PTR MINERALS LTD — Investor Presentation 2009

Aug 16, 2009

ASX Release

PETRATHERM LIMITED ABN 17 106 806 884

Resources Victoria Conference

Australian Geothermal Energy Association Chairman and Petratherm Managing Director, Mr Terry Kallis, will later this morning present an overview of the geothermal industry in Victoria to the first day of Paydirt's Resources VictoriaConference in Melbourne.

Yours faithfully

Terry Kallis Managing Director

MEDIA CONTACTS:

Kieran Hall / Tim Hughes Hughes Public Relations 08 8412 4100

Terry Kallis Petratherm Ltd 08 8274 5000

17 August 2009

ASX Code: PTR

ABN 17 106 806 884

105-106 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

17 August 2009

Resources Victoria Conference

"Overview of Victorian Geothermal Energy Industry "

Presented by: Terry Kallis - Managing Director Petratherm Limited and Chairman, Australian Geothermal Energy Association

Explorer and Developer of Geothermal Energy Explorer and Developer of Geothermal Energy

This presentation has been prepared by Petratherm Limited (Petratherm). The information contained in this presentation 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 believe that it is not accurate, reliable or complete, it may not have been independently audited or verified by Petratherm. Petratherm.

Any forward-looking statements included in this document involve subjective judgment and analysis and are subject to subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, to, Petratherm. In particular, they speak only as of the date of this document, they assume the success of Petratherm's Petratherm's strategies and they are subject to significant regulatory, business, competitive and economic uncertainties 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 this document and does not take responsibility for updating any information or correcting any error or omission which may 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") ("Agents") disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or default or lack of care of Petratherm and/or any of its Agents) for any loss or damage suffered by a Recipient or other 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 Outline Presentation Outline

• •Key Messages
• •Geothermal Energy – technology and costs
• •Australian Geothermal Energy potential
• •Victorian geothermal exploration and development
• •Developers
• GreenearthEnergy
• Granite Power
• Hot Rock Ltd
• Torrens Energy
• PetrathermLimited
• •Renewable Energy Policy & Geothermal
• •Conclusions

Key Messages Key Messages

• • Geothermal energy has the potential to provide large scale, base load and low cost renewable energy - variety of technologies and applications
• • Australia has the key ingredients for developing successful engineered geothermal systems (EGS) and hot sedimentary aquifer projects
• • While northern SA has the best known EGS (hot rock) geothermal resources, Victoria and SE of SA have the best known hot sedimentary aquifer resource potential
• • Geothermal projects face a number of challenges, including but not limited to – drilling, achieving adequate flow rates, power conversion efficiency, cost of delivery to market (proximity) and water issues.
• • Strong government support for geothermal and renewable energy with capital funding and price of carbon – more can be achieved needed with increased capital funding coupled with increased industry cooperation (R&D, drilling and network connection).

Geothermal Energy Geothermal Energy Geothermal Energy - Technologies Technologies Technologies

Cost DriversCost Drivers

• •Temperature
• •Drilling Depth
• •Flow Rate
• •Network Connection

•Generation Plant

High up front costs – drilling, fracture stimulation, connection, plant (low O/M + no fuel costs)

Geothermal Energy Technologies

Hot Fractured Rock (HFR) Very limited natural permeability. needs to be enhanced - "FGS"

Requires highly specialised technology

Hot Sedimentary Aquifer (HSA)

High levels of natural permeability from both porosity (1°) and fractures (2°) Developed and produced with conventional geothermal technology

Volcanic Geothermal

High levels of natural permeability from predominantly fractures (2°) Developed and produced with conventional geothermal technology

Geothermal Energy Cost Comparison Geothermal Energy Cost Comparison Geothermal Energy Cost Comparison

Drivers Drivers - The Promise of Geothermal The Promise of Geothermal

Indicative Resource Map

Australia's hot rock energy 150oC to 5km ~ 1.2 billion PJ

~20,000 X annual primary energy use in Australia

Source: Geoscience Australia (2007)

Drivers Drivers Drivers- Govt. Legislation and Support Govt. Legislation and Support Govt. Legislation and Support

