ABN Newswire

Earth Heat Resources Limited (ASX:EHR) Announce $40 Million in Additional Project Finance For The Copahue Development

newsroom@abnnewswire.net — Wed, 22 Feb 2012 15:48:52 GMT

Earth Heat Resources Limited (ASX:EHR) is pleased to advise that it has successfully mandated Corporacion Interamericana para el Financiamento de Infraestructura ("CIFI") as Lead Bank and Mandated Lead Arranger for a Drilling Loan of US $22.5 million subject to due diligence. Further, the Company has signed an agreement for $17.5m in Capital Contingency Finance with AGS Capital Group LLC ('AGS').

Highlights

- CIFI to provide US$22.5 million debt financing for drilling loan directly and through syndication;

- Proceeds to be used for drilling 3 of the 4 wells planned for Phase 1;

- Drilling Loan to close contemporaneously with the Senior Debt

- AGS has agreed to provide up to $17.5m AUD in Capital Contingency Funding, if required.

- Total debt for Phase 1 US$86.5 million;

- Earth Heat on the threshold of full funding for the Copahue Development.

The Drilling Loan and Capital Contingency Finance, in conjunction with the previously announced (ASX 24th November 2011) $134 million Project Finance Loan from Inter-American Development Bank ("IDB") forms the debt aspects of project financing requirements for the Company's Geothermal development at Copahue in Argentina.

Earth Heat Managing Director, Torey Marshall commented,"Securing additional funding for the advancement of the Copahue project is the achievement of an enormous milestone. We now have agreements in place with AGS, CIFI and IDB, subject to due diligence, which will more than cover the debt requirements to proceed with Phase 1 at Copahue. Our rapid progress has shown that EHR has a formidable business model and a high quality project in Copahue. We will continue to lead the ASX listed sector and over the next 6 months will provide clarity to shareholders on corporate activity, joint ventures and additional funding options to achieve the best outcome for all the Company's shareholders and stakeholders."

Indicative Terms of the CIFI Drilling Loan

These terms are preliminary and are subject to change at CIFI's discretion after completing detailed and satisfactory due diligence of the Company and Shareholders. Extra indicative detail has been omitted at the request of CIFI, deeming it commercial in confidence until formal close has been achieved.

1. Loan Size $22,500,000

2. Use of Proceeds
- Proceeds will be allocated to drilling three wells at the Company's Copahue Geothermal Project in Argentina.

3. Availability of Proceeds
- The proceeds from the drilling facility will be available in 3 tranches of $7.5 million. The first tranche will become available after the first well has been drilled. The costs of the first well are to be paid by the Company. The remaining 3 tranches will come available for drawdown at the time of successful completion of
each well in advance.

4. Maturity Date
- Each tranche will mature 5 years from its disbursement with a maximum maturity 6 years from Closing.

Compensation, Fees and Expenses of CIFI Drilling Loan

As compensation undertaking the Scope of Work under this Mandate Letter/Term Sheet, the Company agreed to pay standard fees to CIFI. At the request of CIFI, such detail is considered commercial in confidence and has potential negative consequences for formal close if divulged.

Terms of the AGS Group Capital Contingency Finance

AGS Group has committed to buy shares in Earth Heat at prices determined in the future. Earth Heat has the sole discretion to issue shares to AGS in tranches of up to $1m AUD, thus no obligation to, and has agreed to pay a fee of 1% of the face value of the investment in shares to ensure the Finance is available for 60 months. AGS has agreed to a voluntary escrow on those shares.

About Copahue

Earth Heat signed a Heads of Agreement to farm-in to the Copahue Geothermal Development Project in Argentina in May 2010, which comprises an identified initial 30 MW geothermal development with the potential for significant expansion. Development of Copahue is anticipated to provide first power production and revenue within four years and Earth Heat has the right to earn up to 87.5% of the Project by funding various stages of development.

The Copahue project area is located in the western part of Neuquén Province, approximately 300 km from the provincial capital and just a few kilometres from the Chilean border. The geothermal resource on which the project is based occurs on the North-East flank of the Copahue volcanoa young, historically active stratovolcano whose summit is on the international border. It is also situated within a broad caldera that is inferred to have formed by activity that pre-dates that of the Copahue volcano.

