PTR MINERALS LTD — Investor Presentation 2010

Apr 20, 2010

Petratherm

Wilson HTM Energy Conference Investor Presentation – Company & Projects Update

20 April 2010 Peter Reid Exploration Manager

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 Overview

• › Company overview
• › Corporate and financial
• › Skills & capabilities, business model, track record
• › Geothermal competitiveness and growth
• › Overview of diverse portfolio of projects
• › JV partners and deals (Australia & Spain)
• › Projects
• › Paralana flagship project, South Australia
• › East Gippsland, Victoria
• › Spain Canary Islands, Madrid & Barcelona
• › China (generative)
• › Heliotherm (R&D)
• › Outlook for 2010 and beyond
• › Future PTR cost estimates
• › Key milestones next 18 months

Petratherm overview

Our company

• › Leading Australian geothermal exploration and development company
• › Projects spanning Australia, Spain and China
• › Projects across the spectrum of geothermal technology
• › Flagship project Paralana in SA"s northern Flinders Ranges

Petratherm - Corporate and financial

Listed ASX:PTR

• › Shares on Issue: 94.5 m
• › Share Price: \$0.26 (16 April 2010)
• › Market Cap: \$ 24.6 m
• › Cash Position: \$1.3 m (plus SPP \$4.1 m)
• › Shareholders: 3,708 shareholders
• › Minotaur Exploration 22 %
• › Australian Ethical Investments 4.8 %

Paralana JV Funding and Grants

• › JV Funding: up to \$87 million plus equity share of project costs
• › Government grants of \$69.8 million toward drilling and commercial demonstration

Excellent skills and capabilities

Derek Carter Chairman

Simon O'Loughlin Director

Richard Hillis Director

Terry Kallis Managing Director

Board An experienced board with a strong combination of commercial and technical skills

• › Financial management
• › Legal
• › Marketing
• › Project Management
• › Corporate Governance
• › Exploration and development
• › Geology and Geophysics
• › Resources and Energy
• › Government and Stakeholder relations

Richard Bonython Director

Lewis Owens Director

Why invest in Petratherm?

• › Geothermal energy expected to be competitive and with high growth potential
• › Strong government support for Paralana JV project - awarded \$69.8 million in grants
• › Paralana project injection well and temperature successful, fracture stimulation to follow, customer MoU, JV funding and government grants in place

Paralana project Ministerial Launch August 2009

Why invest in Petratherm?

• › First mover advantage in Spain
• › Enel Green Power deal to jointly develop all electricity producing projects in Spain and to explore in Portugal - JV principles for Tenerife geothermal project agreed
• › Cooperative Agreement with Spanish Governments for the Geo-Madrid district heating project
• › Pipeline of additional projects and a new initiative with the University of Adelaide to develop a hybrid solar thermal system - Heliotherm

Sound business model

"To explore for and develop emission free geothermal energy projects that are commercially sustainable"

• › To develop a portfolio of quality geothermal energy projects
• › Explore both conventional and engineered geothermal systems – for power and heat
• › Find a favorable combination of geology and market conditions - "shallow hot rocks close to market"
• › Introduce joint venture partners with the right skills, risk appetite and funding ability

Geothermal cost competitiveness - (source MMA presentation to 2009 AGEC conference)

Geothermal growth potential – (source MMA presentation to 2009 AGEC conference)

Strong Australian government support

• › \$50 million Geothermal Drilling Program \$235 million Renewable Energy Demonstration Program
• › New Australian Centre for Renewable Energy (ACRE) – manage all current & new programs
• › Review of electricity and gas networks by the Australian Energy Market Commission (AEMC)
• › Renewable Energy Target of 45,000 GWh by 2020
• › REC penalty price increase, \$40/MWh to \$65/MWh and the extension of the scheme to 2030 has increased total revenue expectations by 35%

Diverse portfolio of quality geothermal projects

Lower risk and lower growth potential

Petratherm has projects across the spectrum of geothermal energy technologies

Each project is geology, location, market and risk specific

Comparisons to existing operating projects require careful consideration

Potential for growth differs with different technologies and markets

Higher risk and higher growth potential

Diverse portfolio of quality geothermal projects

Key Project Parameters

• › Temperature
• › Drilling depth
• › Flow rate
• › Network connection
• › Generation plant type
• › Market/Customer
• › Optimization of parameters to achieve commercial return against competitive alternatives in target market (heat or power)

Operating Project Examples

Each project has specific project parameters that when optimized enable viable operation

Highly capable array of joint venture partners

• › Beach Energy
• › Top four Australian ASX listed oil and gas company located in Adelaide and with interests in Australia, Europe and Africa
• › TRUenergy Geothermal
• › Wholly owned subsidiary of CLP group listed on the Hong Kong stock exchange – and the largest utility in the Asia Pacific region
• › Enel Green Power
• › Wholly owned subsidiary of Enel Group second largest listed utility in Europe and a world leader in geothermal power production