• 1. Geothermal Tenure - SA, Vic, Tas, NSW, QLD, WA ( and NT soon)
• 2.RECS, NGACS, VRECS, Carbon Schemes
• 1. State and Federal Govt. grants ~ \$100 Million since 2000
• 1. Geothermal Industry Development Framework – COAG Initiative
• 1. Australian Geothermal Energy Group (AGEG) Australian Geothermal Energy Association (AGEA)

MMA Report on Geothermal MMA Report on Geothermal Report on Geothermal - Findings Findings Findings

• •Geothermal energy expected to build up to 2,200 MWs of baseload capacity by 2020;
• •An estimated \$12 billion would be invested to develop that capacity;
• •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 are expected to move rapidly down the cost curve from around \$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; and
• • MMA Treasury modeling report shows most of the capacity is expected to come from developments in SA other states increasing their contribution toward by 2020

Growth of Australian EGS Industry Growth of Australian EGS Industry

GELS / GELASGELS / GELAS

A t u s	3 8 3
V i c	2 3

Expenditure Expenditure

Aust. > \$1,500 Mill > \$1,500 Mill Vic ~ \$ 375 Mill Vic ~ \$ 375 Mill

48 companies in total 10 ASX listed geothermal 7 ASX listed energy

Geothermal Energy in Victoria Geothermal Energy in Victoria –Regulation Regulation

• •Geothermal Energy Resources (GER) Act provides framework for geothermal energy for depths > 1,000 metresand temperatures > 70ºC.
• •GER Act provides secure title and clear, consistent approvals process for companies.
• •Small scale geothermal projects – heat pumps – excluded from the GER Act.
• •Small scale geothermal to be regulated by existing planning, environmental and water legislation.

Victorian Exploration Permits

Geothermal Energy in Victoria Geothermal Energy in Victoria -Snapshot Snapshot

• •23 geothermal exploration permits held by seven companies.
• •Total area of GEPs is 162,000 km 2, 72% of the state and a total proposed expenditure over five years is \$376 million.
• •Proximity to high-voltage transmission lines in most areas.
• •Aim to contribute to achieving the VRET target of 10% from renewable by 2016.
• • \$72 million Victorian government fund to help finance large-scale renewable energy demonstration projects.

Geelong Geothermal Power Project (GGPP)

Stage 1 Proof-of-Concept	• Located 11 km north of the Anglesea Brown Coal Fired Power Station . 2 deep wells to circa 4,000m with potential for wells to be utilised in Stage 2 • Planned to commence mid 2010
Stage 2 Demonstration	Initial 12MW Hot Sedimentary Aquifer (HSA) Organic Rankine Cycle (ORC) geothermal power plant demonstration development.
Stage 3 Commercialisation	Fully scalable demonstration plant project in 12MW multiple increments to 140MW supported by existing grid infrastructure capacity (potentially to 90 MW) with low cost line upgrade to 360MW.
Proximity	. Existing Grid Infrastructure with available capacity • Major Emitting Industries • Victoria's largest urban growth plan - Armstrong Creek
Federal Government Grant Applications	Greenearth Energy has two Federal Government grant applications pending for the GGPP which, if successful, will see the drilling of its first wells in mid 2010.
First Victorian Geothermal Power Plant	Greenearth Energy's GGPP is targeting to become Victoria's first grid connected geothermal power plant.

Greenearth
Energy Ltd.

71

Outlook for Victoria

• . One tenement: West Gippsland GEP11
• east half of Melbourne & beyond
• Formal Inferred Resource: $31,000$ $(+/-7,000)$ PJ
• Equates to $~1$ , 000MW generating capacity (25 year life)
• South of Warragul, & open to south
• Proposed Project:
• 5MW Demonstration of GRANEX Enhanced Power Project. Drill ready.
  • · GRANEX heat exchanger means 50% increase in net electricity from a given resource
  • Marginal increase in capital cost
  • . Transformative implications for Geothermal Power Sector
  • Significantly lower unit costs
• $-3$ wells to $\sim$ 5.5 km
• $-$ \$76M
• REDP Grant requested

• Commence: beginning 2010

• First Stage in Development of 300MW Project

$\mathbf{u}$ granite

HRL Geothermal HSA discoveries based on petroleum wells, Otway Basin

• Estimated stable formation temperatures range from 126°C to 158°C $b/w$ 2400 $m$ to 3700m
• Temperatures well $\blacksquare$ suited to electricity generation from conventional binary cycle power plants

Note: Estimated stable formation temperatures are shown.