The project area has been the site of geothermal exploration and development activities since the 1970s. This work has included a number of superficial and shallow exploratory surveys (geology, geochemistry, geophysics and temperature gradient drilling).

Four deep wells, reaching depths of as much as 1,414m have also been drilled in the area. These wells have demonstrated the presence of a commercially exploitable, vapor-dominated geothermal reservoir within at least a part of the project area.

Through the Course of 2011, EHR has increased the resources by 150%, completed an EIA, a pre-feasibility study and most recently signed Letters of Intent for offtake of the power to be produced well in excess of stage 1 and 2 development.

Torey Marshall
Managing Director
Earth Heat Resources Limited
T: +618-8212-0579
http://www.earthheat.com.au

Victoria Thomas
Director
Six Degrees Investor Relations
T: +613-9674-0347
http://www.sixdegreesmedia.com.au

Asian Activities Report for October 4, 2011: Sheffield Resources (ASX:SFX) Discover High Grade Talc Resources in Western Australia

newsroom@abnnewswire.net — Tue, 4 Oct 2011 12:00:04 GMT

Bulk minerals explorer Sheffield Resources Limited (ASX:SFX) today announced high grade talc results from drilling at its Moora Talc Belt project in Western Australia. Further testwork including brightness measurements is in progress, with results expected in November. Follow-up drilling of priority targets is scheduled for the first half of 2012.

Lochard Energy Group Plc (ASX:LHD) said today that remapping work at the Thunderball prospect on UK North Sea block 14/26b has identified more recoverable resources. The size of the Thunderball gas prospect and the oil exploration potential in the block have been significantly increased. Drilling is expected to commence during 2012 and the Company is actively seeking a farm-in partner to offset drilling costs.

Phoenix Gold Limited (ASX:PXG) announced the results of its latest drill programme completed at the Broads Dam Gold Project in Western Australia. Drilling intersects significant high-grade mineralisation at Broads Dam and demonstrates a continuous strike length of over 2.5 kilometres. Further extensional drilling is planned for November.

Dual bulk commodity developer, NSL Consolidated Ltd (ASX:NSL) said today that construction phase has commenced on its US$2.3 million iron ore beneficiation project in India under the schedule to initiate first stage commissioning by the end of 2011 and deliver maiden revenues in 1H 2012. NSL is so far the only foreign company granted the right to own and operate iron ore mines in India.

GAIL (India) Ltd (BOM:532155) has recently acquired its first shale gas assets in the USA. The Company will invest around US$300 million over a period of 5 years to acquire a 20% interest in Eagle Ford Shale acreage from Carrizo Oil & Gas Inc. (NASDAQ:CRZO).

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Asian Activities Report for June 15, 2011: Crusader Resources (ASX:CAS) Increases Borborema Gold Resources To 1.86 Moz

newsroom@abnnewswire.net — Wed, 15 June 2011 12:17:08 GMT

The S&P/ASX 200 fluctuated this morning, lost 0.11% to 4580 in midday. Nikkei 225 opened higher, up 0.14% to 9,561.30. Hang Seng Index slipped 0.15% to 22461.23, while Shanghai Composite was down 0.24% to 2723.43.

Companies

Crusader Resources Limited (ASX:CAS) said today that current drilling program at Borborema Gold Project in Brazil has increased the project's Mineral Resource estimate to 1.86 Moz. The new Mineral Resource remains open in all directions and the drilling program will continue to target and upgrade the gold resource.

Wasabi Energy (ASX:WAS) has signed a term sheet to jointly develop, own and operate the Taufkirchen Geothermal Power Plant in Southern Germany. The 4,500kW plant will use Wasabi's Kalina Cycle(R) power cycle technology, and will ensure the technology is well positioned as the preferred technical solution for the geothermal sector in Germany.

Groote Resources Limited (ASX:GOT) has completed the scoping study of the operational, technical and economic parameters of extracting manganese from seabed locations within the Company's tenements. The study supported the contention that the Company's tenements are considered highly prospective for the extraction of manganese. The Company's immediate priority is to establish a JORC-compliant resource for the Project and progress metallurgical test work.

