HAWTHORN RESOURCES LIMITED — Capital/Financing Update 2012

Mar 25, 2012

ABN 44 009 157 439

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26 March 2012

THE MANAGER MARKET ANNOUNCEMENTS OFFICE ASX LIMITED

Level 2, 90 William St Melbourne Victoria 3000 Australia

Telephone: +61 3 9605 5950 Facsimile: +61 3 9605 5999 Email: info@hawthornresources.com Website : www.hawthornresources.com

Dear Sir

re : Hawthorn Resources Limited

QUOTED OPTIONS : ASX CODE “HAWO”

Hawthorn Resources Limited (“the Company”) has on issue and quoted by the Exchange 13,569,422 April 2010 options which are due to expire on Monday 30 April 2012 unless otherwise exercised by the payment of the exercise price of $0.20 an option.

In respect to the information required under paragraph 6.1 of Appendix 6A the Company advises:

• (a) Number of holders of options: 92 holders (b) Number of unexercised options: 13,569,422 options (c) Exercise Price $0.20 each (d) Final date for payment/expiry date Monday 30 April 2012 (e) All unexercised HAW options will expire on Monday 30 April 2012 (f) Last date of quotation by ASX Monday 23 April 2012 (g) Latest available market price for the Refer attached table Company’s ordinary fully paid shares (code : HAW)

• (h) Highest and lowest market price for the Refer attached table Company’s ordinary fully paid shares (Code : HAW)

• (i) The Company has only one class Code HAW of quoted shares

• (j) No underwriting agreement

Given that the exercise price for each of the abovementioned options is $0.20 and that the highest market price since 3 January 2012 for the Company’s quoted ordinary fully paid shares has been $0.015 on 23 March 2012, as noted on the attached table, the Board of Directors advises that it considers there is insufficient likelihood of option holders exercising their options to justify the cost of issuing an Option Expiry Notice to the holders and that, accordingly, it does not intend to issue to option holders an Option Expiry Notice (“OEN”).

The market VWAP for the Company’s ordinary shares in the period 3 January to 23 March 2012 was $0.0125 a share; refer the attached table.

However, should the market price for the Company’s ordinary shares (“HAW”) exceed $0.15 before 30 April 2012 an OEN will immediately be sent to option holders providing the information required in paragraph 6.1 of Appendix 6A.

Yours faithfully Hawthorn Resources Limited

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per Mourice Garbutt Company Secretary haw asx\quoted options HAWO 26 03 12

HAWTHORN RESOURCES LIMITED

TABLE OF DAILY MARKET ACTIVITY ON "HAW" ORDINARY SHARES

3 January 2012 to 23 March 2012

Date	Closing Prices cents	Daily VWAP cents	Daily Values A$
2/01/2012 3/01/2012 4/01/2012 5/01/2012 6/01/2012 9/01/2012 10/01/2012 11/01/2012 12/01/2012 13/01/2012 16/01/2012 17/01/2012 18/01/2012 19/01/2012 20/01/2012 23/01/2012 24/01/2012 25/01/2012 27/01/2012 30/01/2012 31/01/2012	1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.1 1.1 1.2 1.1 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.2 1.3 1.3	- 1.0857 1.1000 1.1000 1.1000 1.0546 1.0749 1.0565 1.1000 1.1976 1.1706 1.2000 1.1000 1.1047 1.1630 1.1000 1.1256 1.1000 1.1617 1.2707 1.3000	- 22,738.36 25,850.00 13,145.00 23,254.99 4,649.90 28,698.22 16,966.04 3,194.40 89,382.35 30,805.46 3,600.00 11,110.00 118,035.00 90,586.80 40,392.61 65,944.23 7,593.18 17,280.50 539,649.98 56,751.01
1/02/2012 2/02/2012 3/02/2012 6/02/2012 7/02/2012 8/02/2012 9/02/2012 10/02/2012 13/02/2012 14/02/2012 15/02/2012 16/02/2012 17/02/2012 20/02/2012 21/02/2012 22/02/2012 23/02/2012 24/02/2012 27/02/2012 28/02/2012 29/02/2012	1.2 1.1 1.2 1.1 1.2 1.4 1.3 1.4 1.3 1.1 1.2 1.1 1.1 1.2 1.2 1.2 1.2 1.1 1.2 1.2 1.1	1.2000 1.1000 1.1990 1.1644 1.2036 1.3757 1.3022 1.3747 1.3012 1.1760 1.1704 1.1027 1.1393 1.1038 1.1041 1.1246 1.1111 1.1567 1.1979 1.1058 1.1186	81,954.78 12,650.00 114,999.34 26,222.00 151,005.75 711,549.60 78,165.22 158,869.62 111,684.69 279,893.96 29,610.00 185,527.16 42,085.85 58,390.00 26,850.00 9,445.90 34,154.00 22,833.92 39,391.73 36,826.79 16,037.69
1/03/2012 2/03/2012 5/03/2012 6/03/2012 7/03/2012 8/03/2012 9/03/2012 12/03/2012 13/03/2012 14/03/2012 15/03/2012 16/03/2012 19/03/2012 20/03/2012 21/03/2012 22/03/2012 23/03/2012	1.3 1.3 1.3 1.3 1.2 1.3 1.2 1.2 1.3 1.2 1.2 1.3 1.2 1.2 1.2 1.3 1.5	1.2118 1.3008 1.3087 1.3070 1.2000 1.2089 1.2241 1.2000 1.2037 1.2000 1.1843 1.2147 1.1970 1.2244 1.2000 1.3017 1.3799	196,136.10 303,008.32 67,565.10 122,303.96 47,220.00 86,441.60 80,795.08 55,686.68 13,950.54 10,548.46 13,958.99 27,927.89 47,901.69 52,665.13 22,300.50 547,064.65 520,272.00
Date	Closing Prices cents	Daily VWAP cents	Daily Values A$
Totals VWAP Highest Lowest Close