HYTERRA LTD — Capital/Financing Update 2011

Apr 27, 2011

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28 April 2011

The Manager Company Announcements Office Australian Securities Exchange Ltd 4th Floor, 20 Bridge Street SYDNEY NSW 2000

OPTION EXPIRY NOTICE

Please find the attached Option Expiry Notice sent to optionholders today.

Yours faithfully

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JAMES ROBINSON Company Secretary

Office - Suite 9, 1200 Hay Street, West Perth WA 6005 Postal - PO Box 281, West Perth WA 6872 Ph: 08 6460 4960 Fax: 08 9324 3045 Web: www.tangopetroleum.com.au ACN - 116 829 675

TANGO PETROLEUM LIMITED

ABN 68 116 829 675

REGISTERED OFFICE TANGO PETROLEUM LIMITED SUITE 9 1200 HAY STREET WEST PERTH WA 6005

SHARE REGISTRY

Security Transfer Registrars Pty Ltd All Correspondence to: PO BOX 535, APPLECROSS WA 6953

Tel (08) 9315 2333 Fax (08) 9315 2233 EMAIL: registrar@securitytransfer.com.au

28 April 2011

Dear Option Holder

YOUR OPTIONS TO ACQUIRE TANGO PETROLEUM LIMITED SHARES AT $0.20 PER SHARE EXPIRE ON 31 MAY 2011

We are writing to you as a registered holder of 31 MAY 2011 options in TANGO PETROLEUM LIMITED to remind you that the options will expire at 5:00pm (WST) on 31 MAY 2011.

Your option holding may be exercised in whole or in part by payment of $0.20 for each option by no later than 31 MAY 2011. If payment is not received by 5:00pm (WST) on 31 MAY 2011 the options will lapse and all rights under the options will cease at that time.

Some of the courses of action available to you as a holder of these soon to expire options are:

• a) Exercise the options on or before 31 MAY 2011.

• b) Sell your options. Quotation of the options will cease at the close of trading on 24 May 2011.

• c) Do nothing (ie, allow your options to expire). If you do not exercise or sell your options they will expire on 31 MAY 2011 and your right to subscribe for ordinary shares in TANGO PETROLEUM LIMITED at $0.20 per share will lapse.

There is no obligation on option holders to exercise their options. However, under paragraph 6.1 of Appendix 6A of the Australian Securities Exchange ( ASX ) Listing Rules, the Company is required to advise option holders of the information contained in this notice.

The market sale price of ordinary shares in TANGO PETROLEUM LIMITED on ASX was 3.7 cents on 27 April 2011, being the last trading day in Perth prior to the date of this notice.

During the three (3) months preceding the date of this notice:

• the highest market sale price of ordinary shares on ASX was 15.5 cents on 18 February 2011; and

• the lowest market sale price of ordinary shares on ASX was 3.4 cents on 14 April 2011.

If you wish to exercise your options then you must complete your “Notice of Exercise of Options” form on the reverse of this notice and forward it together with payment of $0.20 per option exercised to be received no later than 5:00pm (WST) on 31 MAY 2011 to the Company’s share registry, being:

Security Transfer Registrars Pty Ltd PO Box 535 OR 770 Canning Highway APPLECROSS WA 6953 APPLECROSS WA 6153

Cheques should be made payable to “TANGO PETROLEUM LIMITED” in Australian dollars only and should be crossed “Not negotiable”. If you have any further questions please do not hesitate to contact our Registry on telephone (08) 9315 2333, facsimile (08) 9315 2233, or e-mail registrar@securitytransfer.com.au.

Yours faithfully

JAMES ROBINSON COMPANY SECRETARY

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NOTICE OF EXERCISE OF OPTIONS

THIS DOCUMENT IS IMPORTANT. IF YOU ARE IN DOUBT AS TO HOW TO DEAL WITH IT, PLEASE CONTACT YOUR STOCK BROKER OR LICENSED PROFESSIONAL ADVISOR.

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TANGO PETROLEUM LIMITED

REGISTERED OFFICE:

SUITE 9 1200 HAY STREET WEST PERTH WA 6005 AUSTRALIA

ABN 68 116 829 675

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SHARE REGISTRY: Security Transfer Registrars Pty Ltd All Correspondence to: PO BOX 535, APPLECROSS WA 6953 AUSTRALIA 770 Canning Highway, APPLECROSS WA 6153 AUSTRALIA T: +61 8 9315 2333 F: +61 8 9315 2233 E: registrar@securitytransfer.com.au W: www.securitytransfer.com.au

ASX Code: TNPO Holder Number: Number of Options: Amount Payable:

NOTICE OF EXERCISE OF OPTIONS EXPIRING 31 MAY 2011 @ $0.20 EACH

I/We the above named being the registered holder of Options hereby exercise such Options to subscribe for:

NUMBER	NUMBER	NUMBER	OF NEW	OF NEW	OF NEW	ORDINARY FULLY	ORDINARY FULLY	ORDINARY FULLY	ORDINARY FULLY	ORDINARY FULLY	ORDINARY FULLY	ORDINARY FULLY	ORDINARY FULLY	PAID SHARES	PAID SHARES	PAID SHARES	PAID SHARES			AMOUNT	AMOUNT	AMOUNT	AMOUNT	ENCLOSED	ENCLOSED	ENCLOSED	ENCLOSED	ENCLOSED	@	$0.20	$0.20	$0.20	PER SHARE	PER SHARE	PER SHARE	PER SHARE	PER SHARE
				,						,								$				,						,						.

I/We hereby authorise you to place my/our name(s) on the register of members in respect of the number of New Shares allotted to me/us, and I/we agree to accept such Shares subject to the Rules of the Constitution of the Company.

My/Our contact details in case of enquiries are:

NAME

TELEPHONE NUMBER ( )

EMAIL ADDRESS

@

PAYMENT INFORMATION

Biller Code: 159483 CHEQUE/MONEY ORDER Ref:

All cheques (expressed in Australian currency) are to be made payable to TANGO PETROLEUM LIMITED and crossed "Not Negotiable". Do not forward cash as receipts will not be issued. Sufficient cleared funds should be held in your account as your acceptance may be rejected if your cheque is dishonoured. Cheques or bank drafts drawn on overseas banks in Australian or any foreign currency will NOT be accepted. Any such cheques will be returned and the acceptance deemed to be invalid.

BPAY® this payment via internet or phone banking. Your BPAY® reference number is unique to this offer and is not to be used for any other offer.

Applicants should be aware of their financial institution's cut-off time (the time payment must be made to be processed overnight) and ensure payment is processed by their financial institution on or before the day prior to the closing date of the offer. BPAY applications will only be regarded as accepted if payment is received by the registry from your financial institution on or prior to the closing date. It is the Applicant's responsibility to ensure funds are submitted correctly by the closing date and time.

Individual or Securityholder 1 Securityholder 2 Sole Director & Company Secretary Director/Company Secretary

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REGISTRY DATE STAMP Securityholder 3 E & O.E. Director

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7326557555 TNP 2