a copy and paste from the quarterly except the...

a copy and paste from the quarterly except the images
cheers
omg

HIGHLIGHTS

• Mini hydro-fracture testing at 2km depth proceeding at Olympic Dam
• Significant results for Cooper Basin tenements
• New project acquired for sea-water desalination in Upper Spencer Gulf, South
Australia
• Sites selected for Hungarian geothermal energy projects
• $1.3 million refund for Hungarian Otaháza Project expenditures received

ACTIVITIES

Olympic Dam Geothermal Energy Project (100% interest)

The mini hydro-fracture testing (“mini-frac”) in the Company’s Blanche No 1 well, to
measure the in-situ rock stresses, is underway. The CSIRO are supervising the work
using slim-hole, wire-line hydraulic fracturing technology developed at Ruhr-University
in Germany. The planned pressure test, which will utilize trailer mounted equipment
owned and operated by GEO-Meß-Systeme GmbH, obviates the need for drilling
equipment and has the added advantage of substantial cost savings.

Green Rock Energy drilled Blanche No. 1 well with NQ diamond coring (hole diameter
is 76mm) to 1,935m and intersected basement granite at 718m after passing through a
cover sequence of quarzites, limestones, siltstones and shales. 1,217m of variably
fractured, but essentially homogeneous granite persisted to the end of the hole where thetemperature was 85.4oC with an average temperature gradient of around 60° C/km in the cover sediments and around 30° C /km in the granite.

Seismic recorders are in place and are being used to monitor naturally occurring seismic
events. Once the pressure testing commences, which is scheduled for mid February, the
seismic recorders will, in addition to the pressure testing equipment, detect the slippage
and fracturing associated with the test and any natural seismic events occurring during
the period of the test.

The data from the mini-frac, will be used in the design of the two deeper wells and
associated water circulation testing. These two wells will be used to drive a 3 to 5 MWe
pilot plant which will complete the evaluation stage of the project. The design and
development of the commercial power plant with a proposed ultimate capacity in excess
of 400 MW of electricity will then occur.

The Olympic Dam Geothermal Energy project, wholly owned by Green Rock Energy, is
located in South Australia within 10kms of the Olympic Dam mine and only 5kms from
a 275kV and a 132kV power transmission lines connected to the Eastern Australian
power grid.


Patchawarra Geothermal Energy Project (100% interest)

Good progress was made on the three geothermal exploration licences covering 1,483 sq
kms of land over the Patchawarra Trough in the Cooper Basin, South Australia.

Modelling of the extensive geological, geophysical and well testing data from petroleum
drilling undertaken in the licence area, has highlighted areas of potential high heat flow
and good thicknesses of combined Patchawarra and Tirrawarra formations which are
hotter than 140oC at depths of around 3,000 metres. This provides further support for the
assertion that the Patchawarra Trough contains thick aquifers which have the potential to
provide high temperature water flows suitable for conventional geothermal energy
production. The analysis of these tenements will continue over the next quarter to further
refine target areas for sub-surface testing.


The next step is target selection within the tenements. Given success with subsequent
evaluation and testing of these selected sites, the development of the project will be
combined with the construction of a high voltage electrical transmission line linking the
Cooper Basin to the national grid.
Upper Spencer Gulf, South Australia (100% interest)

The Company acquired 5 new geothermal exploration licences in December 2007
covering an area of 1,938 square kilometres on the coast which area is south of Whyalla
on the Eyre Peninsula north to Pt Augusta and then south along the east coast of the
Spencer Gulf to below Pt Pirie.


These licences have been acquired for the purposes of using geothermal energy as the
energy source to desalinate sea water. This is the first project in Australia specifically
aimed at using geothermal energy directly for sea water desalination. The heat recovered
from the geothermal water will be used to desalinate seawater using the distillation
process. By using the heat from the geothermal water as the direct energy source for the
desalination plant, the process does not lose some of the energy by first having to convert
it to electricity to drive a reverse osmosis desalination plant.

This project will benefit from the program the Company commenced last year in
conjunction with CSIRO and the University of Western Australia in combining the use of
geothermal energy with water desalination. CORPORATE

Membership of Geothermal Industry Association

Green Rock Energy Limited became a founding and active member of the Australian
Geothermal Energy Association (AGEA) which was formed to promote and support the
geothermal industry and to liaise with government. Alan Knights, Green Rock Energy
Ltd Executive Director, was elected inaugural Secretary of the new association. The first
meeting of AGEA was held in Melbourne in December and was attended by the
Victorian Minister of Energy and Resources, the Honourable Peter Batchelor.

Annual General Meeting

The Company’s Annual General Meeting was held on Monday 26 November 2007 and
was attended by Green Rock Energy’s director Dr Jörg Baumgärtner who, in the week
preceding the meeting, had overseen the commissioning of Germany’s first geothermal
energy power plant at Landau in the Rhine Valley. Dr Baumgärtner’s experience from
the Landau project in Germany and the Soultz geothermal project in France, where he is
a member of the management and supervisory boards, is providing considerable
advantage to the Company in evaluating its geothermal energy projects.