Geothermal energy is one of the very few sustainable sources of energy which can replace base load power from fossil fuelled power stations. Compared to other sustainable energy options, geothermal resources are still not valued according to their commercial potential for the long term generation of clean base-load power. This is the opportunity which Panax aims to turn to good account.

The nature of our business is the identification and exploration of prospective geothermal resources and to convert these into geothermal reserves for the production of commercial geothermal energy. Geothermal power generation is not dependent on new technology (i.e. no new technology risk). The risks of our endeavours are directly related to the conversion of geothermal resources to economic geothermal reserves, i.e. the economic extraction and utilisation of geothermal energy. In that sense it is very similar to risks associated with mineral or oil/gas exploration.

The Company is in an excellent financial position with nearly $10 million in cash and no debt. It intends to preserve its capital by seeking a joint venture partner for the advanced Limestone Coast Geothermal Project as well as support from development banks for initiatives in India and Kyrgyzstan.

The long term vision of Panax is to become a major participant in the geothermal industry, both nationally and internationally. The scope of its geothermal interests will be broad, including both conventional geothermal resources (volcanic related) as well as enhanced geothermal systems (EGS) such as hot fractured rock (HFR) geothermal systems. Panax’s key asset is the advanced and ready to drill-test Limestone Coast Geothermal Project in South Australia, which has an estimated generating potential*) of approximately 1,500 MWe, i.e. the equivalent of two coal fired power stations or enough power for more than one million homes.

The Company will not only focus on clean power generation but will also embrace direct use of geothermal heat for use in e.g. industry, district heating (or cooling), and desalination.

Panax is currently furthering its search to acquire an advanced commercial geothermal project which is ready for development. This international search is being conducted on our behalf by a group of highly experienced geothermal consultants.

The Company has adopted a policy to offset sovereign risk in developing economies through seeking partnerships e.g. with international development banks.

To realise our ambitious plans, the Company has commenced a recruitment drive for the appointment of a high calibre exploration and development team. In the interim, to start our momentum, Panax has entered into long term agreements with a number of national and international geothermal consultants including Mr William Cumming (US based, ex-Unocal) and GeothermEx (US based) as well as Dr Graeme Beardsmore of Hot Dry Rocks Pty Ltd.