Final Results

28 September 2012

Wildhorse Energy Ltd ('WHE' or 'the Company'), the AIM and ASX listed company focussed on developing underground coal gasification ('UCG') and uranium projects in Central and Eastern Europe ('CEE'),announces its results for the year ended 30 June 2012.

The Company's Report and Accounts can also be viewed at www.wildhorse.com.au.

OVERVIEW

·; Significant developments made across WHE's portfolio of UCG and uranium assets in Hungary, advancing WHE's strategy of becoming a leading energy supplier in Central and Eastern Europe

·; Attractive economic and technical potential of supplying syngas as a gas feedstock for power stations highlighted through Preliminary Feasibility Study at the flagship Mecsek Hills UCG Project

·; Selection of the first UCG site at the Váralja target area facilitated through completion of drilling - reportable 185 Mt JORC Inferred resource

·; Cooperation agreement signed with the Hungarian Geological and Geophysical Institute and the Faculty of Earth Science and Engineering of University of Miskolc to set out the legislative and regulatory framework required to develop UCG projects in Hungary

·; MOU signed with world leader in gases, Air Liquide outlining preliminary terms for securing the supply of oxygen, a vital gasification feedstock

·; Progress made to utilise first mover advantage to become a leading supplier of energy in Central Europe - licence applications submitted in Central and Eastern Europe

·; Raised £7.52 million and initiated a Bankable Feasibility Study at the project - search for strategic partner underway to fund its completion

·; Formal decree issued by the Hungarian Government pledging its support for a joint venture and the creation of a joint venture company between state owned entities and WHE to develop the Mecsek Hills Uranium Project in Hungary

CHAIRMAN'S STATEMENT

WHE has made significant progress over the course of the year, enhancing the attributable and actual value of its underground coal gasification and uranium assets. In particular, the achievement of key objectives, including the finalisation of a Preliminary Feasibility Study ('PFS') at our flagship Mecsek Hills UCG Project, and the formal endorsement to discuss the development of a joint venture to advance our uranium interests, has advanced the Company into its next phase of development. This progress, combined with the ever-more favourable operating environment of Hungary, where the government is supportive of the development of domestic fuel sources, has furthered WHE's strategy of becoming a leading energy supplier in Central and Eastern Europe.

Support for the development of UCG projects continues to grow worldwide as increasing numbers of governments and companies acknowledge the benefits that this proven technology can deliver by unlocking the energy value of stranded coal assets and turning coal fields into highly valuable gas fields. The evolution of unconventional gas production has dramatically reshaped the US energy market over recent years and has the potential to have a similar impact in Europe. However, unlike shale gas extraction methods, UCG does not apply hydraulic fracturing (fracking) technologies which have been the subject of controversy due to the associated environmental risks. Importantly, global developments continue to demonstrate the compelling environmental and economic fundamentals which UCG can deliver with projects being advanced in several countries including Australia, Canada, New Zealand, South Africa and China. We are confident that this pattern is set to continue, and we are committed to using our first-mover advantage in Hungary and Central and Eastern Europe ('CEE') to establish ourselves as UCG leaders in the region.

Our focus on CEE stems from several key factors which underpin the region's potential for the successful application of UCG technology. Primary factors which influenced our decision to focus on this area was the large amount of unexploited coal resources in the region and its high level of reliance on gas imports, especially from Russia, which has created strong domestic demand fundamentals. Issues regarding energy security and high gas prices are a high priority to regional governments and utility providers, and as such, this provides WHE with a market opportunity to be a supplier of syngas as a feedstock to power stations. The progression of this opportunity was formalised post period end in July 2012 through the signing of a cooperation agreement with the Hungarian Geological and Geophysical Institute and the Faculty of Earth Science and Engineering of University of Miskolc to set out the legislative and regulatory framework required to develop UCG projects in Hungary. All parties believe that this could provide Hungary with an instrumental opportunity to develop its extensive stranded coal reserves and potentially provide the blue print for UCG project development across Europe as governments seek to develop their own resources and establish energy independence.

