ASX Release

28 August 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: [email protected]

PETRATHERM LIMITED ABN 17 106 806 884

Managing Director presents to SA Major Projects Conference 2012

Petratherm's Managing Director, Mr Terry Kallis, will later today present to the 5th Annual SA Major Projects Conference 2012 being held at the Adelaide Convention Centre (refer attached presentation).

The presentation focuses on the Company's progress to date on its flagship Paralana project (located 600km north of Adelaide) and also outlines the Company's exciting new Clean Energy Precinct project, which aims to meet the growing electricity demands of major mining developments in the northwest of South Australia.

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

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. The information in this report that relates to Exploration Results, 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.

›Geothermal sector challenges and opportunities

…addressing the challenges and seizing the opportunities through Petratherm's

›Paralana Geothermal Energy JV project

and

›Clean Energy Precinct project

Energy technologies - Australian Resource Assessment

Key challenges

›Funding
› Equities market
- ›JV partners
›Government
›Achieving economic flow rates
› Economic delivery to market
- ›Power – grid/off grid
›Heat - proximity to market
›Market and Stakeholder Knowledge
›Industry Structure and Maturity

›Funding
› ARENA new government funding - $1.8 billion unallocated grant funds
- ›AGEA to seek $500m drilling/subsurface works grant fund
›Refer AGEA website – www.agea.org.au
›Technology developments
› Geothermal
- ›Oil and Gas
›Economic delivery to market
›Target off grid markets
›Combination and integration with other technologies
›Promotion and education – "delivery of results"
›Consolidation, collaboration and differentiation

Our business model – consistent and robust

"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

"Right projects, right partners, right people"

›

› Main Fracture injection test- exceeded 500 m propagation target, 3.1 million litres injected and over 7,000 micro-seismic events detected
› Flow Test completed successfully 1.3 million litres flowed to surface and temperatures reconfirmed
› Project has followed clear plans and milestones with spend tightly managed by JV to ensure value for Partners, Government and PTR shareholders
› Next step is to drill Paralana 3 deep 3.8 kms producer well, fracture stimulate, circulate and to demonstrate flows

HEWI Model at Paralana

The required heat exchanger is created within the insulating layers above the granite heat source.

Aims to reduce risk, cost and time.

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	00<3,5	2,400	1,100		003,5
	4,00000 -3,5	4,900	4,400	41	009,3
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this Slide. Dr BeardsmoreLtd. Dr Beardsmore				The information on this slide that relates to Geothermal Resources is an extract from a report compiled by Dr Graeme Beardsmore, who appears on thehas sufficient experience which is relevant to the style and type of geothermal play under consideration and to the activity whichis employed by Hot Dry Rocks Pty Ltd, an independent consulting group that provides professional services to PetrathermRegister of Practicing Geothermal Professionals maintained by the Australian Geothermal Energy Group Incorporated at the time	of	the publication of

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.

What/where is Petratherm's Clean Energy Precinct ?

› Project is separate to, but complementary of and inextricably linked to, the Paralana Geothermal Energy JV project and new Moolawatana GELs
› Project is situated just north of the Paralana geothermal project with access to 1890 square kms of land
› Project aims to combine gas, wind, solar and geothermal resources
Aim to supply a competitive and secure source of base-load and renewable/low emission power to the growing market in the northwest SA

›

What/where is Petratherm's Clean Energy Precinct ?

Moomba to Adelaide gas pipeline traverses land in an ideal location that has abundant solar resource and wind resources

›

Staged development of power project – initially gas and most likely wind – to provide first stage 300 MW connection to a point near Olympic Dam

›

› Second stage 300 MW connection comprised of gas, wind and solar and introducing large scale geothermal energy
› Longer term aim to provide large scale geothermal power to Braemar Magnetite Province near Broken Hill

What/where is Petratherm's Clean Energy Precinct ?

