PTR MINERALS LTD — Investor Presentation 2013

Mar 18, 2013

ASX Release

19 March 2013

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

Presentation to the 3rd Annual SA Resources & Infrastructure Conference

Petratherm's Exploration Manager, Peter Reid, presented to the 3rd Annual SA Resources & Infrastructure Conference held at the Adelaide Convention Centre this morning.

The presentation included the Company's flagship Paralana project, its Tenerife project and the Clean Energy Precinct project.

The presentation outlines key areas of differentiation the Company believes it has in the Australian geothermal energy sector, including:

• Business model based on JVs with right projects, partners and people – securing key skills and funding
• Project portfolio several projects across geothermal technology spectrum to manage risks
• Track record of success drilled, cased, fracced and flowed Paralana 2 well, confirmed economic temperature and existence of natural fracture network
• Extraction model for a pumped, deep engineered geothermal systems well that is technically valid/optimal for target temperature
• Clear commercialization path, for both the local off grid and long term on grid and growing power markets

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

Developing Large Scale Renewable Power to Meet South Australia's Future Growth in Mining

South Australian Resources and Infrastructure Conference, March 2013

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.

The information in this presentation 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 presentation of the matters based on his information in the form and context in which it appears.

Petratherm overview

Our company

• Projects spanning Australia and Spain

• Projects across the spectrum of geothermal technology

• Flagship project Paralana in SA's northern Flinders Ranges

Our business model – consistent and robust

"To explore for and develop low emission energy projects that are commercially attractive"

• › Unlock Paralana's vast geothermal resources value through demonstration of viable power production.
• › Develop a portfolio of quality geothermal energy projects.
• › Identify complementary wind, solar and gas power opportunities to assist geothermal development.
• › Introduce joint venture partners with common interests, the right skills/knowledge, risk appetite & funding ability.

"Right projects, right partners, right people"

Petratherm Project Areas

Northern Flinders Ranges

(JV with Beach Energy)

Lake Frome

Paralana Hot Springs – 62^oC

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

Targeting Fracture Permeability in

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

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.

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

Project Milestones

• › Drilled Paralana 2 to depth 4003m (G.L. A.H.D.)
• › Confirmed optimum bottom hole temperatures ~ 190^oC at 4000m
• › High pressure geothermal brines intersected and natural fractures intersected from 3680m – may assist flows
• › Fracture stimulation produced a large complex fracture cloud extending (1100m)
• › Initial injection rates of 27 l/sec with scope to increase to commercial rate
• › Successful flow test produced 1.3 million litres due to natural overpressure

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

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

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

Commercialization Path

• › Initial 3.5MW off-grid pilot plant to Beverley Mine (11 kms away).
• › Growing up to 30 MW to meet offgrid needs.
• › Long term path for large scale geothermal (300MW+) via the Clean Energy Precinct (gas, wind and solar), that aims to secure the large growing market from the mining sector.

Paralana Flow Test – October 2011

Extraction model for a pumped EGS well

Sanyal (Geothermex) et. al. 2007* independent expert paper reports :

• Standard industry pump operating temperature limit is ~ 190^oC
• Max MW per well ~7.3MW (unless pumps improve on setting depth and pump rate)

Paralana Extraction Model :

• Targeting optimal temperature parameters to maximize output of a pumped EGS well
• Temperatures of 190^oC confirmed at 4,000m
• JV decision not to drill deeper than 4km based on cost/depth trade-off – validated
• Remaining uncertainty to test is flow rate which is measured to Productivity Index (PI)
• Paralana target flow is 75 litres/sec or PI ~ 4 achieving a net capacity of 3.5 MW

Net MW Capacity of a Pumped Well vs Temperature

* Sanyal 2007 paper available for download at www.geothermal-energy.org/pdf/IGAstandard/SGW/2007/sanyal3.pdf

Paralana – Next Stage Project Funding

• › Next stage of works budgeted at around \$26 million
• › Covers drilling Paralana 3, fracture stimulation and demonstration of commercial flows. This work is the immediate precursor to building a 3.5 MW pilot plant.
• › Petratherm has lodged a \$13 million grant application under the Australian Renewable Energy Agency (ARENA) \$126 million Emerging Renewable Program (ERP) to fund half of the total costs.
• › Beach Energy Paralana JV partner- have 21% project equity share
• › Petratherm project equity share is 79% if ERP grant is successful, PTR funding need for next stage of works is around \$10 million.
• › Petratherm could receive up to \$7.2 million in cash rebates* for eligible expenditures under the R&D Tax Incentive scheme (* post eligible spend & assessment)
• › Net cost to Petratherm to achieve Demonstration of Commercial Flows (DCF) potentially around \$3 million. If DCF is successful, then this will unlock the \$62.8 million REDP grant

Key Milestones for the Paralana Geothermal Project

Paralana JV project planned milestones

• 1st 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
• Mid-2014: Circulation Test Demonstration of Commercial Flows which unlocks the \$62.8m Renewable Energy Demonstration Grant
• 2015: Commission first stage 3.5 MW power plant

Clean Energy Precinct

• Plan to deliver 600 MW into a large growth market driven by Mining Developments
• Gas, Wind, Solar and Geothermal converge
• Key enabler for delivery of large scale geothermal energy into the SA Power Grid
• Exclusive access to over 1,800 square kilometres of land for power generation
• Initial 300MW gas and wind development followed by solar and geothermal

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 )

(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

Clean Energy Precinct - Preliminary Wind Assessment

• Preliminary wind assessment for a 150MW and 300MW wind farm by Garrad Hassan (GH) – world's leading wind consultants.
• Wind speeds in northwest area is assessed as being 7 to 8 metres/sec at 100 metre height.
• Capacity factors modeled to range between 33.2% (good) and 42.8% (excellent).
• Expected to be well suited to a Class 2 turbine, large blade with 100 metre hub height.