As with UCG, uranium production provides Hungary with the potential to reduce its reliance on imported energy sources through the diversification of its fuel generation capabilities. In line with this, our strong relationship with the Hungarian Government extends through to our uranium interests. This materialised in June in the form of cabinet approval for the development of a joint venture and a special purpose vehicle in joint venture between the Company, Hungarian state owned Mecsek-Öko ("MO") and Mecsekérc ("ME"), and Hungarian Electricity Ltd ("MVM") owner of Paks Nuclear Power Plant ("Paks NPP"). This provides formal endorsement to evaluate the necessary conditions of a potential JV to develop the Mecsek Hills Uranium Project, a highly important historically producing asset, which is one of Europe's largest uranium projects with a total Inferred Resource of 48.3Mt at 0.072% U3O8 for 77Mlbs of U3O8.

The compelling energy dynamics in this region are well understood by UK investors, a factor which played a significant role in our decision to dual list WHE on London's AIM market. This came into fruition on 2 August 2011 and the Company is now dual-listed on both the AIM and ASX exchanges trading under the symbol 'WHE'. This was intended to increase the Company's exposure to European investment funds and communicate the Company's significant value uplift potential through the development and expansion of its highly prospective European UCG and uranium assets.

Looking ahead, we are at a transformational point in WHE's evolution, with our primary focus on the UCG side being the securing of a joint venture partner to fund the completion of the BFS at the Mecsek Hills UCG Project. During the period we raised a total of £7.52 million of which a portion will be spent on the BFS whilst we simultaneously identify a strategic partner to facilitate the study's completion. The Company is taking prudent measures to preserve funds during the strategic partner search and has postponed key costs associated with the BFS, including its UCG drilling and above ground engineering programme, until a strategic UCG partner is successfully obtained.

As previously mentioned, our ambitions for UCG development are not limited to Mecsek Hills, and we are actively seeking to expand our acreage across Central and Eastern Europe. In line with this, UCG licence applications are in progress in Poland, and early stage project development activities are underway in the Ukraine.

With regards to our uranium interests, we look forward to finalising an agreement with the Hungarian state owned uranium entities, which includes the creation of a joint venture company to be joined by all parties, subject to positive results from our evaluation.

I look forward to providing further details of our operational and corporate progress over the year to come, when I am satisfied that the foundation that we have built will prove to be the basis for more value accretion moving forward.

Mark Hohnen

Chairman

OPERATIONS REVIEW

Wildhorse Energy's strong proposition is focussed on developing the Company to become a leading provider of fuel in Central and Eastern Europe and with this in mind, we have been highly active and have met key milestones on an operational level at both our UCG and uranium assets in Hungary.

UCG

Essentially, UCG is a process which unlocks the energy potential of stranded deep coal reserves through its in-situ conversion to Synthesis Gas, or 'syngas', which is a fuel feedstock for power generation through the injection of oxygen delivered via an injection well. The main difference between this well-established coal gasification method (which has been used as far back as the early 1900s to convert gas from coal to power street lighting in many countries in the world) is that UCG companies gasify the coal in-situ, rather than extract and gasify it at the surface. This method utilises directional drilling techniques proven in the oil and gas industry, has numerous environmental, safety and financial benefits, and requires very little of the infrastructure associated with large scale energy projects. In addition, as described in the Chairman's Statement, compared with shale gas extraction, UCG does not use "hydraulic fracking", a method which creates fractures in the shale formation to increase gas flow rates, and has caused concerns particularly in continental Europe.

Our most advanced project is the Mecsek Hills UCG Project located in the region of Pécs in Hungary. This site fits our rigid acquisition criteria, not only geologically, but also by being close to infrastructure. In March we were delighted to announce the completion of a PFS which was a transformational step for the Company, and demonstrated the attractive economic and technical potential of supplying syngas as a gas feedstock for power stations.

The PFS was based on a ≥400 MWt Project consisting of two distinct phases. The first phase of the project is specifically designed to be a small scale commercial demonstration facility that exhibits all commercial and technical aspects of UCG and the above ground value chain. Successful demonstration of Phase I will enable WHE to expand the project and then further achieve the benefits of greater economies of scale, market recognition of the technology and expansion into other geographic markets.

In tandem with the PFS results, we also published an updated JORC Inferred coal resource of 185 million tonnes ('Mt') at the Váralja target area. This area will be the location of the Company's first UCG site called the Mecsek Hills UCG Project and notably, with only 22Mt estimated to be required for Phases I and II over a 25 year project life, this JORC statement demonstrated that we have more than enough coal to construct a long term project of this size subject to further exploration.

