situ stress field - observed inflows to well commencing at 3690m (to be assessed)

Paralana project – HEWI model and economic assumptions

HEWI Model at Paralana

The required heat exchanger is created in the porous insulating layer above the granite heat source. This is expected to reduce risk, cost and time

(*Long Run Marginal Cost calculation over 20 years, includes all costs, consistent with energy industry comparisons made by the Electricity Supply Association of Australia, McLennan, Magasanik and Associates and the AGEA Economics Committee)

Key Economic Assumptions:

• › Temp. of 170˚C to 200˚C at 3,600m to 4,000m
• › Flow rate of 75 litres per sec conservative compared with other public announcements
• › Net output per production well of 3.75 MW based on flow and inclusive of parasitic loads
• › 20 year project life, includes all costs with 12 wells for a 30 MW development and connection to customer and results in a LRMC* of $107/MWh (delivered), comparable with independently assessed industry LRMC ranges
• › Bundled price for sale of output black and RECs expected to be > $140/MWh due to current high off grid price at Beverley mine
• › JV retains the full value of black and RECs no predetermined price – retain full upside
• › Potential for commercial viability at small scale 3.75 MW, 7.5 MW and 30 MW

Paralana joint venture arrangements

• › Beach Petroleum Farm-in (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 Farm-in (Aug 2008) for up to $57M for 30%
  • › $3M first well and stimulation
  • › $3M second well and stimulation earns 10%
  • › After HEWI 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

Under the Paralana Joint Venture post HEWI and with REDP

For a $200m , 30 MW demonstration project with JV options taken up – Petratherm would require minimal investment - retains 34% of project and resource

Joint Venture Contributions post HEWI (assumes earn-in options exercised)

Project costs to 2014 for 30 MW project – almost free carry

With REDP –BaseCase CostAssumption	ForecastCapitalCost ($m)	BeachContribution($m)	TRUContribution($m)	PTRContribution($m)
7.5 MW (1 well plusplant plustransmission)	$45m	$25.4m	$9.3m	$0.4m
30 MW (9 wells plusadditional plant)	$155m	$37.1m	$65.9m	$0.0m
Total without REDP	$200m	$62.5m	$75.2m	$0.4m (0.2%)
With REDP –20%Cost Increase
7.5 MW (1 well plusplant plustransmission)	$54m	$28.6m	$10.6m	$4.8m
30 MW (9 wells plusadditional plant)	$186m	$48.2m	$84.2m	$1.6m
Total with REDP	$240m	$76.9m	$94.8m	$6.3m (2.6%)

Paralana transmission plan

• › Close to customer at the Beverley mine – only 10 kilometres away
• › Plans for mine expansions Four Mile deposit and new areas under exploration
• › Longer term plan to supply largescale base load power through entry points at Port Augusta and Olympic Dam
• › Potentially from plants of 260MW to 520MW capacity and two high voltage transmission lines
• › Consistent with industry network solution and the Australian Energy Market Commission"s recent proposal for changes to the National Electricity Rules – to facilitate renewable energy

Industry transmission plan – northern SA

• › 2009 independent report by McLennan Magasanik & Associates (MMA) shows savings in linking geothermal projects in the northern part of South Australia early to the National Electricity Market (NEM)
• › MMA estimates benefits of $860 million for South Australian customers and $2.8 billion for customers across the Australian market
• › Geothermal energy to displace higher cost forms of renewable energy
• › Potentially the first "SENE" scale efficient network extension - efficient connection of clusters of generation to be proposed by AEMC

MMA Report " Assessment of the value of new 275 KV transmission line to connect Geothermal Resources to the NEM in South Australia"

Financial Year ending June	Geodynamics(Innamincka)Net sent-out capacity	Petratherm(Paralana)Net sent-out capacity
2011	$\mathbf{0}$	7.125
2012	$\mathbf{0}$	7.125
2013	50	7.125
2014	50	28.5
2015	100	57
2016	150	85.5
2017	250	114
2018	400	152
2019	550	190
2020	550	228
2021	550	266
Capacity Factor	95%	95%
Ultimate Capital Cost ($M)	S2,750	$1,300
Transmission Cost 2 ($M)	$553	$164
Generation LRMC ($/MWh)	$68	$72
TransmissionCost($/MWhso)	$10	$7
Loss to Olympic Dam	15%	5%
LRMC to OD ($/MWh)	$91	$83

Paralana delivered price after paying for electricity transmission is estimated by MMA to be $83/MWh to Olympic Dam

Table shows long term development path for PTR with MMA assuming a 9.3% and 7.8% real discount rate for plant and transmission respectively.

