Final Results

30 September 2013

Wildhorse Energy Limited ("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, announces its results for the year ended 30 June 2013.

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

CHAIRMAN'S STATEMENT

In spite of challenging circumstances for resource companies across the world, we have continued to progress in our strategic objective of becoming an alternative energy provider focussed on the Central and Eastern European ('CEE') market. We currently have two primary interests in the alternative energy arena; underground coal gasification ('UCG') and uranium. Both aspects of our asset portfolio have the potential to contribute towards the widening energy deficit recognised in our geographic area of focus, and with this in mind, we remain active in seeking ways to advance development at both the Mecsek Hills UCG Project, and the Mecsek Hills Uranium Project, in order to capitalise on the favourable energy demand environment in CEE.

Our focus on this area is driven by the continued high level of reliance on gas imports, especially from Russia, which has created strong domestic demand fundamentals. Concerns regarding long term energy security have prompted regional governments and utility providers alike to reassess their sources of energy and fuel moving forward, and working in collaboration with WHE, they have introduced further important measures to facilitate the application of both UCG technology and uranium production.

As described in the Operations Review following, WHE has worked closely with the Hungarian Government and key local stakeholders in order to pave the way for the development of both our UCG and uranium interests. In regard to the introduction of UCG regulation in Hungary, WHE worked in partnership with the Hungarian Geological and Geophysical Institute, the University of Miskolc and Golder Associates in order to compile a study, "Guidelines for Implementing Underground Coal Gasification in Hungary", which highlighted the potential for the country to exploit its extensive coal reserves. The completion of the study, and the presentation of its key findings in April 2013, was a key milestone for WHE and effectively established a framework for defining the necessary regulatory and legislative parameters required for UCG development. In line with this, a proposal for the amendments to the existing legislation to allow for the licensing of UCG has been prepared by the Hungarian Mining Authority and is pending Parliamentary approval, which is expected shortly.

Aside from our UCG interests, the Hungarian Government has reiterated its openness to evaluating the potential to develop the country's uranium resources, formally pledging its support for the development of a Joint Venture ('JV') between the Company, Hungarian state owned Mecsek-Öko ('MO') and Mecsekérc ('ME'), and Hungarian Electricity Ltd ('MVM'), the owner of Paks Nuclear Power Plant ('Paks NPP'), to evaluate the necessary conditions to restart uranium mining at the Mecsek Hills Uranium Project. Our Managing Director, Matt Swinney, explains more on this important process in the Operations Review.

In summary, I believe that WHE has made significant strides in fulfilling its stated strategy of developing alternative fuel and energy sources in CEE. However, in order to execute our plans to advance our key interests, we are dependant on the availability of appropriate financing. The international capital markets are beginning to recover but funding for large capex and uranium projects remains difficult. We have been actively engaging with a number of parties to secure a partner and subsequently the development blue print of our asset base. We remain committed to this process as it is crucial to our plans going forward. Accordingly I look forward to providing further updates regarding this in due course.

Finally I would like to take this opportunity to thank our shareholders and the rest of the WHE team for their on-going support of the Company.

Mark Hohnen

Chairman

OPERATIONS REVIEW

WHE has delivered on various important components associated with the progression of its Hungarian UCG and uranium interests during the period under review, covering operational, commercial and legislative initiatives crucial to the execution of both the Mecsek Hills UCG Project and the Mecsek Hills Uranium Project. In addition, the Company has made significant inroads regarding the roll out of its UCG portfolio, in line with WHE's strategy to implement its first mover advantage to expand its UCG activities in Europe.

UCG

The implementation of UCG technology, 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, remains a core focus of our strategy. The operational and commercial attractiveness of this technology, which has the potential to revolutionise the energy sector in Europe, is compelling.

By combining well-established coal gasification techniques (which have been used as far back as the early 1900s to convert gas from coal to power street lighting in many countries in the world) with directional drilling techniques proven in the oil and gas industry, UCG technology enables the gasification of coal in-situ to create feedstock for power stations. UCG technology also provides significant environmental and safety benefits, offering companies, governments and local stakeholders with a vital alternative to the commercialisation of the large stranded coal assets common across Central and Eastern Europe.

