PTR MINERALS LTD — Investor Presentation 2009

May 4, 2009

ASX Release PETRATHERM LIMITED

5 May 2009

Yours faithfully

Terry Kallis Managing Director

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

ABN 17 106 806 884

MD presentation to SA Resources and Energy Investment Conference - "SA Geothermal Energy Industry Update"

Petratherm's Managing Director, Mr. Terry Kallis will present later today to the SA Resources and Energy Investment Conference on "SA Geothermal Update" – the status of geothermal energy in South Australia.

Key points from the presentation attached are:

• Geothermal energy has the potential to provide large scale, base load and low cost renewable energy – and there a variety of geothermal technologies and applications.
• Australia has the key ingredients for developing successful engineered geothermal systems (EGS) projects – high heat producing granites, continent under compression, strong commitment from government and financial markets.
• SA has the best known EGS (hot rock) geothermal resources in Australia with approximately 90% of Australia's activity focused in South Australia.
• 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.
• There is strong government support for geothermal and renewable energy. Capital funding through the $50M geothermal drilling program and the $435M renewable energy demonstration program, with the recent COAG decision to increase the renewable energy certificate shortfall penalty by $25/MWh to $65/MWh, enable greater investment in geothermal energy.
• More can be achieved with increased capital funding coupled with increased industry cooperation (R&D, drilling and network connection).

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

5 May 2009

SA Resources and Energy Investment Conference

"SA Geothermal Energy Industry Update"

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 presentati on 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 m ay 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
• SA geothermal exploration and development
• Challenges for geothermal energy projects
• Industry Network Connection solution for SA
• Renewable Energy Policy & Geothermal
• Conclusion
• Additional supporting slides

• 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) projects – high heat producing granites, continent under compression, strong commitment from government and financial markets.
• SA has the best known EGS (hot rock) geothermal resources in Australia with approximately 90% of Australia's activity focused in South Australia.
• 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 Industry Geothermal Industry Geothermal Industry - 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 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)

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

Atus	367
SA	237

Expenditure Expenditure

Aust. > $1000 Mill > $1000 Mill S.A. ~ $ 700 Mill S.A. ~ $ 700 Mill

• 48 Companies •10 ASX listed

Hot Rock Projects in South Australia – 31 Dec 08

Sedimentary cover (insulators) over basement

• 28 companies in the hunt in 273 licences on variety of plays covering >125,683 km2

• 9 Geodynamics

• 9Petratherm

• 9 Geothermal Resources

• 9Green Rock

• 9 Torrens Energy

• 9Eden Energy/Terratherma

• 9Panax

• 9Pacific Hydro

• 9Teck Cominco

• 9Granite Power

• 9Gradient Energy

• 9 AGL (w/Torrens Energy)

• 9 TRUenergy (w/ Petratherm) 9

• 9 Tata Power (w/ Geodynamics) 9 Beach Petroleum

• ASX Listed

• A$730 million in work programs (excludes demo & up-scaling for deployment)

• Generalised play ingredients: Amagmatic conductive heat source, geothermal reservoir and insulating cover – combining to enable economic flow rates of sufficient heat energy to meet markets

• 9Tri-Star Energy

• 9Clean Energy Australasia

• 9Osiris Energy

• 9 Origin Energy

• 9Callabonna

• 9Deep Energy

• 9 Inferus (Southern Gold )

• 9A-B-L-R Joint Venture

• 9AAA Energy

• 9Earth Heat

• 9New World Energy

• 9Near Surface Geothermal

• Stuart Petroleum

• • International SX Listed

Potential mining developments may High Voltage Grid

South Australian Heat Flow Anomaly

be new markets for geothermal

Growth in Australian Hot Rock Projects

Geodynamics/Origin (Tata Power/Sentient-SunSuper) Geodynamics/Origin (Tata Power/Sentient-SunSuper)

2003-5: Proved flow of geothermal energy with Habanero 1 & 2 2007-9: Habanero3, Jolokia1, Savina1; Origin JV; Proof of Concept Next: 1 MW pilot and Commercial Demonstration Plant 2003-5: Proved flow of geothermal energy with Habanero 1 & 2 2007-9: Habanero3, Jolokia1, Savina1; Origin JV; Proof of Concept Next: 1 MW pilot and Commercial Demonstration Plant

Petratherm/Beach Petroleum/TRUenergy Petratherm/Beach Petroleum/TRUenergy

2005-7: Drilled Yerila and Paralana, deepened Paralana & recorded MT + seismic 2009 added TRUenergy $57m JV and $7m GDP Next: Petratherm JV to drill deep Paralana well starting in 2Q/09 2005-7: Drilled Yerila and Paralana, deepened Paralana & recorded MT + seismic 2009 added TRUenergy $57m JV and $7m GDP Next: Petratherm JV to drill deep Paralana well starting in 2Q/09

Green Rock Energy Green Rock Energy

Drilled and Mini-Frac'd – Blanche 1 to 1935mNext: Farm-out and drill two deep wells Drilled and Mini-Frac'd – Blanche 1 to 1935mNext: Farm-out and drill two deep wells

