PETRATHERM LIMITED ABN

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1 ASX Release PETRATHERM LIMITED ABN China Update Several new prospective geothermal sites have been identified by Petratherm in China. The sites were identified in a recently completed Engineered Geothermal Project Prospectivity assessment for China, which formed the basis of a Asia Pacific Partnership grant awarded by the Australian Federal Government. Petratherm Managing Director Terry Kallis said the program identified several new prospective geothermal sites for electricity generation, specifically in the South East of China, where most of the new demand for electricity is required. Importantly, economic models of these sites indicate potenitally good commercial returns, Mr Kallis said. The company is continuing talks with potential local joint venture partners, local governments, and the national government over sites identified in Jiangsu and Fujian Provinces. Petratherm s Exploration Manager for China Dr. Wenlong Zang, presented today at the inaugural South Australian Resources Chinese Investment Congress. 15 July 2009 A copy of his presentation, which summarises some of the recent Chinese project work, is attached for your information. Yours faithfully ASX Code: PTR ABN Greenhill Road Unley SA 5061 T: F: W: E: admin@petratherm.com.au Terry Kallis Managing Director MEDIA CONTACT: Terry Kallis Petratherm Limited Kieran Hall Hughes Public Relations

2 petratherm Building a portfolio of quality geothermal energy projects Australia and Overseas July 2009 Explorer and Developer of Geothermal Energy

3 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. 2

4 What is Hot Rock Energy? petratherm Heat Exchanger Within Insulator (HEWI) Model

5 Worlds First Commercial EGS Plant Landau Germany Opened Oct O C, 60 l/s 3 MWe + heat Expanding to 8MWe ORC Cycle Cost $20 M Eur

6 Corporate Overview (PTR.AX) Madrid & Barcelona direct use heat, EGS and hydrothermal China Exclusive exploration agreement Key Statistics Current shares on issue 92 m Market capitalization - $32.2m (at share price of $0.35) Grants - REDI $5.0m & GDP $7.0m 3100 Shareholders with major shareholder - Minotaur Exploration (22%) Projects Tenerife & Gran Canaria conventional volcanic Paralana, Callabonna, Renmark & Victoria Projects spanning Australia, Spain and China EGS, conventional volcanic, hot sedimentary aquifer & direct use heat Flagship project Paralana Exciting growth projects: Direct heat, conventional and EGS geothermal projects covering Madrid, Barcelona, Canary Islands and Victoria s East Gippsland Basin Exclusive government supported exploration agreement in China Paralana Joint Venture Partners Beach Petroleum (up to 36% for $30m) TRUenergy (up to 30% for $57m) 5

7 Corporate Mission & Business Model Mission to explore for and develop, emission free, geothermal energy projects that are commercially sustainable Business Model to develop a portfolio of quality geothermal energy projects conventional and EGS for power and/or heat where there is a favourable combination of geology and market conditions - and introduce joint venture partners with skills, risk appetite and funding ability to further develop projects through to production petratherm

8 Finding Hot Rocks In Australia only 7% of the continent has sufficient well hole data Forward modelling of Geothermal Resource potential based on constrained geological models TAG Prediction of geothermal gradients Target depths Heat outputs petratherm

9 Exploring for Heat Paralana Project 62uWm -3 22uWm -3 Insulator Up to 20 times normal granite: average = 8 times Mt Painter Basement Normal basement Permian Adelaidean Mt Painter Basement Curnamona Basement Above modelling and recent temperature measurement indicate 200 o C at 3.6km petratherm

10 aralana Project 109 o C petratherm (Seismic Line 84 SPG) Heat flow of 128 mwm -2 Modeled 200 o Cat 3.6km

11 Paralana 2009 Development Plan Mid July 2009 First Deep Well to ~ 4 Kms Well testing and stimulation program First Quarter 2010 Second Deep Well Initial MWe Power Plant Installed 2011 petratherm Paralana 2 Well Site

