NOV 2010 TSX : MXY

1. NOV2010TSX : MXY A GLOBAL GEOTHERMAL POWER COMPANY

2. CAUTION REGARDING FORWARD-LOOKING STATEMENTS These slides and the accompanying oral presentation contain certain “forward-looking information” within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, management’s expectations regarding our growth, results of operations, estimated future revenues, requirements for additional capital, production costs and revenue, future demand for and prices of electricity, business prospects, opportunities and estimates of recoverable geothermal energy “resources” or “reserves” or energy generation capacities (at either P90 or based on the Geothermal Code for Public Reporting). Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. A number of known and unknown risks, uncertainties and other factors, may cause our actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, those discussed in the section of our prospectus entitled “Risk Factors”. These factors should be considered carefully. The forward-looking information is also based upon what management believes to be reasonable assumptions, including, but not limited to, assumptions about: the success and timely completion of planned exploration and expansion programs, including expansion and improvements to operations in Iceland and to our Soda Lake Operation in Nevada; the growth rate in net electricity consumption; support and demand for non-hydroelectric renewables; government initiatives to support the development of renewable energy generation; the accuracy of resource and reserve estimation methodology and probabilistic analysis used to estimate the quantity of potentially recoverable energy; geological, geophysical, geochemical and other conditions at our properties; the reliability of technical data, including extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; capital expenditure estimates; availability of capital to fund exploration, development and expansion programs; the differences in financial results reported under IFRS and Canadian GAAP; and general economic conditions. Forward-looking information and statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur. There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.

3. GEOTHERMAL – WHAT IS IT? • Geothermal is a proven, global, underexploited, base-load, renewable energy source • Literally heat from the earth, derived from deep natural reactions which create magma (molten rock) • Requires Heat, Permeability and Water Surface 1 – 3 km Drill hole depths Source: University of Utah – the Energy & Geosciences Institute (EGI)

4. GEOTHERMAL – MAJOR ADVANTAGES • Base Load - 24x7 operation with very high capacity factor +90% • Lowest Levelized (“All-in”) Cost - $60 - $80/MWh. No fuel cost, zero exposure to commodity prices and risks • Clean - smallest footprint, minimal to zero emissions • Long-lived - fully renewable; derived from perpetual earth heat • Low Technological Risk - plants in operation for over 100 years TONNES OF CO2 OFFSETS / 100 MW* OF GENERATION Soda Lake geothermal plant - Nevada *Based on a conversion rate of 0.65 tonnes of CO2 per MWh of renewable electricity

5. GLOBAL INSTALLED GEOTHERMAL CAPACITY & EXPLORATION POTENTIAL A global energy source Established industry, proven technology - world production capacity nearly 10,000 MW First geothermal plant in Italy in 1904 - still producing Biggest current producers: Chevron, Philippines’ PNOC-EDC, Mexico’s CFE, Calpine, Italy’s ENEL, Ormat, Indonesia’s PLN-Pertamina, Iceland’s HS Orka Many of the most promising areas for development are in active global plate boundaries, e.g. “ring of fire” USA has large undeveloped resource potential: today 3,000 MW, potential for > 20,000 MW USA capacity long term > 100,000 MW via EGS (enhanced geothermal system) WORLD GEOTHERMAL PROVINCES - “Ring of Fire” US GEOTHERMAL PROVINCES Source: GHC Bulletin Sept 2007, IGA

6. MAGMA ENERGY - STRATEGY & VALUE CREATION • Geothermal power can be the lowest cost and cleanest form of electricity generation • Potentially a great cash generator without incentives • Incentives (USA, Europe, Chile) greatly improve margins • Magma’s mission: to build a leading pure play geothermal power company • Magma’s strategy: broad asset portfolio and scale =“discovery returns” and “utility returns” • Reduces drilling risk and high front-end capital risk • Improves margins with lower cost of capital • Better multiples • We are a power company and an energy resource company UTILITY RETURNS Income Growth DISCOVERY RETURNS Capital Growth PROJECT VALUE $ Feasibility Permitting Financing Construction Operation Acquisition Exploration TIME

7. BALANCED PORTFOLIO: GLOBAL EXPLORATION & OPERATIONS • ICELAND: • 98.5% in 2 power plants producing 175 MW • 80 MW of expansions underway • Additional 150 MW of defined expansion plans • USA: • Producing 13.5 MW with 47.5 MW expansion potential • Steady, predictable and long-life cash flow • Excellent government support for geothermal projects • 13 other exploration properties • CHILE / PERU: • Huge (320 MW) inferred resource discovered at low cost • Positioned in emerging world-class geothermal markets • Growing government support for geothermal projects

8. HS ORKA ACQUISITION • Magma acquired 98.5% of HS Orka • Acquisition gave Magma: • Large producing asset base creates strong income statement & balance sheet • Significant expansion potential • World class geothermal team • Iceland’s largest private energy company • 9% of country’s power supply • 10% of country’s heating supply • 30% of country’s geothermal supply

9. HS ORKA EXPANSION HIGHLIGHTS • Potential to expand from 175 MW to 405 MW • CapEx for full 230 MW expansion is ~$560 M; will be staged • 50 MW phase expansion commenced; significant equity already invested • Next 30 MW phase requires no additional drilling • ~50% of HS Orka’s revenue currently indexed to aluminum price Delivery of 50 MW turbine generator in May 2010

10. HS ORKA EXPANSION PLAN

11. ADVANCED DEVELOPMENT - MARIPOSA, CHILE • 320 MW Inferred Resource discovered by Magma in 2009 • 50 MW Phase 1 exploitation plan approved in April 2010 • $15M resource confirmation program underway to drill additional slim holes • >$100/MWh power rates and drilling incentives available • <25 km from 2 transmission lines under development MP-03 DRILL SITE MP- 02 MP- 01 MP- 03

12. CREATING VALUE • OUR PROGRESS • Existing Iceland infrastructure allows for rapid, low cost expansions • Now the 2nd largest North American based primary geothermal developer • Major discovery in Chile • NEXT STEPS • Complete expansions at HS Orka, Iceland • Fulfill potential at Soda Lake, NV and develop other US assets • Develop Mariposa, Chile and explore other Chile/Peru assets • VALUE PROPOSITION • Non-declining assets providing steady production and cash flow (forever) • Strong inventory of development prospects • Sufficient resources to increase existing company proved reserves six-fold • Growing portfolio size reduces risk • Large team of geothermal experts - core asset 636 438 302 245 196 84 11

13. www.magmaenergycorp.com TSX MXY