Company Information for Geodynamics Limited

ASX-GDY

www.geodynamics.com.au

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Company Statement

Geodynamics Limited was registered as a public company in November 2000. The Company was formed solely to focus on developing renewable geothermal energy generation from hot fractured rocks (HFR) in Australia.

The Company was formed by Dr. Doone Wyborn and Dr. Prame Chopra from the Australian National University in Canberra (leading experts in HFR geothermal energy), and Dr. Bertus de Graaf, who has a track record in resource development.

Geodynamics was funded by initially raising more than $1 million dollars in seed capital in 2001. It then secured two geothermal exploration licences in South Australia and two in New South Wales, including its outstanding world class resource in the Cooper Basin. After successfully raising $11.5 million, Geodynamics listed on the Australian Stock Exchange on 12 September 2002, and together with a $5 million R&D Start grant from AusIndustry it initially had gross funds of $16.5 million for its Stage 1 development program. The Company raised a further gross of $61.6 million to the end of 2005 to support its Stage 1 program and also fund the licence acquisition of the patented Kalina Cycle heat to power conversion cycle. In 2007, the Company successfully completed a $49.8 million raising under its Prospectus dated 14 March. The funds were used partly to pay for the purchase and shipping of a new $32 million advanced drilling rig that arrived in Australia on 30 June 2007 as well as the drilling of the Habanero 3 production well and the completion of the Stage One reservoir circulation test.

Aims and Objectives
Geodynamics will become the the leading geothermal energy company, supplying competitive zero carbon energy and base load power to the Australian market.

Our immediate goal is to secure funding to construct an HFR geothermal demonstration plant. This can only be achieved by demonstrating that we have:

A recognised high quality board and management;
A superior HFR geothermal tenement position;
Access to the best HFR scientific and technical expertise in the world.

The commercialisation of HFR geothermal energy is still in its infancy. Technology development is complex, time consuming and expensive. Geodynamics must negotiate market and insitutional barriers to ensure the Company is successful in building the first 50 MW demonstration plant, expanding the reserves through continued drilling and ensuring the transmission lines are available for exporting the energy to market.

Natural Advantages
Geodynamics is a unique company. It is one of the few public companies in Australia which is fully focussed on HFR geothermal energy and it already has achieved a dominant HFR geothermal tenement position. The Company has recognised HFR geothermal experts who have strong international links allowing for transfer of knowledge and experience from other HFR geothermal projects and research institutes in Europe, Japan and the USA. Furthermore, the Company has developed a binding co-operative agreement with the CSIRO.

Company Diagram

3 Well HFR Geothermal Power Station. The hot granite needs an insulating blanket of sedimentary rocks at least 3km in thickness.

Operations and Technology

Progress to Date
Geodynamics early focus was on field exploration and site selection, economic modeling studies and the preparation of its Initial Public Offering (IPO). Its independently verified studies selected the optimal site for development, calculated the expected output and estimated the economics of the demonstration plant, as well as the benefits of a full-scale commercial development.

The company successfully raised $11.5 million via an IPO in 2002, as well as further funds totaling $142 million for the 5 years to December 2007. Origin Energy Limited has also provided a significant financial boost to the company through its previously mentioned farm-in deal worth $105.6 million. Geodynamics currently has a market captialisation of $306 m (191 m @ $1.60).

In a significant move, Geodynamics purchased the Le Tourneau 'Lightning Rig' in 2007, using funds raised through a $50 million rights issue. The advanced 3000hp rig features great mobility and the capacity to operate at extreme depths, in this case up to 6000m. The rig began drilling its first production-scale well - Habanero 3 - in August 2007.

To date, the company has drilled three wells - Habanero 1, Habanero 2 and Habanero 3. Of these, Habanero 1 and 2 are not of commercial scale, while Habanero 2 is not sufficiently connected to the reservoir because of lost equipment in the hole.

Habanero 3, the first well to be drilled using the 'Lightning Rig', is the first commercially viable well to be drilled and its target depth of 4,221 m (13,850 ft) was reached on January 22, 2008. The completion of drilling in Habanero 3 was a significant milestone in the development of Geodynamics, making it the largest well of this depth ever drilled onshore in Australia and the first commercial scale Hot Fractured Rock production well to be drilled.

Geodynamics' tenements - GELs 97, 98 and 99 - have been shown to contain more than 400,000 petajoules of high-grade thermal energy. This confidence is based on the fact that:

The size of the resource is clear - the large bodies of granite have been clearly delineated and proven to exist through drilling;
The quality and potential of the resource is proven - temperatures have been measured up to 250 degrees Centigrade;
The world's largest enhanced underground heat exchanger has been developed and initial flow tests have produced the first hot fluids to the surface.
Project studies, including long-term production modelling, have shown that these resources have the potential to support generating capacity of more than 10,000 MW.

