PTR MINERALS LTD — Investor Presentation 2012

Jun 17, 2012

ASX Release

18 June 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 PETRATHERM LIMITED ABN 17 106 806 884

Preliminary wind energy production estimate for Clean Energy Precinct

• A preliminary wind energy production estimate for the Company's Clean Energy Precinct project indicates there is good potential to develop up to 300 MW of high yielding wind power generation.
• Work undertaken by GL Garrad Hassan, world leading independent wind consultants, indicates that capacity factors for wind power generation are expected to range between 33.2% (good) and 42.8% (excellent).

Petratherm's Clean Energy Precinct (CEP) project is being developed as the key enabler for the delivery of large scale geothermal energy from Paralana geothermal energy project to the SA power grid.

The CEP is targeting the expected large growth in electricity demand arising from mining developments in the northwest of SA (refer map below). The CEP project is expected to be developed in a staged process, initially involving gas and wind power generation, followed by the introduction of large scale geothermal and potentially solar power generation.

The CEP project has taken an important step towards feasibility with the preliminary assessment of an expected commercial wind resource by expert consultants GL Garrad Hassan (GL GH) Pty Ltd.

GL GH previously predicted average wind speeds between 7.0 m/s and 8.0 m/s based on mesoscale modeling results (refer map overleaf). The new energy production estimate by GL GH (released herein, refer table below), while preliminary, is encouraging and has indciated that the project has good to excellent wind power generation potential.

GL GH estimates below are based on using a Class 3A, 3.2 MW wind turbine from REpower* (the 3.2M114 model) that is known to be well suited to the expected wind regime at the CEP site.

	Stage one - East		Stage two - West
REpower 3.2M114	Lowerestimate	Upperestimate	Lowerestimate	Upperestimate
Wind Farm Rated Power 1	152.16	152.16	152.16	152.16	MW
Gross Energy Output	490.1	624.9	517.8	646.8	GWh/annum
Wake effect	96.8	97.4	93.1	94.7	$\frac{0}{0}$
Availability	96.8	96.8	96.8	96.8	$\frac{0}{0}$
Electrical efficiency	97.0	97.0	97.0	97.0	$\frac{0}{0}$
Turbine performance	100.0	99.9	100.0	99.9	$\frac{0}{0}$
Environmental	99.5	99.5	99.5	99.5	$\frac{0}{0}$
Curtailment	100.0	100.0	100.0	100.0	$^{0}/_{0}$
Net Energy Output	443.0	568.2	450.2	571.4	GWh/annum
Net Capacity Factor	33.2	42.6	33.8	42.8	$\frac{0}{0}$

GL GH's estimate of the wind energy production was developed by considering, inter alia, the following factors;

• mesoscale modelling results (refer wind resource map overleaf) with minimum and maximum power output (using 7.0 to 8.0 metres/sec wind speed range)
• terrain and topography of target wind turbine locations and surrounding area
• typical losses (including wake and electrical losses)
• power production curve of the selected turbine the REpower 3.2 MW turbine with 57 m blades with a hub height of 100 metres

The wind energy resource and power generation estimates are indicative and are planned to be firmed up with greater certainty through the installation of two meteorological masts and anemometry at the CEP site.

The masts will be measuring wind speeds at 10 minute intervals over a period of at least one year and will provide valuable information for the feasibility study which is planned to be completed in early 2014.

(*REpower is a German based manufacturer of wind turbines and has been recently acquired by the Suzlon Group which has installed over 900 MW of wind turbines across Australia and over 500 MW in South Australia).

Note: The attached presentation provides additional background information for the reader and further background information on the CEP can be found in a 7 December 2011 ASX release which is available from the PTR website.

Map of Pastoral Lease boundary showing prospective wind regime in north western area on low lying hills beyond the northern Flinders ranges (refer also to attached presentation and disclaimer)

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

For more information visit www.petratherm.com.au or contact:

Petratherm Ltd Hughes Public Relations Terry Kallis Kieran Hall admin@petratherm.com.au 08 8412 4100 08 8274 5000

Yours faithfully

Terry Kallis Managing Director

Petratherm Limited

Clean Energy Precinct Project

Project Overview and Update

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.

Photographs used in this presentation are for illustrative purposes only unless otherwise indicated

Petratherm Clean Energy Precinct

Murraylink project 220 MW HVDC convertor station at Berri in SA's Riverland, connected to Victoria , near Mildura via a 180 km underground DC cable

Presentation Outline

• › CEP is the "key enabler" for delivery of large scale geothermal from the Paralana project to the market
• › CEP overview why, what, where and how?
• › Preliminary wind energy estimates for up to 300 MW of capacity
• › Other resource estimates gas and solar
• › Work to date and next steps

Supporting slides – new GELs, similar HVDC network connections, topography, comparative costs, forward estimates for based on modeling of carbon pricing

CEP – recent media coverage – Paydirt Magazine June 2012

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%.