The completion of our PFS was a defining step in the Company's overall development, not only on a project level, but also on a corporate one, supporting the Company's broader strategy to seek to develop further projects in selected markets in CEE. The Board remains focussed on expanding our UCG portfolio through the identification and evaluation of additional UCG sites, in order to maximise our first mover advantage in Central Europe. We have made detailed assessments of a range of targets in different countries, and particularly in Poland due to its advanced legislation for alternative energy project, their heavy reliance on gas imports from Russia and large stranded coal resources.

Importantly, WHE is not alone in its recognition of the potential of UCG in Europe. In August 2011, the Company secured a Memorandum of Understanding with Air Liquide, the world leader in gases for industry, health and the environment, which sets out the terms for exclusive negotiations and cooperation between them and WHE. Under the terms of the MOU, Air Liquide will evaluate the technical and commercial conditions for installation of a new state-of-the-art air separation unit with the capacity to supply all the oxygen needs for WHE's UCG Project in Mecsek Hills, Hungary and shall develop its final proposal for oxygen supply to WHE based upon this evaluation.

We have initiated a range of activities including 3D seismic reinterpretation analysis and integration of the latest vertical seismic profile information for the coal resources of the project area and preparatory work with regards to licencing the UCG and Combined Cycle Gas Turbine plants ('CCGT').

Our highly experienced team is reviewing the optimal capacity for the project. The Company is exploring the potential for a small scale UCG to CCGT facility of approximately 50 MWe ("megawatt electrical") Gross (100 MWt LHV ("megawatt thermal low heat value") fuel input) in order to enhance potential returns through lower initial capital requirements and less stringent design and permitting requirements. We will also be reviewing potential options to reduce upfront capital expenditure for the project through a phased approach. Expediting the below ground portion of the facility will enable us to demonstrate the critical aspects of UCG prior to committing all the required capital for the project. This approach aims to assist the derisking of the project from a capital, and permitting point of view.

Additionally, the Company remains focussed on securing a strategic partner to fund the completion of the BFS and once secured the Company will initiate a drilling programme to upgrade its current JORC compliant Inferred resource to the Indicated and Measured categories which will be required prior to the completion of the BFS Phase.

Uranium

Sentiment surrounding the development of the Mecsek Hills Uranium Project is highly positive, both from the government and the local community. The project is comprised of WHE's 42.9 sq km Pécs-Abaliget uranium licence and Mecsek-Öko's adjoining 19.6 sq km MML-E uranium licence. With a total project JORC Inferred Resource of 48.3Mt at 0.072% U3O8 for 77Mlbs of U3O8 and an Exploration Target 1 of an additional 55-90Mlbs of U3O8 with a grade range of 0.075-0.10% U3O8, this is one of the largest deposits in Europe.

A crucial moment in the development of this strategically important asset was the Hungarian government's formal pledge of its support for the development of a JV between WHE, Hungarian state owned Mecsek-Öko and Mecsekérc, and MVM which is the owner of Paks nuclear power plant.

On the back of the Hungarian cabinet approval, we have commenced evaluation of the necessary conditions to restart uranium mining in the Mecsek Hills. Subject to positive results of our evaluation, we will create a joint venture company which will be joined by all parties, with the ultimate aim being the recommencement of uranium mining at the Mecsek Hills Uranium Project.

Outlook

This has been a highly active time for the Company, during which we have highlighted the commercial potential of our UCG project in Hungary, strengthening our expansion opportunities across Central and Eastern Europe and advanced the development of our uranium interests with the formal endorsement of the government.

In summary we have a significant opportunity for building value both on a project and corporate level and with this in mind, we look forward to providing regular operational and corporate updates concerning both our UCG and uranium assets. Over the coming months we anticipate making substantial progress with regards to our strategic partner search, uranium joint venture negotiations, and portfolio expansion, all of which I am confident will culminate in another year of strong progression for WHE.

I would like to take this opportunity to thank our shareholders, our highly experienced and dedicated team and advisers for their continued enthusiasm and support over the period.

