PTR MINERALS LTD — Investor Presentation 2011

Feb 27, 2011

ASX Release

PETRATHERM LIMITED ABN 17 106 806 884

4 th Annual Queensland Energy Conference

Earlier this morning, Petratherm's Managing Director, Terry Kallis, presented to the 4 th Annual Queensland Energy Conference in Brisbane.

The conference is being held at the Park Regis Hotel and the topic of the presentation is "Geothermal Energy – Renewable Power from the Earth".

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

28 February 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

Queensland Energy Conference

Geothermal Energy – Renewable Power from the Earth

Managing Director Terry Kallis

February 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 relating to geothermal exploration results and geothermal resources is based on information compiled by P.W. Reid, a full-time Petratherm employee. Mr Reid has sufficient experience in the style of geothermal play under consideration to qualify as a Competent Person under the Australian Code for Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves (2008 edition). Mr Reid consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Presentation Overview

• › Geothermal Energy Technologies and Cost Comparisons
• › Australian geothermal energy developments
• › Queensland developments
• › Petratherm Overview

Geothermal energy overview

Geoscience Australia has estimated that the potential geothermal resource is equivalent to 26,000 times Australia's annual electricity energy consumption

Geothermal technologies

Energy technologies - Australian Resource Assessment - GA

Geothermal energy overview

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

AUSTRALIAN GEOTHERMAL

DEVELOPMENTS

• 57 exploration & development companies in the Australian geothermal sector
• 24 companies listed on the Australian Securities Exchange (9 focused on geothermal energy)
• 418 Geothermal Licences across the nation
• Collectively covering an area of >477,522 km2
• Precompetitive no large scale production

Geothermal in Australia

• To date a total of 7 "deep" wells drilled to reservoir depths by 3 different companies.
• 6 are EGS wells, 1 an HSA well.
• 4 of 6 EGS wells were fracture stimulated with 1 to be frac"d in 2011.

In the next 12 to 18 months, 11 new wells are forecast to be drilled testing both EGS and HSA reservoir targets.

Geothermal in Australia

Supporting Policies and Grant Structures

• › National Renewable Energy Target (RET) of 60,000 GWh by 2020 (20% by 2020).
• › Series of national targeted initiatives and grant programs to stimulate R&D in renewables generally and geothermal specifically, including:
  • › Geothermal Industry Development Framework (GIDF) & Technology Roadmap
  • › Renewable Energy Demonstration Program ($153m to 2 projects)
  • › Onshore Energy Security Program Au$58.9m
  • › Australian Centre for Renewable Energy (ACRE)
  • › Geothermal Drilling Fund (Au$50m to 7 projects)
  • › Various State government schemes
• › $296m in government grants awarded to date

Geodynamics Ltd Innamincka, Cooper Basin, South Australia

Petratherm Ltd – Paralana Project, N. Flinders Ranges South Australia

Petratherm's Paralana EGS Project Adjacent to the N. Flinders Ranges South Australia

• Very high heat flow ~120mW/m2
• Paralana 2 drilled June 2009, 3672 m TD into 176oC basement.
• Estimated reservoir temperature at 4000m is 190oC
• Stimulation operations on reservoir started in 2011.
• 3.75 MW plant is planned to supply geothermal power to Beverley Mine10 km west of Paralana.
• ~AU$70m in grants

Queensland Geothermal

Birdsville– 80 kW plant operating

Potential for EGS and HSA

Permits – call for tenders

Native title ??

Queensland Geothermal Centre of Excellence - $15 million in funding

Commitment to EGS pilot project by 2014 – QLD Renewable Energy Plan

Coastal geothermal initiative

Australian Research Centres

Capabilities map

	CSIRO	GA	WAGCoE	SACGER	QGECE	MEI	PRCfE	IESE
ExplorationTechnology								
Drilling				
ReservoirCharacterisation								
ReservoirEngineering								
PowerConversion							
CommunityEngagement								

Queensland Geothermal Energy Centre of Excellence

• › Hosted by the University of Queensland
• › Focus: technologies that will quicken the pace of large-scale utilisation of hot rock geothermal energy in Australia
• › Four research programs
  • › Power Conversion
  • › Heat Exchangers
  • › Generation & Transmission
  • › Resource Identification

Geothermal Industry Challenges and Opportunities

• › Geothermal energy has the potential to provide large scale, base load and lowcost renewable energy - $120/MWh (50MW) and $80/MWh (>300 MW) (MMA study 2009)
• › Australia has the key ingredients for developing successful engineered geothermal systems (EGS) and hot sedimentary aquifer (HSA) projects
• › While northern South Australia has the best known EGS (hot rock) geothermal resources, there is significant EGS resource potential in Queensland
• › Geothermal projects face a number of challenges, including but not limited to – drilling, achieving adequate flow rates, power conversion efficiency, cost of access to, and delivery to market, induced seismicity and usage of water
• › There is strong government support federal and state for geothermal and renewable energy with capital funding, price of carbon (soon?) and regulatory changes proposed to the NEM

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: 126.7 m
• › Share Price: $0.115
• › Market Cap: $ 14.58 m
• › Cash Position: $ 2.76 m (31 Dec 2010)
• › Shareholders: 3,631 shareholders
  • › Minotaur Exploration 18.54 %
  • › Australian Ethical Investments 8.46 %

Paralana JV Funding and Grants

• › JV Funding: up to $85 million plus equity share of project costs
• › Government grants of $69.8 million toward drilling and commercial demonstration

Petratherm 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 common interests, the right skills/knowledge, risk appetite & funding ability

Petratherm - a standout in the Australian geothermal sector

The Company is considered a standout amongst its peer companies in the ASX listed Australia geothermal sector because it has;

• › a unique exploration approach for identifying shallow "hot spots" that does not rely on information from previously drilled wells
• › an innovative approach for exploiting heat from engineered geothermal systems (EGS) that seeks to lower cost and risk
• › three major joint venture partners involved in its projects in Australia and Spain
• › awarded two major Federal government grants $7m GDP and $62.8m REDP for its Paralana project – enabling a forward development path for commercial demonstration
• › successfully drilled/cased a 4 kilometre deep well at the Paralana geothermal site
• › confirmed economic temperatures for geothermal energy power production to supply nearby off-grid customer
• › successful break down of target zone during recent perforation and injectivity test
• › a portfolio of projects covering the spectrum of geothermal technologies, district heating (Madrid), conventional volcanic (Tenerife), hot sedimentary aquifer (East Gippsland) and EGS (Paralana)

www.petratherm.com.au