Secures Funding Package With New York Based Deer Valley...

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.