Paralana 2 - Drilling Completed to 4012 M – 9 Nov 2009

• › First well designed following low-risk, standard operating methods
• › Steady but slow drilling due to hard formations
• › Conservatively drilled to ensure success to 4012m
• › Wireline and LWD logging completed
• › Well cased and cemented to 3725m
• › Bottom hole temperature ~ 190^oC
• › Inflow zones encountered from 3690m

Paralana 2 – Reservoir Characteristics

• › Inflow zones from 3690m
• › Zr dataing confirms old 1590Ma Reservoir Sequence
• › Contains numerous fractures and faults
• › High pressure geothermal brines intersected
• › 2D Seismic suggests fractured reservoir sequence is regionally extensive

Current Planned Future Work Program

• › ¹st Qtr 2010: Fracture stimulation design
• › ²nd Qtr 2010: Fracture stimulation link into over pressured zone!
• › ⁴th Qtr 2010/1st Qtr 2011: Drilling of the Paralana 3 deep producer well
• › ²nd Qtr 2010: Circulation Test Proof of Concept
• › Late 2011: Commission first stage 3.75 – 7.5 MW power plant

Paralana joint venture and government grant arrangements

• › Beach Petroleum Farm-in (Jan 2007) for up to \$30m for 36%, plus equity share of project costs
• › TRUenergy Farm-in (Aug 2008) for up to \$57m for 30%, plus equity share of project costs
• › JV Projects stages
• › Proof of concept two wells and circulation 1st well finished and temperature confirmed
• › Pilot plant up to 7.5 MW
• › Commercial demonstration up to 30 MW
• › \$7m GDP grant is applied to proof of concept \$4.2 million used toward 1st well
• › \$62.8m REDP grant is conditional on proof of concept and applied to pilot and commercial demonstration

Project joint venture – cost estimates (assumes JV earn-in options exercised)

›	Proof of Concept - next steps	Project JV costs	PTR cost
	› Fracture stimulate – Paralana 2	\$2m	1 \$1.4m
	› Drill producer well – Paralana 3*	\$15m - \$18m	\$4.1m 2 \$2.1m -
	› Fracture stimulate/circulate	\$2m	\$1.4m 3
		\$19m - \$22m	\$4.9m - \$6.9m
›	Produce power – up to 7.5 MW**	\$45 m	\$ 0.4m
	› 3.75 MW plant
	› Substation & transmission line
	› 2nd producer well & 3.75 MW plant
›	Upscale to 30 MW demonstration**	\$155m	\$0.0m
	› additional wells and generation plant
	( \$2.8 million in funds available from GDP grant for Paralana 3 well) (* \$62.8 million REDP grant provides one third payment of capital costs (refer background slides for more detail)	(1 – May- July 2010) (2 – Jan-April 2011) (3 - May-June 2011)

Joint Venture Contributions post Proof of Concept

(assumes JV earn-in options exercised and REDP grant of \$62.8 million)

Base Case Cost Assumption	Forecast Capital Cost (\$m)	PTR Contribution (\$m)
7.5 MW (additional well, plant plus transmission)	\$45m	\$0.4m
30 MW (additional wells and plant)	\$155m	\$0.0m
Total capital plant	\$200m	\$0.4m (0.2%)
20% Cost Increase
7.5 MW (additional well, plant plus transmission)	\$54m	\$4.8m
30 MW (additional wells and plant)	\$186m	\$1.6m
Total capital plant	\$240m	\$6.3m (2.6%)

Post proof of "HEWI" concept Petratherm could be almost free carried to a 30 MW demonstration plant development

Petratherm retains 34% of an operating power plant and 34% of a very large geothermal resource

Annual project revenues of over \$33 million per annum expected beyond 2015

(refer background slides for more detail)

Paralana Project – commercial overview

• › Potentially commercially viable at all stages of development
• › Close (10kms) off grid local customer (5-30MWe) followed by large on grid development (260 MWe+)
• › Transmission rule changes to support low cost connection to market
• › Long term price to NEM of 260 MW lower cost than with wind – including transmission cost
• › MMA estimate power price at less than \$100/MWh delivered to Olympic Dam

(refer background slides for more detail)

Refer detailed background slides for further economic and technical information at end of presentation

East Gippsland, Victoria

• › Petratherm has a 9,000km² geothermal exploration permit for the East Gippsland Basin in Victoria
• › Hot Sedimentary Aquifer Project
• › Favorable transmission connection options to the National Electricity Market
• › Expect fluid in excess of 150˚C at economically viable drill depths (3.5– 4.0 kms)

