PTR MINERALS LTD — Investor Presentation 2009

Jun 8, 2009

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PETRATHERM LIMITED ABN 17 106 806 884

MD presentation to Potential Overseas Investors

Petratherm Managing Director, Terry Kallis, presented to a number of potential overseas investors in both Madrid and London last week.

The presentation (attached) was provided to interested parties including, government, energy utilities and financial institutions, with a general update of Petratherm’s business strategies and project portfolio.

Yours faithfully

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9 June 2009

ASX Code: PTR

ABN 17 106 806 884

Terry Kallis Managing Director

MEDIA CONTACTS:

Terry Kallis Kieran Hall / Tim Hughes

Petratherm Ltd 08 8274 5000 Hughes Public Relations 08 8412 4100

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

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Company Update

“Building a portfolio of quality geothermal energy projects - Australia and Overseas”

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June 2009

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Presented by Terry Kallis (Managing Director)

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 Outline

• Corporate Overview • Renewable energy policy and geothermal • Paralana Overview and Joint Venturers • Project Portfolio – – Paralana “Engineered Geothermal System” (EGS) – - East Gippsland “Hot Sedimentary Aquifer” (HSA) – Spain – Madrid, Barcelona and Tenerife - (District Heating, HSA, Volcanic and EGS) – China - (District Heating, HSA, Volcanic and EGS) • Summary and Conclusions • Outlook for Calendar 2009

Corporate Overview (PTR.AX)

Madrid & Barcelona – direct use heat, EGS and hydrothermal

China – Exclusive exploration agreement

Key Statistics

• Current shares on issue – 92 m

• Market capitalization ‐ $32.2m (at share price of $0.35)

• Cash – Q3 $4.2m plus $7.3m in recent SPP and Placement

• Grants ‐ REDI $5.0m & GDP $7.0m

• 3100 Shareholders with major shareholder ‐ Minotaur Exploration (22%)

Projects

• Projects spanning Australia, Spain and China – EGS, conventional volcanic, hot sedimentary aquifer & direct use heat

• Flagship project – Paralana

• Exciting growth projects :

Tenerife & Gran Canaria – conventional volcanic

Paralana, Callabonna, Ferguson Hill Renmark & Victoria

• Direct heat, conventional and EGS geothermal projects covering Madrid, Barcelona, Canary Islands and Victoria’s East Gippsland Basin

• Exclusive government supported exploration agreement in China

Joint Venture Partners

Corporate Mission & 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”

Petratherm Board

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Derek Carter Derek Carter Chairman Chairman

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Simon O’Loughlin Director

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Richard Hillis Director

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Highly experienced Board with combination of commercial and technical skills including:

• Corporate governance

• Financial management

• Legal

• Marketing

• Project Management

• Exploration and development

• Geology/Geophysics

• Resources and energy

• Government and stakeholder relations

Richard Bonython Director

Terry Kallis Managing Director

Donald Stephens Company Secretary

Business Model

Leverage off core competencies (project identification and proof of concept)

• Use Petratherm’s geothermal expertise and unique Exploration Model to identify economically viable geothermal prospects ready for drilling.

Focus on projects that exhibit all of the necessary ingredients to be commercially viable

• Discussed in later slide.

• Geography ‐ build a manageable international portfolio .

Appropriately diversify

• Gain exposure to countries with comparatively high electricity prices and favourable regimes for renewable energy.

• Technology and market ‐ build a balanced portfolio .

• Conventional geothermal through to hot rocks, as well as hot water (direct use).

Develop partnerships with financially and technically strong industry participants

• Secure the funding and external expertise required to commercialise projects.

• Leverage off partnerships to pursue other opportunities where possible and use experience gained from partners to advance Petratherm along the knowledge curve.

• Recognise that diversifying risk and securing resources can add real value.

Secure free carry arrangements where appropriate

• Assess the balance between the benefits of introducing partners with the value impact of diluting project interests.

• Whilst project ownership/control is not essential at all projects, the intention

Corporate Overview – Skills & Capabilities

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 and fracture stimulation

• TRUenergy (CLP Group)

Power generation, transmission and sales

• Geothermal Explorers

EGS reservoir/project development

• Expert Consultants

Prof. Richard Hillis and Dr Martin Hand (Adelaide University)

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 international portfolio of 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

Renewable Energy Policy & Geothermal

• Federal Government - strong support − Carbon Pollution Reduction Scheme (CPRS) leading to Emissions Trading in 2010/11

• established the 20% Renewable Energy Target (RET) by 2020

• − Increased REC shortfall penalty from $40/MWh to $65/MWh and extended period to 2030

