2005/2006 Highlights

During the 2005/2006 year Petratherm Limited made significant progress towards achieving its stated mission which is to;
"Explore and develop, emission free, commercially sustainable geothermal energy projects"

The chronological highlights over the year included,

• September 2005 - Following shallow Phase 1 drilling at the Paralana and Callabonna project sites, exceptional temperature gradients of 81 oC/km and 68 oC/km, respectively were confirmed.
• January 2006 - Successful capital placement of $ 1.97 million to fund the Phase 2 extension of the Paralana well.
• February 2006- Appointment of Jane Thomas, a Project Geologist to expand our technical base and assist in the Paralana drilling campaign and to focus on new project development work
• May 2006 - Appointment of a Managing Director, Terry Kallis who has considerable experience in the power industry and renewable energy project development to complement the skills and capabilities of Petratherm's Board and Management.
• June 2006 - Successful Phase 2 drilling program completed within budget and ahead of schedule at Paralana with the geothermal test well being extended from 485 metres to 1807 metres.
• July 2006 - Appointment of Tania Littlely, as our Office Administrator to coordinate the expanding activities of the Company.
• August 2006 - Confirmation of world class thermal resource at Paralana and vindication of the Petratherm Exploration model, with temperatures of approximately 200 oC expected at a depth of 3.6 kilometres.
• September 2006 - Moved into our new offices on Greenhill Road to accommodate the growing needs of the Company.

The Company is now excellently positioned to embark on its next major stage of development, establishing the underground heat exchanger (Phase 3 drilling) at Paralana as a precursor to developing geothermal electricity and the exploration for, and development of other existing and new projects in SA, Australia and Overseas.