Greenearth Energy to develop geothermal power plant in Geelong area

Greenearth Energy (ASX:GER) has outlined a roadmap for developing the Geothermal Power Plant at Geelong in Geothermal Exploration Permit (GEP) 10, Victoria.

Greenearth Energy is pleased to announce that further work carried out by Hot Dry Rocks Pty Ltd (HDRPL), has lead to the development of a Hot Sedimentary Aquifer (HSA) commercial model for geothermal based electricity generation southwest of Geelong.

This model assumes that a portion of the inferred geothermal HSA resource of 40,000PJ present in
Geothermal Exploration Permit (GEP) 10, as per the Greenearth Energy ASX release of 4 December
2008, is available to be utilized for power generation.

This HDRPL study modelled the costs and outcomes that may reasonably be expected for developing
a 10.7 megawatt (MW) geothermal power plant. Similarly the study modelled an expansion to
establish a 48 MW geothermal power plant.

There are several possible sites for a geothermal power plant in GEP 10, but for the purpose of the
HDRPL study, a hypothetical site was selected approximately 3 kilometres north-northeast of the old
Wensleydale Coal Mine, 9.5 kilometres from the Anglesea– Point Henry electricity transmission line.
The HDRPL study shows that a target geothermal resource temperature of 170 degrees centigrade at
the modest target depth of 3,450 metres with an assumed flow rate of 100 litres per second should
yield sufficient heat flow to build an operating geothermal power plant.

The HDRPL study shows that over a 20 year life for the proposed geothermal power plant:

- The levelised cost of electricity (LOCE) would be in the range of $96-114 per MW hour.
- Generation of attractive pre-tax revenue and discounted cash flows for the project.
- Result in the displacement of at least 1.2 million tonnes and up to 7.3 million tonnes of

Carbon Dioxide “greenhouse gases” emitted by conventional power stations.

Greenearth Energy Managing Director, Mark Miller, said “We are pleased to have this roadmap study from HDRPL on the possible economics of establishing a commercial geothermal power plant in the Geelong area, close to the existing electricity power and adjoining industrial markets.”

“If further drilling continues to confirm the positive geothermal characteristics of the site chosen for a
future geothermal power station, then we are very excited about the plans for a future geothermal
power plant in the permit, in close proximity to major industrial and urban centres in the Geelong
area.”

“It is good to know that given the presence of the large inferred geothermal resource in the permit, the modelling shows a positive opportunity and way forward for the development of several exciting
geothermal prospects in the Geelong area.”

The next step in the development of potential geothermal power plants in the permit is the assessment by the Federal Government of our January 2009 application to the Geothermal Drilling Program for $7million. Success here would provide us with the injection of funds to enable drilling to further characterise our known geothermal resource.

Mr Miller went on to say “We are also mindful that as geothermal exploration is still at an early stage,
generalised costings from public sources and HDRPL’s experience have been used in this model.
Greenearth Energy will further develop this economic project model as fuller costing research comes
available, but we are extremely encouraged with the model results we have seen so far.”

“As the heat resource required for such a notional geothermal power plant, even at its expanded
scale, represents a very minor portion of Greenearth Energy’s inferred geothermal resource in
GEP10, it should be feasible to consider replicating the development of such power plants many
times over within our permit area”.

“The Federal and Victorian governments have as a key priority, the development of renewable,
sustainable, base load and emission free electricity generation. Greenearth Energy is proud to be
associated with this aim.”