Matthew Swinney

Managing Director

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

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2012

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2012

STATEMENT OF CASH FLOW

FOR THE YEAR ENDED 30 JUNE 2012

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 30 June 2012

1. Summary of significant accounting policies

Wildhorse Energy Limited is a company domiciled in Australia. The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statement report includes Wildhorse Energy Limited and its subsidiaries as the consolidated entity. Separate financial statements for Wildhorse Energy Limited, as an individual entity, are no longer required as a consequence of a change to the Corporations Act. Financial information for Wildhorse Energy Limited as an individual entity is included in Note 29.

a. Basis of Preparation

These general purpose financial statements have been prepared in accordance with Australian equivalents to International Financial Reporting Standards as adapted in Australia, other authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations and the Corporations Act 2001.

Compliance with IFRSs

Compliance with International Financial Reporting Standards as adopted in Australia ensures that the financial statements and notes of Wildhorse Energy Limited comply with International Financial Reporting Standards (IFRSs).

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available for sale financial assets, and certain classes of property, plant and equipment.

Critical accounting estimates

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity accounting policies (note 3).

b. Principles of Consolidation Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Wildhorse Energy Limited (Company) as at 30 June 2012 and the results of all subsidiaries for the year then ended. Wildhorse Energy Limited and its subsidiaries together are referred to in this financial report as the consolidated entity.

Subsidiaries are all those entities (including special purpose entities) over which the consolidated entity has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the consolidated entity controls another entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the consolidated entity. Intercompany transactions, balances and unrealised gains on transactions between consolidated entity companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of comprehensive income and statement of financial position respectively.

c. Business Combinations

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the consolidated entity. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the consolidated entity takes into consideration potential voting rights that currently are exercisable.

Acquisitions on or after 1 July 2009

For acquisitions on or after 1 July 2009, the consolidated entity measures goodwill at the acquisition date as:

·; The fair value of the consideration transferred; plus

·; The recognised amount of any non-controlling interests in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less

·; The net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.

When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss.

Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the consolidated entity incurs in connection with a business combination are expensed as incurred.

Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise subsequent changes to the fair value of the contingent consideration are recognised in profit or loss.

When share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree's employees (acquiree's awards) and relate to past services, than all or a portion of the amount of the acquirer's replacement awards is included in measuring the consideration transferred in the business combination.

This determination is based on the market-based value of the replacement awards compared with the market-based value of the acquiree's awards and the extent to which the replacement awards relate to past and/or future service.

Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary.

d. Segment Reporting

An operating segment is a component of the consolidated entity that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the consolidated entity's other components. All operating segments operating results are viewed regularly by the Managing Director to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The consolidated entity's segments are reportable in a manner that is consistent with the internal reporting provided to the chief operating decision maker, which has been identified as Hungary Coal, Hungary Uranium, United States of America and Central Europe.

Segment results that are reported to the Managing Director, who is the chief operating decision maker, include items directly attributed to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly, head office expenses.

Segment capital expenditure is the total cost incurred during the year to acquire property, plant and equipment exploration and evaluation expenditure, and intangible assets other than goodwill.

e. Foreign Currency Translation

Functional and presentation currency

Items included in the financial statements of the consolidated entity are measured using the currency of the primary economic environment in which the Company operates ('the functional currency'). The financial statements are presented in Australian dollars, which is Wildhorse Energy Limited's functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income, except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.

Consolidated entity companies

The results and financial position of the consolidated entity (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

·; assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

·; income and expenses for each statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions) and all resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders' equity. When a foreign operation is sold or borrowings repaid a proportionate share of such exchange differences are recognised in the statement of comprehensive income as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

f. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and duties and tax paid. Revenue is recognised for the major business activities as follows:

Interest Income

Interest income is recognised on a time proportion basis using the effective interest method. When a receivable is impaired, the consolidated entity reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the original effective interest rate.

Services Income

Services income relates to income generated from office sharing arrangements in both Australia and Hungary. Services income is recognised in the accounting period in which the services are rendered.

g. Income Tax

The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changed in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company's subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probably that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances related to the same taxation authority. Current tax assets and tax liabilities are offset when the entity has a legally enforceable right to offset and intends either to settle on a new basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity, respectively. In this case, the tax is also recognised in after the comprehensive income, or directly in equity respectively.

