The document summarizes a presentation given by Peter Barnett of Hot Rock Limited about the Koroit Geothermal Project in Australia. It describes geothermal energy sources, different types of geothermal systems, and explores Australia's geothermal potential. It highlights the Koroit resource as a high-quality hot sedimentary aquifer system that could generate 500MWe of electricity and provides details on the planned development program.

1. The Koroit Geothermal Project Peter Barnett Managing Director Hot Rock Limited 10 Market Street, Brisbane, www.hotrockltd.com Presentation to Hawkesdale P12 College, 1 December 2010

2. Whilst this document and presentation is based on the information from sources which are considered reliable, Hot Rock Limited, its directors, employees and consultants do not represent, warrant or guarantee, that the information in this document and presentation is complete or accurate. To the maximum extent permitted by law, Hot Rock Limited disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequently comes to its notice, which may affect any of the information contained in this document and presentation. The information in this Statement that relates to Geothermal Resources has been compiled by Peter Barnett, an employee of Hot Rock Limited. Mr Barnett has over 30 years’ experience in the determination of crustal temperatures and stored heat for the style relevant to the style of geothermal play outlined in this release. He is a member of the Geothermal Resources Council and the International Geothermal Association, a current board member of the New Zealand Geothermal Association, a past board member of the Auckland University Geothermal Institute Board of Studies and a current member of the Economics Sub Committee of the Australian Geothermal Association. Mr Barnett qualifies as a Competent Person as defined by the Australian Code of Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves (2008 Edition). Mr Barnett consents to the public release of this report in the form and context in which it appears. Neither Mr Barnett nor Hot Rock Limited takes any responsibility for selective quotation of this Statement or if quotations are made out of context. All amounts are in Australian dollars (AUD) unless otherwise stated. Disclaimer

8. Other geothermal system types – “HSA” and “EGS” No commercial operations Operating for over 25 years Operating for nearly 100yrs 96% of installed generation capacity

9. Current world wide geothermal power generation capacity is 11,000 MWe http://www.globalenergymagazine.com/?p=1658 , 20100910

11. Australian HSA and EGS geothermal - “blind” plays HSA Play, Otway Basin 550,000PJ of “inferred geothermal resource” declared to date EGS Play Innaminka 200,000 PJ of “inferred geothermal resource “ declared to date

12. But clearly recoverable geothermal energy is present at depth in these ‘blind’ plays Recent flow testing of Salamander-1 HSA Play Penola Trough S.A. Courtesy of Panax Surface discharge of H abanero 3 EGS Play Innaminka, S.A. Courtesy of Geodynamics

13. The Koroit geothermal resource is an “HSA” geothermal system, located in the Otway Basin Base Graphic: Courtesy of Gescience Australia

14. A geological cross section through the Koroit geothermal system

15. Koroit is a large geothermal resource In-place stored heat 1: Indicated Geothermal Resource 47km 3 7,600PJ Inferred Geothermal Resource 340km 3 59,000PJ Totals: 387km 3 67,000PJ Capable of generating approx 500MWe of electricity Sufficient for about 500,000 Australia homes 1 Based on the Australian Code of Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves (2008 Edition)

16. How will we use the geothermal energy at Koroit?: (1) for generation of electrical power

17. Conversion of geothermal heat to electricity Organic Rankine Cycle power plant

18. How will we use the geothermal energy at Koroit?: (2) for direct use of heat

19. Koroit Geothermal Development Program

22. Technical Forum, Resources Victoria Conference Melbourne, 14 July, 2010 Exploration and assessment of hot sedimentary aquifer (HSA) geothermal resources in Otway Basin, Victoria www.hotrockltd.com www.hotrockltd.com