Earth Heat Resources (EHR)

Shares / Stock Code

EHR

Stock Exchange / Sharemarket

ax

Earth Heat (EHR) is a New Energy company focused on green assets for electricity production. The Company's primary asset is the Copahue Geothermal Project in Argentina where it has signed a Heads of Agreement to farm-in and joint venture with Geothermal One Inc., a private Canadian company where Earth heat has the opportunity to earn up to 87.5% of the project through development funding. Investors can trade Earth Heat shares on the Australian Stock Exchange (ASX). Earth Heat was listed on the Australian stock market in 20 April, 2006.

The Copahue Project comprises of an identified 30MW geothermal development with significant expansion opportunities. Four geothermal wells exist on site and it is anticipated that development of the Project will result in power production and revenue by 2014. The Copahue Project is the most advanced geothermal development opportunity held by any ASX listed geothermal explorer.

As part of Earth Heat's strategy to seek new investments within the New Energy space, the Company has recently acquired a number of coal bed methane and geothermal opportunities from Planet Gas Ltd.

Earth Heat holds 100% interest in eight geothermal exploration licences (‘GELs’) covering circa 3,850km² in south Australia, in an area of higher heat flow which is known as the South Australian Heat Flow Anomaly ('SAHFA'). In addition, the Company currently has three further GELs on offer for grant which would bring the Company’s total tenement coverage in South Australia up to 13,000km².

The SAHFA is a corridor through the eastern-central part of the Australian continent where heat-producing rocks in the crust contain relatively high concentrations of radiogenic isotopes of uranium, potassium and thorium. The natural radioactive decay of these rocks produces high heat flow. A thick succession of sedimentary rocks contained within the Adelaide Geosyncline of South Australia represents an effective insulating blanket required to maintain high heat flow through units of high thermal conductivity in this part of the SAHFA.

The part of the Adelaide Geosyncline between Adelaide and Copley has attracted much interest from geothermal explorers recently, and the southeast corner of the ORROROO 1:250 000 geological map sheet has been identified by Earth Heat as highly prospective. Several prospects are contained within the compeight GELs where there is strong potential for Hot, Dry Fractured rocks ('HDR') and Hot Sedimentary Aquifers ('HSA').

Heat sources regionally are interpreted to be a result of radiogenic basement, and or local intrusives which may also have a radiogenic makeup. Regionally, most of the SAHFA is located in areas where the TMI magnetics shows a strong response, suggesting that where there is a magnetic anomaly, this may be coincident with high heatflows and therefore potentially a source of heat. In analogous areas that have been the subject of recent exploration, excellent results have been published by companies such as Torrens Energy Ltd over such anomalies.

Where the GELs currently held by Earth Heat will be investigating the connection between basement heatflow, through diapiric units, and into potential heat reservoirs, it will be greatly assisted by a series of magnetic anomalies which could be local intrusive heat sources.

These potentially local heat sources will augment the ‘natural’ radiogenic heatflow transported into the reservoir (from basement) and increases the likelihood that a commercial resource may exist.

East of the GELs, magnetic anomalies are likely to be associated with radiogenic granites, and this is supported by Uranium exploration in the area. Should the unit within the Earth Heat project area be similar in composition to its eastern compatriots, this further enhances the potential for a heat source in the area. This is strongly supported by the information compiled and published by Geoscience Australia on Radiogenic Heat Generation