PILOT ENERGY LIMITED — Capital/Financing Update 2012

Dec 12, 2012

==> picture [170 x 842] intentionally omitted <==

==> picture [235 x 91] intentionally omitted <==

13[th] December 2012 ASX : EHR

Rights Issue Prospectus

Earth Heat Resources Limited ('Earth Heat' or ‘The Company') is pleased to update shareholders and stakeholders on the lodgement today of a prospectus for the renounceable rights issue previously announced.

The Rights Issue will consist of a renounceable pro rata offer to shareholders to subscribe for three (3) new shares for every four (4) shares held at the record date with a one (1) free attaching option with a 0.5¢ strike and 31 January 2014 expiry (“Short Dated Option”) for every two (2) rights shares subscribed, and a one (1) free attaching option with a 0.7¢ strike and 31 January 2016 expiry (“Long Dated Option”) for every three (3) rights shares subscribed. The offer is fully underwritten by DJ Carmichael Pty Ltd.

A timetable and key dates summary is presented at the end of this release.

Managing Director of Earth Heat Mr Torey Marshall commented: “Following the engagement of corporate advisors and a major internal strategic review your Board is convinced that there are inadequate levels of market interest in the Australian geothermal sector for Earth Heat to persevere with a purely geothermal asset base, despite our view that Earth Heat's existing projects afford exceptional long term growth opportunity. A broadened energy asset mix will afford much better opportunities for our shareholders over the short and medium term, with longer term opportunity already in the portfolio. The rights issue is fully underwritten by DJ Carmichael Pty Ltd which is a very strong vote of confidence in the conclusions of the board and its relationship to the investment community as a whole. We have used evolution to survive and thrive in the current environment.”

*** Ends***

For further information please contact:

Torey Marshall, Managing Director, +61 8 8223 1681

==> picture [170 x 842] intentionally omitted <==

			Announcement of Offer	Announcement of Offer	Prior to commencement oftrading on Thursday 13December 2012	Prior to commencement oftrading on Thursday 13December 2012	Prior to commencement oftrading on Thursday 13December 2012
							of
			Lodgement of Prospectus with ASIC and ASX		Prior ttradin	o commencementon Thursday 13
					Dece	mber 2012
			Notice sent to Shareholders containing Appendi	x 3B	Friday	14 December 201	2
			information
			Shares commence trading on an ex rights basis		Mond	ay 17 December 2	012
			Rihts tradin starts		Mond	17 December 2	012
			g g			y
							2
			Record Date for the Offer		Friday	21 December 20
							012
			Opening Date of Offer		Mond	ay 24 December 2
			Prospectus and Entitlement and Acceptance Fo	rm	Thurs	day 27 December	2012
			despatched to Shareholders
			Rights trading ends		Friday 4 January 2013
			Shares quoted on a deferred settlement basis		Monday 7 January 2013
			Closing Date of Offer		Friday 11 January 2013
			Advise ASX of any Shortfall		Wednesday 16 January		2013
			Expected date of despatch of holding statement	s for New	Monday 21 January 201		3
			Shares
			Commencement of trading of New Shares on A	SX	Tuesday 22 January 201		3