HYTERRA LTD — Interim / Quarterly Report 2010

Jan 23, 2011

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24 January 2010

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

DECEMBER QUARTER ACTIVITIES REPORT

The Directors of Tango Petroleum Limited (“Tango” or the “Company”) are pleased to report the following activities:

Amazon Prospect

Following some delays during the quarter, the Company confirmed that the Marian Baker #1 well commenced drilling on Sunday, 16 January 2011, which is the initial test well on the large Amazon Prospect. As at this morning, drilling had reached a depth of 3,500 feet.

Amazon is regarded by the Operator, Caza Oil and Gas, Inc. (TSX: CAZ) (AIM: CAZA), to be a multi-segment prospect, with prospective reservoirs supported by AVO data within a proven play fairway. The Marian Baker #1 well is expected to encounter multiple, potential, hydrocarbon bearing reservoir sections and take approximately 50 days to reach total depth. The Amazon prospect is a large exploration target assessed by independent consultants ISIS Petroleum to have a 35% probability of success. The Amazon Prospect has an estimated mean recoverable potential of 375 billion cubic feet of natural gas and 37 million barrels of oil.

Project Background

The Amazon and Thames prospects (Caza Oil & Gas, Inc. separately refers to these prospects as Arran and Tiree respectively) are part of a regional exploration project in south Louisiana. Approximately 1,000 square miles of proprietary reprocessed Seitel 3D data has been completed by the Operator with integrated key well and production data obtained.

The Amazon prospect is a large scale, hanging wall fold with nearly 2,000 acres in fault dependent closure including a 400 acre faulted four-way closure. The prospective reservoir interval is Oligocene sands which appear seismically very thick. Amazon has good AVO and Fluid Factor support.

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

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A 16,000 ft exploration test of this multi-segment prospect commenced drilling on 16 January, 2011. The test well will drill through the Oligocene target sands between 14,000 ft and 16,000 ft where it is expected to encounter abnormal reservoir pressure in the order of 11,000 psi.

The Thames Prospect is currently proposed to drill a 16,000ft exploration test well of this multi-segment prospect on the flank of a vertical salt weld. The Thames prospect has stacked objectives in a fault bound block with one larger, deeper objective target interval providing large volume upside. The prospective reservoir interval is Oligocene ponded basin floor fan. The prospect has good AVO support. The Thames well is expected to spud in 2011 following the drilling and testing of the Amazon target reservoirs.

CORPORATE

Following the end of the quarter, the Company announced it had agreed to place 6 million shares at 12 cents per share to sophisticated and professional clients of Cygnet Capital Pty Limited to raise $720,000 before costs. Each share subscribed for had a free attaching option on the same terms as the existing listed company options (ASX Code: TNPO). The Placement was done pursuant to ASX listing rule 7.1.

Monies raised will be used to advance the Company’s high impact Amazon and Thames projects.

Yours faithfully,

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Mathew Walker Executive Chairman

For further information please contact:

James Robinson, Company Secretary, Tango Petroleum Limited, Tel: + 61 (8) 6460 4960

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