Coalworks Limited (ASX:CWK) has received its Preliminary Feasibility Study update for the Vickery South Coal Mine, coal handling and preparation plant and mine infrastructure. The study suggests a 16 year mine life producing a total of 30Mt semi-soft coking coal and 6.3Mt thermal coal at a 3Mtpa run-of-mine mining rate.

Asia Business News
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Asian Activities Report for April 20, 2011: C @ Limited (ASX:CEO) To Acquire Substantial Mongolian Coking And Thermal Coal Assets

newsroom@abnnewswire.net — Wed, 20 Apr 2011 12:00:10 GMT

C @ Limited (ASX:CEO) has signed an agreement with an international coal developer that has a significant position in the coking and thermal coal industry in Mongolia. The agreement provides C @ Limited with an option to acquire 8 highly prospective coal exploration licenses in the South Gobi, near the Chinese border, with access to existing infrastructure. The Company has established a technical team and is ready to develop these assets.

Energio Limited (ASX:EIO) has completed an initial geophysical program on the KCMH Iron Ore Project in Nigeria. The program has enabled the Company to select several primary targets and initial field work at the targets has returned positive results. The Company is now preparing access roads in the selected areas for a planned drilling program to commence during Q2 2011.

MACA Limited (ASX:MLD) has received a Letter of Intent from Regis Resources Limited (ASX:RRL) for the provision of mining services at the Garden Well Gold Project. The proposed contract will generate A$450 million over 8 years. The services to be provided by MACA include various civil works, drilling, blasting and load and haul. Mobilisation to site is expected to occur in the third quarter of the calendar year 2011, subject to successful completion of the necessary approvals and contract negotiations.

Panax Geothermal Limited (ASX:PAX) has signed an agreement with PT Bakrie Power to develop the Ngebel Geothermal Project, a 165 megawatt geothermal project in Indonesia. Under the terms of the agreement, Panax will earn a 35% working interest in the project through funding of required exploration works before commercial development commences in late 2012.

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Australian Market Report of March 21, 2011: Shaw River (ASX:SRR) Announce 6.8Mt Maiden Inferred Resource At Otjozondu Manganese Project In Namibia

newsroom@abnnewswire.net — Mon, 21 Mar 2011 12:00:35 GMT

Shaw River Resources Limited (ASX:SRR) announced a maiden Inferred Resource of 6.8Mt at its 75.5% owned Otjozondu Manganese Project in Namibia. The Inferred Resource has an average grade of 23.1% manganese and can produce an export-standard manganese product using a simple beneficiation process. Shaw River currently has an exploration target of 35Mt-50Mt grading 23-27% manganese at Otjozondu. The Company will start a feasibility study in April 2011 based on an initial production target of 250,000tpa of manganese product and include plans to ramp up production to 500,000tpa.

West African Resources Limited (ASX:WAF) reported a significant gold mineralised zone over a strike length of 1.6km at Moktedu Prospect in Burkina Faso. New high-grade discovery included 28m at 9.22g/t Au and the mineralisation is open in all directions. Moketdu is located in the southwest corner of the Company's 100%-owned Boulsa Gold Project, only 4km northeast of Orezone Gold Corp's (TSE:ORE) 3.5Moz Au Bombore deposit. West African Resources will continue drilling of over 100,000m on-going through to July 2011.

Avanco Resources Limited (ASX:AVB) has acquired additional tenements and further expanded the Rio Verde Copper Project in Brazil. The new tenements include an extremely prospective 14km long anomalous copper trend hosting immediate and high priority drill targets. The new acquisition has increased Avanco's total copper land holding to a massive 38,800 hectares. The Company plans to mobilise six rigs to commence an aggressive drilling program by the end of May 2011.

Panax Geothermal Limited (ASX:PAX) signed a Memorandum of Understanding with PT Petrogas Jambi Power to start exploration on Panax's third geothermal development project in Indonesia. Jambi Power has strong support from the local government with regard to the development of geothermal energy in the area, and has an extensive database of information on the relevant geothermal targets. Energy generated from the project would be connected into the local electricity transmission grid or used for local industry.

