Base-load, national scale,zero emissions

8TH ANNUAL AUSTOCK CONFERENCE

Geoff Ward – Managing Director

March 2011

Geodynamics –

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IMPORTANT INFORMATION

Disclaimer

This presentation contains general information only which is current as at March 2011.

Any forward looking information in this presentation has been prepared on the basis of a number of assumptions regarding

present and future business strategies and the environment in which Geodynamics Limited will operate in future which may

prove to be incorrect and these statements speak only as of the date of this presentation.

This presentation should not be relied upon as a recommendation to buy or sell shares by Geodynamics Limited. No

recipient of this presentation should construe anything in this presentation as legal, business or tax advice.

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in

Geodynamics Limited.

All references to $ are references to Australian dollars unless otherwise specifically marked.

Competent Persons Statement

The information in this report that relates to Geothermal Resources is based upon information compiled by Dr Doone

Wyborn, who is a Fellow of the Australasian Institute of Mining and Metallurgy.

Dr Wyborn is employed by Geodynamics Limited. Dr Wyborn has sufficient experience which is relevant to the style of

geothermal play under consideration to qualify as a Competent Person as defined in Edition 1 (2008) of the “Geothermal

Reporting Code, 2008”.

Dr Wyborn consents to the inclusion in the report of the above information in the form and context in which it appears.

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GEODYNAMICS AT A GLANCE

A company built around a world-class

resource:

Geodynamics is

Australia‟s most

advanced geothermal

energy developer.

• Access to a world-class resource in the Cooper Basin, South Australia

• Well defined path to demonstrate value of resource through development of 25 MWe commercial demonstration plant (CDP)

• $90 M Federal Government Renewable Energy Demonstration Program (REDP) grant to support delivery of CDP

• Strong management team with extensive geothermal field experience

• Joint venture with Origin Energy (“Deeps” & “Shallows”)

• Cornerstone investors in Origin Energy, Tata Power, Sunsuper and The Sentient Group

• Strong balance sheet and financial capability to deliver forward program

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COOPER BASIN PROJECT

• Global leader with most deep hole,

high temperature geothermal

drilling experience in granites

• Inferred resource from explored

areas of 230,000 PJ heat in place

• Capable of delivering 7,000 PJ

(electrical)

• Equivalent to electrical supply

from ~16 Tcf of natural gas or

~750 MT thermal coal

(40% eff.)

• Ultimate potential to supply

up to 6,500 MWe of long

term base-load power

World-class resource with potential to provide

20% of Australia‟s base-load power

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Geodynamics‟ resource potential is vast

• Largest and hottest known geothermal resource in Australia suitable for

EGS and HSA

Enhanced Geothermal

• “Deeps”

• > 4,000 m

• High temperatures (250 – 300C)

• Large scale („000‟s MWe)

• Origin Energy 30%

Sedimentary Geothermal

• “Shallows”

• < 3,000 m

• Moderate temperatures

(135 - 150C)

• Lower cost drilling

• Mid scale („00‟s MWe)

• Origin Energy 50%

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CURRENT ACTIVITIES

„Shallows‟ HSA exploration:

• Origin is JV Operator

• Celsius 1 and 2 exploration wells at depths of ~2,000m

• Wells indicate temperatures ~130 –145C

„Deeps‟ EGS development:

• Next step in program is to return to

Habanero site – Habanero 4

• Proposed drilling program following

„Shallows‟ exploration

• Habanero 4 will provide power

source for 1 MWe Pilot Plant

• Remain focused on delivery of

1 MWe Pilot Plant by early 2012

Complementary programs for EGS and HSA

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Diversifying portfolio opportunities

• Hunter Valley NSW, EGS

• Undertaking seismicity study in preparation

for a 2 km temperature delineation well

• Queensland, EGS

• Shallow drilling program under development

EXPLORATION

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Value enhancing stepsGeodynamics has a clear strategy to demonstrate value of the Cooper Basin

resource with identifiable value accretion milestones within 6, 12, 24 months.

