Corporate Presentation December, 2011 Disclaimer FORWARD LOOKING - PowerPoint PPT Presentation

Corporate Presentation December, 2011

Disclaimer FORWARD LOOKING INFORMATION: This presentation contains certain forward-looking statements relating, but not limited, to DEEP Earth Energy Production Corp. ’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intent”, “estimate”, “may” and “will” or similar words suggesting future outcomes or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the recovery of resources varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Shareholders and prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. DEEP Earth Energy Production Corp. undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. This caution is provided in accordance with the requirements of Parts 4A and 4B of National Instrument 51-102 Continuous Disclosure Obligations , respecting disclosure of forward looking information. STATUORY RIGHTS OF INVESTORS: Securities legislation in certain of the provinces and territories of Canada provides purchasers with the right to withdraw from an agreement to purchase securities. The right may be exercised within two business days after receipt or deemed receipt of a prospectus, offering memorandum or any amendment thereto. In several of the provinces, securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, revisions of the price or damages if the offering document, or any amendment thereto, contains a misrepresentation or is not delivered to the purchaser, provided that such remedies for rescission, revision of the price or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for the particulars of these rights or consult with a legal advisor.

Geothermal Worldwide Mature technology – dates back to early 1900’s Global installed geothermal power is 10,700 MW, in 24 countries, supplying 60 million people with renewable energy Overall potential global geothermal power capacity is 190,000 MW 3 Source: Islandbanki United States Geothermal Energy Market Report

Saskatchewan Electricity Landscape  SaskPower – provincial utility owns & operates system  3,500 MW capacity from SaskPower-owned assets  Forecasting 2.4% annual growth in load demand  New supply forecast: 1,000 MW by 2015  1,100 MW for period 2016 – 2023  1600 MW for period 2024 – 2033   Entire generation system to be rebuilt or replaced by 2033  Select highlights of SaskPower’s action plan: Encourage small-scale renewable energy power production  Pursue new generation technologies  Evaluate supply options including renewable fuel power generation opportunities  Source: 2010 SaskPower Annual Report 4

Green Options Partners Program  Encourages renewable energy production by:  Streamlining power purchasing for small and medium-sized “clean power” producers  Creating ongoing opportunity - RFP for 50 MW / year  Fixing contract price for production and guaranteeing interconnection  $101.98/MWh for 2014, increasing at 2% per year  DEEP’s application for a 5.0 MW geothermal project was selected in the 2011 lottery  Equivalent to ~ 5000 households 5

Power supply option and approximate cost per kWh: Base load, intermittent or Cost per kilowatt hour Generation option peak? (kWh) Biomass Base load $0.06 to $0.11 $0.07 to $0.10 Coal Base load $0.08 to $0.13 with Carbon Capture Cogeneration Base load $0.07 to $0.12 Hydroelectric Base load and peak $0.07 to $0.10 Imports Base load and peak Variable Natural gas Base load and peak $0.08 to $0.13 Nuclear Base load $0.08 to $0.10 Solar Intermittent $0.43 to $1.80 Large $0.06 to $0.10 Wind Intermittent Small $0.12 to $0.22 Micro $0.27 to $0.57 Source: SaskPower Website GEOTHERMAL Base load $0.06 to $0.08 Source: Islandbanki United States Geothermal Energy Market Report

Rafferty Project – 5,920 acres 7

Geothermal Power • Heat is recovered from water recycling through the system and converted to electricity • Continuous heat supply means that with proper engineering geothermal systems can run indefinitely • The ultimate renewable resource! 8

Geothermal Power Binary turbine technology

Geothermal Power 5 Megawatts = ~5000 households Courtesy of TAS 10

Geothermal v s. Other Renewables Baseload power generation Small foot print Land Use Power Availability (%) In acres/ 1 billion kWh 100% 5,000 Base-Load 80% 4,000 60% 3,000 40% 2,000 20% 1,000 0% 0 Wind - Solar - Hydro - Geothermal - Biomass - Solar PV Solar Coal Geothermal Wind Onshore PV Small Scale Dual Flash Combustion Concentrating Sources: (1) Net Capacity Factor (%) averages for selected renewables, Glitnir Research 11 Source: Islandbanki United States Geothermal Energy Market Report

Geothermal Reservoirs COMPLICATED VS SIMPLE Hot Sedimentary Aquifer (HSA): Volcanic Geothermal: • Heat stored in water (brine) in • Geothermal resource in existing reservoirs with natural fractures in non-permeable permeability and porosity volcanic rock Panax Geothermal website

Project Details  Target aquifers are the Winnipeg and Deadwood Formations, directly above the Precambrian basement  Reservoir thickness of 150 metres  Depth of 3000 metres ~120 degrees Celsius  Flow rates estimated at  80kg/sec Offsets 30,000 metric tonnes of  CO 2 annually Petroleum Technology Research Centre 13

Williston Basin – Predictable Geology A vast sedimentary reservoir  that is continuous and repeatable over 1000s of square kilometres Enormous data set derived  from oil and gas exploration since the 1950s The resource is proven with  measured data Predictable geology  14

Williston Basin: an extensive dataset Bottom hole • temperature Temperature gradient • Production/DST • Water chemistry •  Real data points  Robust model  Basin is ‘structurally benign’  Multiple data points increases confidence and reduces project risk 35,770 wells in SE Saskatchewan !

Rafferty Project – 5,920 acres Excellent well control – low risk, predictable geology 16

Geothermal Power “Farming” Large-scale 50 MW project Multiple 5 MW projects Less upfront capital Capital intensive Shorter time to commissioning Long lead times “Grid friendly” 17

Welcoming Location Small projects in an area with the potential for 100s of MW of  repeatable baseload electrical production Situated in a region that develops its local resources   extensive agriculture, and oil and gas development Environmentally friendly – silent, small surface footprint   Like another common quonset structure on the prairie horizon 18

Saskatchewan Geothermal Excellent regulatory framework • Drill permitting and surface rights agreements - easy and quick • 19

Land Acquisition Partnered with Petrobakken Lease of Space agreement for exclusive rights to their from the Saskatchewan non-oil bearing aquifers in Ministry of Energy and SE Saskatchewan Resources on an initial project May reduce drilling cost • area ~9 sections of land, (5,920 acres) Access to world class • drilling experience 20

Development Budget  Phase 1: Exploration - $3,900,000 • Development Plan • Land Position • Permitting • Exploration Test • DEEP #1 well • Reservoir engineering and possible reservoir enhancement 21