PTR MINERALS LTD — Investor Presentation 2011

Oct 26, 2011

ASX Release

PETRATHERM LIMITED ABN 17 106 806 884

Presentation to the Geothermal Resources Council Conference, San Diego, California

Petratherm's Exploration Manager, Mr Peter Reid, earlier this week presented to an international audience at the Geothermal Resources Conference in San Diego, California.

The presentation (attached) covered the recent successful fracture stimulation process conducted on the Paralana 2 well.

Yours faithfully

Terry Kallis Managing Director

MEDIA CONTACTS: Terry Kallis Petratherm Ltd 08 8274 5000

Kieran Hall / Tim Hughes Hughes Public Relations 08 8412 4100

27 October 2011

ASX Code: PTR

ABN 17 106 806 884

Level 1, 129 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

Paralana EGS Project - Findings from the Fracture Stimulation

Geothermal Resources Council Conference, San Diego, California

Peter Reid Exploration Manager October 2011

Disclaimer and competent persons statement

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.

Competent Persons Statement

The information in this report that relates to Exploration Results, Geothermal Resources or Geothermal Reserves is based on information compiled by Peter Reid, who appears on the Register of Practicing Geothermal Professionals maintained by the Australian Geothermal Energy Group Incorporated at the time of the publication of this report. Peter Reid is a full time employee of the Company. Peter Reid has sufficient experience which is relevant to the style and type of geothermal play under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the Second Edition (2010) of the Australian Code for Reporting Exploration Results, Geothermal Resources and Geothermal Reserves. Peter Reid has consented in writing to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Petratherm overview

Our company

• Projects spanning Australia, Spain and China
• Projects across the spectrum of geothermal technology
• Flagship project Paralana in SA's northern Flinders Ranges

Paralana Project – commercial / market overview

• Small off grid market (5-30MWe)
• Potential large on grid development (260 MWe+)
• Expenditure well leveraged for proof of concept, then potentially fully funded to initial commercial demonstration scale 30MWe plant
• Funding and expertise from JV: Beach Energy (up to 36% for \$30m) TRUenergy (up to 30% for \$57m)
• Federal Government grants support: \$7 million geothermal drilling fund \$62.8 million REDP grant

Paralana Project – Regional Picture

Development Model – Heat Exchanger within Insulator

• › Higher Permeability
• › Chemically Stable
• › Mesoproterozoic metasediments bedding / joint surfaces
• › Fracture Permeability at Basin / Basement Interface (FABBI)

= Cheaper Power!

Paralana 2 well summary

• › Depth 4003m (G.L. A.H.D.)
• › Well cased and cemented to 3725m
• › Extrapolated bottom hole temperature ~ 190^oC
• › High pressure geothermal brines intersected from 3680m
• › Zircon dating confirms 1585 ^± 11 Ma Reservoir Sequence
• › Contains numerous fractures and faults
• › 2D Seismic suggests fractured reservoir sequence may be regionally extensive
• › 6m perforated interval between 3679 and 3685m

Paralana 2 – Brine Intersected

• High torque, intervals of high ROP's, drilling breaks and increase in well bore deviation
• Inflow of over-pressured geothermal brines between 3670 - 3864 m
• Shut in pressure indicated ~ 3,300 psi, of overpressure and mud system weighted up to 13.2ppg to stop flow.
• Well bore stability problems limited wire line logging to LWD measurements to 3725 m
• Zr dating confirms old 1590Ma reservoir sequence

Numerous large Fractures/Faults Intersected!

Passive seismic array

MEQ - Array Managed by IESE

1 deep borehole sonde at 1800m in Paralana 1b

6 borehole sondes ^~ 200m

10 surface seismometers

4 accelerometers

Injectivity test – January 2011

• › 15000 litres injected
• › Pressure ~ 8700 psi
• › Rates ~ 0.5 and 2 bpm
• › WHP ~ 4000 psi
• › > 140 MEQ
• › Magnitude -1 to 1 (RS)

The fracture array cloud measured by the array indicated that it extended 300m by 200m and was approximately 130m thick.

Fracture Stimulation – Key Statistics

• › 3.1 million litres injected
• › Injection rates: 1.2 10 bpm
• › Equilibrium WHP prior and post operation 3940 psi.
• › Acid treatments allow higher pumping rates.
• › Sand proppant successfully placed at end of the treatment. Photo: courtesy Advertiser, July 2011

Fracture Stimulation – Pressure and flow rate

MEQ events – main fracture

• › MEQ array successfully recorded microseismicity:
• › 11'000 events triggered and located by MIMO,
• › 2'600 events handpicked
• › Maximum magnitude on the Richter Scale: 2.6
• › 98% of the events were less than Mag 1.0
• › Ground motion acceleration and velocity always within the safe limits established in the risk management plan.
• › Good correlation between pumping rates and micro seismicity

MEQ events: interpretation

Key milestones for the Paralana geothermal project

Paralana JV project planned milestones

• 3rd Qtr 2011: Main fracture stimulation
• 3rd Qtr 2011 : Flow test
• 1st half 2012: drilling of the Paralana 3 deep producer well
• Mid-2012: Circulation Test Demonstration of Flows
• 2012: Commission first stage 3.75 MW power plant