HYTERRA LTD — Interim / Quarterly Report 2013

Jan 30, 2014

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ASX ANNOUNCEMENT

31 January 2014 by e-lodgement

DECEMBER QUARTER 2013 ACTIVITIES REPORT

The Directors of Triple Energy Limited (ASX: TNP, Triple or Company ) provide the following update on activities during and the since the quarter ended 31 December 2013:

Highlights

• $600,000 received in January 2014 from share placement

• Investment discussions ongoing with interested parties

• Drilling programme planning for 2014 wells almost finalised

• Quote requests for drilling and coring despatched for 2014 drilling programme

• Relations with the Chinese partner going well following a management Trip to China in early January 2014

1) Capital Raising

On 16 December 2013, the Company announced a placement to raise up to $600,000 to fund general working capital and enable the Company to continue to advance discussions with a private equity group that may invest in the Company’s project in China via an issue of shares in Triple. The placement was well supported and closed, oversubscribed, on 23 December 2013. No brokerage is payable in respect of the placement of 100 million new shares at $0.006 and the placement shares were issued to sophisticated investors in January 2014.

2) Investment Discussions with Interested Parties Ongoing

Triple management remain engaged with a private equity investor group highly experienced in coal bed methane projects which is interested in funding the 2014 well programme. Discussions with these investors are ongoing.

Triple management have also received interest from several large Hong Kong companies to invest in the project now that the planning for the 2014 well programme is almost complete.

3) Drilling Programme Planning For 2014 Wells Almost Finalised

Greg Meldrum (the Company’s new Technical Director) has completed a detailed study of the XianXian and Bird Mountain areas in China. From this work, he has located 2 x new well locations he considers good targets for the 2014 drilling, coring and testing campaign.

Specifically he has planned a program that will acquire cores for desorption analyses and conduct pilot production from a well(s) in the Xian-Xian area and a second well(s) to acquire cores for desorption analyses and pilot production in the Bird Mountain area.

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The wells will have the objectives of:

• A) obtaining cores from the target coal seams and bringing them to the surface for desorption analysis. This data is required to calculate the amount of gas saturation in each cubic meter of coal; and

• B) conducting testing operations to obtain pilot production rates and gas samples.

The data obtained from these operations/analyses will enable a resource estimate to be made in due course.

4) Contract quotation requests for 2014 drilling programme sent – now being received

This year’s drilling campaign will be via turn-key (fixed price) contracts wherever possible such that cost over-runs are minimised, if not eliminated. The contracts inherited by Triple from the vendors’ arrangements last year were not well structured and were a significant factor in the cost over-runs experienced in drilling the first well. Management are targeting well costs materially less than that which was experienced last year.

5) Management Trip to China in early January 2014

Mr Underwood and Mr Meldrum visited China in January 2014. The main purpose of the trip was to table the well programme for 2014 prepared by Triple with our partner, Longmay Coal Mining Company (Longmay) for their comment and approval. The proposed locations were also tabled, discussed and agreed. A tour of the well locations was conducted to plan for drilling pad preparation. Longmay agreed and approved the well locations and stated that they were extremely pleased with the cooperative approach taken by Triple management.

Meetings were also held with suitably qualified contractors to review and discuss the objectives and evaluation programs for the proposed wells. Tenders were sent to two Chinese companies that can provide all the required services. To date, one turnkey quote has been received and is being reviewed.

CORPORATE & FINANCIAL

As of 31 December 2013 the Group’s consolidated cash balance was $0.7m, including funds held by the CJV in China. Subsequent to the end of the quarter placement proceeds of $0.6m were received in addition to this amount.

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

SHAREHOLDERS MEETING CALLED FOR 12 FEBRUARY 2014

Three of the Performance Shareholders (CFT Vendors) have requested a meeting of shareholders to be held on 12 February 2014 in an effort to remove Mr Underwood and Mr Meldrum from the Board and to propose the appointment of two other directors.

The Triple Board advised all shareholders to VOTE AGAINST ALL OF THESE RESOLUTIONS .

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It is the Board’s opinion that this group of shareholders have a single agenda of taking control of Triple such that they can be in a position to influence the issue of additional vendor shares to themselves and to try to avoid legal action against them for misleading Triple at the time the transaction was entered into. The Triple Board is of the view that this is clearly not in the interests of all other Triple shareholders.

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, 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

Only Seam #11 (at 7.8 meters thickness) and Seam #15 (at 5.4 meters thickness) were tested. An additional 21 meters of coal seam thickness below Seam #11 have not yet been flow tested and these seams are considered likely to flow gas at similar or better rates as observed in the DS ~~T’~~ s at Seam #11 and #15 given that the coals become gassier at depth.

A significant new coal seam below Seam #15 was discovered on logs at 7.6 meters thickness.

TRIPLE ENERGY LIMITED 31 DECEMBER 2013 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, 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.

