PTR MINERALS LTD — Investor Presentation 2009

May 3, 2009

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PETRATHERM LIMITED ABN 17 106 806 884

Company Update – “Petratherm is uniquely positioned for success in the Australian and Spanish geothermal energy sectors”

Petratherm Managing Director, Mr Terry Kallis, will later this morning present an update on the Company’s activities to the first day of Paydirt’s 2009 South Australian Resources & Energy Investment Conference in Adelaide.

The overall message of the presentation is that the Company is uniquely positioned for success in the geothermal energy sector in Australia and Spain.

The address to the Investment Conference, entitled ‘Building a Portfolio of Quality Geothermal Energy Projects – Australia and Overseas’ (refer attached and PTR website), outlines Petratherm’s leadership in the geothermal energy sector.

The presentation will include the showing of a corporate DVD (available to be viewed on the newly upgraded PTR website).

The key points from the presentation are;

4 May 2009

ASX Code: PTR

ABN 17 106 806 884

105 Greenhill Road Unley 5061 South Australia

Tel: +61 8 8274 5000 Fax: +61 8 8272 8141

W : www.petratherm.com.au E : admin@petratherm.com.au

• The Paralana Geothermal Energy Project is on schedule to spud-in the Paralana 2, 4 kilometre deep well in six weeks – mid June 2009.

• The Paralana Project has received further endorsement and recognition, with its success in gaining a $7M Geothermal Drilling Program (GDP) funding offer, with funds expected prior to the spud-in of Paralana 2.

• HEWI “Proof of Concept” for Paralana is planned to be achieved during first half of 2010 & first power in late 2010.

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

• Geo-Madrid 8 MW district heating project is in the advanced stages of its feasibility assessment - has attracted JV interest from large European energy utility – Dalkia.

• Strong government support for renewable energy and the geothermal sector continues – with last week’s COAG plans to increase to the renewable energy certificate (post-tax) penalty from $40/MWh to $65/MWh and extending the period to 2030 – enabling greater certainty and improved NPV for geothermal project investment.

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The Weatherford Rig # 828 is a “Lightning” Rig manufactured by Le Tourneau Technologies Inc., from the USA. The 2000 HP Rig # 828 is capable of drilling very deep wells and will be available to other Australian geothermal energy developers thus enabling an acceleration of development across the geothermal energy sector .

The detailed information provided in the presentation (attached) and DVD is outlined as follows;

• Petratherm’s mission is “to explore for and develop, emission free, geothermal energy projects that are commercially sustainable”.

• Petratherm’s business model is “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’s innovative exploration model and process developed in collaboration with the University of Adelaide has positioned the Company to be able to “explore for heat” and to quickly assess the viability of geothermal projects (engineered geothermal systems (EGS), conventional & district heating) – across a variety of geological settings, end use markets and regulatory regimes in various countries.

• The Company’s strength in geothermal energy exploration has enabled it to create a portfolio of quality geothermal energy projects in Australia and Spain, and soon in China – where Petratherm has an exclusive Agreement with four Chinese Government Institutions to identify new projects. Of particular importance has been Petratherm’s strategic move into Spain where it has secured ‘first mover’ advantage with seven projects, including near the large electricity consumption markets of Madrid and Barcelona.

• Petratherm’s unique Heat Exchanger Within Insulator (HEWI) Exploration Model has the potential to considerably reduce cost and risk, and thus bring forward the viability of large-scale geothermal projects in Australia and indeed overseas - a key point acknowledged by the Federal Government in awarding Petratherm a $5M REDI Grant towards developing the HEWI Model at the Company’s flagship Paralana Geothermal Project site near the Beverley Uranium Mine in South Australia.

• $7M drilling program fund offer awarded to the Paralana JV by the Federal Government – under the $50M geothermal drilling program (GDP) where 60% of funds($4.2 M) will be provided up-front to the JV partners, of which 69% ($2,898,000) will be attributed to Petratherm’s contribution under the Paralana JV. Funds from the GDP are expected to be available prior to the spud-in of the Paralana 2 deep well in mid June 2009.

• Paralana JV has applied under the $435 M Renewable energy demonstration program (REDP) for one-third funding for a $200M, 30 MW demonstration project at Paralana. The Paralana JV partners consider the project as having the best potential of all geothermal energy projects in Australia and believe they have submitted a highly competitive and compelling case for funding. An amount of $62.8 million, representing one-third of eligible project expenditures, is being sought on a 2 for 1 funding basis.

• There is strong government support for geothermal and renewable energy through capital funding programs and the CPRS and RET of 20% renewable energy by 2020. Federal Government initiatives include;

• $50M geothermal drilling program (GDP) funding for “proof of concept” drilling for two wells

• $435M renewable energy demonstration program (REDP) funding for demonstration projects for eligible renewable technologies – including geothermal

• Australian Energy Market Commission’s Review (AEMC) of electricity and gas market frameworks in light of climate change policies – focused on encouraging increased renewable energy capacity

• Carbon Pollution Reduction Scheme (CPRS) that includes an Emissions Trading Scheme (ETS) that aims to put a long term price on carbon

• Renewable Energy Target by 2020 of 20% or 45,000 GWh – COAG decision to increase REC penalty price from $40/MWh to $65/MWh and extend the RET scheme period to 2030. This provides greater certainty and improved economics for geothermal project investment.

