HYTERRA LTD — Capital/Financing Update 2014

Aug 12, 2014

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ASX ANNOUNCEMENT

13 August 2014 by e-lodgement

MEMORANDUM OF UNDERSTANDING WITH BLUE SKY POWER HOLDINGS TO FUND 2014 WELL PROGRAMME

The Directors of Triple Energy Ltd (ASX: TNP, “Company”) are pleased to advise that the Company has entered into a Memorandum of Understanding (“MoU”) with Blue Sky Power Holdings Limited, (“BSP”), a Hong Kong based natural gas distributor with operations in China to invest up to USD 6 million into TNP and its Coal Seam Gas Project in China, subject to confirmatory due diligence over the next two weeks.

TNP has received payment of a non-refundable exclusivity fee of USD 200,000.

The MoU contemplates that should the transaction proceed, USD 2 million will be advanced to a TNP subsidiary by way of a loan from BSP followed by a placement of shares in TNP at AUD 0.005 per share (subject to shareholder approval where necessary) such that BSP’s holding in TNP reaches 19.99%. This shareholding will be subject to a twelve month voluntary escrow period.

A rights issue will be arranged in due course at a price of AUD 0.006 to raise up to AUD 6 million. This rights issue will be fully underwritten by BSP. The MoU includes the appointment of two Directors to the Board of TNP in due course, with TNP’s senior management team to remain in place.

BSP already has a substantial energy portfolio in China and thus TNP’s strategy and coal seam gas project in China is complementary to this business model. BSP is actively transforming into an innovative natural gas provider and distributor with integrated clean energy solutions. It is engaged in the development of natural gas utilization projects in China, including LNG/CNG stations and gas supply projects for industrial parks and residential communities. BSP has entered into a number of MoU’s for gas projects in Jiangsu, Shandong, Hainan, Liaoning and Hubei in China. These projects are either located near gas sources or are aligned with the government’s strategies to encourage clean energy application therefore creating substantial market potential. BSP is listed on the Hong Kong and Singapore Stock Exchanges (Hong Kong Stock Code: 6828, Singapore Stock Code: B3C).

Canaccord Genuity is acting as the exclusive financial advisor to TNP on this transaction.

TNP’s Chairman, Paul Underwood said, “TNP welcomes this proposal and MoU by BSP. We have been working with BSP for some time and should this transaction proceed, it should see the next two wells drilled in the very near term. BSP has already conducted primary due diligence on this project and share TNP’s enthusiasm for the prospect of pilot gas production from the next two wells early in 2015”. The non refundable exclusivity fee is a demonstration of their confidence in the transaction completing and we look forward to finalisation of confirmatory due diligence.”

CONTACT DETAILS FOR FURTHER INFORMATION;

Paul Underwood T: + 61 (0) 408 557 821

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E: underwoodpw@tripleenergy.net

About Triple Energy and the Aolong Joint Venture project

Triple Energy 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 ( Aolong JV ) 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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Approximate Location of CJV areas

The recently drilled Xian Xian-1 well intersected;

• A total of 63.4 meters of coal seams

• 47.2 meters of coal seams with a thickness of > 2 meters per seam

• 36.8 meters of gassy coal seams at Seam # 11 and below