PTR MINERALS LTD — Investor Presentation 2012

Nov 14, 2012

ASX Release

PETRATHERM LIMITED ABN 17 106 806 884

Exploration Manager presents to the annual Australian Geothermal Energy Conference

Petratherm's Exploration Manger, Peter Reid will present later today at the annual Australian Geothermal Energy Conference in Sydney.

The attached presentation focuses on the Company's flagship Paralana project and covers the following key technical areas:

• Paralana's regional setting and prospectivity
• Drilling activities to date
• Heat extraction development, covering the fracture stimulation and subsequent flow test works
• Next stages of planned ground activities through to commissioning of a pilot 3.5 MWe power plant

Prince of Wales receives a presentation from Petratherm's Exploration Manager (Photo - courtesy of the Adelaide Convention Centre)

15 November 2012

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 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 Paralana Engineered Geothermal Project – Results of the Hydraulic Fracture Stimulation

Reid P.W., Messieller M, Hasting M. and Albaric J. Australian Geothermal Energy Conference, November 2012

Exploring for Sustainable Energy

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

Petratherm Project Areas

Northern Flinders Ranges

(JV with Beach Energy)

Lake Frome

Paralana Hot Springs – 62^oC

Paralana Independent Resources Statement – Nov 2011

Depth Interval (metres)	Inferred (PJ ) th	Indicated (PJ ) th	Measured (PJ ) th	Total (PJ ) th
<3,500	2,400	1,100		3,500
3,500 - 4,000	4,900	4,400	41	9,300
4,000 - 4,500	5,900	5,700		12,000
4,500 - 5,000	6,900	6,700		14,000
Total (PJ ) th	20,000	18,000	41	38,000

Paralana Joint Venture: Petratherm 79%, Beach Energy 21%. If remaining staged equity investments are met, Beach Energy may earn up to 36% .

• Initial stimulated rock volume = 5.4 MWe power potential for 30 years

• ^> Paralana Resource at the 3500–4000 metre depth interval is estimated a 9,300 PJth which is sufficient to generate 1,300 MWe of electrical power for 30 years

The information on this slide that relates to Geothermal Resources is an extract from a report compiled by Dr Graeme Beardsmore, 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 Slide. Dr Beardsmore is employed by Hot Dry Rocks Pty Ltd, an independent consulting group that provides professional services to Petratherm Ltd. Dr Beardsmore has sufficient experience which is relevant to the style and type of geothermal play under consideration and to the activity which he/she 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'. Dr Beardsmore has consented in writing to the inclusion on the slide of the matters based on his information in the form and context in which they appear.

Resource Development Model – Heat Exchanger Within Insulator (HEWI), and Fractures at Basin-Basement Interface (FABBI)

Targeting Fracture Permeability in

• › Mesoproterozoic metasediments bedding / joint surfaces (HEWI model)
• › Fracture Permeability at Basin / Basement Interface (FABBI model)

Paralana 2 – Drilling

• New Weatherford Owned 2000HP Le Tourneau Lightning Rig
• 57 metres high ~ 10 Stories
• 85 Semi-Trailer Loads
• Spudded June 30, 2009

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
• › 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

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 ~ 1.3 and 5.3 l/sec
• › 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: 3.2 27 l/sec
• › 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

Paralana – Pumping Day 2 – 2 nd Acid Injection – 100 bbl 1% HCL

Micro-seismic events – main fracture

• › MEQ array successfully recorded micro-seismicity:
• › 11,000 events triggered and located by MIMO
• › 4,351 events handpicked
• › Ground motion acceleration and velocity – always within the safe limits established in the risk management plan.
• › Good correlation between pumping rates and microseismic events

The first micro-seismic events appear on the screens at the micro-seismic monitoring centre at Paralana

Induced Seismicity

Induced Seismicity

Good correlation between predicted and actual seismicity

Frac and post frac seismic events

Fracture network

Paralana – Fracture Stimulation

• A complex frac shape creating a 3D volume rather than along a plane, which may allow a high heat recovery factor

• Natural fractures and brines present

• The fractured volume is an enhancement of the naturally fractured system

• Reservoir is over-pressured which may assist production flows

Paralana Flow Test, Oct 2011

1.28 million litres produced

Flow rate – 1 – 6 litres/sec

Bottom 200 metres - well fluid temperature 171^oC

Key milestones for the Paralana geothermal project

Paralana JV project planned milestones

• 3rd Qtr 2011: Main fracture stimulation

• 3rd Qtr 2011 : Flow test

• 2nd half 2013: drilling of the Paralana 3 deep producer well

• Early 2014: Large scale hydraulic stimulation works of Paralana 2 and 3

• Late-2014: Circulation Test Demonstration of Flows

• Jan 2015: Commission first stage 3.5 MW power plant