Prospective Region – West of the highlands where sediments less deformed but still overlying Selwyn Block Basement

•Central to Key Infrastructure and Markets

•Favourable Geology – Insulating Cover (Melbourne Zone)

•Geological Interpretation of Heat Producing Basement (Selwyn Block)

•Preliminary heat flow estimates favourable

•Prospective Zone at Western end close to Melbourne

Petratherm Petratherm- East Gippsland Gippsland GEP

Renewable Energy Policy & Geothermal Renewable Energy Policy & Geothermal Renewable Energy Policy & Geothermal

• •Strong Federal and State Government Support -Federal Government Policy Frameworks
• •\$50M Geothermal Drilling Program -\$7M max/project
• •Geothermal Energy Industry Development Framework
• • \$300M Renewable Energy Demonstration Program (excludes solar)
• • AEMC review of Electricity and Gas Networks to facilitate climate change policies
• •CPRS - Emission Trading Scheme
• •Renewable Energy Target - 45,000 GWh by 2020 - an increase in the REC penalty price from \$40/MWh to \$65/MWh and extending to 2030 –enabling greater certainty and improved NPV for projects
• •Australian Geothermal Energy Association (AGEA) and the Australian Geothermal Energy Group (AGEG)

Summary and Conclusions Summary and Conclusions

• •Geothermal energy has the potential to provide large scale, base load and low cost renewable energy variety of technologies and applic ations
• •Australia has the key ingredients for developing successful engineered geothermal systems (EGS) and hot sedimentary aquifer projects
• •While northern SA has the best known EGS (hot rock) geothermal resources, Victoria and SE of SA have the best known hot sedimentary aquifer resource potential
• •Geothermal projects face a number of challenges, including but not limited to –drilling, achieving adequate flow rates, power conversion efficiency, cost o f delivery to m arket (proximity) and water issues.
• •Strong government support for geothermal and renewable energy with capital funding and price of carbon more can be achieved needed with increased capital funding coupled with increased industry cooperation (R&D, drilling and network connection).

Thank YouThank You

ASX Code: PTR ASX Code: PTRwww.petratherm.com.au Phone: (08) 8274 5000

www.agea.org.au

www.pir.sa.gov.au

Australian Geothermal Energy Association

The national industry association for the Australian Geothermal Energy Industry

AGEA's Vision. Geothermal energy providing the lowest cost emissions-free renewable base loadenergy to Australian homes and businesses for centuries to come.

AGEA's Mission. foster and accelerate the development and commercialisation of Australia's geothermal energy resources by:

• •Clearly and accurately articulating the advantages of geothermal energy and the progress of the industry;
• • Cooperating across the industry to devel op, collect, improve and disseminate information about geothermal energy; and
• • Developing good and constructive relationships with government, the investment community and the broader Australian community.

AGEA's Work.Increasingly provide both:

• • a low cost, emissions free, baseload, reliable and secure supply of energy into the national market over the next decade; and
• •a reliable, low cost source of heat to drive energy efficiency and industrial applications.

AGEA works with all Australian Governments, the academic community, relevant scientific organisatons and the media to promote information about the progress of the industry and its capabilities.

AGEA seeks to assist government develop prudent policy mechanisms that enable all forms of emissions free energy to increasingly penetrate the national energy market in line with climate change and energy security policy goals that are in the national interest.

AGEA's membership comprises the major geothermal energy project developers, direct heat equipment suppliers and service providers to the industry.

Australian Geothermal Energy Group (AGEG) AGEG'S VISION: Geothermal resources to provide the lowest cost emissions-free renewable base load and direct use energy for centuries to come.

• •Currently 96 members and growing
• • Includes all companies with geothermal licences, all Federal, State and NT government agencies with a role in upstream energy policy and investment attraction and 10 Australian

http://www.pir.sa.gov.au/geothermal/ageg