General
The Board of the Company have considered and established various board policies with particular emphasis on the policies for the governance of the Company. This statement outlines the main corporate governance policies which the Directors have adopted.

Committees
The Company does not have any formally constituted committees of the Board of Directors. The Directors consider that the Company is not of a size nor are its affairs of such complexity as to justify the formation of special or separate committees. The Board as a whole is able to address the governance aspects of the Company's activities and ensure that it adheres to appropriate ethical standards. This statement outlines the main corporate governance policies which the Directors have adopted.

Composition of the Board
The Board comprises four Directors. The names, qualifi cations and relevant experience of each Director are set out in Management Section of this website. There is no requirement for any Director's shareholding qualifi cation.

As the Company's activities increase in size, nature and scope, the size of the Board will be reviewed periodically and the optimum number of Directors required to supervise adequately the Company's activities determined within the limitation imposed by the Constitution.

Board Membership
The Board acts as a nomination committee. Members of the Board have been brought together to provide a blend of qualifi cations, skills and national and international experience required for managing a company operating within the mining exploration industry.

Appointment and Retirement of Directors
The Company's Constitution provides that Directors are subject to retirement by rotation, by order of length of appointment. Retiring Directors are eligible for re-election by shareholders at the annual general meeting of the
Company.

Duties of Directors
Directors are expected to accept all duties and responsibilities associated with the running of a public company, to act in the best interests of the Company and to carry out their duties and responsibilities with due care and diligence. Directors are required to take into consideration confl icts when accepting appointments to other Boards. Accordingly, Directors wishing to accept appointment to other Boards must fi rst seek approval from the Board, approval of which will not be unreasonably withheld.

Independent Professional Advice
The Board has determined that individual Directors may, in appropriate circumstances engage outside advisers at the Company's expense. The engagement of an outside adviser is subject to the prior approval of the Board, which will not be unreasonably withheld.

Compensation Arrangements
The Board is responsible for reviewing and negotiating the compensation arrangements of senior executives and consultants.

Audit Committee
The Board does not presently have an audit committee. All matters which might be dealt with by such a committee are reviewed by the Directors meeting as a Board.

Internal Management Controls
The Company's assets are located in Victoria, Australia. Control over the operations is exercised by senior management. The Board also monitors the performance of outside consultants engaged from time to time to complete specific projects and tasks.

Identifying Significant Business Risks
The Board regularly monitors the operational and fi nancial performance of the Company's activities. It monitors and receives advice on areas of operation and fi nancial risk and considers strategies for appropriate risk management. All operational and financial strategies adopted are aimed at improving the value of the Company's Shares, however, the Directors recognise that geothermal exploration and evaluation is inherently risky.

Proposed actions following ASX Listing
Following the Company listing on the ASX, the Directors intend to expand its corporate governance charter to define policies relating to:
(a) Shareholder communication;
(b) Share trading by Directors and executives;
(c) Code of conduct for Company employees.

Level of Compliance with ASX Best Practice Policies on Corporate Governance
The Company does not presently comply with all of the ASX Best Practice Policies on Corporate Governanceand by virtue of its size and the composition of the Board is unlikely to do so in the foreseeable future.