• $435 M Renewable Energy Demonstration Program – REDP

• − $50 M Geothermal Drilling Program - GDP

• − Geothermal Industry Development Framework

• –

• Paralana JV successful with $7M grant in Round One of GDP monies available upfront prior to drilling in mid June 2009

• Paralana JV applied for $62.8 M grant under REDP – successful applicants to be notified in August/September 2009

• Ministerial Council of Energy review by the Australian Energy Market Commission (AEMC) of Australian electricity and gas frameworks in light of CPRS and RET – recommend changes to rules

• Australian Geothermal Energy Association (AGEA) active in all policy

Geothermal Energy Cost Comparison

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AGEA Report conducted by McLennan Magasanik & Associates - findings

• Australian Geothermal Energy Industry can be expected to provide up to 2,200 MWs of base‐load capacity by 2020 into National Electricity Market;

• 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;

• An estimated $12 billion would be invested to develop 2,200 MW of installed capacity;

• The cost of generating electricity from geothermal resources is expected to move rapidly down the cost curve through to 2020 commencing 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

• ‐

• Most of the capacity is expected to come from developments in SA other states increasing their contribution toward by 2020

Paralana Project - Overview

• Uniquely positioned to be potentially commercially viable at all Stages!

• High heat flow rate (128mW/m²) and predicted Temperature of 200˚C at a depth of 3600 metres

• Stable geological formation and expect no overpressures – suggests good drilling conditions

• Very close to market for initial plant (up to 7.5MW).

• Off grid market ~ Heathgate Resources’ Beverley Uranium Mine (11km) and Four Mile.

• Sub‐surface and above surface expertise .

• After HEWI, potentially fully funded to initial commercial, demonstration scale 30 MW plant.

• Endorsement from major industry participants – JV with Beach and TRUenergy (refer later)

• $5M Federal REDI & $7M GDP Grants

• Ability to scale‐up in commercially viable increments (7.5, 30, 260 and 520 MW) reduces risk

• Next step is drilling 4 km HEWI wells .

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Paralana 2 Well Drilling

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• Contract 2000 HP Drilling Rig # 828 from Weatherford International Drilling arrived “

• –

• in Port Pirie in May 2009 - Le Tourneau Lightning Rig” built in Dubai

• Paralana 2 well to spud in mid June 2009 – all preparatory work near completion

• Well Testing and Stimulation Program to follow after well completion

• Paralana 3 drilling – six to nine months after completion Paralana 2 - first half 2010

… Necessary Ingredients

… to successfully take a geothermal project to market

• Permitting

• Land access.

• Support from financially strong partner(s).

• Government incentives.

  • Government support.

• Carbon trading schemes.

• Above and below ground for various end products.

• Means of accessing market.

• Proximity.

• Project management capability.

• Price .

• Geological, scientific and commercial.

• Identification.

• Exploitation.

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 of skills and represent a formidable collaboration for the Paralana Project

Under the Paralana JV ‐ prior to the use of grant funds ‐ the first $8.0 M for each well is sourced from Beach $5.0 M, TRUenergy $3.0 M

GDP and REDI grants further support the funding of the Paralana JV

Project Costs and Wind Comparison

• Stage 1 ‐ HEWI model $30M to $35M

• Stage 2 ‐ 7.5 MW pilot plant – add’nl $45M to $50M

• Stage 3 ‐ 30 MW demo. plant –add’nl $125M to $150M

• Total 30 MW Project estimate* around $170M to $200M

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

• Paralana Project cost per MW of installed capacity is around $6.2M 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 $2.2M 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 be very similar at around $198M

• Off grid pricing for Paralana enhances the overall project economics.

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]
petra therm
•
Modeled 200 [o] c at 3.6km
(Seismic Line 84 SPG)
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Paralana 2 - Development Path to date

• 2D Reflection Seismic and MT Surveys

• Installed Passive Seismic Array (IESE)

• Cleared 1km x 2km development site

• Casing and well head ordered

• Camp Established and Crew Trained

• Drilling rig arrived, transported and being assembled

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Paralana 2009 Development Plan

• Mid June 2009 First Deep Well to ~ 4 Kms

• Well testing and

• stimulation program

• First Quarter 2010 Second Deep Well

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Heat Exchanger Within Insulator (HEWI) Model

Paralana Project Area

East Gippsland Licence Area

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GEP 24
Wellington Park 1
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Petratherm Espana

• • Geology is conducive to EGS Right Geological environment

• • Expanding Project Portfolio

• for geothermal technologies

• • Strong Corporate Interest

• • First Mover Advantage

• • High Electricity Prices

• • • High Electricity Prices Leading Policy Development

• •• Conventional geothermal and Eight Projects – Conventional direct use options

• Geothermal, direct heat use &

• • Engineered Geothermal (EGS)Lower Cost and Risk!

