PTR MINERALS LTD — Investor Presentation 2011

Sep 7, 2011

ASX Releas e

8 September 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

PETRATHERM LIMITED ABN 17 106 806 884

Presentation to Australian Fracture Stimulation Symposium – Adelaide, 9 September 2011

Petratherm's Reservoir Engineer, Ms Ella Maria Llanos, will present a paper to the Australian Fracture Stimulation Symposium to be held in Adelaide tomorrow.

The presentation outlines the Company's recent successful fracture stimulation work at it is flagship Paralana project and provides the latest information with additional technical detail not previously disclosed.

The presentation is attached.

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

Early Findings from the Fracture Stimulation Program in the Paralana 2 Geothermal Well

FRACTURE STIMULATION SYMPOSIUMAdelaide, September 9th , 2011

By Ella María Llanos R

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 Plan

• 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

Development Model – Heat Exchanger within Insulator

= Cheaper Power!

Paralana 2 – Drilling finished – 9 Nov 2009

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• › First well designed following low-risk, standard operating methods
• › Steady but slow drilling due to hard formations
• ›Drilled to 4003m (G.L) depth
• Wireline and LWD logging completed
• Well cased and cemented to 3725m

Bottom hole temperature ~ 190°C

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!

August 2010 - Work Period

Successful pressure Test

Soft Tags from 2900m to 3200m then hit hard tag

Follow up slick-line survey 3 weeks later found no obstructions

Well casing integrity confirmed

Coil Tubing unit to replace heavy brine with water December / January Period

Casing Perforation over 3679 – 3685 meters interval

Diagnostic Fracture Injection Test (DFIT)

Photo: Paralana Pressure Test, August 2010

Passive seismic array

1 deep borehole sonde at 1800m in Paralana 1b

6 borehole sondes ~ 200m

10 surface seismometers

4 accelerometers

MEQ - Array Managed by Institute of Earth Science and Engineering (NZ)

DFIT Results – January 2011

15000 litres injected

• Pressure ~ 8700 psi
• Rates ~ 0.5 and 2 bpm
• WHP ~ 4000 psi
• ›> 140 MEQ

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• The fracture array cloud measured by the array indicated that it extended 300m by 200m and was approximately 130m thick.
• ›Magnitude -1 to 1 (RS)

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

S U M M A R Y	D 1 a y	2 D a y	3 D a y	D 4 a y	D 5 a y
T t t e a m e n r	d 1 A i c	3 d A i c	2 d A i c	d G l / d l 1 A i + c e s a n s u g s	P t r o p p a n
( b ) M R t a x a e p m	2 5	3 5	6 0	9 0	1 0

MEQ events – main fracture

• › MEQ array successfully recorded microseismicity:
• ›10'000+ events generated
• ›7'000 events triggered by MIMO, 1'920 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

MEQ events: interpretation

MEQ events: interpretation

Fracture Stimulation – Operational Review

›Overall very successful

• ›Results -
• ›Seismic Risk Management -

›Future Issues

• ›Ability to pump at higher pressures
• ›Use of proppants?

Paralana JV project planned milestones

3rd Qtr 2011: Main fracture stimulation -

3rd Qtr 2011: Flow test-aim to determine well deliverability potential and recovery of in-situ brine.

Mid-2012: drilling of the Paralana 3 deep producer well

3rd Qtr 2012: Circulation Test –Demonstration of Flows

2012: Commission first stage 3.75 MW power plant