Tecto Energy Pebble Creek Geothermal Project Outline Outline  World Geothermal Power Status  BC Geothermal Prospects  Pebble Creek (North Meager) Prospects  Plan for Development  Costs and Conclusion Tecto Energy Pebble Creek (North Meager Creek) Geothermal Prospect

Tecto Energy Pebble Creek Geothermal Project Growing Trend in World Geothermal Power Capacity With an steady growth of about 3% world geothermal power generation presently exceeds (rivaling wind in net energy production) Data source: GEA

Tecto Energy Pebble Creek Geothermal Project Geothermal is a viable renewable Power, Ranking in Capacity 4 th after hydro, biomass and Wind, significantly higher than solar Viable and Renewable US Energy Administration, Short-term Energy Outlook, May 2012 US supply in Quadrillion BTU

Tecto Energy Pebble Creek Geothermal Project Geothermal Energy accounts for 1/5th of the total electric power generation in the Philippines a clean and economically viable alternative A 300 MW geothermal power Plant site in the Philippines

Tecto Energy Pebble Creek Geothermal Project From CRS Report for US Congress (2008) Capital costs are roughly split between the power plant itself (50 to 60%) and the resource infrastructure (drilling and steam field development) (40 to 50%). For Pebble Creek, Development cost Is estimated at $2,500/kW to $3000/kW installed amounting to 500 to 600 Million Dollars for the initial 200 MW Most Economical Base-load Power

Tecto Energy Pebble Creek Geothermal Project 12 young Volcanic Complexes in the Canadian West Coast provide a geothermal power generation Potential of 3000 to 5000 MW Tecto Property in Pebble Creek (North Meager) has an estimated generating potential of over 500 MW Potential in British Columbia

Tecto Energy Pebble Creek Geothermal Project On the left: Exploratory MC1 well discharging 200°C two phase geothermal fluids. First Canadian geothermal pilot plant was successfully tested for 40 days in 1984 with the discharge from MC1 Brief History of South Meager Creek (8km South of Tecto’s Pebble Creek Prospect)

Tecto Energy Pebble Creek Geothermal Project Geothermal Reservoir Model of The Meager Creek Complex, South-North Cross Section Pink Color shows the boundary of the geothermal resource (BC Hydro Model). Resource is located dominantly in the Pebble Creek side) South Meager vs North Meager (Pebble Crk) Pebble Creek Permits 2 million years 2 thousand years Volcanic vent age

Tecto Energy Pebble Creek Geothermal Project Geological Cross Section of North Meager (Pebble Creek) Remarkable presence of primary permeability in the Pebble Creek Geothermal Prospect associated with high temperature gradients

Tecto Energy Pebble Creek Geothermal Project Red lines define the boundary of the Tecto’s Pebble Creek property. Pebble Creek Hot springs are located inside the Tecto property Tecto Geothermal Prospect in the Pebble Creek (North Meager) area

Tecto Energy Pebble Creek Geothermal Project Pebble Creek Hot Springs Tecto Property in Pebble Creek (North Meager) about 50 km from the City of Pemberton, B.C.

Tecto Energy Pebble Creek Geothermal Project Resistivity and SP surveys, conducted by BC Hydro (SP Line A and Resistivity line V shown in next slides) Electrical Resistivity Survey in the Pebble Creek area Line A Line V

Tecto Energy Pebble Creek Geothermal Project Low Resistivity anomaly (solid lines) and possible anomaly (dashed lines) Line V SP Data

Tecto Energy Pebble Creek Geothermal Project Northwest-Southeast Section for SP Survey Line A near the hot springs which lie about 300 meters northeast of the line opposite Station NW. The pronounced SP low between stations and is attributed to the hot spring system. Line A Resistivity Data

Tecto Energy Pebble Creek Geothermal Project Access to the Pebble Creek Hot springs. Despite their high temperature (70°C), the Pebble Creek Hot springs have low salinity (suggestive of steam heating) Pebble Creek Hot Springs are in Tecto Property)

Tecto Energy Pebble Creek Geothermal Project Highest Temperature Gradients Discovered in Canada Are located in the Pebble Creek geothermal prospect In the Pebble Creek geothermal prospect area, ground temperature rises by 80 to 90°C per km (data from BC Hydro deep core holes).

Tecto Energy Pebble Creek Geothermal Project Study of core samples from deep core holes From Meager Complex show the presence of both primary and secondary permeability associated with volcanic vents. Intrusive rocks close to the vents are also highly fractured. Looking deep in the ground Cores from Meager Creek area

Tecto Energy Pebble Creek Geothermal Project Locations of Proposed Drill Holes Planned Confirmation drilling To depth 2500 m

Tecto Energy Pebble Creek Geothermal Project Flash Steam Geothermal Power Generation Technology (most of the world geothermal power capacity) Pebble Creek Geothermal resource is high-grade, to be exploited by Flash Steam technology

Tecto Energy Pebble Creek Geothermal Project Pebble Creek Viable Power Corridors Besides Geothermal, about 150 MW hydro capacity is planned to be developed in the Pebble Creek area Tecto geothermal Power will be connected to the BC Hydro gird at Pemberton (red line)

Tecto Energy Pebble Creek Geothermal Project ESMAP MISSION (World Bank 2012) Risk and cost relations Tecto Pebble Creek Project

Tecto Energy Pebble Creek Geothermal Project Drilling and completion of two production-size holes at Pebble Creek to depth 2500 to 3000m, and comprehensive feasibility study for the first 200 MW generation Geotechnical /environmental 1 Mob-Demob. 1 Drilling 8 Well testing /reservoir engineering 1 Feasibility for the first 200 MW Confirmation/feasibility 12 M Contingency 3M Total 15M Cost of Resource Confirmation at Pebble Creek

Tecto Energy Pebble Creek Geothermal Project Conclusion: Geothermal power technology is mature, clean, and offers a green solution for world increasing demand for electricity. British Columbia has at least 3000 to 5000 MW geothermal power potential Meager Creek Complex is the most advanced Geothermal prospect in BC with estimated 1000 MW Potential. Tecto’s Pebble Creek (North Meager Reservoir) prospect has an estimated developable power potential of above 500 MW Chemistry of Hot springs and temperature data from deep slim holes have proven the presence of a high-grade geothermal resource associated with the Pebble Creek Hot springs Cost of two Production-size confirmatory holes and feasibility for the first 200 MW Development in the Pebble Creek Tecto Property is estimated at 15 M. Cost of 200 MW power development is estimated at 500 to 600 Million dollars. The payback will be less than 6 years. Cash-flow shows a levelized production cost of less than $60/ MW

Tecto Energy Pebble Creek Geothermal Project Questions?