HILLGROVE RESOURCES LIMITED — Capital/Financing Update 2011

Jan 24, 2011

ASX RELEASE

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Tuesday, 2 5 January 2011

EXPIRY OF ESG CONTINGENT PAYMENT

Hillgrove R esources Limited (A B N 73 004 297 116) (ASX: HG O ) advises that the d e adline ha s expired for the liability of a co n tingent pa y ment fro m Santos Limited (AS X :STO) arising out o f HGO’s ea r lier sale to STO of its i nterest in E astern Star Gas Limit e d (ASX:E S G).

The sale a greement p rovided for an additi o nal paym e nt to Hillgr o ve in the e vent that S antos or a third party completed the acquisition of a m ore than 5 0 % beneficial interest i n ESG by 15 Januar y 2011.

Commenti n g on the event, Hill g rove’s Ma n aging Dir e ctor, Mr D rew Simo n sen, said “While it i s disappointing that Hillgrove can no longer receive any further b e nefit from the transa c tion, ther e was no w a y for us to influence t his outco m e. The in v estment in, and subs e quent sal e of, HGO’ s stake in E S G on 15 J uly 2009 placed Hillg r ove in an e nviable financial posi t ion, witho u t which th e developm e nt of Kan m antoo, in p arallel wit h the significant explo r ation prog r am now u n derway o n our Indon e sian properties, woul d have prov e n very ch a llenging”.

About Hillgrove

Hillgrove is an Aust r alian mini n g compan y listed on the Austr a lian Secu r ities Exch a nge (ASX : HGO) foc u sed on de v eloping its Indonesia n and Austr a lian base a nd precio u s metals p r ojects. Th e Company is targeting the dis c overy of s ignificant e pithermal gold and porphyry c opper/gol d deposits i n Eastern I n donesia.

Hillgrove’s flagship development is the K a nmantoo C opper Mi n e, located less than 55km fro m Adelaide in South Australia. K a nmantoo c urrently h o sts a Mineral Reso u rce of 32.2Mt (2.3M t Measured , 22.5Mt In d icated an d 7.4Mt Inf e rred) grad i ng 0.9% c o pper and 0 .2g/t gold, containin g 292,200 t o nnes of c opper, 1 9 1,100 ou n ces of g o ld and 3, 3 13,600 o u nces of s ilver. Wit h completio n of constr u ction targ e ted for 2 0 11, Kanm a ntoo will b e a 2.4M T per annu m open-cu t mine prod u cing appr o ximately 20,000 tonn e s of copp e r in conce n trate and 1 0,000 ounces of gol d per annu m .

The informati o n in this pres e ntation that relates to Miner a l Resource estimates for the Kanmantoo P r oject is based on informatio n compiled by M r Paul Payne, w ho is a Memb e r of The Austr a lasian Institut e of Mining and Metallurgy. Mr Payne is Exec u tive Consultan t with Runge L i mited and has sufficient rele v ant experienc e to qualify as a Competent P erson as defi n ed in the 200 4 Edition of th e ‘Australasian C ode for Repo r ting of Explora t ion Results, M i neral Resourc e s and Ore Re s erves’. Mr Pay n e consents to the inclusion i n the report of t h e matters bas e d on his inform a tion in the for m and context i n which it appears.

For more i n formation c ontact:

Drew Sim o nsen Russell M i ddleton Managing D irector Company Secretary Tel: 02 82 2 1 0404 Tel: 02 82 2 1 0404

HILLGROVE RESOURCES LIMITED ACN 004 297 116 IIII Level 4 1 Australia Square , 264 George Stre e t, Sydney NSW 2 0 00, Australia T + 6 1 2 8221 0404 F +61 2 8221 0407 w ww.hillgrovereso u rces.com