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~ 9 months

• Habanero 4

• 1 MWe Pilot

Plant

operational

• 25 MWe FID

• H5/H6 second

flow loop

operational

• 25 MWe

operational

• PFS on full

scale plant

30 - 42 months

~24 months

~12 months

Re-establish heat flow

loop; demonstrate drill

capability & well integrity.

Deliver first power from

EGS technology and

sustained well production.

First commercial customer for

power & demonstrate expansion

of power supply capability

through second flow loop .

Delivery of first

commercial power;

establish long-term

cost path .

Establish flow potential .

~ 3 months

Potential to crystallise value of

resource for funding of future

activities.

• “Shallows”

C1/C2

exploration

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Execution focus – delivering the program

• Field operations focused on delivering

program objectives and lowering costs

• Cost reduction focus:

- Drill the Limit

- Improved drill bit life

- Improved drilling fluids

• Efficient Rig asset management giving

control of our program:

- Rig 100 delivering near term program

- Rig 200 actively leasing to world market

while not required by Geodynamics

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WHY AUSTRALIAN GEOTHERMAL? Geothermal is the lowest cost source of

emissions-free, renewable energy for base-

load (24/7 availability) power generation

Can be integrated with other technologies – e.g.

solar and gas

The smallest environmental footprint of all

energy types

Scalable for on and off-grid projects

Australian market opportunity is real – Growing

energy demand

plus regulated renewable energy targets

Vast global potential

Australian market

opportunity is real –

Growing energy

demand plus

regulated renewable

energy targets.

Key Messages: y messages:

• Geothermal is the lowest cost source of

emissions-free, renewable energy for base-load

(24/7 availability) power generation

• Can be integrated with other technologies – e.g.

solar and gas

• The smallest environmental footprint of all

energy types

• Scalable for on and off-grid projects

• Geodynamics‟ EGS resource has potential to

provide the energy for up to 20% of Australia‟s

base-load power generation

• Potential to export know-how to international

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Australian market potential~9,000 MWe of market growth and retirement potential forecast over the coming

decade.

Forecasts developed from internal Geodynamics analysis

Transmission link <$400 M

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Meeting the Renewable Energy Target

* Australian Federal Treasury Modelling for CPRS scheme- Dec. 2008

“20% by 2020”

Energy market regulation promoting renewable sources - mandatory 20% renewable

energy contribution required in Australia by 2020

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Cost competitive future technologies

Geodynamics is pursuing both

HSA and EGS

Geodynamics long run Cooper Basin

EGS forecast cost

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Enormous global potential for the futurePotential to leverage IP and technology into other locations including India,

China, Europe

Heat maps indicate areas with temperatures suitable for EGS development

Heat maps are illustrative only and adapted from work by NREL Billy J Roberts (US), Shell (EU), Dr Prame Chopra (AUS)

Red circles indicate localities where the stress conditions are optimal for large scale EGS development

Stress conditions are illustrative only and adapted from internal Geodynamics analysis14

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WELL CAPITALISED WITH STRONG PARTNERS

• $40 M in cash

• Majority ownership of 2 high power deep

drilling rigs

• Rig 100 drilling our 2011 program

• Rig 200 available for lease

• $90 M of Federal Government REDP

funding support for 25 MWe commercial

demonstration plant

• Strong support of Joint Venture partner

Origin Energy and cornerstone investors

Tata Power and Sunsuper/Sentient

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Team and capability

Mr Spence was appointed Chairman

of Geodynamics at the 2010 AGM

after three years experience on the

Board is former COO of Woodside

Energy, brings 30 years plus of Oil

and Gas development experience.

Dr McDonnell has extensive

geothermal experience. Responsible

for development and construction of

two geothermal power stations

totalling 245 MWe with Mighty River

Power.