12 Geothermal Industry - Challenges Cost Drivers Temperature Drilling Depth Flow Rate Network Connection Generation Plant High up front costs drilling, fraccing, connection, plant (low O/M + no fuel costs) petratherm

13 Drivers Competitively Priced Existing Sub Critical Brown Coal For more details - see: Electricity Supply Industry Planning Council 2007 Annual Planning Report CO2 Emissions (kgco2/mwh) Efficiency Frontier Combined Cycle Gas Existing Sub Critical Black Coal Ultra Critical Black Coal CCS: Carbon capture & sequestration Brown Coal Integrated Dry Gasification Combined Cycle with CCS Geothermal is: CHEAP LARGE SCALE BASE LOAD 200 Enhanced Geothermal Systems Super Critical Black Coal with CCS at US$45/MWh after deployment Combined Cycle Gas Turbine with CCS of 200 MW over 10 years per Tester, et al (MIT 2006) Nuclear Australian Hot Rocks (ESIPC estimate for 7.5 to 250 MW) 0 $0 $20 $40? $60 Wind $80 $100 $120 $140 Generation Cost (US$/MWh) China - Hot Rocks? Australian Government s Renewable Energy Target: 60,000 GWh by 2020

14 Drivers -The Promise of Geothermal MIT (Tester, et al 2006) 100 GWe hot rock power in the USA by 2050 ~13.7 billion PJ resource to 10 km. 130,000 X annual primary energy use in the USA

15 Drivers - The Promise of Geothermal Indicative Resource Map Australia s hot rock energy 150 o C to 5km ~ 1.2 billion PJ ~20,000 X annual primary energy use in Australia Source: Geoscience Australia (2007)

16 Growth of Australian EGS Industry Nov 2008 Snapshot GELS / GELAS Aust. 367 S.A. 269 Expenditure Aust. > $1000 Mill S.A. ~ $ 700 Mill Geothermal well Exploration licence Exploration licence application Acreage offered for work program bids 43 Companies 10 ASX listed

17 Growth in Australian Hot Rock Projects - Indicative $200+ Mln for ONE 40MWe Demo plant. ~ $300 million spent to date Expenditure AUD$million No. of GELs and GELAs Forecast 0

18 China s s Large Scale Engineered Geothermal Power Potential - Cooperation Partners at Geothermal Well Zhongshan City, Guangdong Province

19 Geothermal Systems in China Subei Basin Tibet Yunnan Zhangzhou Guangdong Fuzhou Figure modified from Hu Shengbiao 2007

20 Yangbajin geothermal power station - Tibet MW, since 1978

21 Heat Flow Map of China Source: Hu Shengbiao, He Lijuan and Wang Jiyang

22 Finding Hot Rocks in China petratherm

23 Subei Basin, Jiangsu Province field visit petratherm Unnamed wells Depth (m) BHT( ) Gradients ( /km) BH rock unit Huangdang, Baoyin Cambrian

24 Jiangsu Province Subei Basin Estimated temperature at 5 kilometres Depth Source: Hu Shengbiao et al., 2000; Jiangsu Geological Survey, 2008 petratherm

25 Preliminary Economic Model - Jiangsu Area 30 MW Development Temp 200 o C, Flow 100 Lps Net Output 5.6 MWe per Well Total Wells 9 Drill Cost $28m Plant Cost $75m Transmission Capital $13m Total Capital $116m Breakeven Price for 10% Return $82 MWh Real post-tax 12.8% $100 MWh price petratherm

26 Zhangzhou Project Fault-controlled Hot springs: 80 o C Zhangzhou Hot springs:122 o C Xiamen

27 Zhangzhou Project Temp 175 o C, Flow 100 Lps Net Output 5 Mwe/Well Total Wells 4-6 (20-30MW) Breakeven Price ~$80 MWh petratherm

28 Thank You petratherm ASX Code: PTR ASX Code: PTR Phone: (08)