HYTERRA LTD — Capital/Financing Update 2015

Mar 15, 2015

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ASX ANNOUNCEMENT

16 March 2015 by e-lodgement

DRILLING CONTRACT SIGNED

• Contract to cover the drilling and production testing of two wells at the Aolong Project

• Contract, to be settled 100% in TNP shares, predominantly a fixed price contract

• Pre-spud site preparatory operations to commence immediately

The Directors of Triple Energy Limited (ASX: TNP, Triple or Company ) provide the following update on activities and the progress of the Company’s strategic investment process:

Drilling contract

The Aolong Joint Venture (80% profit interest to TNP), Blue Sky Power Holdings ( BSP ) and CBM-specialist drilling company Beijing Jiuzun Energy Technology Co Ltd ( Jiuzun Energy ) have now executed the contract for the drilling and technical services for the two wells to be drilled in the Hegang area this year.

Under the terms of the previously announced binding Memorandum of Understanding (“MoU”) with BSP, payment for the Jiuzun Energy drilling services are the responsibility of BSP, in consideration for which TNP will issue 595,264,168 shares at a price of $A0.006 to BSP to the notional value of US$2,750,000 (A$3,571,585).

The drilling contract is essentially a fixed amount as above to cover a pre-defined programme. It covers drilling, coring, drill stem testing and fracturing operations for two wells in the Hegang mine areas to depths of between 800m and 1,000m respectively. Once drilled, both wells will be production tested for six months.

The BSP Transaction So Far

The MoU was signed on 25 November 2014. Since then, BSP has taken a placement in TNP of 158 million shares at a price of $0.005 for a consideration of A$790,000. Further, BSP has loaned TNP’s wholly owned subsidiary A$500,000 to fund ongoing Joint Venture overheads and well planning. In accordance with the MoU, BSP has also transferred A$1,250,000 into a share placement account pursuant to a subscription agreement between BSP and TNP for the proposed Tranche 2 placement of 208.3 million shares in TNP at a price of A$0.006. Following shareholder approval and completion of the overall transaction, BSP will hold approximately 58% of TNP (assuming other existing shareholders subscribe for their preferential allocation of shares in full).

The Next Steps

Now that the drilling agreement is signed, the Notice of Shareholders Meeting will be finalised inclusive of the Experts Reports in accordance with Section 611 of the Corporations Act. TNP expects this to occur next week with the Shareholders’ Meeting expected to be held late April 2015. At that time, subject to the passing of all resolutions, BSP will have the right to appoint another director to the Board of TNP.

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Operations

The Joint Venture will now mobilise JiuZun specialist staff to assist with preparatory activities including finalisation of site selection, site preparation and sourcing of long lead-time items.

Commenting on the signing of the contract, Triple Energy Managing Director Paul Underwood said “we can now get to work on final well site selection, well pad and road preparations, such that we can start drilling as soon as possible. We remain enthusiastic at the prospects of the production testing results later this year after drilling such that in the success case, the project may advance to production as soon as possible .”

CONTACT DETAILS FOR FURTHER INFORMATION;

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

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About Beijing JiuZun Energy Technology Co., Ltd (“Jiuzun Energy”)

Beijing Jiuzun Energy Technology Co., Ltd was founded in 2008 and specializes in integrated unconventional gas and oil-related (especially coalbed methane, shale gas and tight sand oil and gas) engineering and technical services, including geologic evaluation, exploration & production plan design, well site selection, drilling, reservoir reconstruction, well testing and workover.

Jiuzun Energy has 197 employees and the majority of technicians are first-class geologists and engineers in the realm of unconventional gas and oil. Anqi Fei, served as the company president, was a senior geologist in PetroChina and has more than 40-year experience in oil and gas industry. The managing director Yukui Li is a wellknown reservoir expert in China,

Juizun Energy’s existing projects are located in Shanxi, Xinjiang, Guizhou, Chongqing and Hei Longjiang provinces where drilling, fracturing, drainage and extraction services were completed..

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, 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

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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