• The prospects for the Company’s Spanish projects are very encouraging . This assessment was made following visits to the sites by Petratherm’s Australian and Spanish representatives and the completion of a pre-feasibility assessment of the Geo-Madrid project. The Madrid licence area has potential for both District heating and EGS developments. The Madrid licence area has five wells drilled to depths of between 1.5 to 3.4 kilometres – providing critical temperature, hot water flow rate and geological data. This provides the opportunity for significant and low cost, project advancement and is being utilized in current Feasibility of the Madrid Geothermal District Heating (GDH) Project (to be finalized in late May/early June 2009) .

• The Madrid GDH project exhibits similar temperatures and flows at similar depths to those of the Paris basin where district heating has been operating for over 20 years and around 260 MW of thermal capacity is installed in 34 doublets. The Geo-Madrid existing doublet shows temperatures of 75°C, flow rate of 200m3/hour at 1500 metres.

• Dalkia – a leading European energy company – formed by Veolia (Europe largest water utility) and Electricite de France (the world’s largest electricity utility) – is currently undertaking an exclusive due diligence assessment of the GeoMadrid project with the intention of establishing a joint venture to develop the project.. Dalkia has annual revenues that exceed € 8 billion and it operates over ten geothermal district heating projects in Paris basin in France.

• The Madrid EGS project will focus on the northern part of the license area where the existing Pradillo deep well (3,400 metres) shows a temperature of 156 °C.

• The Paralana Geothermal Energy JV Project has now assembled all the key ‘ingredients for success’ including:

• An excellent thermal resource at shallow depth – predicted to be 200°C at 3.6 kilometres based on exploratory drilling to 1.8 kilometres.

• The highest recorded heat flow on mainland Australia of 128 mW/m[2]

• A stable geological formation with expected good drilling conditions and no over-pressures – exploratory drilling to a depth of 1.8 kilometres and evidence from offset wells in the Arrowie basin suggests that the geological formation is not expected to be over-pressured, enabling lower cost and time for drilling and an expectation of comparatively low parasitic losses from reinjection of geothermal fluids

• Close proximity to a willing potential customer, Heathgate Resources – Beverley Uranium Mine, that currently pays ‘off-grid’ prices.

• Joint venture with a leading oil and gas explorer and producer, Beach Petroleum Limited, for up to $30 million (plus their equity share of project costs) in which Beach will take the lead role in the drilling operations required to create the underground heat exchanger.

• Joint venture with a leading electricity generator and retailer TRUenergy, for up to $57 million (plus their equity share of project costs)

• $5 million Renewable Energy Development Initiative (REDI) Grant from the Federal Government to assist in the creation of the underground heat exchanger.

• $7 million Geothermal Drilling Grant (GDP) Offer from the Federal Government to assist in drilling of the HEWI “proof of concept” stage of the Paralana project.

• Securing, on an exclusive basis specialist Swiss-based EGS consultants – Geothermal Explorers , to assist the development of the HEWI model

• A unique and realistic long-term commercialization path that provides the potential for commercial viability at all stages including small scale (i.e. 7.5MW), local market (up to 30MW) and into the National Electricity Market (NEM) (between 260 and 520MW).

• The next steps in the development of the Paralana Project include:

• Arrival of the Weatherford 2000 HP drilling rig in Australia – due to arrive in Port Pirie next week on 10 May 2009

• Spud-in of the first deep well (up to 4 kilometres) in the next six weeks - mid June 2009

• Fracture stimulation of Paralana 2 following completion of the well

• Drilling of second deep well Paralana 3 – up to 6 months after the first well

• Outcome of recent application for Federal Government “ Renewable Energy Demonstration Fund” – for a 30 MW demonstration plant – in mid/late 2009

• Long term circulation test in first half of 2010

• Production of first power to Beverley Uranium Mine – late 2010.

• The Paralana Project is considered uniquely positioned to enable commercial viability at small scale (7.5MW building over time to 30MW) , an important factor in the development and “bedding down process” of any new technology. This is a direct result of the close proximity of the Beverly Uranium Mine and the current ‘offgrid’ prices.

• Large-scale development of the Paralana site – following the development and “bedding down process” - also provides a unique opportunity for Petratherm’s Paralana Project with flexibility and significant cost benefits associated with potential large-scale transmission network solutions to competitively access the NEM at Port Augusta and/or Olympic Dam (refer below)

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• The planned delivery of large-scale power (up to 520MW) has taken into account the capacity of the market to digest large increments of generation competition from other geothermal and indeed traditional sources of power generation and the cost of delivery (transmission network) of electricity to the ‘on-grid’ market (NEM).

