HARTSHEAD RESOURCES NL — Share Issue/Capital Change 2012

Feb 9, 2012

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Terms & Conditions of Options on Issue

Terms of Options issued to Mr Damon Neaves and Mr David Ormerod

The Options entitle the holder to subscribe for Shares on the following terms and conditions:

• (a) Each Option gives the Optionholder the right to subscribe for one Share.

• (b) The Options shall vest (whichever occurs first):

• (i) after the Company has successfully completed an acquisition or acquisitions by the Company with a total transaction value (including without limitation acquisition price, spending requirements and/or deferred or contingent payments) of at least $10,000,000 and in any event no earlier than that date which is 12 months after the Commencement Date (in relation to Mr Damon Neaves, the “Commencement Date” being 17 August 2011 and in relation to Mr David Ormerod, the “Commencement Date” being 26 August 2011); or

• (ii) in the event that the Company terminates the Optionholder’s employment with the Company without cause, except where notice of termination is given within the first twelve (12) months in which case the Options shall be forfeited by the Optionholder.

• (c) The Options will expire at 5.00pm (WST) on that date which is five years after their date of issue (Expiry Date). Any Option not exercised before the Expiry Date will automatically lapse on the Expiry Date.

• (d) The amount payable upon exercise of each Option will be $0.40 per share (Exercise Price).

• (e) The Options held by each Optionholder may be exercised in whole or in part, and if exercised in part, multiples of 1,000 must be exercised on each occasion.

• (f) An Optionholder may exercise their Options by lodging with the Company, before the Expiry Date:

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• (i) a written notice of exercise of Options specifying the number of Options being exercised; and

• (ii) a cheque or electronic funds transfer for the Exercise Price for the number of Options being exercised,

(Exercise Notice).

• (g) An Exercise Notice is only effective when the Company has received the full amount of the Exercise Price in cleared funds.

• (h) Within 10 business days of receipt of the Exercise Notice accompanied by the Exercise Price, the Company will allot the number of Shares required under these terms and conditions in respect of the number of Options specified in the Exercise Notice.

• (i) The Options are not transferable.

• (j) All Shares allotted upon the exercise of Options will upon allotment rank pari passu in all respects with other Shares.

• (k) The Company will not apply for quotation of the Options on ASX. However, The Company will apply for quotation of all Shares allotted pursuant to the exercise of Options on ASX within 10 business days after the date of allotment of those Shares.

• (l) If at any time the issued capital of the Company is reconstructed, all rights of an Optionholder are to be changed in a manner consistent with the Corporations Act and the ASX Listing Rules at the time of the reconstruction.

• (m) There are no participating rights or entitlements inherent in the Options and Optionholders will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the Options. However, the Company will ensure that for the purposes of determining entitlements to any such issue, the record date will be at least 6 business days after the issue is announced. This will give Optionholders the opportunity to exercise their Options prior to the date for determining entitlements to participate in any such issue.

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• (n) A Option does not confer the right to a change in exercise price or a change in the number of underlying securities over which the Option can be exercised.