WHE's most advanced project is the Mecsek Hills UCG Project located in the region of Pécs in Hungary. This asset was identified by our UCG team due to its adherence to our project selection criteria, not only geologically, but also by being close to infrastructure.

Following completion of the Preliminary Feasibility Study ('PFS') for the Mecsek Hills UCG Project in March 2012, the Company has successfully continued the advancement of the engineering re-design studies to explore the potential for a commercial demonstration UCG to CCGT facility of approximately 50 MWe Gross (100MWt LHV fuel input), in order to lower initial capital requirements and ability to apply simplified licencing procedures. The study is reviewing potential options to reduce upfront capital expenditure for the project through a phased development approach. The first phase would comprise the development of the underground gas production facility and the second phase, the above ground gas processing, gas clean up and gas turbine facilities. This approach will enable WHE to demonstrate critical aspects of UCG, such as gas quality and flow rates, prior to obtaining all the required capital for the complete project, which includes both phases. The Company will also demonstrate these qualities and the safety features of the project to the appropriate regulators. The Company believes this approach will substantially reduce the capital requirement to successfully demonstrate the de-risking of UCG gas production rates and quality, and will therefore greatly assist with future capital requirements. The required funding for the above ground facilities and equipment represents the most significant portion of the required project funds.

In addition, the WHE team continues to work closely with the Government of Hungary with a view to introducing UCG regulation in Hungary. In line with this, the government required a study regarding the "Guidelines for Implementing Underground Coal Gasification in Hungary". This was completed in January 2013 in cooperation between the Hungarian Geological and Geophysical Institute, the University of Miskolc, Golder Associates and WHE.

With the key aspects of the study comprising analysis of UCG technology, in addition to evaluations on the UCG potential in Hungary, environmental considerations, geological aspects of site selection, risk assessment and legislative aspects of UCG and its application in Hungary and the rest of the world, the study provided a thorough assessment of the commercial and environmental desirability of UCG application. The study concluded that UCG, as a clean coal technology, can provide Hungary with an opportunity to develop its extensive stranded coal reserves.

WHE continues to focus on strengthening its geological understanding of the Váralja target within the licence area. This target has a current Inferred JORC resource of 185Mt and will be the location for the commercial demonstration UCG to Combined Cycle Gas Turbine facility ('CDP') of approximately 50MWe Gross (100MWt LHV fuel input).

Following the successful completion of the 3D seismic reinterpretation at the Váralja target in Q1 2013, the Company completed high resolution 2D seismic measurements in June 2013. This was aimed at increasing the level of confidence regarding the geological continuity of the coal seams within the Váralja target, thus de-risking it before drilling commences to upgrade the current Inferred resource to Indicated status. The processing interpretation of the 2D seismic results is expected to be completed in Q3 2013. In compliance with its technical operating plan, Wildhorse is also undertaking drilling at its Váralja target area. This work is progressing well and will assist to further delineate the target resource area. In addition to the above work, during the past 12 months various geotechnical and hydrological works have also been performed.

At a local project level, discussions with the neighbouring village have also progressed with a Cooperation Agreement having been signed in April 2013. This outlines mutual support to investigate the possible development of UCG in the area.

Outside of the Company's main UCG focus at the Mecsek Hills UCG Project, in line with the Company's strategy to utilise its first mover advantage and increase its acreage in Europe, we were delighted to announce that WHE has been awarded the Alwernia Coal Exploration Licence ('Alwernia') in Poland post period end.

Alwernia is situated in the eastern part of the Upper Silesian Coal Basin ('USCB'). The historical mining of the USCB goes back to the 17th century with peak production experienced in the 1970s. Although Alwernia has never been exploited, there are 10 historical boreholes and two seismic lines in the area and the licence is adjacent to documented carbon deposits: Wisła-Północ, Spytkowice and Tenczynek. The qualities of these deposits, and the data available from previous exploration, indicate the Alwernia deposit's potential suitability for UCG. In addition to the favourable geology, the potential commerciality of this project is further enhanced by the numerous coal power plants located in the area which can be targeted as potential customers. The Siersza power plant is the closest and has electric power of 786MWe and thermal power of 36.5MWt, located approximately 8km to the north. Alwernia is also located about 1km from the high-pressure gas pipeline, which currently transfers natural gas through the Polish pipeline system and is managed by GAZ-SYSTEM S.A.

