HYTERRA LTD — Interim / Quarterly Report 2014

Oct 30, 2014

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ASX ANNOUNCEMENT

31 October 2014 by e-lodgement

SEPTEMBER QUARTER 2014 ACTIVITIES REPORT

The Directors of Triple Energy Limited (ASX: TNP, Triple or Company ) provide the following update on activities during and since the quarter ended 30 September 2014:

OPERATIONS

Strategic Investment Process

On 13 August 2014 the Company announced that it had entered in an MoU with Blue Sky Power Holdings Limited ( BSP ), whereby BSP would invest to fund Triple’s 2-well drilling program at its Aolong JV Project as part of its overall gas strategy in China. An initial nonrefundable exclusivity fee of US$200,000 was received by TNP at the time of signing the MoU and Triple subsequently advised on 28 August 2014 that BSP had confirmed it was satisfied with its Due Diligence and that the proposed funding transaction was no longer subject to Due Diligence.

On 13 October 2014, Triple confirmed that the process remained on track, and that both parties were working co-operatively towards conclusion of the process and finalisation of the documentation. As disclosed in that announcement, Triple and BSP have been in discussions regarding potential amendments to the transaction. Proposed variations include a potential strategic partnership with a China-based CBM drilling services company introduced and negotiated by BSP. This may offer a better overall solution for the drilling programme with discussions including the drilling being partly funded by shares in Triple. Triple’s Chairman met with BSP and this drilling company this week in Hong Kong and China. The negotiations with this drilling company are as yet incomplete. The Chairman of BSP has reiterated his intention to complete this transaction as soon as possible and in particular as soon as negotiations with the drilling company are concluded. Despite these delays, the Triple Board is supportive of this development if it is in all parties’ interests and continues to work with BSP to conclude the overall transaction as soon as possible.

Subsequent to quarter end a further US$300k was received from BSP as a deposit to be applied towards an initial placement of shares under the strategic investment process.

CORPORATE & FINANCIAL

As of 30 September 2014 the Group’s consolidated cash balance was $397k, including funds held by the CJV in China but before creditors and this has since been augmented by the payment of US$300k mentioned above. An ASX Appendix 5B for the quarter to 30 September 2014 accompanies this activities report.

The Company’s 2014 Annual General Meeting was held on 29 August 2014 at which all resolutions were passed without amendment.

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Technical information

Technical Information contained in this announcement is based on information reviewed by Gregory Meldrum (a consultant to the Company). Mr. Meldrum has a Degree in Geology from Newcastle University, Newcastle (NSW). He is a member of the Petroleum Exploration Society of Australia and a Certified Petroleum Geologist with the American Association of Petroleum Geologists. Mr. Meldrum has in excess of 40 years experience in petroleum geology 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

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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, 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

TRIPLE ENERGY LIMITED 30 SEPTEMBER 2014 QUARTERLY ACTIVITIES REPORT APPENDIX CONTAINING ASX Listing Rule 5.4.3 INFORMATION

• 1) Petroleum tenements held at the end of each quarter and their location.

N/A – Triple does not directly hold any petroleum tenements. Triple 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.

• 2) Petroleum tenements acquired and disposed of during the quarter and their location.

None.

• 3) Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter.

As disclosed above, Triple 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.

• 4) The beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter.

None.

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas 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, 01/05/2013

Name of entity

Triple Energy Limited

ABN 68 116 829 675	Quarter ended (“current quarter”)
68 116 829 675	30 September 2014

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 (exclusivity fee received) Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	- (163) - - (171) - 1 - - 214	- (386) - - (302) - 3 - - 214
	(119)	(471)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - - - - - - - -	- - - - - - - - -
	-	-
	(119)	(471)

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(119)	(471)
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 financing cash flows	- - - - - -	- - - - - -
	-	-
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	(119) 510 6	(471) 865 (3)
	397	397

Payments to directors of the entity, associates of the directors, 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
			64
			-
1.25 Explanation necessaryfor an understandingof the transactions Directors fees, salaries and superannuation, consulting fees for technical services. 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 N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest N/A		Explanation necessaryfor an understandingof the transactions
		Directors fees, salaries and superannuation, consulting fees for technical services.
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	N/A

+ See chapter 19 for defined terms.

Appendix 5B Page 2

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	250
	-
	-
	125
Total	375

Reconciliation of cash

Reco show to th	nciliation of cash at the end of the quarter (as n in the consolidated statement of cash flows) e related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 5.2 5.3 5.4	Cash on hand and at bank Deposits at call Bank overdraft Other (term deposits)	382	495
		-	-
		-	-
		15	15
	Total: cash at end of quarter(item 1.22)	397	510

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

• 5.1 Cash on hand and at bank

• 5.2 Deposits at call

• 5.3 Bank overdraft

• 5.4 Other (term deposits)

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

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.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities	635,940,932	635,940,932

+ See chapter 19 for defined terms.

Appendix 5B Page 4

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	15,000,000 12	15,000,000 12	$0.02 Issue price of 2 cents per share under the Company’s Employee Share Scheme (funded by a limited recourse loan from the Company, all as per shareholder approval granted on 29 August 2014). Nil automatic conversion of Tranche 3 performance shares.	Fully paid Fully paid
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

7.7 Options (description and conversion factor)	Class A 15,000,000 Class B 15,000,000 Class C 15,000,000 Class E (director) 15,000,000 Class E (adviser) 25,000,000	- - - - -	Exercise price $0.03 $0.03 $0.04 $0.04 $0.04	Expiry date 14/2/2016 (vested and exercisable) 14/2/2016 (vested and exercisable) 14/2/2016 (vest if TNP shares trade at a VWAP of 5 cents or more for 10 consecutive days ) 14/2/2016 (vested and exercisable) 30/6/2015 (vested and exercisable)
7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	-	-
	-	-
	-	-
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

+ See chapter 19 for defined terms. Appendix 5B Page 6

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

In addition to the above securities, the Company has 125,000,000 Performance Shares on issue as consideration for the acquisition of CFT Heilongjiang (HK) Limited. The Performance Shares were issued in four tranches as follows:

Expired	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.
Expired	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.
Expired	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).

None of the milestones triggering conversion have occurred as at the date of this report.

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 ~~/does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here:

............................................................

Date: 31/10/14

(Company Secretary)

Print name: ALEXANDER NEULING

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 7