pax secures $5m funding, page-2

Secures Funding Package With New York Based Deer Valley
Management, LLC

Panax Geothermal Limited (“Panax”) is pleased to announce that it has secured a Share Placement Facility Agreement (“Facility”) with the New York based Deer Valley Management,
LLC (“Deer Valley”) to provide a working capital facility of $AUD 5 million, capable of being drawn upon by Panax over the next three years.

Under the terms of the Facility that Panax has secured with Deer Valley :

? Panax is able to draw upon the Facility, at Panax’s call, to provide required working capital for corporate working capital and project related expenditures over the next three
years;

? Shares issued under the Facility will be issued to Deer Valley at an 18.5% discount to the prevailing market price (as defined in the Facility) prior to the issue of the shares;

? Panax has incurred no entry fees or transaction costs resulting from entering into the Facility;

? Panax is able to terminate the Facility with mutual agreement prior to the end of the three year term, with no fees payable upon termination of the Facility; and

? Deer Valley is able to terminate the Facility if Panax has not drawn upon the Facility during the preceding 6 month period.

Panax considers the nominated discount to market price in the Facility to be a reasonable discount to the prevailing market price for share placements in the current financial market.