HYTERRA LTD — Interim / Quarterly Report 2017

Oct 30, 2017

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ASX ANNOUNCEMENT

31 October 2017 by e-lodgement

The Directors of Triple Energy Limited (ASX: TNP , Triple or Company ) are pleased to provide the following update on activities during and since the quarter to 30 September 2017.

Shaanmei Project Areas (Triple Project Interest – 80%)

As previously announced, a cooperation agreement ( Agreement ) is in place with Shaanxi Province Coal Bed Methane Exploitation and Utilization Co. Ltd., a subsidiary of Shaanmei Coal Mining Company ( Shaanmei ).

The Agreement covers production sharing for Coal Bed Methane Drainage of three linked areas in Wangfeng and Sangshuping Mining Areas in Hancheng, Shaanxi Province and covers in excess of 160km[2] . 
The Agreement provides for a profit-sharing arrangement whereby Triple, through its wholly-owned HK and PRC subsidiaries, will hold 80% profit interest.

Under the Agreement terms Triple was required to provide RMB5,000,000 (~A$1,000,000) as a performance surety. As previously advised, TNP’s parent, Beijing Gas Blue Sky Power ( BGBSP ) arranged and advanced this funding in support of TNP, with the funding initially in the form of a renewable loan facility between BGBSP and the project entity and BGBSP continues to support TNP in this respect.

During the quarter work performed has concentrated on technical studies to analyse regional geology and coal qualities and to attempt to identify appropriate potential well sites and drilling techniques both within the contracted project areas and other areas of potential future co-operation with Shaanmei. This work remains ongoing.

Aolong JV Project in Heilongjiang

No substantial exploration activity was again able to be carried out during the quarter. The joint venture partners are continuing to discuss necessary measures for closer cooperation in the Hegang area to minimize any future development conflicts as well as identifying other project areas suitable for gas production, having regard to the geological complexities apparent in the project area.

Corporate & Financial

Triple staff in HK and PRC, including and supported by BGBSP employees continue to work actively on the evaluation of other potential new projects consistent with the Company’s strategy.

Triple Energy Ltd ACN 116 829 675 Unit 24, 589 Stirling Highway, Cottesloe WA 6011 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

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In early July 2017 Triple announced th1) e appointment of Murray d’Almeida and Chris Berkefeld to the Board, together with the resignations of Paul Underwood and Garry Ralston with the new appointments then confirmed by Shareholders at the Company’s Annual General Meeting ( AGM ) in August 2017. At the AGM Shareholders also approved the consolidation of the Company’s shares on a 1:40 basis (which took effect in September 2017) and approved a proposed placement of up to 5,000,000 new Shares at $0.16 per Share to raise up to $800,000 before costs ( Placement ). Triple continues to work together with BGBSP on arranging the Placement and expects this to be finalized during November.

As of 30 September 2017 the Group’s consolidated cash balance was A$604k, including funds held by the Aolong CJV in China but excluding funds held by the Shaanmei project entity (and associated debt facilities with BGBSP) pending transfer of the relevant subsidiaries.

An ASX Appendix 5B for the quarter accompanies this activities report.

Triple Energy Ltd ACN 116 829 675 Unit 24, 589 Stirling Highway, Cottesloe WA 6011 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

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About Triple Energy and its projects

Triple Energy Limited is an Australian registered Oil & Gas exploration company listed on ASX. Triple Energy’s ordinary shares trade under the code TNP.

Shaanmei

Triple advised on 14 December 2016 that a cooperation agreement (Agreement) had been reached with Shaanxi Province Coal Bed Methane Exploitation and Utilization Co. Ltd., a subsidiary of Shaanmei Coal Mining Company ( Shaanmei ).

The Agreement is in the form of production sharing for Coal Bed Methane Drainage of three linked areas in Wangfeng and Sangshuping Mining Areas in Hancheng, Shaanxi Province and covers approximately 162km[2] .

Aolong

Triple Energy holds an 80% profit 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 has now drilled three wells, one in 2013 and two in 2015.

Triple Energy Ltd ACN 116 829 675 Unit 24, 589 Stirling Highway, Cottesloe WA 6011 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

TRIPLE ENERGY LIMITED 30 SEPTEMBER 2017 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.