Uranium

In tandem with WHE's UCG activities, the Company is progressing the development of the Mecsek Hills Uranium Project which combines WHE's 42.9km2 Pécs-Abaliget uranium licence and Hungarian state owned Mecsek-Öko ('MO') adjoining 19.6km2 MML-E uranium licence. The project has a total JORC Inferred Resource of 48.3Mt (from which 38.5Mt wholly owned by WHE and 9.8Mt held by MO) 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.

It is of crucial importance that the Hungarian Government formally pledged its support for the development of a Joint Venture ('JV') between the Company, MO and Mecsekérc ('ME'), and Hungarian Electricity Ltd ('MVM'), the owner of Paks Nuclear Power Plant ('Paks NPP'), to evaluate the necessary conditions to restart uranium mining, and the Company has been working actively on this since June 2012.

A Special Purpose Vehicle ('SPV') uranium entity was established in September 2012 and in Q2 2013 all parties, namely ME, MVM and Kővágószőlős Municipality, joined the uranium administrative SPV and signed agreements to purchase 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').

The Study was completed in November 2012 and following the joining of these shareholders as joint company partners, the Study has been shared with all parties and the competent ministries. When the assessment is complete, the JV Partners will seek formal Hungarian government approval to finalise the joint venture agreements between the parties and permit development of the project.

The authors of the Study thoroughly examined all conditions that may rule out or pose significant risks to restarting uranium mining. 18 companies and 63 experts contributed, among them several nationally and internationally recognised professionals of their field. The Study did not demonstrate any technical issues which would pose significant risks and threaten the development of the project.

In line with this, WHE is actively evaluating the optimum route for development of the project, together with its SPV partners, in order to maximise the value of this significant uranium asset.

Financial Review

As an exploration company which has no revenue, WHE is reporting a loss after income tax for the year ended 30 June 2013 of $7,983,999. This is reduced from the previous year's losses of $11,901,389. Operating expenses have been reduced by 27%.

Exploration and evaluation costs totalling $2,155,661 (2012: $5,942,190) were capitalised in accordance with the Consolidated Group's accounting policy. The exploration and evaluation costs primarily comprise costs in relation to the exploration and evaluation of the Hungarian UCG and Mecsek Hills Uranium Projects.

The Group's cash position at the end of the period was $5,417,836. The Company continues to advance its strategic partner search with a number of parties with the aim of funding the future development of its projects. The Consolidated Group's net assets decreased to $37,250,622 (2012: $40,324,475), mainly due to the loss for the current reporting period. Exploration and evaluation assets increased to $33,333,280 (2012: $28,731,585) including capitalised exploration costs of $2,155,661, foreign exchange rate movements of $4,180,133 offset by impairment of assets of $1,734,099.

Business Risk Analyses

The Company plans to remain focused on advancing its primary Hungarian interests, comprising the Mecsek Hills UCG Project and the Mecsek Hills Uranium Project, during the coming financial year, whilst also continuing to evaluate new project opportunities in the Central and Eastern European region.

The material business risks that may have an effect on the financial prospects of the Company, and the ways in which these risks are managed by the Company, are listed below:

· Future Capital Needs - as an exploration company, WHE does not currently generate cash from its operations. The Company will require further funding in due course in order to meet its corporate expenses, continue its exploration activities at the Mecsek Hills UCG Project and the Mecsek Hills Uranium Project and to develop these projects further.

· Exploration and Development Risks - whilst the Company has already defined coal and uranium resources at the related project sites, there remains a risk that the Company's mineral deposits may prove economically unviable. The Company employs geologists and other technical specialists and engages external consultants where appropriate to address this risk.

