Greenearth Energy Limited

Greenearth Energy Limited is an Australian Geothermal energy company that aims to explore for and develop geothermal resources in Australia, and in due course in New Zealand and in the wider Pacific Rim.

Geothermal energy is being increasingly recognised as having the potential to deliver, clean, reliable and renewable energy that is capable of a wide range of uses with very low or no greenhouse gas emissions.

The company was awarded 3 geothermal exploration permits (GEPs) in May 2007 by the Victorian Government covering 18,795 km2. The permits are located in the Latrobe valley/Gippsland Area (GEP12 & 13) and the Bellarine Peninsula/Surf Coast Shire/Geelong/Daylesford Area (GEP 10).

The most advanced of Greenearth’s prospects is in the industrialised Geelong area. The company has identified a major geothermal hot water basin and has used independent experts, Sinclair Knight Merz (SKM), to estimate the basin’s energy generation potential.

SKM has estimated the basin to potentially contain sufficient hot water to power a base load electricity station with a potential resource of 17,000PJ of energy. Drilling of one production well and one injection well is planned to commence by mid 2010.

Greenearth Energy has a simple strategy of focussing on lower cost exploration and appraisal of prospective geothermal targets close to major markets and near existing electricity generation and transmission infrastructure.

Greenearth Energy Limited is seeking to explore locations and in due course to prove-up and develop geothermal resource projects by:

• focusing its exploration efforts in areas in close proximity to markets and existing energy infrastructure
• leveraging off existing Lakes Oil NL data and exploration programs to reduce exploration costs where possible
• targeting prospects that reveal good characteristics for conventional hydrothermal resources while at the same time holding the possibility of Hot Dry Rock potential at deeper depths
• forming strategic relationships with industry and academic participants from which the parties gain synergistic benefits
• employing and contributing to the development of technologies to generate power and direct heat applications from lower temperature geothermal energy resources
• entering into commercial arrangements for applications using geothermal energy where this is shown to be a viable alternative for the Company to do so.

At 30 June 2009 Wasabi holds 8.1 million shares representing 16% of the share capital of Greenearth Energy. Wasabi’s support of Greenearth, and its ownership of the Kalina Cycle®, should enable it to participate in any future development of the Geelong hot water basin.