Wildhorse Energy Limited and its wholly-owned Australian controlled entities have not implemented the tax consolidation legislation.

h. Leases

The leases of property, plant and equipment where the consolidated entity has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease's inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other long term payables. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The interest element of the finance cost is charged to the statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

The property, plant and equipment acquired under finance leases are depreciated over the shorter of the asset's useful life and the lease term.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.

i. Acquisition of Assets

The purchase method of accounting is used to account for all acquisitions of assets regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given, shares issued or liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition. Where equity instruments are issued in an acquisition, the value of the instruments is their published market price as at the date of exchange unless, in rare circumstances, it can be demonstrated that the published price at the date of exchange is an unreliable indicator of fair value and that other evidence and valuation methods provide a more reliable measure of fair value. Transaction costs arising on the issue of equity instruments are recognised directly in equity.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the entity's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the statement of comprehensive income, but only after a reassessment of the identification and measurement of the net assets acquired.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the Company's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

j. Impairment of Assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

Cash and Cash Equivalents

For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

k. Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Trade receivables are due for settlement no more than 60 days from the date of recognition.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that the consolidated entity will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the statement of comprehensive statement.

l. Investments and Other Financial Assets

The Company's classification of its investments depends on the purpose for which the investments were acquired.

Management determines the classification of its investments at initial recognition and re-evaluates this designation at each reporting date.

Available-for-sale financial assets

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the statement of financial position.

Purchases and sales of investments are recognised on trade-date, the date on which the consolidated entity commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.

Available-for-sale financial assets are subsequently carried at fair value. Unrealised gains and losses arising from changes in the fair value of non-monetary securities classified as available-for-sale are recognised in equity in the available-for-sale investments revaluation reserve. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the statement of comprehensive income as gains and losses from investment securities.

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the consolidated entity establishes fair value by using valuation techniques, instruments or other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer's specific circumstances.

The Company assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired.

If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss is removed from equity and recognised in the statement of comprehensive income.

Impairment losses recognised in the statement of comprehensive income on equity instruments are not reversed through the statement of comprehensive income.

m. Fair Value Estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. The quoted market price used for financial assets held by the consolidated entity is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques.

The consolidated entity uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the consolidated entity for similar financial instruments.

n. Plant and Equipment

Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the consolidated entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Depreciation on plant and equipment assets is calculated using the straight line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows:

Plant and equipment 2 - 6 years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each statement of financial position date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of comprehensive income.

o. Exploration and Evaluation Expenditure

Exploration, evaluation and development expenditure incurred may be accumulated in respect of each identifiable area of interest.

These costs are carried forward only if they relate to an area of interest for which rights of tenure are current and in respect of which: such costs are expected to be recouped through successful development and exploitation or from sale of the area; or

i. exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active operations in, or relating to, the area are continuing.

Accumulated costs in respect of areas of interest which are abandoned are written off in full against profit in the year in which the decision to abandon the area is made. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Notwithstanding the fact that a decision not to abandon an area of interest has been made, based on the above, the exploration and evaluation expenditure in relation to an area may still be written off if considered appropriate to do so.

p. Intangible Assets

Intellectual Property

Intellectual property having a finite life is carried at cost less accumulated amortisation and impairment losses.

Amortisation is calculated using the straight line method to allocate the cost of intellectual property over the estimated useful life which is three years.

q. Trade and Other Payables

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

r. Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or finance cost.

Borrowings are classified as current liabilities unless the consolidated entity has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Borrowing Costs

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed.

s. Employee Benefits

Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

Share-based payments

Share-based compensation benefits are provided to employees via the Wildhorse Energy Limited Employee Option Plan and the Wildhorse Energy Employee Performance Rights Plan. Information regarding this scheme is set out in note 28.

In relation to the Employee Option Plan, the fair value at grant date is independently determined using the binomial or black scholes method of valuing of options that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The fair value of the options granted is adjusted to reflect market vesting conditions, but excludes the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable.

t. Bonus plans

The consolidated entity recognises a provision for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation, or as otherwise agreed by the Board of Directors.

u. Dividends

Dividends are recognised as distributions within equity upon approval of company's shareholders.

v. Earnings per Share

Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

w. Goods and Services Tax (GST) and Value Added Tax (VAT)

Revenues, expenses and assets are recognised net of the amount of associated GST and VAT, unless the GST or VAT incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the net asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST and VAT recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST and VAT components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.

x. New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2011, and have not been applied in preparing these consolidated financial statements. None of these are expected to have a significant effect on the consolidated financial statements of the consolidated entity, except for AASB 9 Financial Instruments, which becomes mandatory for the consolidated entity's 2014 consolidated financial statements and could change the classification and measurement of financial assets. The consolidated entity does not plan to adopt this standard early and the extent of the impact has not been determined.

