HYTERRA LTD — Interim / Quarterly Report 2013

Apr 28, 2013

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ASX ANNOUNCEMENT

29 April 2013 by E-lodgement

MARCH QUARTER 2013 ACTIVITIES REPORT

The Directors of Triple Energy Limited (“Triple” or the “Company”) provide the following update on activities during and the since the quarter ended 31 March 2013:

CORPORATE

On 7 February 2013 Triple announced formal completion of the acquisition of CFT Heilongjiang (HK) Limited. Concurrent with the completion, the appointment of Mr Rodney Bresnehan to the Board took effect.

COAL MINE GAS (“CMG”) PROJECT

Operations

Triple / CFT has contracted to “dry” hire a US built drilling rig from LongMay Coal Mining Company, (Triple/CFT’s JV partner in the CMG project). Being a “dry” hire, this contract requires Triple/CFT to provide certain critical drilling equipment necessary for safe CMG drilling operations (e.g. Blow Out Preventer (“BoP”).

Unfortunately, in late March 2013 Triple was advised that the drilling unit contracted by Triple/CFT for the drilling programme had to be mobilised to perform mine rescue operations following coal mine-drive caveins in nearby underground coal mining operations. This delayed the previously estimated spud date.

The rig has since been returned from mine rescue operations to the LongMay yard (proximate to the first well site). However, whilst the drilling rig was then available, drilling unfortunately could not commence immediately due to the delayed delivery of critical drilling equipment, specifically a newly manufactured BoP and the coordination / arrival of 3[rd] party drilling services (wire-line and mud-logging etc.).

The decision to manufacture a new BoP to replace a unit that had previously been sourced from Australia was made as it resulted in cost savings on import taxes / freight etc. The arrival of the new BoP is now on schedule for delivery to the rig site within the next 2 weeks. Other drilling equipment such as casing, drill pipe and well heads etc. are either already at site or in the process of delivery.

Notwithstanding these frustrating delays, subject to the on-time delivery and commissioning of the essential equipment and third party services as described, drilling activities are still planned to commence in mid May 2013 per previous guidance.

Personnel – Operations Manager Appointed

Triple has recruited Mr Stephen McCoy, an as Operations Manager. Mr McCoy was previously General Manager for Grecka Exploration and Production in China where he managed the deployment of more than 20 CBM drilling rigs. His immediate tasks are to supervise the preparation of the rig, the drilling site and drilling the first well starting in mid May.

Given Triple now has a full time Operations Manager, Mr Rod Bresnehan has relinquished his Executive role such that Mr McCoy will have full carriage of drilling operations. Mr Bresnehan will remain as a Non-Executive Director of Triple.

Triple Energy Ltd ACN 116 829 675 Unit 15, Level 1, 100 Railway Road, Subiaco, WA 6008 Tel +61 8 9381 3322

Mobile +61 408557821 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

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Background to Project

Triple Energy holds an 80% interest in a Cooperative Joint Venture (“CJV”) Known as Aolong Energy through CFT Heilongjiang) 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%

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 degassed 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.

OTHER PROJECTS

The Company continues to evaluate other oil and gas ventures for possible acquisition with the potential to add to Shareholder value.

FINANCIAL POSITION

As at 31 March 2013 the group’s consolidated cash balances was $2.14m, including funds held by the CJV in China.

An ASX Appendix 5B for the quarter to 31 March 2013 accompanies this activities report.

Technical Information contained in this release is based on information reviewed by Rod Bresnehan (Technical Non-Executive Director). Mr Bresnehan has in excess of 36 years experience as a Petroleum Reservoir Engineer, specifically with the four year development of this project with CFT (Heilongjiang) and Longmay and has consented to the inclusion of the information in the form and context in which it appears.

