BREAKTHROUGH MINERALS LIMITED — Capital/Financing Update 2014

Aug 10, 2014

11 August 2014

==> picture [237 x 141] intentionally omitted <==

AAA DRILLING ENTERS INTO JOINT VENTURE EXTENSION OF MEMORANDUM OF UNDERSTANDING WITH ENDEAVOR ENERGY UNAUDITED RESULTS FY 2014

AAA Drilling Enters into Joint Venture

Intra Energy Corporation Limited (ASX:IEC) is pleased to announce that it has agreed in principle terms to enter into a joint venture with an Australian company, a leading provider of drilling supplies and consulting services to the oil and gas industry. The Australian drilling supplies company will acquire a 50% interest in AAA Drilling Limited (AAA Drilling), a wholly owned Mauritian subsidiary of IEC.

The Mauritian subsidiary has a 100% interest in AAA Drilling (Tanzania) Limited, an operating drilling company in Tanzania. The Australian drilling supplies company is seeking to expand AAA Drilling’s operations in Eastern Africa. The company has extensive operating experience in Southern Africa and will apply its capabilities to offer the equipment of AAA to new contracts in the region after satisfying the exploration and development program of IEC.

The acquisition price is A$700k for the 50% interest in the company, to be paid in three cash instalments, A$400k on 31 August 2014, A$150k on 30 November 2014 and A$150k on 31 March 2015. The acquisition is a minor discount to net asset value of the company.

The Australian drilling supplies company will provide A$150k working capital to the incorporated joint venture and provide significant technical and operational capabilities to AAA Drilling. Both joint venture partners will have equal representation on the board and appoint a Joint Operating Officer to the company. The transaction is subject to completion of legal documentation.

– Endeavor Energy Extension of the Memorandum of Understanding

IEC is pleased to announce that its Memorandum of Understanding with Endeavor (announced on 23 April 2014) has been extended for a further month at the request of Endeavor Energy for both parties to finalise negotiations for a Joint Development Agreement for the development of the 120MW Pamodzi coal fired power station in Malawi. This is after positive meetings with the newly elected Government of Malawi which has affirmed the importance of the project to the Malawian economy and the advantages for coal supply from IEC’s Tancoal and Malcoal mines.

Unaudited Results FY14

IEC‘s unaudited results for Financial Year 2014 are a trading loss of A$6.2mm.

Profit Guidance (A$mm)

June FYE		FY14	FY13	Change (%)
Revenue		11.0	8.6	29%
Trading profit/(loss)		(6.2)	(7.3)	15%
Netprofit/(loss)attributable to IEC shareholders		(18.5)	(7.3)	nmf1

Note:[1] Not meaningful due to Tanzacoal impairment

IEC has significantly increased revenue in 2014 to A$11.0mm, an increase of 29% from 2013 and reduced its trading loss to A$6.2mm. The 3[rd] and 4[th] quarters showed record sales.

IEC’s subsidiary, Tanzacoal East Africa Mining Limited (“Tanzacoal”), received notice from the Minister of Energy and Minerals that license SML 235/2005 has been cancelled. Tanzacoal has commenced legal action against the cancellation notice seeking the license to be restored or pursuing a claim for damages. The Court is expected to provide its judgement on 26 September 2014 on the matter. The company has prudently fully provided for the Special Mining Licence, which was acquired in 2012.

The audited full year results will be released by 31 August 2014.

Sincerely

==> picture [89 x 42] intentionally omitted <==

Graeme Robertson Chairman

For further information please contact:

Shareholder Enquiries

Jonathan Warrand Executive Director & CFO Intra Energy Corporation Limited Tel: (02) 9252 5766 www.intraenergycorp.com.au

ENDS

Suite 2001, Level 20 Australia Square 264 George Street, Sydney 2000 AUSTRALIA

P +612 9199 5511

F +612 9247 8966

Page | 2

www.intraenergycorp.com.au

APPENDIX 1 — Regional economic growth for IEC’s key industrial markets

ForecastGDPgrowth rates
Country	2014	GDPgrowth rate	**2015 **	GDPgrowth rate
Tanzania	7.2%		7.0%
Malawi	6.1%		6.2%
Kenya	5.7%		5.9%
Zambia	7.1%		7.4%

==> picture [454 x 539] intentionally omitted <==

==> picture [321 x 17] intentionally omitted <==

----- Start of picture text -----

Suite 2001, Level 20 Australia Square P +612 9199 5511
Page | 3 264 George Street, Sydney 2000 AUSTRALIA F +612 9247 8966
----- End of picture text -----

www.intraenergycorp.com.au