• 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 Stateowned 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 Quarterended(“currentquarter”) 68116829675 31December2013	ABN Quarterended(“currentquarter”) 68116829675 31December2013
68116829675	31December2013

Consolidated(statement(of(cash(flows(

Cashflowsrelatedtooperatingactivities 1.1 Receiptsfromproductsalesandrelated debtors 1.2 Paymentsfor (a)exploration&evaluation (b)development (c)production (d)administration 1.3 Dividendsreceived 1.4 Interestandotheritemsofasimilarnature received 1.5 Interestandothercostsoffinancepaid 1.6 Incometaxespaid 1.7 Other(providedetailsifmaterial) NetOperatingCashFlows	Currentquarter $A’000	Yeartodate (9months) $A’000
	Y (420) Y Y (130) Y 2 Y Y Y	Y (2,062) Y Y (477) Y 14 Y Y Y
	(548)	(2,525)
Cashflowsrelatedtoinvestingactivities 1.8 Paymentforpurchasesof:(a)prospects (b)equityinvestments (c)otherfixedassets 1.9 Proceedsfromsaleof: (a)prospects (b)equityinvestments (c)otherfixedassets 1.10 Loanstootherentities 1.11 Loansrepaidbyotherentities 1.12 Other(providedetailsifmaterial) Netinvestingcashflows 1.13 Totaloperatingandinvestingcashflows (carriedforward)	Y Y Y Y Y Y Y Y Y	Y Y Y Y Y Y Y Y Y
	Y	Y
	(548)	(2,525)

+!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 Totaloperatingandinvestingcashflows (broughtforward)	(548)	(2,525)
Cashflowsrelatedtofinancingactivities 1.14 Proceedsfromissuesofshares,options,etc. 1.15 Proceedsfromsaleofforfeitedshares 1.16 Proceedsfromborrowings 1.17 Repaymentofborrowings 1.18 Dividendspaid 1.19 Other(CapitalYraisingcosts) Netfinancingcashflows	Y Y Y Y Y Y	1,080 Y Y Y Y (55)
	Y	1,025
Netincrease(decrease)incashheld 1.20 Cashatbeginningofquarter/yeartodate 1.21 Exchangerateadjustmentstoitem1.20 1.22 Cashatendofquarter	(548) 1,210 Y	(1,500) 2,166 (4)
	662	1,210

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	Aggregateamountofpaymentstothepartiesincludedinitem1.2 Aggregateamountofloanstothepartiesincludedinitem1.10	Currentquarter $A'000
		32
		Y
1.25	Explanationnecessaryforanunderstandingofthetransactions
	Directorsfees,salariesandsuperannuation.

NonDcash(financing(and(investing(activities(

2.1 2.2	Detailsoffinancingandinvestingtransactionswhichhavehadamaterialeffecton consolidatedassetsandliabilitiesbutdidnotinvolvecashflows
	N/A
	Detailsofoutlaysmadebyotherentitiestoestablishorincreasetheirshareinprojectsin whichthereportingentityhasaninterest
	N/A

+!See!chapter!19!for!defined!terms.!

Appendix!5B!!Page!2!

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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 Loanfacilities 3.2 Creditstandbyarrangements	Amountavailable $A’000	Amountused $A’000
	Y	Y
	Y	Y

Estimated(cash(outflows(for(next(quarter(

4.1 4.2 4.3 4.4	Explorationandevaluation Development Production Administration	$A’000
		250
		Y
		Y
		180
	Total	430

• 4.1! Exploration!and!evaluation!

• 4.2! Development!

• 4.3! Production!

• 4.4! Administration!

Reconciliation(of(cash(

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)! Total:(cash(at(end(of(quarter( (item!1.22)

	Currentquarter	Previousquarter
	$A’000	$A’000
	647	1,195
	Y	Y
	Y	Y
	15	15
	662	1,210