2. Financial risk management

The consolidated entity's activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the consolidated entity. The consolidated entity does not engage in any hedging or derivative financial instruments. The consolidated entity uses sensitivity analysis to measure foreign exchange risks and aging analysis for credit risk assessment. Risk management is carried out by the Board of Directors.

The consolidated entity holds the following financial instruments.

Carrying value of the financial instruments

(a) Market risk

Foreign Exchange Risk

The consolidated entity operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Great Britain Pound and Euro.

Foreign exchange risk arises from future commercial transactions related to recognised assets and liabilities denominated in a currency that is not the entity's functional currency. The risk is measured by using sensitivity analysis and cash flow forecasting.

The consolidated entity has not entered into any derivative financial instruments to hedge anticipated future cash flows denominated in a foreign currency. The Board manages the purchase of foreign currency to meet operational requirements.

The consolidated entity's exposure to foreign currency risk at the end of the reporting was as follows:

Consolidated entity sensitivity

Exchange rates per AUD as at 30 June 2012:

A 10% increase or decrease in the value of Australian dollar against the above currencies at 30 June 2012 would have the following effect:

Price risk

The consolidated entity and Company have no exposure to equity securities price risk as there are no financial assets. Neither the consolidated entity nor the Company are exposed to commodity price risk.

Cash flow and fair value interest rate risk

The consolidated entity does not have any long-term borrowing, which would expose it to significant cash flow interest rate risk. The only interest rate risk arises from fluctuating interest rates for cash and cash equivalents held.

(b) Credit Risk

Credit risk is managed on a consolidated entity basis. Credit risk arises from, cash and cash equivalents, deposits with bank as well as credit exposures related to outstanding receivables and committed transactions.

All cash balances are held at internationally recognised institutions with the majority of cash being held with an A rated Australian Bank. Credit risk of receivables is identified by credit quality assessment, taking into account past experience, financial position and other factors.

(c) Liquidity Risk

Liquidity risk arises from the management of cash and cash equivalent resources. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, and ensures the availability of funding through an adequate amount of committed credit facilities. The consolidated entity manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

At reporting date the consolidated entity had sufficient cash reserves to meet its requirements. The consolidated entity therefore had no credit standby facilities or arrangement for further funding in place.

Financial assets contractual cash flows equal their carrying value.

The financial liabilities to be covered by financial assets at reporting date were trade payables incurred in the normal course of the business. These were non-interest bearing and due within the normal 30 days terms of creditor payments and the contractual cashflows equals their carrying value.

(d) Fair Value Estimation

The fair value of financial assets and financial liabilities must be estimated for disclosure purposes. The fair value of financial instruments that are not traded in an active market such as unlisted investments is determined using valuation techniques where applicable. Where this is unable to be done they are held at cost.

The carrying value less impairment provision of trade and other receivables and payables are assumed to approximate their fair values due to their short term nature.

3. Critical accounting estimates

The Directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the consolidated entity.

Key Estimates - Impairment

The consolidated entity assesses impairment at each reporting date by evaluating conditions specific to the consolidated entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

Exploration and evaluation expenditure

The consolidated entity's accounting policy for exploration and evaluation expenditure is set out in Note 1(o). The application of this policy requires management to make certain estimates and assumptions as to future events and circumstances, in particular, the assessment of whether economic quantities of reserves have been found.

Any such estimates and assumptions may change due to future events and circumstances. If, after having capitalised expenditure under this policy, the consolidated entity concludes that it is unlikely to recover the expenditure by future exploitation or sale, then the relevant capitalised amount will be written off to the statement of comprehensive income.