Next Steps
Geodynamics is aiming to complete open circulation testing at its Habanero 1 and Habanero 3 wells in early 2008, with closed circulation testing to commence soon after. This Proof of Concept will demonstrate the viability of heat extraction from the hot rock underground heat reservoir, with the geothermal reserves to be signed off by independent geothermal experts from the USA.

Following Proof of Concept, Geodynamics should produce its first megawatts of geothermal power by the end of 2008. A 1 MW power station will enable the company to use geothermal energy to power its field operations, including workers accommodation, warehouses and workshops.

The company also plans to finalise its preferred design for a 50 MW power plant during 2008. Once operational (planned for 2012), the power plant, which will be for commercial operation and produce zero emissions with zero water requirements, will produce enough electricity to power approximately 50,000 households on a continuous basis.

During the coming year, Geodynamics will also aim to drill three new deep wells. Following the completion of Habanero 3, the Lightning Rig will be, moved to the site of the first new well - Jolokia 1 - and rigged up. Jolokia 1 will be located about 10 km away from the original three wells, a move designed to further prove and extend geothermal reserves the company has in its tenements.

Three Stage Approach
A three stage approach as described above has been adopted to develop the Company. Each stage is defined by a number of activities to reach particular goals and objectives. To date, the Company has successfully drilled three deep wells. Habanero 3, Australia's first commercial scale geothermal well was completed 5 February 2008 to a depth of 4,200 metres.

Stage 1 is the Development of an underground heat exchanger. It involves drilling the first deep well and the development of a subterranean, engineered, heat exchanger in hot granites with a temperature of >250oC. This will be followed by the drilling of a production well and proving the output of the underground heat exchanger through circulation. Following this "Proof of concept", it is expected that this stage will be completed in early 2008.

Stage 2 is the Development of a demonstration HFR geothermal power plant (50 MW) and includes:

Field development plan;
Design of a 50 MW Reference Plant;
Drilling of 9 wells (5 production, 4 injection);
Construction of the power plant; and
Completion of transmission infrastructure.
The Company anticipates that Stage 2 will be completed by mid 2011.

Stage 3 is the Commercial Scale Power Plant. It is anticipated that the optimal power station design will be multiple 50 MW modules given the unique position faced by Geodynamics in The Cooper Basin.

Stage 3 will involve the replication of the 50 MW demonstration in Stage 2, nine times over. The achievement of Stage 3 will demonstrate the commercial viability of geothermal resources in The Cooper Basin.

Geographical Spread

HFR potential locations in Australia

Board of Directors and Key Management

Mr Gerry Grove-White	Managing Director

Mr Martin Albrecht	Chairman

Dr Doone Wyborn	Executive Director

Dr Prame Chopra	Non-Executive Director

Mr Robert Flew	Non-Executive Director

Mr Neil Galwey	Non-Executive Director

Mr Andrew Stock	Non-Executive Director

Dr Jack Hamilton	Non-Executive Director

Mr Pieter Britz	Non Executive Director

Mr Keith Spence	Non Executive Director

Company Address

Suite 6, Level 1
19 Lang Parade
Milton, Queensland, Australia 4064


Telephone:	+ 61 7 3721 7500
Facsimile:	+ 61 7 3721 7599
Email:	inf[at]geodynamics.com.au
Website:	http://www.geodynamics.com.au

Major Shareholders

National Nominees Ltd	21,338,189	8.23%

Origin Energy	19,788,404	7.63%

Mr Robert Anthony Healy	16,015,618	6.18%

Sentient Executive	12,500,000	4.82%

ANZ Nominees Ltd	9,607,477	3.71%

JP Morgan Nominees Aus Ltd	3,914,828	1.51%

Pondcote Pty Ltd	3,173,476	1.22%

The Australian National University	2,322,649
0.90%

Australian Investors Pty Ltd	2,072,000	0.80%

HSBC Custody Nominees	1,969,616	0.76%

Most Recent Statement

04/09/08 - Geodynamics Achieves Third Cornerstone Investment
28/08/08 - Audited 2008 Financial Report including Appendix 4E
03/07/08 - Cooper Basin Project Update
11/09/07 - Notice of change of interests of substantial shareholder
10/09/07 - Hanabero 3 Drilling progress
09/09/07 - Change in substantial holding from ORG

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