Initial stimulated rock volume = 5.4 MW electrical 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 MW of electrical power for 30 years

"Clean Energy Precinct aims to monetize the large Paralana geothermal resource"

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 timeof 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.

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 with a combined new potential demand in excess of 700 MW providing alternative options for power supply
• › 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

What are the key/unique features of the Precinct ?

• › Project is located in the area closest to the power demand where there is a "convergence" of;
  • › available Gas resources - pipeline
  • › abundant Solar resources
  • › abundant Wind resources
  • › large Geothermal resources
• › Avoids the need for a long distance gas pipeline that may have little demand growth beyond Olympic Dam – eastern and southern state market growth
• › Utilizes state of the art HVDC underground cable technology adding stability to the power system – acts like a firewall ensuring power quality and system security with low losses compared to AC

Preliminary Wind Assessment at 100 m hub height

Preliminary wind assessment Garrad Hassan (GH) – world's leading wind consultants – (refer adjacent Mesoscale Model Map – with X signifying the Moolawatana Homestead)

Wind speeds in northwest part of lease is assessed as being around 7 to 8 metres/sec at 100 metre height

Expected to be well suited to a Class 2 turbine, large blade and 100 metre hub height

150 MW and 300 MW wind farm sizes being assessed by GH based on 3.2 MW REpower turbine 57 m blade (refer overleaf)

Mesoscale Model Map of Pastoral Lease boundary showing prospective wind regime in north western area on low lying hills beyond the Flinders ranges

Preliminary Wind Assessment at 100 m hub height

	Stage one - East		Stage two - West
REpower 3.2M114	Lowerestimate	Upperestimate	Lowerestimate	Upperestimate
Wind Farm Rated Power 1	152.16	152.16	152.16	152.16	MW
Gross Energy Output	490.1	624.9	517.8	646.8	GWh/annum
Wake effect	96.8	97.4	93.1	94.7	$\frac{0}{0}$
Availability	96.8	96.8	96.8	96.8	$\frac{0}{0}$
Electrical efficiency	97.0	97.0	97.0	97.0	$\frac{0}{0}$
Turbine performance	100.0	99.9	100.0	99.9	$\frac{0}{0}$
Environmental	99.5	99.5	99.5	99.5	$\frac{0}{0}$
Curtailment	100.0	100.0	100.0	100.0	$\frac{0}{0}$
Net Energy Output	443.0	568.2	450.2	571.4	GWh/annum
Net Capacity Factor	33.2	42.6	33.8	42.8	$\frac{0}{0}$

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

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 resource
• › Expect competitive gas supply contract availability from Moomba producers
• › Expect sufficient gas pipeline capacity from MAP
• › Wind regime expected to confirm good quality wind resource
  • (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

Work to date, indicative costs and timing

• › In discussions with several parties;

  • › International Infrastructure and Renewable Energy companies
  • › Domestic Resources and Energy companies
  • › International EPC and Product Supplier companies
  • › ElectraNet grid connection/access
  • › EPIC pipeline connection/access

• › Commenced discussions with potential mining customers – "tailor to needs"

• › Indigenous Land Use Agreements underway

• › Resource assessments underway* (latest wind estimate included in this presentation)

• Costing of generation mix and transmission connection underway

• Commenced discussions with Federal and State governments

• Capital cost estimate* $1,500 m

• Development costs (full feasibility**) $7 m

• Commercial close end of 2013/early 2014

• Supply of power commencing mid /late 2016

• Supply increasing 100 MW /year for 6-7 years

(* subject to generation plant mix) (** includes 30% contingency)

www.petratherm.com.au

New Moolawatana GELs -

Moolawatana GELs located north of Parlana and the Beverley Uranium Mine

GELs cover 2600 sqkms of land and most of the 1890 sqkms of the Moolawatana Pastoral Lease

GELs covers around 90 kms of the route length of the Moomba to Adelaide Pipeline

HVDC transmission connection – already connects SA & Vic – Murraylink 220 MW, 180 kms underground cable

Moolawatana Pastoral Lease – Homestead to Beverley

Potential wind farm location areas – north of Homestead

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

Energy technologies - Australian Resource Assessment

Impact of Carbon pricing – Australian emissions (source SKM/MMA)

Impact of Carbon pricing – Australian power generation mix (source SKM/MMA)

Impact of Carbon pricing – Australian wholesale electricity price (source SKM/MMA)

Impact of Carbon pricing – State wholesale electricity prices (source SKM/MMA)

Impact of Carbon pricing – South Australian power generation mix (source SKM/MMA)