Mr Ward has over 15 years experience

in oil and gas across both technical and

corporate areas. Former Director and

Partner of Azure Capital, an

independent corporate advisory firm

focused on resources and engineering

clients.

Keith SpenceCHAIRMAN

Geoff WardMANAGING DIRECTOR & CEO

Stuart McDonnellCOO

Strong management

team focused on

delivery.

MANAGEMENT TEAM:

• Global leader with most deep hole 250ºC geothermal drilling experience in granites.

• Expertise in geothermal drilling, reservoir analysis and management, project management,

power engineering and procurement/logistics

• Own strategic rig asset to advance work program

• Completed exhaustive testing and analysis program with leading global consultants to

understand Habanero 3 well issues

TECHNICAL CAPABILITY:

World class team

assembled to bring

resource to fruition.

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INVESTMENT SUMMARY

• Geodynamics provides early stage low cost

exposure to a huge energy resource that has no

future oil price or carbon price risk

• Clear development plan with near-term

milestones to crystallise value

• Value of resource will be recognised as

development milestones are met:

• HSA exploration success - 2011

• 1 MWe pilot plant spinning - early 2012

• Secure commercial customer for demonstration

project

• Strong balance sheet and able to progress

forward program

• Value of resource not reflected in share

price

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Supplementary

Slides

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• SPP completed successfully - $16.2 M

• Modest capital raising in 2011 will fund

development plan to the next milestones

of demonstrating EGS power

• Planning a placement to institutional

investors early 2011

• Placement will have an attaching option

(ratio to be determined), option timed to

be open to beyond the planned

1 MWe pilot plant commissioning

CAPITAL REQUIREMENTS

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About Origin Energy

• Origin Energy is a top 50 ASX listed company involved in gas and oil exploration and production, power generation and energy retailing

• 140-year history

• Almost 4,000 employees in Australia, New Zealand and the Pacific

• More than 3 million customer accounts in Australia and the Pacific

• More than 105,000 shareholders

• For more information: www.originenergy.com.au/2/About-Origin

• Geodynamics and Origin Energy share two joint ventures to commercialise the Cooper Basin resource:

• Innamincka „Deeps‟ Joint Venture, focused on EGS

- Geodynamics Limited (Operator) –70%

- Origin Energy Geothermal Pty Ltd* –30%

• Innamincka „Shallows‟ Joint Venture, focused on HSA

- Origin Energy Geothermal Pty Ltd* (Operator) – 50%

- Geodynamics Limited – 50%

* A wholly owned subsidiary of Origin Energy Limited (ASX: ORG)

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About Tata Power Group• India‟s largest private sector power utility

• Operating for over ninety years

• Generation capacity in Mumbai, Delhi,

Jojobera, Jharkhand and Karnataka

• Installed generation capacity of 3,000 MW

• Mumbai power business has a unique mix

of Thermal and Hydro Power accounting

for 1797 MW

• For more information on Tata Power‟s

Associates and Joint Venture partners:

www.tatapower.com/aboutus/associates-

jvs.aspx

Substantial Shareholder:

The Tata Power Company Limited – 10.1%

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About The Sentient Group and Sunsuper

The Sentient Group

• Manages over US$1.3 billion in the development of quality metal, mineral and energy assets across the globe through its Cayman-based, 10 year closed-end private equity Sentient Global Resources Funds.

• Experience in the natural resources and investment industries

• Possess skills covering geological exploration, commodity analysis, political risk, capital markets, financial structuring and portfolio management.

• For more information:www.thesentientgroup.com/AboutSentient

Substantial Shareholder:

The Sentient Group – 6.9%

Sunsuper Pty Ltd – 6.8%

Sunsuper Pty Ltd

• Fund established: 1987

• Fund members: over one million

• Funds under management: $14 billion

• A top ten Australian superannuation fund

• For more information:

www.sunsuper.com.au///aboutUs/sunsuper

story.

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