In addition, a cooperation agreement ( Agreement ) is in place with Shaanxi Province Coal Bed Methane Exploitation and Utilization Co. Ltd., a subsidiary of Shaanmei Coal Mining Company ( Shaanmei ).

The Agreement covers production sharing for Coal Bed Methane Drainage of three linked areas in Wangfeng and Sangshuping Mining Areas in Hancheng, Shaanxi Province and covers in excess of 160km2. 
The Agreement provides for a profit-sharing arrangement whereby Triple, through its whollyowned HK and PRC subsidiaries, will hold 80% profit interest.

• 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. In addition a cooperation agreement ( Agreement ) is in place between a Triple group company and Shaanxi Province Coal Bed Methane Exploitation and Utilization Co. Ltd., a subsidiary of Shaanmei Coal Mining Company ( Shaanmei ).

The Agreement covers production sharing for Coal Bed Methane Drainage of three linked areas in Wangfeng and Sangshuping Mining Areas in Hancheng, Shaanxi Province and covers in excess of 160km2. 
The Agreement provides for a profit-sharing arrangement whereby Triple, through its whollyowned HK and PRC subsidiaries, will hold 80% profit interest.

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

None.

Triple Energy Ltd ACN 116 829 675 Unit 24, 589 Stirling Highway, Cottesloe WA 6011 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

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, 01/05/13, 01/09/16

Name of entity

Triple Energy Limited

ABN

Quarter ended (“current quarter”)

68 116 829 675 30 September 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(6 months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a) exploration & evaluation	(4)	(6)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(64)	(40)
	(e) administration and corporate costs	(63)	(96)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	1	1
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Research and development refunds	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(130)	(141)
	activities

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	-	-
	(d) other non-current assets	-	-

• See chapter 19 for defined terms

1 September 2016

Page 1

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(6 months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	-	-
	(d) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	-	-
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	-	-
	shares, convertible notes or options
3.5	Proceeds from borrowings	-	18
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other	-	-
3.10	Net cash from / (used in) financing	-	18
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	736	859
4.2	Net cash from / (used in) operating	(130)	(141)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	-	-
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-	18
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	606	736
	period

• See chapter 19 for defined terms

1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

5.	Reconciliation of cash and cash	Current quarter		Previous quarter
	equivalents	$A’000		$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	606		721
5.2	Call deposits		-	-
5.3	Bank overdrafts		-	-
5.4	Other (term deposit)		15	15
5.5	Cash and cash equivalents at end of	591		736
	quarter (should equal item 4.6 above)

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2		41
6.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

Directors fees.

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000 - -

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

• See chapter 19 for defined terms 1 September 2016

Page 3

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

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	18*	18*
8.2	Credit standby arrangements	-	-
8.3	Other (please specify)	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

*Approximately CNY100,000 was advanced directly to the Company’s HK subsidiary by a BGBSP group company during the quarter to pay for general expenses during the prior quarter.

The above figures exclude amounts relating to the Shaanxi Province project. The project agreement provides for a profit-sharing arrangement whereby Triple, through wholly owned HK and PRC subsidiaries, will hold 80% profit interest. Incorporation of the relevant interposed PRC entities to enable the registration of Triple’s ownership is underway but has not yet been completed and accordingly the cashflows have not been consolidated. Under the agreement terms RMB5,000,000 (~A$1,000,000) was required to be forwarded to a Joint Venture account as a performance surety. BGBSP arranged and advanced this funding in support of Triple, with the funding initially in the form of a renewable loan facility to the entity holding the project interest.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation*		120
9.2	Development		-
9.3	Production		-
9.4	Staff costs		198
9.5	Administration and corporate costs		224
9.6	Other (provide details if material)		-
9.7	Total estimated cash outflows		542*

*As per the accompanying activities report and previously disclosures and the Company expects (with the assistance of its largest shareholder BGBSP) to complete a share placement by the end of November 2017.

10.	Changes in	Tenement	Nature of interest	Interest at	Interest
	tenements	reference		beginning	at end of
	(items 2.1(b) and	and		of quarter	quarter
	2.2(b) above)	location
10.1	Interests in mining
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining
	tenements and
	petroleum tenements
	acquired or increased

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

Sign here: ............................................................ (Company secretary)

Date: 31 October 2017

Print name: Alex Neuling

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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