Asia Business News
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Australian Market Report of March 15, 2011: Kangaroo Resources (ASX:KRL) On Track To Complete The Acquisition Of Indonesian Pakar Thermal Coal Project

newsroom@abnnewswire.net — Tue, 15 Mar 2011 12:00:00 GMT

Kangaroo Resources Limited (ASX:KRL) said today that the due diligence process is proceeding smoothly and the Company is on track to complete the acquisition of the Pakar Thermal Coal Project in Indonesia by June 2011. Kangaroo Resources and Indonesian coal conglomerate PT Bayan Resources (JAK:BYAN) (PINK:BYRSF) entered into an agreement in December 2010, whereby the companies would start to work together immediately to build up Kangaroo's Indonesian coal business. Technical and operational work is underway on many fronts and the Pakar Project is expected to move into production in 2011.

General Mining Corporation Limited (ASX:GMM) has placed 6,947,234 shares to institutional and sophisticated investors at A$0.175 per share to raise A$1,21 Million. Funds will be used to assist the Company's forthcoming Mongolian potash and lithium brine exploratory drilling program and the drilling program at the Shoemaker Iron Ore/Manganese Project in Western Australia.

Hot Rock Limited (ASX:HRL) has successfully completed the first geophysical survey at its Longavi Geothermal Project in Chile. Data gathered from the survey will be used to evaluate the suitability of the Longavi prospect for exploration drilling. Longavi is one of 6 geothermal prospect areas the Company holds in Chile. Further geophysical surveys are planned at the prospects throughout 2011.

Rex Minerals Limited (ASX:RXM) has received further shallow drilling results from its 100% owned Hillside Copper Project in South Australia. The recent results continue to demonstrate the broad extent of the shallow and higher grade mineralisation. Drilling will continue to focus on the shallow copper mineralisation for a proposed stage one open pit. The current Mineral Resource estimate at Hillside consists of 170Mt at 0.7% copper and 0.2g/t gold for 1.2 million tonnes of contained copper and 1.1 million ounces of gold.

Asia Business News
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Australian Market Report of February 18, 2011: YTC Resources (ASX:YTC) Announce Further Strong Copper Results From Nymagee Deposit

newsroom@abnnewswire.net — Fri, 18 Feb 2011 12:05:00 GMT

YTC Resources Limited (ASX:YTC) announced further strong drill results from the northern section of the Nymagee Copper Deposit. Broad copper mineralisation was encountered including 6m at 2.1% Cu and 31m at 1.7% Cu. YTC considers the Nymagee deposit has the potential to be mined and treated under an expanded development scenario in conjunction with the Company's Hera Project. The combined development has potential to produce significant quantities of copper in concentrate, in addition to gold, silver, lead and zinc. The Company continues to carry out its aggressive exploration campaign at both the Hera and Nymagee deposits.

Meridian Minerals Limited (ASX:MII) has signed a non-binding Heads of Agreement to acquire a 75% interest in the non-alluvial assets of Russian gold company ZAO ZRK Omchak from UK listed Petropavlovsk PLC (LON:POG) (PINK:PPLKY). Acquisition cost is intended to be US$40M. Omchak's assets include the Aliya gold deposit which has an identified Exploration Target Range of 700,000-1,100,000 oz of gold. The Aliya Gold Project is situated in Eastern Russia, 310km from the regional centre of the city of China, with good access to road, rail and power, ensuring lower capital expenditure requirements.

Peninsula Energy Limited (ASX:PEN) announced the first results from its recently commenced exploration program at the Karoo Uranium Projects in South Africa. A total of 20 significant uranium intersections were achieved. Best intercepts include 7.0 feet at 1,522ppm eU3O8 and 6.2 feet at 1,506ppm eU3O8. Molybdenum mineralisation at the project area will also be explored.

Hot Rock Limited (ASX:HRL) has commenced its first major exploration program in Chile on recently granted tenements at the Longavi and Calerias Geothermal Projects. Field studies confirm the presence at a number of locations of large, near boiling springs. The Company is now about to move quickly through the early exploration stage onto defining the geothermal development potential of the high quality Longavi and Calerias projects.