CONTACT DETAILS FOR FURTHER INFORMATION;

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

Triple Energy Ltd ACN 116 829 675 Unit 15, Level 1, 100 Railway Road, Subiaco, WA 6008 Tel +61 8 9381 3322

Mobile +61 408557821 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

Name of entity
Triple Energy Limited
ABN 68 116 829 675	Quarter ended (“current quarter”)
68 116 829 675	31 March 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Net OperatingCash Flows	Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Net OperatingCash Flows	Current quarter $A’000	Year to date (12 months) $A’000
		(205) (323) 12	(275) (740) 27
		(516)	(988)
1.8 1.9 1.10 1.11 1.12 1.13	Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (cash acquired with subsidiary) Net investing cash flows Total operating and investing cash flows (carried forward)	(135) - 392	(135) (500) 392
		257	(243)
		(259)	(1,231)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(259)	(1,231)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (capital raising costs) Net financingcash flows	(32)	2,830 (186)
	(32)	2,644
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(291) 2,428	1,413 724
	2,137	2,137

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
			54
			-
1.25 Explanation necessaryfor an understandingof the transactions Director’s fees, salaries and superannuation. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Completion of the acquisition of CFT Heilongjiang and issue of consideration securities (see also section 7). 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest		Explanation necessaryfor an understandingof the transactions
		Director’s fees, salaries and superannuation.
	Completion of the acquisition of CFT Heilongjiang and issue of consideration securities (see also section 7).
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest

• See chapter 19 for defined terms.

17/12/2010

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

Financing facilities available Add notes as necessary for an understanding of the position.
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	600
	-
	-
	150
Total	750

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	2,137	2,428
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter(item 1.22)	2,137	2,428

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	Various	Indirect interest in certain CMM rights from various coal licences in PRC held by LongMayMining.	Nil	80%

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.1 Preference +securities (description)	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 ~~+~~Ordinary securities	468,850,000	468,850,000
7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	30,000,000	30,000,000		Fully paid
7.5 ~~+~~Convertible debt securities (description)
7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor)	15,000,000 15,000,000 15,000,000* 40,000,000		Exercise price $0.03 $0.03 $0.04 $0.04	Expiry date 14/02/2016 14/02/2016 14/02/2016 30/06/2015
7.8 Issued during quarter	15,000,000		$0.04	30/06/2015
7.9 Exercised during quarter
7.10 Expired during quarter (voluntarily relinquished)	(15,000,000)		$0.04	14/02/2016
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

*Subject to vesting conditions

• See chapter 19 for defined terms.

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Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly report

In addition to the above securities, pursuant to shareholder approval, 300,000,000 Performance Shares were issued during the quarter as consideration for the acquisition of CFT Heilongjiang (HK) Limited. The Performance Shares were issued in four tranches as follows:

50,000,000	Tranche 1 Performance Shares Vesting upon successful data acquisition from the near term drill stem test well on the CFT CBM Project, such data establishing flow and pressure build-up information demonstrating reservoir permeabilities interpreted to provide commercial gas flow rate estimates and gas composition information to enable the experts report to be completed to confirm recoverable gas estimates. The Tranche 1 Performance Shares expire 9 months from the date of issue.
50,000,000	Tranche 2 Performance Shares Vesting upon the drilling and coring of two pressurised core wells on the CFT CBM Project testing for gas saturation and desorption isotherms and drill stem tests, which confirm sufficient long term gas flow rates to support a financial investment decision to commence a commercial development of a meaningful gas production operation (i.e. 20 well development with a forecast production rate of not less than 10MMscf/d), together with all regulatory approvals. The Tranche 2 Performance Shares expire 12 months from the date of issue.
125,000,000	Tranche 3 Performance Shares Vesting upon the completion of 10 development wells having been drilled and completed on the CFT CBM Project or the completion of an alternative development well drill programme which the parties have agreed, which independent engineers prognose will deliver an equivalent or better economic development outcome at a similar cost as a 10 well programme producing not less than 5 mmscf/day. The Tranche 3 Performance expire 18 months from the date of issue (unless otherwise extended).
125,000,000	Tranche 4 Performance Shares Vesting upon the completion of 20 development wells having been drilled and completed on the CFT CBM Project or the completion of an alternative development well drill programme which the parties have agreed, which independent engineers prognose will deliver an equivalent or better economic development outcome at a similar cost as a 20 well programme producing not less than 10 mmscf/day. The Tranche 4 Performance Shares expire 24 months from the date of issue (unless otherwise extended).

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 29 April 2013 Executive Chairman Print name: Paul Underwood

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5

Appendix 5B Mining exploration entity quarterly report

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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• See chapter 19 for defined terms.

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Appendix 5B Page 6