SO4.L Regulatory News (SO4)

01 May 2014

AIM/ASX Code: WHE

AIM and ASX listed Wildhorse Energy ('WHE' or 'the Company'), is pleased to announce its Quarterly Report for the three months to 31 March 2014.

Overview:

· Heads of Agreement with Singapore Exchange listed Linc Energy Limited ('Linc Energy') to acquire a 100% interest in WHE's UCG assets for a consideration of the equivalent of US$4.04 million in shares of Linc Energy

· Linc Energy, as a global leader in UCG, represents a uniquely qualified development partner

· Continued evaluation of a suitable development path for the Mecsek Hills Uranium Project, one of the largest uranium deposits in Europe

WHE Managing Director Matt Swinney said, "We have signed a binding Heads of Agreement with Linc Energy which will acquire a 100% interest in our UCG assets for equity. This transaction marks a new genesis in the WHE story whereby the development of our UCG assets will be accelerated, under the stewardship of a uniquely qualified partner. Additionally we continue to evaluate options to crystallise the inherent value of the Mecsek Hills Uranium Project in Hungary, which has a current JORC Inferred Resource of 48.3Mt at 0.072% U3O8 for 77Mlbs of U3O8."

UCG Portfolio

Following the strategic review and partnership search, WHE signed a Heads of Agreement ('the HOA'), whereby Singapore Exchange listed Linc Energy will acquire a 100% interest in WHE's UCG assets for a consideration of the equivalent of $4.04 million in shares of Linc Energy. The primary asset is the Mecsek Hills UCG Project where WHE, in line with its licence commitments, conducted approximately 1,164m of drilling for a current JORC Inferred resource of 184.5Mt. The structure of the agreement provides WHE investors with the value accretion potential inherent in the development of these UCG assets

As stated in the half yearly accounts, Linc Energy is regarded as the global leader in UCG having invested over $200 million in its technology and projects over the past 14 years, and hence represents an almost uniquely qualified partner for WHE. In addition to Linc Energy being one of the foremost investors in the sector, its experience extends to operating UCG projects, including Yerostigaz in Uzbekistan, the longest operational commercial UCG gas field globally with over 50 years of UCG gas production to its credit. In line with the HOA, Linc Energy will provide operational and financial support to apply UCG technology to capitalise on the attractive energy demand dynamics inherent in Hungary and Central and Eastern Europe.

The parties continue to look to finalise the transaction and further news regarding the HOA will be provided in due course.

Mecsek Hills Uranium Portfolio

WHE continues to examine all scenarios re the development of the Mecsek Hills Uranium Project which combines WHE's 42.9km2 Pécs-Abaliget uranium licence and Hungarian state owned Mecsekérc ('ME') adjoining 19.6km2 MML-E uranium licence. The project has a total JORC Inferred Resource of 48.3Mt at 0.072% U3O8 for 77Mlbs of U3O8 and an Exploration Target of an additional 55-90Mlbs of U3O8 with a grade range of 0.075-0.10% U3O8, making it one of the largest uranium deposits in Europe.

To date we have received the Hungarian Government's support for the development of a Joint Venture ('JV') between the Company, Mecsekérc, and Hungarian Electricity Ltd ('MVM'), the owner of Paks Nuclear Power Plant ('Paks NPP'), to evaluate the necessary conditions to restart uranium mining.

A Special Purpose Vehicle ('SPV') uranium entity was established in September 2012. In Q2 2013 all parties, namely ME, MVM and Kővágószőlős Municipality, joined the uranium administrative SPV and signed agreements to acquire an initial nominal shareholding in the SPV. The main objective of the SPV, in accordance with the Government Resolution of June 2012, is to conduct due diligence to assess the feasibility of the property ('the Study').

Tenement Summary

As at 31 March 2014, the Company holds the following interests in tenements:

During the March 2014 quarter, the Company's interests in the following tenements were relinquished:

To view a PDF of the Company's Appendix 5B, please follow this link:

 http://www.rns-pdf.londonstockexchange.com/rns/0087G_-2014-4-30.pdf

For further information please visit www.wildhorse.com.au or contact:

Further Information on Wildhorse:

Wildhorse Business Model

The WHE business model is focussed upon applying UCG technology to convert coal into syngas and then selling the syngas to power stations as a gas feedstock. The development and expansion of the UCG portfolio is underpinned by a potentially world class uranium project which the Company is advancing with its Hungarian uranium development partner Mecsekérc, with the support of the Hungarian Government.

Business Strategy

The Company's business strategy is to become a major supplier of gas feedstock to power stations in Central and Eastern Europe. WHE's project development strategy is based primarily upon acquiring strategic UCG sites in key locations in Central and Eastern Europe where gas markets are dominated by gas imports, energy security is a major factor for governments and large scale industrial consumers of gas and gas prices are correspondingly high.

Alongside its UCG assets, the Company also has a significant interest in a highly prospective uranium deposit in Hungary, which has a JORC Inferred resource of 48.3Mt at 0.072% uranium U3O8 for 77Mlbs of U3O8. As announced on 27 June 2012, the Government has issued a formal decree in support of the formation of a joint venture ('JV') company with the involvement of state-owned organisations, Mecsekérc and Hungarian Electricity Ltd ('MVM') (the owner of Paks Nuclear Power Plant). The JV's initial purpose will be to evaluate the necessary conditions to restart uranium mining in the Mecsek Hills with the ultimate aim of recommencing uranium mining at the Mecsek Hills Uranium Project.