SO4.L Regulatory News (SO4)

31 July 2014

AIM/ASX Code: WHE

Wildhorse Energy ('WHE' or 'the Company'), the AIM and ASX listed company focussed on developing underground coal gasification and uranium projects in Central and Eastern Europe, announces its Quarterly Report for the three months to 30 June 2014.

Non-Renounceable Rights Issue

During the June quarter, the Company announced a pro-rata non-renounceable rights issue to raise up to approximately A$1,435,000 (before costs), with funds raised to be used as general working capital to further the Company's existing projects and also to identify and evaluate additional uranium and other resource projects.

The offer to shareholders is one (1) fully paid ordinary share in the capital of the Company for every two (2) shares held by shareholders resident in Australia, New Zealand and the United Kingdom who were registered at 7 July 2014 at an issue price of A$0.007 per share.

Subsequent to the end of the June quarter, the Board of Directors of the Company agreed to extend the closing date to 13 August 2014.

Underground Coal Gasification (UCG)

Until the Company is certain that the sale to Linc Energy Limited ('Linc Energy') will proceed and the project is funded, the Company is now reducing all costs on site. If the sale to Linc Energy does not proceed, the licence will not be current and will be at risk of termination.

Heads of Agreement with Linc Energy Limited

As announced on 21 February 2014, the Company executed a Heads of Agreement ('HOA') and associated Funding Agreement with Singapore Exchange listed Linc Energy regarding the sale of the Company's Hungarian coal assets for a consideration of the equivalent of A$4.04 million in shares in Linc Energy. Under the associated Funding Agreement, Linc Energy agreed to provide A$400,000 in four equal tranches of A$100,000 payable at the beginning of March 2014 and the three subsequent months thereafter as a contribution towards the Company's costs associated with the operations of the UCG entities. With the final payment made at the beginning of June 2014, Linc Energy completed all four payments.

Subsequent to the June quarter, the HOA stated expiry date of midnight on 21 July 2014 was reached without being formally extended by mutual agreement, and the Company announced to the market that discussions are continuing between the parties in the hope that the transaction can be completed.

Mecsek Hills Uranium Portfolio

WHE continues to examine all scenarios regarding the development of the Mecsek Hills Uranium Project which combines WHE's 13.7km2 Pécs 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 30 June 2014, the Company holds the following interests in tenements:

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

Competent Persons Statement

The information in the report that relates to the Mecsek Hills Uranium Project Mineral Resource was estimated in accordance with the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (2004 JORC Code). There have been no material changes to the Mineral Resources since the public report titled "Uranium Resource of 77Mlbs Confirmed Through Execution of Co-operation Agreement with Hungarian State Owned Entities" was issued by the Company on 19 January 2011. The estimate was based on information compiled by Mr Lauritz Barnes and Mr Neil Inwood who are both Members of The Australasian Institute of Mining and Metallurgy. Mr Barnes is an independent consultant and, at the time of the announcement in 2011, Mr Inwood was employed by Coffey Mining. Mr Barnes is the Competent Person responsible for the database, modelling, estimation methodology and Classification. Mr Inwood has reviewed the resource estimate and consents to take dual responsibility for the estimation methodology and Classification. Both Messrs Barnes and Inwood have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Messrs Barnes and Inwood approve and consent to the inclusion in the report of the matters and defined Mineral Resources information in the form and context in which it appears.

The geological modelling and estimation of the Exploration Target for the Mecsek Hills Uranium Project of 55 to 90 Mlbs of U3O8 with a grade range of 0.075 to 0.10% U3O8 was also compiled by Mr Barnes and Mr Inwood. There have been no material changes to the Exploration Target since the public report titled "New Exploration Target¹ of 55 to 90 Mlbs Significantly Increases the Total Resource Potential for the Mecsek Hills Uranium Project" was issued by the Company on 31 January 2011.

The size and grade of the Exploration Target is conceptual in nature and it is uncertain if further exploration will result in the determination of a mineral resource. There is currently insufficient data to define a JORC compliant Mineral Resource for the Exploration Target. Mr Lauritz Barnes and Mr Neil Inwood, independent consultants (Competent Persons) have reviewed the historical data available for the Mecsek Hills Uranium Project and both made site visits to the area. The Competent Persons consider the Exploration Target to be reasonable based on the data available. Mr Barnes has furthermore confirmed that there was no change to the Exploration Target following the relinquishment of the Abaliget license during the March 2014 quarter.

**ENDS**

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