Company Information for Green Rock Energy

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Company Statement

Our Vision

Green Rock Energy is focused on becoming a major producer of clean, renewable geothermal energy by generating base load electricity from hot dry rocks.

The Company also plans to pursue other opportunities in the growing "green" energy sector.

Overview

Green Rock Energy Limited is an Australian based geothermal energy explorer and developer with projects in South Australia and Hungary.

Incorporated in 2002 and listed as Mokuti Mining Limited initially, Green Rock Energy has been trading on the Australian Stock Exchange since December 2003.

In May 2005 the Company changed its name from Mokuti Mining Limited to to Green Rock Energy Limited when it acquired all the issued shares in Perilya Geothermal Pty Ltd (now named Green Rock Geothermal Pty Ltd) and Green Rock Energy Pty Ltd (now named Green Heat Resources Pty Ltd).

Current Activities

On 18 June 2005 the Blanche No 1 exploratory geothermal well was spudded, 8 kilometres west of the Olympic Dam mine in South Australia, and just 5 km from a 275 kv transmission line.

Blanche No. 1 is the first in a series of cored exploratory wells that are planned to be drilled or to deepen existing mineral exploration drill holes to depths ranging from 1,500 to 2,000 metres during the second half of 2005 in the Company’s geothermal energy licences (“GEL's”) around the Olympic Dam mine. Each well is estimated to cost in the order of AUD$400,000 to $500,000 to drill to a depth of 1,500 to 2,000 metres.

The wells are designed to test the rocks at depth in an extensive region of elevated heat flows identified by shallower, mineral exploration core holes drilled by WMC and others. The exploratory wells will better define at depth the temperature, geothermal gradients and geo-mechanical rock stress regime and other rock properties at different locations within the heat flow anomaly. The current exploratory drilling is the first phase in the Company’s plans to recover geothermal energy from the GEL's and become a significant producer of zero emissions base load electricity.

Data collected from the exploratory drilling will assist the Company in selecting the optimal location to drill the first deep geothermal energy well and establish a pilot circulation cell to facilitate trial electricity generation. Considerably higher temperatures are expected from much greater depths when Green Rock drills its first geothermal energy well.

Company Diagram

Power Plants

The type of power plant used depends on the temperature, pressure and chemistry of the water recycling through the rocks.

In general, Binary-Cycle power plants (see diagram) are used for temperatures below about 190°C and Flashed Steam plants are used for higher temperatures. The Binary-Cycle plant is so named because the geothermal fluid circulates in a closed loop underground while a lower boiling point working fluid, which is heated by the heat from the geothermal fluid, circulates in a separate closed loop in the power plant at the surface.

Operations and Technology

Olympic Dam Geothermal Project

In 1996, a founding director of Green Rock Energy Pty Ltd, submitted Australia’s first application for a geothermal energy exploration licence. The application covered the world class Olympic Dam mine where Western Mining Corporation(WMC) (now BHP Billiton) had outlined a heat flow anomaly at depths to 1,000 metres. At the time, there was no legislation covering the geothermal energy sector and the founders of the private company Green Rock Energy Pty Ltd (now a wholly owned subsidiary of the Company) assisted the regulatory authority in South Australia (Primary Industry and Resources South Australia -PIRSA) to introduce legislation to enable the grant of geothermal energy tenements. In 2004, Green Rock Energy Pty Ltd and Perilya Geothermal Pty Ltd, were awarded five geothermal exploration licences surrounding the giant Olympic Dam mine. A further two licences were awarded in 2005, bringing the total area held by the Green Rock Energy group to 2,897 km². The Company also holds two geothermal exploration licence applications over WMC special mining lease in Roxby Downs town.

Green Rock Energy’s licences are located where the required thermal qualities for base load electricity generation are indicated by previous exploratory drilling and where there is potential for long-life markets. The advantage of this project is that it is close to a large potential customer (Olympic Dam mine) and to existing power infrastructure linked to the major cities in eastern Australia.

Drilling was commenced in July 2005 at Blanche No 1 approximately 8 km west of Olympic Dam mine to define the temperature, geothermal gradients and geo-mechanical rock stress regime and other rock properties at different locations within the heat flow anomaly. Having drilled Blanche No 1 to a depth of nearly two kilometres Green Rock has proven the granites are hot. The results of drilling by BHP Billiton confirms the heat anomaly should also extend over the wider geothermal leases also held by Green Rock.

The Company is now at the next step which is to establish the water circulation system capable of producing enough geothermal energy to power an electricity generation plant. Green Rock has entered into a contract with Australia’s premier scientific and industrial research organisation, the CSIRO, to carry out the mini-fracture stimulation of the granite at various depths in its Blanche No.1 well. This is scheduled for around September 2007 when the designated high pressure pump becomes available.

