PTR MINERALS LTD — Investor Presentation 2009

Nov 10, 2009

ASX Release

PETRATHERM LIMITED ABN 17 106 806 884

AGEA Chairman presentation to 2009 Australian Geothermal Energy Conference

Petratherm's Managing Director, Terry Kallis, will present later today as Chairman of the Australian Geothermal Energy Association to the 2009 Australian Geothermal Energy Conference being held at the Hilton Hotel in Brisbane.

The conference program includes the Federal Minister for Resources, Energy & Tourism, The Hon Martin Ferguson AM, MP and the Queensland Minister for Natural Resources, Mines & Energy and Minister for Trade, The Hon Stephen Robertson MP.

The conference is expected to have over 400 delegates in attendance.

The topic to be covered is "Outlook for 2010 and Beyond" and will outline expectations for the Australian geothermal energy industry in the coming year and over the next decade.

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

11 November 2009

ASX Code: PTR

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

"Outlook for 2010 and beyond"

11 November 2009

Terry Kallis Chairman, Australian Geothermal Energy Association

Slide 1

• Activity will accelerate through 2010
• Funding is critical equity, JV and grants
• Regulatory environment will be in place
  • Legislation
  • RET and CPRS
  • NEM changes
  • Geothermal reporting resources & economics
• Beyond 2010
  • Potential is enormous, profound effect on NEM
  • Industry consolidation and new entrants Slide 2

Presentation Outline

• Industry Overview
• Renewable Energy Policy and Geothermal
• Landmark reports MMA
• Outlook for 2010
• Beyond 2010

Other matters.....

Geothermal resource in Australia

Indicative Resource

• Australia"s hot rock energy is estimated to be 150oC to 5km, or about 1.2 billion PJ
• This is equivalent to about 26,000 times the annual primary energy use in Australia

Geothermal energy projects

Industry Snapshot

• GELS/GELAS
• Australia 383
• Expenditure more than $1,500 million
• 48 companies in total
• 10 ASX listed geothermal
• 7 ASX listed energy

Renewable energy policy and geothermal

Strong Federal and State Government support

• $50 million geothermal drilling program with a maximum $7 million/project ($14m awarded)
• $300 million Renewable Energy Demonstration Program ($153m awarded)
• Review of electricity and gas networks by the Australian Energy Market Commission (AEMC) changes to assist renewables
• 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

Strong industry networks

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

Landmark independent industry reports

• Independent reports by McLennan Magasanik Associates 2007 & 2008
• Geothermal energy is expected to be the lowest cost from renewable energy by 2030 and directly competitive with coal by 2050
• Geothermal energy is expected to build up to 2,200 MWs of baseload capacity by 2020
• An estimated $12 billion investment to develop capacity
• This represents up to 40% of the Federal Government"s 2020 Renewable Energy Target of 45,000 GWh - the equivalent of the output of around 6,000 MW of wind farms
• Generation costs $120/MWh at small scale (10 MW to 50 MW) and decreasing to around $80/MWh at large scale (300 MW or greater) by 2020

Landmark independent industry reports

Landmark independent industry reports

• 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

Industry Outlook for 2010

• 2010 a "watershed" year for the industry where activity will be accelerated across the board
• Proof of concept (POC) drilling underway in at least 7 projects (GDP), only limited by availability of drilling rigs
• Expect there to be successes and failures, and everything in between – nature of exploration and development
• Geodynamics plan to proceed with Jolokia drilling, new doublet and 1MW power plant (REDP grant $90.0 m for 25MW)
• Petratherm plan to complete HEWI model (POC) during 2010 (REDP grant $62.8 m for 30 MW)

Industry Outlook for 2010

• Others planning to drill deep (POC) wells in 2010 Greenearth, Torrens, Green Rock, Hot Rock …..others?
• Additional drilling rigs to be available to enter the market – existing and new imports
• At least three new players entering into joint ventures with existing projects – resources, utilities and other (Origin, Beach, TRUenergy, AGL have already taken positions …….others?)
• At least three new listed explorer/developers (New World Energy, Granite Power…..others?)

Industry Outlook for 2010

• Legislative and regulatory changes to increase exploration licenses and permits across Australia
• Beginnings of consolidation in the industry driven primarily by funding needs (JV, grants & equity) but also by needs for skills and critical mass
• Increased transparency by industry of resources (GR Code) and economics (AGEA Committee), comes with the increased maturity of the industry
• Policy changes for GDP and REDP to be debated and lobbied by AGEA – currently no future grant mechanisms

• The potential of the industry is enormous by 2020 and out to 2030
• Lowest cost source of renewable energy bar none before 2020
• Longer term (30 years) to be directly competitive with coal without subsidy
• "Coal seam gas in the making" many similarities
• Profound impact on the NEM changing traditional power sources and corridors

Industry Outlook beyond 2010

• Forefront of EGS technology development in Australia leverage into much larger markets - USA, Europe, China, India
• Increased attention on geothermal energy generally across the world – US DoE, Australia, Europe
• Large new entrants will appear in the market as risks reduce and funding needs increase – significant consolidation of the sector
• Continued and increased strong commitment from Federal and State governments

Industry Outlook beyond 2010

• Activity will accelerate through 2010
• Funding is critical equity, JV and grants
• Regulatory environment will be in place
  • Legislation
  • RET and CPRS
  • NEM changes
  • Geothermal reporting resources & economics
• Beyond 2010
  • Potential is enormous, profound effect on NEM
  • Industry consolidation and new entrants Slide 16

Industry Outlook beyond 2010

• Predict a very bright outlook for the Industry
• Contingent on success and significant progress by the industry over the next few years

" The ball is in our court "

AGEA/AGEG Thank You's

• Adrian Williams (Deputy Chairman)
• Chris Matthews (Treasurer)
• Alan Knights (Secretary)
• John Libby (Committee)
• Kerry Parker (Committee)
• AGEA staff Susan Jeanes and Vicki Cleveland
• AGEC Committee Tony Hill (Chair)
• State Conveners and AGEA Committee members
• AGEG Barry Goldstein (Chair)
• Conferences

Conference Venue Bali…

• o Short Courses Wednesday, 21-25 April 2010
• o Pre Congress events, Trips & Cocktail Parties Sunday, 25 April 2010
• o Congress Events Monday, 26-30 April 2010
• o Post Congress events and Field Trips/Tour Saturday, 1-3 May 2008
• o Exhibtion 26-30 April 2010

Important Dates…

PAPER SUBMISSION
31 January 2009	Abstract Submission
1 April 2009	Notification
31 May 2009	Draft Technical Paper submission
30 October 2009	Final Technical Paper submission
REGISTRATION
Before 30 November 2009	EARLY
1 December 2009 - 28 February 2010	NORMAL
1 March 2010 onward	LATE
1 March 2010 onward	LATE

207 days to the Congress

Detailed information available at www.WGC2010.org

Register now or earlier… for Early Bird Discounts…!!

International Geothermal Association Indonesia Geothermal Association

And Breaking News …

See you in Melbourne In 2015 !!