+!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(

Tenement reference and location Natureofinterest (note(2)) Interestat beginning ofquarter Interestat endof quarter 6.1 Interestsinmining tenementsand petroleumtenements relinquished,reduced orlapsed 6.2 Interestsinmining tenementsand petroleumtenements acquiredorincreased Issuedandquotedsecuritiesatendofcurrentquarter Descriptionincludesrateofinterestandanyredemptionorconversionrightstogetherwithpricesanddates.	Tenement reference and location Natureofinterest (note(2)) Interestat beginning ofquarter Interestat endof quarter 6.1 Interestsinmining tenementsand petroleumtenements relinquished,reduced orlapsed 6.2 Interestsinmining tenementsand petroleumtenements acquiredorincreased Issuedandquotedsecuritiesatendofcurrentquarter Descriptionincludesrateofinterestandanyredemptionorconversionrightstogetherwithpricesanddates.	Tenement reference and location Natureofinterest (note(2)) Interestat beginning ofquarter Interestat endof quarter 6.1 Interestsinmining tenementsand petroleumtenements relinquished,reduced orlapsed 6.2 Interestsinmining tenementsand petroleumtenements acquiredorincreased Issuedandquotedsecuritiesatendofcurrentquarter Descriptionincludesrateofinterestandanyredemptionorconversionrightstogetherwithpricesanddates.	Tenement reference and location Natureofinterest (note(2)) Interestat beginning ofquarter Interestat endof quarter 6.1 Interestsinmining tenementsand petroleumtenements relinquished,reduced orlapsed 6.2 Interestsinmining tenementsand petroleumtenements acquiredorincreased Issuedandquotedsecuritiesatendofcurrentquarter Descriptionincludesrateofinterestandanyredemptionorconversionrightstogetherwithpricesanddates.	Tenement reference and location Natureofinterest (note(2)) Interestat beginning ofquarter Interestat endof quarter 6.1 Interestsinmining tenementsand petroleumtenements relinquished,reduced orlapsed 6.2 Interestsinmining tenementsand petroleumtenements acquiredorincreased Issuedandquotedsecuritiesatendofcurrentquarter Descriptionincludesrateofinterestandanyredemptionorconversionrightstogetherwithpricesanddates.
	Totalnumber	Numberquoted	Issuepriceper security(see note3)(cents)	Amountpaidup persecurity(see note3)(cents)
7.1 Preference +securities (description) 7.2 Changesduring quarter (a)Increases throughissues (b)Decreases throughreturns ofcapital,buyY backs, redemptions
7.3 +Ordinary securities 7.4 Changesduring quarter (a) Increases through issues (b)Decreases throughreturns ofcapital,buyY backs	520,940,915	520,940,915
	5 Y	5 Y	Nil (conversion of Tranche 1 Performance Shares –milestonenotmet)	Nil (conversion of Tranche 1 Performance Shares – milestone not met)
7.5 +Convertible debt securities (description)

+!See!chapter!19!for!defined!terms.!

Appendix!5B!!Page!4!

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

7.6 Changesduring quarter (a)Increases throughissues (b)Decreases through securities matured, converted
7.7 Options (descriptionand 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	- Y Y Y Y	Exerciseprice $0.03 $0.03 $0.04 $0.04 $0.04	Expirydate 14/2/2016 (vestedandexercisable) 14/2/2016 (vestedandexercisable) 14/2/2016 (vestifTNPsharestrade ataVWAPof5centsor more for 10 consecutive days) 14/2/2016 (vestedandexercisable) 30/6/2015 (vestedandexercisable)
7.8 Issuedduring quarter 7.9 Exercised duringquarter 7.10 Expiredduring quarter	Y	Y
	Y	Y
	Y	Y
7.11 Debentures (totalsonly)
7.12 Unsecured notes(totals only)

+!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(

In!addition!to!the!above!securities,!the!Company!has!300,000,000!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 Vestinguponsuccessfuldataacquisitionfromtheneartermdrillstemtestwellonthe CFT CBM Project, such data establishing flow and pressure buildSup information demonstratingreservoirpermeabilitiesinterpretedtoprovidecommercialgasflowrate estimatesandgascompositioninformationtoenabletheexpertsreporttobecompleted toconfirmrecoverablegasestimates.TheTranche1PerformanceSharesexpire9months fromthedateofissue.
50,000,000	Tranche 2 Performance Shares Vesting upon the drilling and coring of two pressurised core wells on the CFT CBM Projecttestingforgassaturationanddesorptionisothermsanddrillstemtests,which confirmsufficientlongtermgasflowratestosupportafinancialinvestmentdecisionto commenceacommercialdevelopmentofameaningfulgasproductionoperation(i.e.20 welldevelopmentwithaforecastproductionrateofnotlessthan10MMscf/d),together withallregulatoryapprovals.TheTranche2PerformanceSharesexpire12monthsfrom thedateofissue.
125,000,000	Tranche 3 Performance Shares Vestinguponthecompletionof10developmentwellshavingbeendrilledandcompleted 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 deliveranequivalentorbettereconomicdevelopmentoutcomeatasimilarcostasa10 wellprogrammeproducingnotlessthan5mmscf/day.TheTranche3Performanceexpire 18monthsfromthedateofissue(unlessotherwiseextended).
125,000,000	Tranche 4 Performance Shares Vestinguponthecompletionof20developmentwellshavingbeendrilledandcompleted 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 deliveranequivalentorbettereconomicdevelopmentoutcomeatasimilarcostasa20 well programme producing not less than 10 mmscf/day. The Tranche 4 Performance Sharesexpire24monthsfromthedateofissue(unlessotherwiseextended).

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:!31/1/14!

(Company!secretary)!

Print!name:!! ALEXANDER!NEULING!

+!See!chapter!19!for!defined!terms.!

Appendix!5B!!Page!6!

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Appendix(5B(

Mining(exploration(entity(and(oil(and(gas(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!and!petroleum!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!or!petroleum!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.!

• ==!==!==!==!==

+!See!chapter!19!for!defined!terms.!

01/05/2013!Appendix!5B!!Page!7!