Asia Business News
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Australian Market Report of January 11, 2011: Eldorado Gold (ASX:EAU) Gold Production Up 74% in 2010

newsroom@abnnewswire.net — Tue, 11 Jan 2011 13:30:00 GMT

Eldorado Gold Corporation (ASX:EAU) (TSE:ELD) (NYSE:EGO) today announced the 2010 operating results and provided operating guidance for 2011. All the Company's mines continued to perform strongly contributing to a total of 632,537 ounces of gold in 2010, up 74% compared with 363,509 ounces in 2009. The Company's gold production will continue to grow in 2011 by an additional 15% - 20% to 715,000 - 770,000 ounces whilst maintaining one of the lowest costs in the industry at US$375-US$395 per ounce. The Company's worldwide exploration budget for 2011 is estimated at US$54 million, of which approximately US$24 million will be spent in China with the remaining balance in Turkey, Brazil, and Nevada.

Wasabi Energy Limited (ASX:WAS) (AIM:WAS) announced that its subsidiary, Global Geothermal Limited, has acquired the Orkuveita Húsavíkur (Húsavík) geothermal power plant, located in Northern Iceland. This significant acquisition signals the commencement of Wasabi Energy's Kalina Cycle (R) strategy and involves refurbishing the existing power plant to maximise power generation. Kalina Cycle(R) is the most thermodynamically efficient power cycle technology in the world for enhanced energy efficiency and renewable energy generation. The Power Plant is not currently operational and refurbishment activities will commence immediately after receiving formal Government approvals.

Sierra Mining Limited (ASX:SRM) has entered into an agreement with Barrick Limited whereby Barrick may acquire up to 80% of Sierra's Salumei (EL1468) and Magavara (EL1463) Projects in Papua New Guinea by sole funding A$4 million on exploration expenditure on the projects within 5 years. Once Barrick has earned an interest in either of these Projects after meeting its expenditure requirements, Barrick and Sierra will form a joint venture with Barrick being the initial manager. Barrick's involvement and its experience in exploring and operating projects in PNG will help progress these Projects, whilst Sierra will continue to maintain its focus on its gold and copper projects in the Philippines.

Lachlan Star Limited (ASX:LSA) announced the first JORC Resource estimate for its 100% owned CMD Gold Mine in Chile totalling 664,000 ounces of gold. The estimate is 150,000 ounces higher than previously stated exploration target and is at a slightly higher grade than that contained in the exploration target. An aggressive exploration program is underway to explore and expand the known mineralisation at the CMD Gold Mine, with a view to delineating sufficient Resources and Reserves to support a 100,000 ounce per annum operation.

Asia Business News
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Australian Market Report of October 18, 2010: Marengo Mining (ASX:MGO) Signs Memorandum Of Understanding With China NFC (SHE:000758) For Copper-Molybdenum-Gold Project In Papua New Guinea

newsroom@abnnewswire.net — Mon, 18 Oct 2010 13:30:00 GMT

Marengo Mining Limited (ASX:MGO) (PINK:MGOMF) has signed a Memorandum of Understanding ("MOU") with China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd ("NFC") (SHE:000758), paving the way for formal agreements on financing, construction and off-take for Marengo's 100%-owned Yandera Copper-Molybdenum-Gold Project in Papua New Guinea. The project is anticipated to have an initial ore production of approximately 25Mtpa and a potential to reach to 50Mtpa. Construction at Yandera is expected to commence in the first half of 2012.

Tap Oil Limited (ASX:TAP) reported that its Manora-4 appraisal well in Thailand was spudded on 14 October 2010. The well is located in the northern Gulf of Thailand in 45 metres of water, approximately 75 kilometres from shore and 230 kilometres south of Bangkok. Drilling at Manora-4 Well was commenced on 14 October 2010 and would last for 25 days in total. Upon completion of evaluation, the well will be plugged and abandoned in the normal course of offshore operations.

Encounter Resources Limited (ASX:ENR) has encountered additional high grade copper intersections from the BM1 prospect at the Yeneena project in Western Australia. Assay results recorded the highest grade copper intersection to date from the project including 2 metres of Cu at 7.6%. In addition, there were a number of thick, near surface intersections of over 1% copper. The planned RC/diamond drill program is to commence next week.

Petratherm Limited (ASX:PTR) is working with the Spanish and Madrid regional governments to advance its 8 MW Madrid Geothermal District Heating project. The Spanish government has provided AUD$140,000 to assist the feasibility stage of the project, which is now near completion. This renewable energy project is expected to be the first application of geothermal district heating in the Madrid region.

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