Hillgrove Resources Limited is pleased to advise that the Company has executed re-structured and revised agreements for the Kanmantoo Project Financing and the
corporate entity with Macquarie Bank Limited and Barclays Capital PLC. The financing arrangements have been re-structured to better match cash flow projections in the new Life of Mine (LOM) Plan. The revision was planned by the Company and its lending banks following completion of the new LOM Plan and the continued successful ramp-up and operation of its copper mine and processing operations at Kanmantoo in South Australia. In summary, Hillgrove has re-structured agreements in respect of the project financing for the Kanmantoo Copper Mine, as well as the Company’s Mezzanine Facility, together with the Performance Bond and Hedging agreements. The Gold Loan remains in place under the original terms agreed.

Included in the new agreements is the removal of Kanmantoo’s Completion Test, allowing the project to make quarterly distributions to the Parent Company commencing Q3 2013 on the basis of a cash sweep mechanism, subject to cost and performance targets. The Mezzanine Facility of A$10 million with Macquarie Bank Limited at the Parent level will be repaid in July 2015, a deferral of two years from previous arrangements. Fifty (50) million options at a strike price of $0.135 will be issued to Macquarie Bank Limited. These options replace the previous 27.7 million options issued at $0.27, which will be cancelled. “This is a very positive development for the Company and shareholders as the updated agreements remove the previous conditions of the bank Completion Test and puts in place a more flexible financing arrangement, better suited to the Kanmantoo Project and Parent Company needs.” said Greg Hall, Managing Director. The financing agreements are now aligned with the increased early cash flow profile that is generated from the new LOM Plan submitted to Hillgrove’s banks in mid-November 2012. Based on the Planning Reserves announced in February 2013, the Kanmantoo Copper Mine now has an estimated mine life greater than 10 years.