Geodynamics Limited (GDY)

Savo Island Geothermal Power Project

Geodynamics Limited and Kentor Energy Pty Ltd a subsidiary of Kentor Gold Ltd announced the signing of an earn-in joint venture agreement on 21 November 2012. The two stage earn -in agreement entitles Geodynamics to acquire up tp 70% interest in a conventional geothermal power project in the Solomon Islands.

The Project is located on the island of Savo, 14 km off the north coast of Guadalcanal where a volcanic based geothermal resource has been identified. Preliminary exploration studies indicate that the island could host a substantial geothermal reservoir at temperatures in excess of 260°C and at depths of 500 - 1,500 m.

The project has strong support from the local community on Savo Island, as well as the Central Province Assembly and the Solomon Islands Government. A Surface Access Agreement has been signed and is in place with customary landowners on Savo to undertake initial fieldwork and surveying.

The initial inferred geothermal resource estimate and assessment releasaed in April 2013, indicates the presence of a high quality geothermal exploration prospect with the potential capacity to generate in excess of 30 MWe, or 100% of Honiara and the Gold Ridge Mine's power requirement.

Vanuatu Geothermal Power Project

Following the acquisition of KUTh energy in January 2014, Geodynamics is developing a geothermal power project on the island of Efate, Vanuatu. Electricity generated by this plant will be used to replace a component of the island's current diesel-based electricity generation.

Potential geothermal plays are located at Takara on the north-east side of the island. Transmission line infrastructure on Efate currently ranges outwards to a limited extent from the capital Port Vila in the south-west. Extension of these lines along the island's main coastal ring-road is already underway and, ultimately, if the resource is proven they will be further lengthened to link the proposed geothermal plant with Port Vila.

The Takara projects is expected to be developed in the following phases:

1. Exploration drilling and confirmation of resource.
2. Stage one development of net 4 MW plant to meet baseload demand to be completed in 2017.
3. Stage two development of second net 4MW plant to meet peak demand and future demand growth.

The Vanuatu Government commissioned a report from the World Bank (Vanuatu: Efate Geothermal Power and Island-Ring Grid Development Framework ) to investigate the potential for geothermal on the main island of Efate. That report was accepted by the Vanuatu government in May 2012. The government, in conjunction with its development partners has also released a National Energy Road Map (NERM). These reports identify the key role that geothermal will play in the future energy mix for Vanuatu.

In January 2013 the Vanuatu government issued KUTh Energy with a 30 year exclusive Production Licence to develop geothermal electricity in the north of the island, in locations identified by the company during the early exploration phase of the project. These rights have now been transferred to Geodynamics, and will provide the basis for future exploration.