HYTERRA LTD — Interim / Quarterly Report 2014

Jan 29, 2015

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ASX ANNOUNCEMENT

30 January 2015 by e-lodgement

DECEMBER 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 31 December 2014:

OPERATIONS – STRATEGIC INVESTMENT PROCESS

Agreement with BSP

On 27 November 2014 the Company announced the execution of a binding Memorandum of Understanding (“MoU”) with Blue Sky Power Holdings Limited ( BSP ), whereby BSP would invest around A$6m into TNP to fund this year’s two well drilling program in China ( BSP Transaction ).

Tranche 1 Placement Completed

Subsequently, on 9 December 2014 Triple announced that the first tranche placement under the BSP Transaction had been completed, with the issue of 158,000,000 new fully paid ordinary shares (subject to 12 months voluntary escrow) to BSP and the appointment of BSP Chairman, Mr Tommy Cheng, as Chairman. This placement raised A$790k in working capital and resulted in BSP holding 19.9% of TNP’s shares.

Loan Funds Advanced to Fund Pre-drill Activities

Triple also announced on 9 December that a further A$500k had been advanced by way of an interest-free loan from BSP to TNP’s wholly owned subsidiary to expedite pre-drill preparatory activities. Subject to approval of the BSP transaction by Shareholders, the loan is convertible in TNP shares at a price of A$0.006 per Share.

Tranche 2 Placement

A further A$1.25m was received from BSP after quarter-end to be held on trust pending completion of the underwritten portion of second tranche placement (to be conducted at A$0.006 per Share).

Drilling Contractor Arrangements

A further part of the BSP Transaction investment package (as previously announced) is the procurement by BSP of drilling services for the drilling of two wells at the Company’s Aolong project. The wells are to be drilled for a fixed price of US$2.75m, to be settled by Triple through the issue of (12 month escrowed) Triple shares at a price of $0.006 per Share. The necessary documentation is now well advanced and is expected to be settled shortly. Both BSP and TNP are planning for the wells to be drilled as soon as practicably possible which is likely to be around May 2015.

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CORPORATE & FINANCIAL

As of 31 December 2014 the Group’s consolidated cash balance was A$1.218k, including funds held by the CJV in China but before creditors. After the quarter-end a further A$1.25m has been received from BSP into a share registry trust account to be held against BSP’s underwriting commitment for the second tranche placement. An ASX Appendix 5B for the quarter to 31 December 2014 accompanies this activities report.

The notice of shareholders meeting to consider the BSP Transaction (including experts reports) is in its final stages and it is expected that the Shareholders meeting will take place during March 2015.

Concurrent with the appointment of Mr Tommy Cheng to the Board of Triple, Triple announced the resignation of Mr Greg Meldrum as a Director. The Board wishes to thank Mr Meldrum for his service whilst a director and technical consultant at TNP.

Also, on 9 December 2014, the Company announced the execution of a Deed of Mutual Release (“Deed”) between the Company and vendors of CFT Heilongjiang (HK) Ltd (“CFT”) in respect of the issue of Performance Shares. The result of this is that no vendor shares were or will be issued pursuant to the Settlement Deed.

The vendors further provided Triple’s Chairman Mr Paul Underwood with a written letter of apology for certain statements made in the lead-up to the February 2014 Shareholders Meeting.

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 31 DECEMBER 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

Name of entity
Triple Energy Limited
ABN 68 116 829 675	Quarter ended (“current quarter”)
68 116 829 675	31 December 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 Net Operating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	- (128) - - (158) - 1 - - -	- (386) - - (302) - 3 - - -*
	(286)	(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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(286)	(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)	(286)	(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	576 - 500 - - -	790* - 500 - - -
	1,076	1,290
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	(790) 397 31	319 865 (34
	1,218	1,218

*$214k previously reported as an exclusivity in the September quarter has been subsequently reclassified as equity proceeds, following the subsequent execution of a binding MoU with BSP and completion of the Tranche 1 Placement.

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	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
		47
		-
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

+ 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

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A

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
	500
	-
	-
	125
Total	625

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.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (term deposits)	1,203	382
	-	-
	-	-
	15	15
Total: cash at end of quarter(item 1.22)	1,218	397

+ 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	793,940,932	793,940,932

+ 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	158,000,000	158,000,000	$0.005 per Share	Fully paid (subject to 12 months voluntary escrow until 9 December 2015)
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