As at 30 June 2012, $97,987 of exploration and evaluation expenditure was impaired and is recognised in the comprehensive statement of income (refer to Note 19 Exploration and evaluation expenditure)

Share based payments

The consolidated entity's accounting policy for share based payments is set out in Note 1(s). The application of this policy requires certain assumptions to be made in relation to the value of options. Further details are included in Note 28.

Non-current assets held for sale

Included in note 16 is an amount relating to the groups US uranium assets, reallocated from exploration assets last year. Based on fair value assessment an impairment charge of $4,086,815 has been recorded in the statement of comprehensive income during the current year. The remaining assets have been recorded at the lower of cost or net realisable value.

4. Segment information

Management has determined that the operating segments are based on reports reviewed by the chief operating decision maker, the Managing Director, which are used to monitor performance and make strategic decisions. The business is considered from both a geographic and functional perspective and has identified four reportable segments: Hungary Coal and Hungary Uranium, United States and Central Europe.

Management assesses the performance of the operating segments based on a measure of contribution. This measure excludes items such as the effects of equity settled share based payments, and unrealised gains and losses on financial instruments. Interest income, corporate expenses, as well as other centralised expenses not attributable to segments.

Segment Report - 2012

Segment Report - 2011

5. Earnings per share

(a) Basic earnings per share

Basic earnings per share are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period.

(b) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. Diluted earnings per share are the same as basic earnings per share in 2011 and 2012 as the Consolidated Entity is in a loss position.

The following reflects the income and share data used in the basic and diluted earnings per share computations

As earning per share (EPS) is a loss per share, any potential ordinary share would be anti-dilutive. As a result per share is identical for basic and diluted EPS calculation.

6. Revenue from continuing operations

7. Other income

8. Other costs

9. Professional costs

Auditor's remuneration

10. Employee benefits

11. Net financial income/(expense)

12. Income tax expense

*Movement in deferred tax liabilities is due to foreign currency translation, provision movements and other timing differences

The Company has estimated income tax losses of $9,225,060 (2011: $7,432,275) available to be offset against future taxable income. A deferred tax asset in relation to the losses has not been recognised by the consolidated entity on the basis that it is not probable that there will be future taxable income available against which the tax losses can be utilised.

Current year's unused tax losses for which no deferred tax asset has been recognised in the balance sheet comprises of the followings:

Summarizing the above schedule AUD 57,604 unused tax losses can be carried forward for 5 years, AUD 46,493 for 20 years and AUD 1,588,262 for an indefinite period.

The Company has not consolidated for tax purposes.

The tax rate in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities on taxable profits under Australian tax law. There has been no change in the corporate tax rate when compared to the previous reporting period.

13. Cash and cash equivalents

Cash at Bank and on Hand

Of the cash at bank and on hand, $8,460,157 (2011: $1,924,240) is non-interest bearing. Of the cash at bank, $2,344,661 (2011: $11,570,104) is interest bearing at a floating interest rates of between 1.35% and 5.4 % (2011: between 3.0% and 6.25%).

Deposits at call

The deposits have a weighted average interest rate 4.96% (2011: 6.03%). These deposits have an average period to repricing of 45 days (2011: 60 days).

14. Deposits held

The mining deposits are held with banks for the Hungarian tenements.

15. Sundry debtors and other receivables

Sundry debtors and other receivables

Sundry debtors and other receivables arise from transactions outside the usual operating activities of the consolidated entity. The credit quality of sundry debtors and other receivables is assessed to be good.

Fair value and credit risk

Due to the short term nature of these receivables, their carrying amount is assumed to approximate their fair value.

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables as mentioned above. More information on the risk management policy of the consolidated entity is provided in note 2.

16. Non - current Assets held for sale

Exploration assets in the consolidated entity's U.S. operation are presented as assets held for sale. During the previous financial year, equipment from the U.S. operation was classified as held for sale. During the current financial year these assets have been impaired, resulting in an impairment charge of $4,086,815. The Sweet Water Uranium assets were sold and settled in March 2012. The sale price was 1.2 million US dollars, which was equal to the asset's book value. In August 2012 the Bison Basin Uranium assets were sold for 25,000 US dollars. The difference between the book value and realisable market value has been impaired as a subsequent event.

17. Property, plant and equipment & Intangible assets

Reconciliation of movement in Property, plant and equipment

18. Intangible assets

Reconciliation of movement in intangible assets