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Investor Presentaiton

INTRODUCTION The earth's environment is the defining issue of our time and most of the world is working to reduce the emission of greenhouse gases, primarily CO2. Globally, the electricity and heating sectors account for a quarter of all emissions. And the world is looking for new and better ways to produce abundant, affordable and reliable, emission-free energy. Tasmania is aiming to assist Australia's transition to renewables by exporting at least 10,000GWh of electricity per year to the mainland by 2040, to become the renewable energy Battery of the Nation. This will require doubling of the State's current generation capacity*. Some of this will come from pumped hydro and some from wind, but much more reliable power will be needed to meet this commitment. Thus providing an excellent opportunity for Tasmania's large geothermal resources. Geothermal energy, the natural heat of the earth, has been used for electricity generation for more than a century. It is now gaining increased attention as the world seeks reliable, renewable energy. However, Australia has been a notable exception to the global expansion of geothermal power. The country focussed on geothermal for nearly a decade starting around 2003. Large sums of money were spent but no power plants resulted and geothermal was effectively removed from Australia's list of renewable energy options. The main reason geothermal 'didn't work' in Australia was that the wrong target was being pursued. Or, more correctly, Australia's geothermal efforts were ahead of their time. This is explained in more detail later but in brief, globally, nearly all current geothermal plays are 'wet'; i.e., water and/ or steam from a hot reservoir is brought to the surface to drive the turbines. However, Australia mostly focused on unconventional 'dry' plays which required heat exchangers to be engineered at depth. Whilst technical successes were achieved, no viable flow rates were obtained. The Lemont geothermal play in Tasmania was different from inception, with an equal focus on heat and permeability. A very large inferred resource was defined but for several of the reasons ascribed to geothermal's lack of success in Australia" there were insufficient funds to drill and the licence was subsequently relinquished. The founders and backers of Spa*ark Energy Pty Ltd believe that Lemont is too good to ignore: an opinion supported by recent independent modelling. When developed, Lemont will provide an additional source of renewable and dispatchable power to Tasmania and the National Energy Market, plus heat for a variety of flow-on industries. All monetary values are in AUD unless otherwise stated. # https://www.state growth.tas.gov.au/__data/assets/pdf_file/0011/241112/TREAP.PDF http://www.ga.gov.au/ausgeonews/ausgeonews 201306/geothermal.jsp Geothermal power plant, California Spa*ark Energy_2
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