The mini-fracture stimulation program will involve pumping water into the hot granites already drilled in Blanche No 1 to generate fractures in the hot granite at various depths. The data obtained will provide details about the geological stress conditions which will be used to design the two deeper production and injection wells and the associated fracture stimulation program to establish a water circulation system between the two wells to recover heat from the hot granites.

It will be the first mini-fracture stimulation program for geothermal energy carried out anywhere in Australia. This innovative approach to geothermal exploration in Australia has the potential to significantly lower costs and risks for Green Rock by providing key input information which will be used for the optimal design and conduct of the subsequent deeper drilling and fracture stimulation program. This will enable more accurate design and costing of the deep wells and fracture stimulation program than has been possible for others who have had to drill to much greater depths before intersecting the top of their targeted hot reservoir rocks.

Hungarian Geothermal Project

On 13 October 2006 Green Rock Energy Limited announced that it has extended its geothermal activities into Hungary. Hungary has a strong and growing demand for clean, green, renewable energy, and has existing power infrastructure and electricity pricing incentives for renewable energy which make geothermal projects commercially attractive. Green Rock entered into an agreement to acquire Vulcan Geothermal Pty Ltd (“Vulcan”), which holds a 32% interest in a joint venture (“Hungarian Joint Venture”) to establish the first geothermal power plant in Central-Eastern Europe.

The joint venturers in the Hungarian Joint Venture, in addition to Green Rock, are Hungary’s largest company, the Hungarian oil and gas company, MOL (“MOL”), which is also the operator of the Joint Venture, and Enex hf (“Enex”), a leading Icelandic geothermal consulting and development company.

The Joint Venture is testing existing, but shut in, or out-of-use, petroleum wells for the generation of geothermal energy. The first two wells have been selected following the evaluation of around 70 shut in wells owned by MOL out of thousands of petroleum wells drilled in Hungary.

The first two wells (Ortaháza -3 & Ortaháza -5), located near Iklódbördöce (Zala County), in south-west Hungary, will be tested for hot water production rates to determine the optimum development. During the testing one well will be used for thermal water production and the other well for injecting the water back into a separate water-bearing horizon. The testing will gather detailed data on the wells and water-bearing zones for the subsequent construction and operation of the planned geothermal power plant.

The size of any development will depend on the quality and sustainability of the water flow rate. The aim of this first project is to install a 2-5 MW geothermal power plant, to be commissioned in 2008. In addition, after passing through the power plant the geothermal water will provide heat for industrial purposes and a multi-acre greenhouse agricultural operation. This output may be expanded by additional drilling. Following this first project, the aim is to undertake similar geothermal projects in Hungary, by utilizing some of the other prospective petroleum wells identified by MOL and Enex.

Geographical Spread

Australia

Hungary

Board of Directors and Key Management

Adrian Larking	Managing Director
Jörg Baumgärtner	Non-Executive Director
Alan Knights	Executive Director
Scott Spencer	Non- Executive Director
Nigel Hodder	Company Secretary

Company Address Unit 6, 38 Colin Street, West Perth, Western Australia, Australia WA 6005 Telephone: (+61 8) 9482 0482 Facsimile: (+61 8) 9482 0499 Email: info[at]greenrock.com.au Website: http://www.greenrock.com.au

Capital Fully paid ordinary shares (GRK) 147,640,213 Options ( $0.10 options expiring 18 April 2008) (GRKOA) 40,243,810

Annual General Meeting November 2007

Major Shareholders

As at 03 September 2007
Rank	Name	Units	% of Issued Capital
1	PERILYA LIMITED	15,000,000	10.16
2	PKA INVESTMENTS PTY LTD	8,807,690	5.97
3	MR SIMON HARK ASHTON	5,831,250	3.95
4	CALM HOLDINGS PTY LTD	3,390,000	2.30
5	COMSEC NOMINEES PTY LTD	3,303,379	2.24
6	ANZ NOMINEES LIMITED	2,983,253	2.02
7	MR BRUNO NOSEK	2,202,500	1.49
8	MR ALAN ROBERT KNIGHTS	2,118,232	1.43
9	NATIONAL NOMINEES LIMITED	1,846,694	1.25
10	KIRKE SECURITIES LIMITED	1,500,000	1.02

Related News

30/08/07 - Green Rock Energy Optimistic About Geothermal Project At Olympic Dam

Most Recent Statement

05/09/07 - Appendix 3Y Change in Directors Interest
03/09/07 - Three GELs acquired in Cooper Basin and Private Placement
30/08/07 - Trading Halt Approval by ASX
30/08/07 - Trading Halt Request
28/08/07 - External assessment confirms enormous potential of OD project
26/08/07 - Appendix 3Y – Change of Directors Interest Notice