Geothermal ResourcesGeothermal Resources

2007-8: drilled 6 Frome area wells up to 500m depth Currently drilling deeper test well 2007-8: drilled 6 Frome area wells up to 500m depth Currently drilling deeper test well

Torrens Energy/AGL Torrens Energy/AGL

2007-9: 14 wells Pt Augusta, Parachilna, Adelaide Plains 2008: Geothermal Alliance Agreement with AGL Energy Next: Shallow Exploration Pt Pirie, Adelaide; deep well targets 2007-9: 14 wells Pt Augusta, Parachilna, Adelaide Plains 2008: Geothermal Alliance Agreement with AGL Energy Next: Shallow Exploration Pt Pirie, Adelaide; deep well targets

Southern Gold Ltd (Inferus Resources) Southern Gold Ltd (Inferus Resources)

2008: Drilled two 1km wells north of Pt Augusta 2009: Processed seismic acquired by GA Next: Geothermal Resource 2008: Drilled two 1km wells north of Pt Augusta 2009: Processed seismic acquired by GA Next: Geothermal Resource

Panax Geothermal Panax Geothermal

2006 – 3 wells to 500m depth & MT survey in SE SA 2008-9 Merger with Osiris; Measured Resource (11,000 PJ) confirmed in place; Pre-Feas completed; $7m GDP Grant Next – Salamander 1 (deep well) spudding in Sept 09, WDI rig spot confirmed 2006 – 3 wells to 500m depth & MT survey in SE SA 2008-9 Merger with Osiris; Measured Resource (11,000 PJ) confirmed in place; Pre-Feas completed; $7m GDP Grant Next – Salamander 1 (deep well) spudding in Sept 09, WDI rig spot confirmed

SA Geothermal Project - Snapshot

Challenges for Geothermal Projects

• Securing a quality site the three locations resource, market, permits/approvals – optimizing economics in a competitive market.
• 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.

Industry Network Connection solution Industry Network Connection solution

Industry Network Connection solution Industry Network Connection solution - simplified simplified

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

• Strong Federal and SA State Government Support Federal Government Policy Frameworks
  • •$50M Geothermal Drilling Program -$7M max/project
  • •Geothermal Energy Industry Development Framework
  • •$435M Renewable Energy Demonstration Program
  • AEMC review of Electricity and Gas Networks to facilitate climate change policies
  • •Carbon Pollution Reduction - 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 geothermal projects
• Australian Geothermal Energy Association (AGEA) and the Australian Geothermal Energy Group (AGEG) – led by PIRSA and adds to SA Government PACE initiative

World's First Commercial EGS Plant Landau Germany World's First Commercial EGS Plant s First Commercial EGS Plant Landau Germany Landau Germany

•Opened Oct. 2008

• • 155OC, 60 l/s
• •3 MWe + heat
• • Expanding to 8 MWe

•ORC Cycle

•Cost $20 M Euro

ConclusionConclusion

• 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 EGS projects – high heat producing granites, continent under compression, strong commitment from government and financial markets.
• SA has the best known EGS (hot rock) geothermal resources in Australia with approximately 90% of Australia's activity focused in South Australia.
• 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 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 load energy 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 develop, 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 88 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

Global Geothermal Energy Installed Capacity in MW

Total 10,000 MW (2006)

Drivers Drivers -The Promise of Geothermal The Promise of Geothermal

MIT (Tester, et al 2006)

• •100 GWe hot rock power in the USA by 2050
• •~13.7 billion PJ resource to 10 km.
• •130,000 X annual primary energy use in the USA

SA Geothermal SA Geothermal Projects Projects

• •Many players Many players –28 Companies, 10 ASX Companies, 10 ASX listed
• •277 GELs mostly in 277 GELs mostly in SA –PACE grants PACE grants
• •Very large resources Very large resources
• •Exploiting different Exploiting different geothermal resources geothermal resources mainly Hot Rock but mainly Hot Rock but also "Hot Water Hot Water"

petratherm

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

• 1. Geothermal Tenure SA, Vic, Tas, NSW, QLD, WA ( and NT soon)
• 1. 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)

SA Electricity Market SA Electricity Market SA Electricity Market

• SA NEM region electricity demand to require at least 600MW of new capacity
• Does not include potential increase of over 400MW from Olympic Dam.
• Nor the effect of depleting Leigh Creek coal.
• Demand requirements will be between 600 1,500MW.

Forecast Supply Demand Balance for South Australia (source SA ESIPC APR 2007)

petratherm

Network Access Network Access & Connection& Connection

• •Transmission CostsTransmission Costs
• •Transportation losses Transportation losses
• •Margin Loss Factor Margin Loss Factor
• •System Stability System Stability
• •Development Approvals, Development Approvals, Licensing, Easements Licensing, Easements and Permitsand Permits
• •Network Capacity at Network Capacity at connection point connection point

Transmission Connection Transmission Connection - -Meshed

Industry Network Connection solution Industry Network Connection solution - simplified simplified