HYTERRA LTD — Capital/Financing Update 2013

Jul 22, 2013

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ASX ANNOUNCEMENT

23 July 2013 By e-lodgement

XIAN XIAN #1 WELL UPDATE

Highlights

• The first well at Hegang succeeded in intersecting and testing two major coal seams and intersecting a number of other minor seams.

• 45 meters of coal intersected across 14 seams (using a 1 meter cut-off), 3 seams between 7.5 and 11m thick.

• Strong gas measurements were recorded while drilling through key seams.

• Drill Stem Tests conducted on seams 11 and 15 are considered to have demonstrated potential for development.

• The main objective of the well was to gather key information over all potentially productive seams. The well has been suspended for re-entry over all potentially productive seams for future flow testing.

Triple Energy Limited (ASX: TNP, Triple , or Company ) provides the following update on the Xian Xian#1 well at the Company’s CMM project in Heilongjiang Province in China.

The well was drilled to TD at 965m on the 16[th] July with wireline logging completed on 18 July 2013. The well was suspended for future re-entry on 19 July 2013.

A summary of the well results follows:

298 m to 482 m

Eleven coal seams were encountered in the interval between the 9 5/8 inch casing shoe and the first major seam at 482 m. Of these 11 seams 7 were over 1m thick, with one seam (Seam 3) measured at 11m thick. While gas was recorded while drilling through this section reading were not considered to be strong enough to justify flow testing. However, it is noted that with the general trend of gas increasing with depth, this section and seam 3 in particular, could offer potential in adjacent areas.

482 m to 492.5 m : Seam #11

Seam 11 was encountered at 482 meters depth and is interpreted on logging data as being 10.5 meters thick. This seam had reasonable gas readings and indicated relatively low permeability but is within present commercial completion practices. It is considered that this seam could potentially produce gas using a laterally drilled and fracced well. This is a

Triple Energy Ltd ACN 116 829 675 Unit 15, 100 Railway Road, Subiaco WA 6008 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

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common completion technique in China and elsewhere in the world for Coal Seam Gas production where relatively tight reservoirs are present.

492.5 m to 595 m

Six coal seams varying between 0.5 and 3m were intersected while drilling through this interval.

595 m to 602.5 m : Seam #15

Seam 15 was encountered at 595 meters depth with log data confirming the seam at 7.5 m thick. This seam had strong gas readings and reasonable indicated permeability when Drill Stem Tested. Down-hole pressures in this well were measured at around 200 psi. The permeability in this seam is equivalent to successful producing CSM projects in the Bowen Basin in Queensland and hence Triple is confident it will flow gas in a horizontal completion, hence the decision to suspend the well for future re-entry.

602.5 m to 965 m

The well encountered 3 seams in this interval, seams 16 at 636m (3m thick), seam 22 at 705m (1.5m thick) and seam 24 at 737m (3m thick). Whilst comparable in thickness to successful producing Queensland coal seams and despite good gas readings while drilling, these seams were not considered a primary target at this point given the exceptional thickness of seams encountered above and so were not flow tested in this well.

Seam #18

Unfortunately this seam, prognosed at 650m, was not intersected in this well. It appears the well intersected an extensional fault at this location laterally displacing the coal. This is supported by logging data with a shale/siltstone material interpreted at his depth.

There are five coal mining boreholes within 500 meters of this well, in all directions. Boreholes are small gauge holes drilled by the coal mining company using basic methods to map future underground coal mining activities. All 5 of these boreholes intersected Seam #18 at around the depth we had prognosed confirming the seam is widespread in the area. These boreholes demonstrate that Seam #18 is exceptionally thick at around 9-15 meters. If this seam has similar or better gas readings and permeability data as was measured in Seam #15, the project has significant development potential.

While it is unfortunate that we did not get the opportunity to measure gas or run the planned Drill Stem Test (“DST”) over this seam, based on the results from Seam 15 and nearby borehole data we remain confident of the potential this seam has to offer for CSG development.

Seam #30 and deeper

The deeper seams are considered higher exploration risk in terms of mapping but offer high additional reward for the overall area if they prove to be gas charged and productive. Seam #30 was not intersected in this well but it is planned to continue to appraise the deeper potential of the Hegang resource in future wells.

Triple Energy Ltd ACN 116 829 675 Unit 15, 100 Railway Road, Subiaco WA 6008 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

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Drilling Operations Summary

A number of frustrating and expensive operational issues were required to be overcome in drilling this initial well on the project. Triple Energy’s first operated well in the People’s Republic of China. Delays in spudding the well were subsequently compounded by equipment and supplier issues which were reflected in the slow drilling rate observed. Triple wishes to acknowledge the substantial efforts and contribution made by its staff led by Operations Manager Steve McCoy, Joint Venture partner LongMay and many of the suppliers in working to resolve these issues. The Company advises that a post-drill review of direct and ancillary well costs and contractor performance is underway to recognize lessons learned. To ensure that appropriate levels of working capital are able to be maintained, Triple is considering its alternatives to fund the drilling of the next cored well and re-entry of this well to carry out a flow test.

Commenting on developments, Triple Energy Executive Chairman Paul Underwood said:

“Given the exceptional thickness of the seams in this area and gas, permeability and pressure measurements that exceed many existing and successful producing coal seam projects in Queensland, this well has proven Triple has acquired a significant project with exciting development potential.

CONTACT DETAILS

T: + 61 (0) 408 557 821 E:underwoodpw@tripleenergy.net

Triple Energy Ltd ACN 116 829 675 Unit 15, 100 Railway Road, Subiaco WA 6008 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

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About Triple Energy and the Aolong Joint Venture project

Triple Energy Limited is an Australian registered Oil & Gas exploration company listed on ASX. Triple Energy’s ordinary shares trade under the code TNP.

Triple Energy holds an 80% interest in a Cooperative Joint Venture ( CJV , known as Aolong Energy) with LongMay Coal Mining Company ( Longmay ), one of China’s largest State-owned coal mining companies. The CJV has the objective of degassing the coal mining leases held by Longmay and has a life of 45 years.

The equity in the CJV with Longmay is as follows;

Triple Energy Ltd* - 80% (Operator) LongMay Coal Mining Company – 20%

*via its wholly-owned Hong Kong registered subsidiary CFT Heilongjiang (HK) Limited

The CJV operates pursuant to the coal mining leases held by Longmay with the Joint Venture Agreement registered with the relevant Chinese Government authorities. The CJV is staged, initially covering five mine areas, with exclusive access that can ultimately extend the CJV area to cover up to a total of 42 mine areas.

The CJV was formed such that the coals identified for future underground mining by Longmay can be de-gassed and hence facilitate safer mining operations in the future. The coals in the respective lease areas have a history of explosions and fires whilst mining and core drilling, due to high gas content.

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Location of CJV areas

Triple Energy Ltd ACN 116 829 675 Unit 15, 100 Railway Road, Subiaco WA 6008 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net