Our East Gippsland project east of Melbourne in Victoria

Spain – Enel Green Power deal

• › Enel Green Power part of the very large Enel group
• › Joint development of all electricity producing projects in Spain and Portugal
• › Portugal has feed in tariff of over €280/MWh (\$420/MWh) for geothermal energy
• › Direct and external exploration costs shared 50:50
• › Enel fund the first deep exploration well – \$15 million
• › EGP has more than 700 MW of operating geothermal plants Tenerife MT survey stations

Spain - Tenerife

• › Active volcanic island, MT indicates magma chamber 3 to 4 kms below surface
• › Population approx. 1 million and power demand of > 800 MW (diesel and wind)
• › Geochemistry indicates presence of a hydrothermal system with 250˚C to 300˚C
• › 50 MW development– targeting between 7 MW and 15 MW per production well
• › Slim line well 50% funded by Enel planned for second half of 2010 – PTR cost approx. \$0.6m
• › Production well 100% funded by Enel planned for first half 2011 – Enel cost approx. \$15m

Spain – Madrid geothermal district heating (GDH)project

"Highlighted as one of six renewable energy projects of interest within the Madrid Regional Government's Renewable Energy Cluster"

• › Large tenement 20km by 20km in the north of Madrid
• › Three shallow 2000m wells drilled and one deep 3.4km well drilled with 156˚C
• › Cooperative agreement with Spanish Federal and Madrid Regional Governments
• › Advanced JV negotiations for Geo-Madrid GDH project

Madrid tenement area – 25 km north of the city

Spain - Barcelona

Barcelona – Petratherm has four investigation permits 30kms north-north east of the city

• › Petratherm has four geothermal investigation permits near Barcelona
• › Existing wells have confirmed temperatures of 130˚C at depths of 1500 to 1800 metres
• › Close to major electricity transmission infrastructure
• › The geology and market characteristics attractive for geothermal heating and power

China

• › 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
• › Target Hot Sedimentary Aquifer contained in permeable Limestone at 4km to 5km depth
• › Petratherm recently hosted a Chinese delegation in Australia

Heliotherm – a unique solar thermal R & D project

• › Heliotherm Limited is a 100 per cent subsidiary of PTR awarded two SA government grants for a total of \$1.5 million
• › Exclusive agreement with University of Adelaide to develop the solar thermal technology that combines with geothermal and gas
• › Project aims to reduce capital costs by 40% through innovative integrated boiler
• › Plan to secure additional Federal Government grant – \$5.0 million targeted

Professor Graham (Gus) Nathan – Director Centre for Energy Technology of the University of Adelaide

Outlook for 2010 and beyond

Petratherm future cost estimates

• › Paralana proof of concept PTR costs \$4.9m to \$6.9m, primarily in 1st Qtr 2011
• › Paralana 3.75 MW plant PTR costs \$0.0m during 2011
• › Tenerife slim line well PTR costs \$0.6m, 2nd half 2010
• › Tenerife deep production well PTR costs \$0.0m, during 1st half of 2011
• › Administration and generative* PTR costs \$2.6m, over the next twelve months

(*includes Heliotherm and new project generation & development)

Outlook for 2010 and beyond

Paralana JV project milestones

• › 2nd Qtr 2010: Mini fracture program/fracture stimulation design
• › 2nd Qtr 2010: Multi-zone fracture stimulation
• › 4th Qtr 2010/1st Qtr 2011: drilling of the Paralana 3 deep producer well
• › 2nd Qtr 2011: Circulation Test Proof of Concept
• › Late 2011: Commission first stage 3.75 MW power plant

Outlook for 2010 and beyond

L-R – Hon Mike Rann MP (SA Premier), Derek Carter (PTR Chairman), Hon Martin Ferguson (Federal Min for Resources & Energy), Richard McIndoe (MD TRUenergy) and Reg Nelson (MD Beach Energy)

• › Establish SPV for JV– identify slim line drill target in Q2 2010 & production well first half 2011
• › Continue Madrid GDH coordination with Federal & State Governments and progress JV opportunities complete Q2 2010
• › Develop projects with Enel in Spain and Portugal
• › China exploration strategy and JV opportunities
• › Heliotherm aim to secure \$5.0m additional grants Q3 2010

www.petratherm.com.au

Paralana Ministerial Launch – August 2009

Paralana geothermal energy JV project - snapshot

Our Paralana project 600km north of Adelaide in S.A.