• Petratherm’s two basic network solutions include:

• A double circuit 275kV transmission line from Paralana to Port Augusta capable of delivering 520MW into the NEM at Port Augusta . (“Radial network solution”).

• A single circuit 275kV transmission line from Paralana to Port Augusta and a single circuit 275kV transmission line from Paralana to Olympic Dam, each capable of delivering 260MW to those entry points. (“Meshed network solution”).

• The latter network arrangement would create a “meshed” transmission network in the north of the State and provide a backbone of electricity infrastructure for the remote community, but in particular the State’s growing resources sector. Importantly, the “meshed” network solution has the potential to provide substantial broader community benefits and hence has the potential for the inclusion of a proportion of assets (and costs) into the regulated asset base of a registered transmission owner under the Australian National Electricity Rules (NER). Accordingly, there is unique opportunity for substantially reducing the overall project network connection costs.

• Petratherm’s network solution has led to an industry network solution for the northern part of SA – the Industry adopted network solution has been proposed by AGEA under the Australian Energy Market Commission’s (AEMC’s) Review of national electricity and gas frameworks in light of climate change policies. The review is aiming to determine the changes needed to support the Federal Government’s target for increased capacity of renewable energy in a least way to the economy. This will involve a Review of current frameworks and the rules governing electricity and gas markets. AGEA is represented on the AEMC Stakeholder Committee and has proposed to the Review an Industry solution for the northern part of SA.

• Petratherm aims to continually increase shareholder value through:

o Cost Reduction

• HEWI Model – shallower wells reducing drilling costs.

• Competitive sourcing of plant and equipment – “no ties” to a plant manufacturer – “fit for purpose” – conventional, lower cost plant.

o Risk Reduction

• Initial project selection – targeting lowest cost to relevant market.

• HEWI Model – shallower wells, less drilling, greater permeability.

• Several quality projects and a continuous pipeline of projects.

• Project portfolio spread across jurisdictions – local and overseas.

• Partner selection – key skills and capabilities – Beach Petroleum.

• EGS and lower risk conventional geothermal projects.

o Revenue Optimization

• Target local “off grid” opportunities – nearby mines.

• Exploit multiple products – electricity and direct use heat.

• Focus on attractive jurisdictions price and growth – Spain/China.

Yours faithfully

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Terry Kallis Managing Director

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ABOUT THE PARALANA PROJECT JOINT VENTURE PARTNERS:

Beach Petroleum (ASX: BPT) is an oil & gas company headquartered in Adelaide that farmed-in to the Paralana Project in January 2007. Beach can earn up to 36% of the project for $30 million plus their equity share of project costs. (www.beachpetroleum.com.au).

TRUenergy is a wholly owned subsidiary of the CLP group, one of the largest, publicly listed power businesses in Asia Pacific (www.truenergy.com..au and www.clpgroup.com). TRUenergy Geothermal farmed-in to the Paralana Project in August 2008. TRUenergy Geothermal can earn up to 30% of the project for $57 million plus their equity share of project costs.

MEDIA CONTACT:

Terry Kallis Kieran Hall / Tim Hughes

Petratherm Limited Hughes Public Relations

08 8274 5000 08 8412 4100

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SA Resources and Energy Investment Conference

Company Update

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

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4 May 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

• Key Messages

• Corporate Overview

• Renewable energy policy and geothermal

• • Paralana Overview and Joint Venturers

• Project Portfolio

• Paralana

– Spain – Madrid / Tenerife – China – Victoria “Hot Sedimentary Aquifer” • Outlook for Calendar 2009

Key Messages

• –

• 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

Corporate Overview

Madrid & Barcelona – direct use heat, EGS and hydrothermal

China – Exclusive exploration agreement

Key Statistics

• Current shares on issue – 65.6m (plus 7.77 m options)

• Market capitalization ‐ $20.3m (at share price of $0.31)

• Cash ‐ $4.2 m (end of third quarter)

• Grants ‐ REDI $5.0 M & GDP $7.0 M

• 2995 Shareholders with major shareholder ‐ Minotaur Exploration (31%)

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 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

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 fraccing

• TRUenergy

Geothermal Explorers

Expert Consultants

Power generation, transmission and sales EGS reservoir/project development Prof. Richard Hillis and Dr Martin Hand

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 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

Global Wind & Geothermal Power Growth

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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 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 to arrive 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

• Drilling of Paralana 3 – six months after completion of Paralana 2 - first half 2010

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 2008 - Development Path

• 2D Reflection Seismic and MT Surveys

• Installed Passive Seismic Array (IESE)

• Cleared 1kmX 2km development site

• Casing and well head ordered

• Drilling rig arriving soon

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Paralana 2009 Development Plan

• Second Quarter 09 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

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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East Gippsland Licence Area

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GEP 24
Wellington Park 1
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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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