PTR MINERALS LTD — Investor Presentation 2011

Feb 14, 2011

PETRATHERM LIMITED ABN 17 106 806 884

International Resource Journal

Attached is a copy of a recent article included in the highly regarded International Resource Journal (IRJ) based in London, U.K.

The article on Petratherm features in the IRJ's recent special review of alternative energy technologies.

The article summarises the Company's business strategies and projects in Australia and Spain.

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

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.

ASX Release

15 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

www.petratherm.com.au

PARALANA PROJECT PETRATHERM LTD'S for geothermal breakthrough

2

oth Australia and Spain. Plenty are South Australia-headquartered , geothermal energy projects like d the partner and governmental ures in place to put such projects support to rival Petratherm. together, and even fewer have garnered trying, but few have strong joint ventu company with advanced projects in bo Petratherm Limited (ASX: PTR), the S commercially successful, emission free,

commercial and technical to come overnments," Terry Kallis, Managing ng quality offerings to parties— not "OUR APPROACH TO exploration combines Director, tells just joint venture partners but also the go up with good projects. We are able to brin IRJ

6 ALTERNATIVE ENERGY Petratherm Limited

"We're hoping that this year we'll differentiate ourselves from the pack." In fact, there are just two other companies that have drilled a deep well and been as successful, both using partners and receiving government grants akin to Petratherm. This is the story of how and why this company will be the one to watch in 2011.

Petratherm and Paralana

Sitting 600 kilometres north of Adelaide, adjacent to the Mt. Painter region of South Australia's north thermal project, Paralana. The Petratherm board's extensive understanding of the area's geology sparked that initial interest in setting up the project, and the rest, as they say, is history.

metres and found that the tonnage gradient was quite good. We then drilled an exploratory was the right type of geology to develop, which is basically insulating rocks to keep the heat in," Kallis explains.

ent further down, then worked on getting some a joint venture partner, Beach Petroleum, and brought on another joint venture partner later

called TRUenergy ["TRUenergy Geothermal"]." Petratherm then received two government rights—one for $5 million and one for $7 million—to assist with the drilling. In late 2009, the company drilled a deep well, measured the temperatures and found that they were economic, and has since done a number of tests. The most recent of these tests was an injectivity test to make sure Petratherm could fracture the rock horizontally and crack a reservoir. "We completed that test a few days ago and

that basically shows that we can fracture the rock, so the next step for us will be doing a major fracture in a couple of months time," Kallis says. "That will mean that instead of doing an exercise over a couple of ours using hot water under pressure, we'll have a 10-day program

with hot water

under pressure

to create

an

Following the 10-day program, the company will commence work on a second well to locate where the reservoirs are and circulate water between them with cold water down one and hot water and steam down the other. In order to assist with getting beyond work on these two wells, towards looking at building a plant and adding megawatts to a point where Paralana can be commercially demonstrated, Petratherm received a A$63 million grant just over a year ago. At that

7 FEBRUARY 2011 The International Resource Journal

point when Paralana is commercially viable about 20 or 30 megawatts of development—the company can go to securing necessary funding. Petratherm is on track to commence stage two, planned for February/March, and currently working on its second well—Paralana 2.

Meanwhile in Spain

There are two projects in particular which Kallis speaks excitedly of when asked about Petrathcompany's Geo-Madrid Geothermal District Heating (GDH) Project, covering 330 square kilome-

tres in the north-eastern part of the city. "Five wells have been drilled, four of those were done by the Spanish government and one kilometres and the other is drilled to about 3.5 kilometres. We have all of the geological informa- tion about those," he says. "We are able to use a site called Geo-Madrid, which has two wells. One of those is reusable and the other one isn't. We've been working with the federal and Madrid regional government, and a large utility." The project will offer a zero emissions, sustainable and cost competitive alternative to

6 ALTERNATIVE ENERGY Petratherm Limited

"We're hoping that this year we'll differentiate ourselves from the pack." In fact, there are just two other companies that have drilled a deep well and been as successful, both using partners and receiving government grants akin to Petratherm. This is the story of how and why this company will be the one to watch in 2011.

Petratherm and Paralana

Sitting 600 kilometres north of Adelaide, adjacent to the Mt. Painter region of South Australia's north thermal project, Paralana. The Petratherm board's extensive understanding of the area's geology sparked that initial interest in setting up the project, and the rest, as they say, is history.

metres and found that the tonnage gradient was quite good. We then drilled an exploratory was the right type of geology to develop, which is basically insulating rocks to keep the heat in," Kallis explains.

ent further down, then worked on getting some a joint venture partner, Beach Petroleum, and brought on another joint venture partner later

called TRUenergy ["TRUenergy Geothermal"]." Petratherm then received two government rights—one for $5 million and one for $7 million—to assist with the drilling. In late 2009, the company drilled a deep well, measured the temperatures and found that they were economic, and has since done a number of tests. The most recent of these tests was an injectivity test to make sure Petratherm could fracture the rock horizontally and crack a reservoir. "We completed that test a few days ago and

that basically shows that we can fracture the rock, so the next step for us will be doing a major fracture in a couple of months time," Kallis says. "That will mean that instead of doing an exercise over a couple of ours using hot water under pressure, we'll have a 10-day program with hot water under pressure to create an

Following the 10-day program, the company will commence work on a second well to locate where the reservoirs are and circulate water between them with cold water down one and hot water and steam down the other. In order to assist with getting beyond work on these two wells, towards looking at building a plant and adding megawatts to a point where Paralana can be commercially demonstrated, Petratherm received a A$63 million grant just over a year ago. At that

in the next couple of years will mark a major breakthrough for the geothermal sector throughout the world. With Tenerife the company is working on demonstrating its ability to access rather low technology and exploration risk with high priced power, as well as helping to fund a lot of the other work it does. Its work in Madrid offers about getting the numbers right."

"We have tried to reduce company risk from being a one trick pony in our technology developmenttype business. That has been important," he adds.

Supporting each impressive development that Petratherm has made, and likely will make, is its highly experienced executive team. It is a board and management with a history of successfully developing projects, not necessarily in geothermal alone but in other endeavours and in the renewable sector also. Kallis himself worked on developing years ago now, and with its current projects, in particular Paralana, this team is readying to make a big step forward for geothermal.

"Paralana's next major step will be in February/ March with the fracture then the second half of the year will be drilling Paralana 3. In Tenerife, it'll be the exploratory well and in Madrid subject to getting the economics right it could be building a production well in the second half of next year," Kallis says.

"In 2011, just watch us. Both here in Australia and in Spain we'll differentiate ourselves achieved for the company."

Petratherm spells good news for geothermal, Australia, Spain and their respective governments. There are not many companies who can master projects like these, but this one can, and in 2011 the world will see just how much more this company is capable of.

WWW.PETRATHERM.COM.AU

9 FEBRUARY 2011 The International Resource Journal

AS SEEN IN THE FEBRUARY 2011 ISSUE OF THE INTERNATIONAL RESOURCE JOURNAL