› Project is in response to large demand growth expected from very large mining developments 270 kms east of the Clean Energy Precinct
› Mines include Olympic Dam, Prominent Hill, Carapateena - seeking to provide alternative options for power supply to mining developments in SA
Clean energy to be delivered by two, 300 MW HVDC underground cable connections to minimize environmental, indigenous heritage impacts and ensure speed to market

›

Photos of Murraylink HVDC 220 MW interconnector project near Berri in SA

Preliminary resource assessment summary for Precinct

› BOM data suggests solar resource 20 MJ/m²/day or (5kWh/m²/day). GH confirms it as an excellent solar resourceM

› Expect competitive gas supply contract availability from Moomba producersN
› Expect sufficient gas pipeline capacity from MAPN
› Wind regime expected to confirm good quality wind resourceM

(1- Subject to further detailed resource assessment by GH -refer GH disclaimer ) (2 - Subject to negotiations with gas suppliers and EPIC Energy)

Resources – gas, wind, solar and geothermal expected to be available in large quantities of 150 MW+ each – actual mix of generation is yet to be determined

gnmitidn	missionmix and transCosting of generationwayconnection under	with Federal andmenced discussionsmentsState governmCo	m500$1,mate*Capital cost esti	m$7ment costs (full feasibility**)Develop	43/early 201mercial close end of 201mCo	6mid /late 201mencingmwer coSupply of po	W /year for 6-7M0050 to 1Supply increasingyears	(* subject to generation plant mix)% contingency)(** includes 30
astsocevtiacdine, itadotkroW	•wableRenees;International Infrastructure andveral partiwith sempaniesonsEnergy con discussi›I	•mpaniesInternational EPC and Product Suppliermestic Resources and Energy companiesDoco››	•grid connection/accesspipeline connection/access-NetElectraC –EPI››	•alotentiwith ponsenced discussimmCo	•eeds"or to n"tailers –mg custonnimi	•ywaerdnents umAgreeUsednous LaengdinI	•y*waerdnents umResource assess	mate included in this presentation)(latest wind esti

Moolawatana Pastoral Lease – Homestead to Beverley

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		Stage one - East		Stage two - West
REpower 3.2M114	estimateLower	estimateUpper	estimateLower	estimateUpper
Wind Farm Rated Power	152.16	152.16	152.16	152.16	MM
Gross Energy Output		624.9		646.8	GWh/annum
Wake effect	490.196.896.897.0100.099.5			94.796.897.099.599.5	$\delta_{\rm O}$
Availability					$\sqrt{6}$
Electrical efficiency
Turbine performance
Environmental					$\sqrt{2}$
Curtailmen		97.496.88.99.599.50001	517.895.196.897.0100.0199.5		$\frac{6}{6}$
Net Energy Outpu	443.0	568.2	450.2	571.4	GWh/annun
actorNet Capacity F	33.2	42.6	33.8	42.8	$\sqrt{6}$

Preliminary* wind assessment by Garrad Hassan (refer table above) indicates good (33%) to excellent (43%) capacity factors for wind power generation development. Next step is to install 2 met masts on Moolawatana station near the west end of the pastoral lease (* estimates are based on meso-scale data and 45 metre grid resolution)

GL GH Important notice and disclaimer

The information provided in this ASX Release pertaining to services provided by GL GH to Petratherm Ltd is extracted from a report prepared and issued by Garrad Hassan Pacific Pty. Ltd. (GL GH) to Petratherm Ltd for the sole use of Petratherm Ltd on whose instructions the report has been prepared, and who has entered into a written agreement directly with GL GH. GL GH has no liability whatsoever to any third party in connection with this ASX Release and the information provided herein or for any use whatsoever by any third party of this ASX Release. GL Garrad Hassan offers independent technical and engineering services, products, and training courses to the onshore and offshore wind, wave, tidal and solar sectors. More information about GL GH can be found at: www.gl-garradhassan.com