• Strong Corporate and

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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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– Madrid District Heating Resource

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Recent Well Assessment
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• Three 2000m wells have been drilled, defining an area of at least 50km[2] , around 80[o] C fluid at 200 m[3] /hr at ~ 1500‐2000m depth.

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• Geomadrid Pre‐feasibility Study indicates – doublets Producing 8MWt with an annual production in excess of 45,000MWh (thermal). Full feasibility underway

• Strong government support for renewables and energy efficiency (particularly buildings) at all levels of government.

• Dalkia undertaking due diligence for potential JV for Geo‐Madrid project

• Potential for multiple projects from the geothermal resource.

• Geomadrid is only the first application.

• Expected to be an economic project with attractive returns!

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Madrid District Heating – Low Enthalpy Reservoir

Four existing wells ~ flows 200m3/h, temperatures of 80ºC enable to estimate a

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Bottom hole gradient
94 [o] C /Km
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Tenerife Project

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• Active Volcanic Island, MT indicates magma chamber 3-4 km below surface

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

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Source : ITER 2008
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• Geochemistry indicates presence of a hydrothermal system with 250-350 ºC and 30-40 bars pressure.

• 50 MWe development targeted

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

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Project Pipeline / News Flow

• Petratherm has an exciting project pipeline.

• Many key milestones to be achieved over the next 18 months.

• Groundwork at Paralana complete – all systems go.

• Madrid hot water project not far behind.

• Strong news flow.

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2009 2010
Paralana
Drilling Paralana 2
Confirm Temperature Paralana 2
Complete Fracture Testing
Order plant
Drilling Paralana 3
Plant Construction
Plant Commissioning
Madrid Hot Water
Final Feasibility Study
Commit to well
Heat Sales Agreement with University & Madrid Gov
Financing Agreement signed for Post drilling capex
Drilling
Construction
Commissioning begins
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Why Petratherm is a Standout

Quality portfolio of projects

• High quality resource.

• � � Market focussed (proximity, competitive, product)

• Location/Regulatory Environment.

Value

• Value in Paralana recognised by industry experts.

• � � In Petratherm’s view, even more value exists in overseas portfolio (not currently understood by market).

  • Value not yet appreciated by the market.

• Diversification �[�] Growing international portfolio covering the entire geothermal spectrum.

• Petratherm – geological, renewable energy experience, exploration, project development, commercial

• Expertise �

  • Beach Petroleum – subsurface, well design, drilling

  • TRUenergy – generation, transmission, sales

Flagship project expected to be fully funded

• [�] Paralana expected to be fully funded through to 30MW. Project finance thereafter.

Substantial upside – 100% � ownership

• EGS, direct heat and conventional projects in Madrid, Barcelona, Tenerife and Gran Canaria.

• � Exclusive exploration agreement in China.

• Further underexplored tenements in Spain.

Summary and Conclusions

• –

• Paralana 2 deep (4 kilometre) well to spud in mid June 2009 Weatherford Drilling International – 2000 HP “Lightning Rig”

• Paralana JV Project received further endorsement and recognition –

• with $7M geothermal drilling program (GDP) grant offer 60% of funds ($4.2M) expected prior to spud-in

• • Paralana JV has applied for one-third funding for a $200M, 30MW demonstration project under the $435M Renewable Energy Demonstration Program (REDP)

• Paralana Project aims to achieve proof of concept in first half of 2010 and “first power” in late 2010

• Spanish Projects show very encouraging expected returns with potential for early revenues – advanced Madrid District Heating Project – attracted JV interest from Dalkia, large European utility

• Strong Government Support for Renewable and Geothermal Energy – GDP, REDP,AEMC review, CPRS and RET, recent COAG decision to

Outlook for Calendar 2009

• Finalize the $57M TRUenergy Farm-in �

• Secure $7M GDP funding for drilling �

• Spud Paralana 2 deep well (4kms) in mid June 2009, drill/complete well (around 2 to 3 months) followed by , testing logging, fracturing and stimulation program in second half of 2009 (on schedule)

• Secure $62.8M of REDP funding for 30 MW demonstration project (application lodged)

• Complete Madrid GDH feasibility assessment and concurrently progress potential JV with Dalkia (underway)

• Complete assessment of East Gippsland Project and JV project – late 2009

• Complete China generative program, establish JV in Q3 2009

• Continue to assess and review current and new project

Thank You

petra therm

105‐106 Greenhill Rd Unley, Sth Australia, 5061 Tel: +61 8 8274 5000

ASX code: PTR

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