Geothermal discussion, page-27

Thank you BelgianBert! Loving the information and discussion.

2/ From what I have read (starting at ground zero with regards to Geothermal), I tend to agree that 5MW would make the most sense. $20m cost also seems to be a reasonable figure - this seems to be at the higher end of costs too, which is fair considering the current climate.

"All three of Within Energy’s application areas, Gladstone, Lockyer and Biggenden, are located close to major commercial and industrial centres, with minimal transmission distance to the established power grid and ample access to accommodation and a potential workforce." I would guess that we may be looking at larger plants = improved economics?

6/ the 50 to 275 degrees numbers are for a region in South Australia, not really pertaining to us. The point of that table was to demonstrate that the tenement GRV have secured, targeting the Millungera Basin, exceeds the maximum heat flow averages of the six major regions of geothermal activity in Australia. Millungera Basin averages expected at 100-120 degrees at 2km as you correctly mention.

You asked about the $10m paid to Within Energy... So far 3,000,000 GRV shares ($500,000) to acquire 51% of Within Energy. Then 50,000,000 GRV shares ($9,000,000) to Within Energy for the remaining 49% if all 3 areas proceed to grant. "The parties agree that if any or all milestones are not satisfied within 18 months of the acquisition of the initial 51% interest, all remaining Within Energy shares will be transferred to GRV, and GRV will issue 100,000 shares in consideration for the transfer of these shares."

Also, regarding your figures below - have you taken into consideration the potential revenue of RECs and ACCUs? Of course this also depends on the offsetting of the Torbanite project.

• "Renewable Energy Certificates (RECs) are a Federal Government instrument that certifiesthat the bearer owns one megawatt-hour (MWh) of electricity generated from a renewableenergy source. Once the power provider has fed the energy into the grid, one REC is receivedfor every MWh of renewable energy produced. RECs can then be sold on the open market as an energy commodity.
• "Australian Carbon Credit Units (ACCUs) are issued by the Federal Government’s CleanEnergy Regulator. One ACCU is allocated for each tonne of carbon dioxide equivalent storedor avoided by a project. These can be traded or sold both nationally and internationally."

Further to, +using, your figures below (assuming the operating costs based on $0.02kwh as follows):
Cost of 1x 5mw geothermal plant: $20m
Operating costs: $841,000pa
Revenue: $4,120,000pa
Net profit: $3,279,000 pa
Payback period: 6.1 years

+ revenue from RECs + ACCUs
+ grant / govt funding

Let me know if i have any of the above incorrect?

There is so much that we are all itching to know, very exciting times.