ASX Announcement: Board Changes and Corporate Update

SYDNEY, AUSTRALIA--(Marketwire - May 16, 2011) - Earth Heat Resources Limited ('Earth Heat' or 'the Company') (ASX:EHR) continues its preparation to seek a North American listing. This listing will provide for greater investor recognition and access to funding to develop its international portfolio of geothermal assets.

As a preparative step for that listing it has been agreed to simplify the existing board structure and accordingly Messrs David Sutton, Alex Rose-Innes and Stephen Pearce have tendered their resignations from the board of EHR in support of these future plans.

In accepting their resignations the Chairman Dr Ray Shaw said that he was very grateful for the contributions that each had made in helping the development of the company, particularly since the transition to the new energy sector. "We are particularly gratified by each of these former directors having agreed to take their outstanding director's fees in shares, subject to any and all required consents (shareholder & regulatory). The price will be determined by the board, and based on a 5 day VWAP of trading within 6 months of the date of their resignation. The smaller board will enable the Company to have the flexibility to respond to future opportunities and strategic alliances which may involve board appointments, as it prepares to list in North America." Dr Shaw said.

Concurrently there has been significant progress with the resource review for the Copahue project and Stage 1 developments, as well as with projects and opportunities in Africa. As these mature further announcements will be made.