Paralana 2 - Drilling Completed to 4012 m – Nov 2009

• › First well designed following low-risk, standard operating methods
• › Steady but slow drilling due to hard formations
• › Conservatively drilled to ensure success
• › Wireline and LWD logging to be completed this week
• › Well is to be cased and cemented
• › Temperature measurements to be undertaken in 4 weeks after casing
• › Inflow zones encountered from 3690m

Paralana 2 – geothermal brines

• › Inflow zones from 3690m
• › Brine samples taken
• › Wireline and LWD Program

Reservoir Characterisation!

• › Temperature
• › Permeability
• › Insitu stress field
• › Geology
• › Rock Properties

Australia - East Gippsland, Victoria

• › Petratherm has a 9,000km2 geothermal exploration permit for the East Gippsland Basin in Victoria
• › Hot Sedimentary Aquifer Project
• › Favorable transmission connection options to the National Electricity Market
• › Expect fluid in excess of 150˚C at economically viable drill depths (3.5– 4.0 kms)

Our East Gippsland project east of Melbourne in Victoria

Spain

Madrid

• › Madrid District Geothermal Heating Project
• › Signed cooperative agreement with Spanish Federal and Madrid Regional governments

Barcelona

› Have four geothermal investigation permits – both engineered geothermal and district heating potential

Canary Islands/Tenerife

• › Magnetotelluric survey of volcanic island
• › Advanced joint venture discussions

Madrid – home to our promising district geothermal heating project

Spain – Madrid district heating project

"Highlighted as one of six renewable energy projects of interest within the Madrid Regional Government's Renewable Energy Cluster"

• › Large tenement 20km by 20km in the north of Madrid
• › Three shallow 2000m wells drilled
• › One deep 3.4km well drilled with 156˚C
• › Study indicates producing 8MW with annual production in excess of 45,000MWh (thermal)
• › Cooperative agreement between Spanish Federal and Madrid Regional Government

Madrid tenement area – 25 km north of the city

Spain - Barcelona

Barcelona – Petratherm has four investigation permits 30kms north-north east of the city

• › Petratherm has four geothermal investigation permits covering areas within the Valles and Ebro Basins near the city of Barcelona
• › Close to major electricity transmission infrastructure
• › The geology and market characteristics make the area attractive for geothermal district heating and engineered geothermal systems

Spain - Tenerife

• › Active volcanic island with a population of one million
• › Studies suggest magma chamber 3km to 4km below surface
• › Targeting 50MW to 100MW development
• › Energy prices are over €90/MWh or AUD $150/MWh three times prices in Australia
• › Commenced extensive magneto-telluric survey work to pinpoint best well site
• › Advanced joint venture discussions to develop Tenerife project Tenerife MT survey stations

China

• › 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
• › Two areas in South East China identified for potential future development - Jiangsu Province and Subei Basin
• › Target Hot Sedimentary Aquifer contained in permeable Limestone at 4km to 5km depth
• › Petratherm recently hosted a Chinese delegation (refer photo) in Australia – met with PIRSA and SA Mineral Resources Development Minister Paul Holloway, visited Paralana and Innamincka

Outlook for 2010 and beyond

Paralana Joint Venture Project

• › Complete logging, casing and temperature measurement, formation evaluation and fracture program design
• › 1st Qtr 2010: Mini fracture program/fracture stimulation design
• › 2nd Qtr 2010: Multi-zone fracture stimulation
• › 3rd Qtr 2010: drilling of the Paralana 3 deep producer well
• › End 2010: Circulation Test Proof of Concept
• › 2011: Commission first stage 3.75 MW power plant

Outlook for 2010 and beyond

• › Complete Tenerife MT survey and progress JV negotiations – identify deep drill target in Q1 2010, develop work program
• › Continue Madrid GDH coordination with Federal & State Governments and progress JV opportunities complete Q1 2010
• › Other projects Barcelona GDH/EGS and Madrid EGS
• › China exploration strategy and JV opportunities

www.petratherm.com.au