Ann: Highly Prospective Project Granted in Peru , page-8

re: Ann: Highly Prospective Project Granted i... Under the Quellaapacheta JV agreement, HRL will receive from EDC an initial payment of US$0.4
million once the exploration tenement has been transferred into the newly incorporated JV Company
named Geotermia Quellaapacheta Peru SAC. If EDC withdraws from the project within 6 months of
the tenement being transferred into the JV Company, the $0.4m is refundable. A further payment of
US$0.6 million will be made to HRL providing EDC continues to be involved in the project beyond 15
months from the date of the tenement transfer.

The upside as I see it is not the actual $400000 but the fact that a major has joined with us and that will arouse some other majors to have a good look at what we are sitting on in both Chile and Peru,