(* independent resource estimate undertaken by HDRPL and in accordance with the Australian Reporting Code on Geothermal Resources and Reserves 2008)

• › Anecdotal evidence from the Paralana hot springs in the nearby Flinders Ranges
• › High heat flow 128 mW/m²
• › Initial measured temperature of 109˚C at 1807m and recently at 176˚C at 3672m
• › Mature basin, stable formations, no hydrocarbons
• › Inferred geothermal resource of 230,000 PJ*
• › Customer for initial 3.75MW plant at nearby Beverley Mine
• › Potential commercial viability at all stages - scale up plan to 30MW and beyond

Paralana project – HEWI model and economic assumptions

HEWI Model at Paralana

The required heat exchanger is created in the porous insulating layer above the granite heat source. This is expected to reduce risk, cost and time

(*Long Run Marginal Cost calculation over 20 years, includes all costs, consistent with energy industry comparisons made by the Electricity Supply Association of Australia, McLennan, Magasanik and Associates and the AGEA Economics Committee)

Key Economic Assumptions:

• › Temp. of 190˚C at depth of 4,000m
• › Flow rate of 75 litres per sec conservative compared with other public announcements
• › Net output per production well of 3.75 MW based on flow and inclusive of parasitic loads
• › 20 year project life, includes all costs with 12 wells for a 30 MW development and connection to customer and results in a LRMC* of \$107/MWh (delivered), comparable with independently assessed industry LRMC ranges
• › Bundled price for sale of output black and RECs expected to be > \$140/MWh due to current high off grid price at Beverley mine
• › JV retains the full value of black and RECs no predetermined price – retain full upside
• › Potential for commercial viability at small scale 3.75 MW, 7.5 MW and 30 MW

Paralana transmission plan

• › Close to customer at the Beverley mine – only 10 kilometres away
• › Plans for mine expansions Four Mile deposit and new areas under exploration
• › Longer term plan to supply largescale base load power through entry points at Port Augusta and Olympic Dam
• › Potentially from plants of 260MW to 520MW capacity and two high voltage transmission lines
• › Consistent with industry network solution and the Australian Energy Market Commission"s recent agreement for changes to the National Electricity Rules – to facilitate renewable energy

Industry transmission plan – northern SA

• › 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

MMA Report " Assessment of the value of new 275 KV transmission line to connect geothermal resources to the NEM in South Australia"

Financial Year ending June	Geodynamics (Innamincka)	Petratherm (Paralana)
2011	Net sent-out capacity $\mathbf{0}$	Net sent-out capacity 7.125
2012	$\mathbf{0}$	7.125
2013	50	7.125
2014	50	28.5
2015	100	57
2016	150	85.5
2017	250	114
2018	400	152
2019	550	190
2020	550	228
2021	550	266
Capacity Factor	95%	95%
Ultimate Capital Cost (\$M)	S2,750	\$1,300
Transmission Cost 2 (\$M)	\$553	\$164
Generation LRMC (\$/MWh)	S68	\$72
Transmission Cost (\$/MWhso)	\$10	\$7
Loss to Olympic Dam	15%	5%
LRMC to OD (\$/MWh)	\$91	\$83

Paralana delivered price after paying for electricity transmission is estimated by MMA to be around \$83/MWh to Olympic Dam

Table shows long term development path for PTR with MMA assuming a 9.3% and 7.8% real discount rate for plant and transmission respectively.

Paralana joint venture arrangements

• › Beach Petroleum Farm-in (Jan 2007) for up to \$30M for 36% plus equity share of project costs at every stage
• › \$5M first well and stimulation
• › \$5M second well and stimulation earns 21%
• › After HEWI Option to earn a further 15% for \$20M
• › TRUenergy Farm-in (Aug 2008) for up to \$57M for 30% plus equity share of project costs at every stage
• › \$3M first well and stimulation
• › \$3M second well and stimulation earns 10%
• › After HEWI Option to earn a further 5% for \$7M
• › After 7.5 MW pilot plant Option to earn a further 15% for \$44M

Under the Paralana Joint Venture post HEWI and with REDP grant of \$62.8 million, for a \$200m, 30 MW demonstration project with JV options taken up, Petratherm would require minimal investment and would retain 34% of resource

Joint Venture Contributions post HEWI (assumes earn-in options exercised)

Project costs cost 2015 for 30 MW project – almost free carry - includes REDP grant of \$62.8 million

Base Case Cost Assumption	Forecast Capital Cost (\$m)	Beach Contribution (\$m)	TRU Contribution (\$m)	PTR Contribution (\$m)
7.5 MW (additional well, plant plus transmission)	\$45m	\$25.4m	\$9.3m	\$0.4m
30 MW (additional wells plus plant)	\$155m	\$37.1m	\$65.9m	\$0.0m
Total capital cost	\$200m	\$62.5m	\$75.2m	\$0.4m (0.2%)
20% Cost Increase
7.5 MW (additional well, plant plus transmission)	\$54m	\$28.6m	\$10.6m	\$4.8m
30 MW (additional wells plus plant)	\$186m	\$48.2m	\$84.2m	\$1.6m
Total capital cost	\$240m	\$76.9m	\$94.8m	\$6.3m (2.6%)