1. David Bridgland – Finance Director UNITED DOWNS DEEP GEOTHERMAL PROJECT 17 th November 2011

2. G EOTHERMAL E NGINEERING L TD OVERVIEW Background Proposition Why the United Downs? Progress Summary

3. G EOTHERMAL E NGINEERING L TD WHO ARE WE? Ove Arup and Partners Ltd. International engineering consulting firm (1946). Over 90 offices Worldwide with more than 10,000 employees GeoScience Ltd (Tony Batchelor). Providers of engineering and scientific support to geothermal and oil and gas projects Worldwide

4. G EOTHERMAL E NGINEERING L TD UNITED DOWNS PROJECTMAIN FEATURES 10 MW electric (7MW net) ~ 50 MW thermal Production ~ 150kg/s at 175°C Three well system; two producers, one injector Target depth ~ 4.5km Anticipated temperature approaching 200°C Host structure (buried granite) has naturally higher permeability than surrounding rock Stimulation within and adjacent to the fault structure ~ £50 million, in defined stages

5. G EOTHERMAL E NGINEERING L TD UNITED DOWNS LOCATION United Downs

6. G EOTHERMAL E NGINEERING L TD WHY THE UNITED DOWNS? Drilling records from the Hot Dry Rock project (3 boreholes, deepest to 2.7kms) < 10kms from the United Downs site Temperature data (boreholes and mines) Gravity data In-situ stress data Injection and circulation tests Mining records (extensive) Heat flow data (with depth) Seismic lines (off shore and on-shore) Geo-chemistry Stimulation programme and micro-seismic interpretation

7. G EOTHERMAL E NGINEERING L TD UNITED DOWNS - PROGRESS 3 rd Qt 2009 12 month geological study completed 4 th Qt 2009 Grant of ~£1.5m awarded from the Department of Energy and Climate Change 1 st Qt 2010 Full EIA and seismic hazard assessment completed 1 st / 2 nd Qt 2010 Well design Tender process for drilling, tubulars, well head, drill bits 2 nd Qtr 2010 Grid connection offer Preliminary power plant design 3 rd Qt 2010 Permits to drill received (planning consent and Environment Agency) 3 rd Qt 2011 Grant of ~£6m awarded from the Department of Business, Innovation and Skills

8. G EOTHERMAL E NGINEERING L TD SUMMARY AIMS 10MWe 50MWth GEOLOGY Significant data available RISK Uncertainty not eliminated david.bridgland@geothermalengineering.co.uk RISK Permeability Temperature MITIGATION Exploration risk insurance (Germany, France) Match funding (Australia)