· Commodity Price and Exchange Rate Risk - as a Company which is focused on the exploration for and the evaluation of coal and uranium deposits, WHE is exposed to movement in the coal, natural gas and uranium prices. These commodity prices have fluctuated significantly over recent years and may continue to do so. The Company monitors historical and forecast coal, natural gas and uranium price information from a range of sources in order to help its planning and decision making. The Company is also exposed to movement in foreign exchange rates of Hungarian Forint (HUF), Great Britain Pound (GBP), Euro (EUR), Czech Koruna (CZK) and US dollar (USD).

Matthew Swinney

Managing Director

27 September 2013

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

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2013

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

* See Note 4

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013

The above statement of financial position should be read in conjunction with the accompanying notes.

*See Note 4

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2013

*See Note 4

The above statements of changes in equity should be read in conjunction with the accompanying notes.

STATEMENT OF CASH FLOW

FOR THE YEAR ENDED 30 JUNE 2013

The above statement of cash flow should be read in conjunction with the accompanying notes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

1. Summary of significant accounting policies

Wildhorse Energy Limited is an entity domiciled in Australia.

The principal activities of the Consolidated Group during the course of the financial year were the exploration and evaluation activities related to underground coal gasification projects and uranium projects in Europe. The consolidated Group is a for-profit entity.

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 Group. 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.

(a) Basis of Preparation

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB).

The annual report was authorised for issue by the Directors on 27 September 2013.

Basis of measurement

These financial statements have been prepared on the historical cost basis, with the exception of the following material item:

- assets held for sale are measured at fair value less the estimated costs of sale

Critical accounting estimates and judgements

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and assumptions. It also requires management to exercise its judgement in the process of applying the Consolidated Group accounting policies. Critical estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable and may have a significant impact on the amounts recognised in the financial statements.

During the preparation of the 2013 financial statements critical judgements were made to assess the fair value of assets held for sales. Management made critical judgements to determine the valuation technique of these assets. Critical accounting estimates are included in Note 3.

Financial Position

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Consolidated Group will be able to realise assets and extinguish liabilities in the ordinary course of business. The Consolidated Group has recognised a net loss after tax of $7,983,999 for the year ended 30 June 2013.

As at 30 June 2013, the Consolidated Group had cash and cash equivalents of $5,417,836 (2012: $10,804,818). The Consolidated Group cash flow forecasts show that the group will have adequate cash resources to fund its operations until 30 June 2014.

In order to continue funding the Consolidated Group operations beyond 30 June 2014, the company will need to raise additional capital in the future. Based on previously successfully completed capital raisings, the Directors are confident that sufficient funds will be obtained to meet the Consolidated Group obligations.

Management acknowledges that the ability of the Consolidated Group to meet its funding requirements is dependent on future capital raising or sale of projects. However, as described above, management has a reasonable expectation that the Consolidated Group has adequate resources to continue in operational existence for the foreseeable future.

(b) Reclassification of comparative information

Certain comparative have been reclassified to conform with the presentation and classification of the current financial year.

(c) Principles of Consolidation Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Wildhorse Energy Limited as at 30 June 2013 and the results of all subsidiaries for the year then ended. Wildhorse Energy Limited and its subsidiaries together are referred to in these financial statements as the Consolidated Group.

Subsidiaries are all those entities (including special purpose entities) over which the Consolidated Group 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 the share of voting rights.

The Financial Statements of Subsidiaries are fully consolidated from the date on which control commences until the date that control ceases.

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Consolidated Group.

Intercompany transactions, balances and any unrealised gains or losses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. Accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Consolidated Group.

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

(d) 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 Group. 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 Group 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 Group 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 acquire; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquire; 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 Group 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 acquires employees (acquires 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 acquires awards and the extent to which the replacement awards relate to past and/or future service.

Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. Adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary.

(e) Segment Reporting

An operating segment is a component of the Consolidated Group 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 Group is 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 Group segments have 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 and intangible assets.

(f) Foreign Currency Translation

Functional and presentation currency

Items included in the financial statements of the Consolidated Group 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 at exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rates at the reporting date. Foreign exchange gains and losses resulting from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

 Foreign operations

The results and financial position of the Consolidated Group that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

· assets and liabilities of foreign operations are translated at the closing rates at the reporting date;

· 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 in other comprehensive income and presented in foreign currency translation reserve, as a separate component of equity.

· goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign entity and translated at exchange rates at the reporting date.

When a foreign operation is sold, the cumulative amount in the translation reserve related to that foreign operation is recognised in the statement of comprehensive income as part of the gain or loss on sale. However, if the foreign operation is a non-wholly owned subsidiary, then the relevant proportion of the translation difference is allocated to non-controlling interests.

(g) 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 of the company is recognised on services provided.

(h) Other income

Net gain on disposal of property, plant and equipment and financial instruments is presented as other income. Gain and losses on disposals are determined as the difference between the net proceeds from disposal and the carrying amount of the assets.

Fair value gains on financial assets (at fair value through profit or loss) are recognised as other income.

(i) Financial income and expense

Interest Income

Interest income is recognised on term deposits by using the effective interest method.

Foreign currency gains and losses

Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either financial income or financial expense depending on whether foreign currency movements are in a net gain or net loss position.

(j) Income Tax

The income tax expense or income 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 changes 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 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 value of the financial instruments 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 transactions other than a business combination that at the time of the transaction affects neither of accounting non-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 to the extent that if it is probable that future taxable amounts will be available against which those deductible temporary differences and unused tax losses can be utilised.

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 net 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 other comprehensive income, or directly in equity respectively.

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

(k) Leases

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.

(l) 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.

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.

(m) Impairment of Assets

Non-financial assets

The carrying amounts of non-financial 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. Exploration and evaluation expenditures that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount.

Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:

· The term of exploration licence in the specific area of interest has expired during the reporting period or will expire in the near future, and is not expected to be renewed;

· Substantive expenditure in further exploration for and evaluation of mineral resources in the specific area are not budgeted nor planned;

· Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the decision was made to discontinue such activities in the specified area; or

· Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.

Where a potential impairment is indicated, an assessment is performed for each CGU which is no larger than the area of interest. The Company performs impairment testing in accordance with the accounting policy 1(m).

The recoverable amount of an asset is the higher of its fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses as recognised in statement of comprehensive income. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

Financial assets measured at amortised cost

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and fair value. Assets that are not individually significant are collectively assessed for impairment by grouping together assets with similar risk characteristics. In assessing collective impairment, the Group uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, applying management's judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends. 

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 Group will not be able to collect all amounts due according to the original terms of receivables. Impairment losses are recognised in statement of comprehensive income.

(n) Financial Instruments

The fair value of financial assets must be estimated for recognition, measurement and for disclosure purposes. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Consolidated Group has transferred substantially all the risks and rewards of ownership. Risks arising from financial instruments are disclosed in Note2.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method, less any impairment losses.

Loans and receivables comprise of trade and other receivables.

Cash and cash equivalents comprise cash balances and cash call deposits with original maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Consolidated Group in the management of its short-term commitments.

Short term receivables with no stated interest rate are measured at the original contracted amount if the effect of discounting is immaterial. The maximum exposure to credit risk is represented by the carrying amount of these financial instruments.

Financial liabilities

Financial liabilities are recognised initially at fair value less any directly attributable transaction costs and subsequently measured at amortised cost by using the effective interest rate method. Short term financial liabilities with no stated interest rate are measured at the original contracted amount if the effect of discounting is immaterial

Financial liabilities comprise loans and borrowings and trade and other payables.

Trade and other payables represent unpaid liabilities for goods and services provided to the Consolidated Group. These amounts are unsecured and usually paid within 30 days of recognition.

(o) Plant and Equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment loss. Cost includes expenditures that is directly attributable to the acquisition of the assets.

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 Group 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 net of their residual values, over their estimated useful lives, as follows:

Plant and equipment 2 - 7 years

The assets' residual values and useful lives are reviewed, and adjusted if required annually, at each reporting 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. Impairment loss is recognised in other comprehensive income.

Gains and losses on disposals are determined as the difference between the net proceeds from the disposal and the carrying amount of the asset(s). These are included in the statement of comprehensive income as other income.

(p) Exploration and evaluation expenditure

Exploration and evaluation expenditures are expenditures incurred by the Consolidated Group in connection with the exploration and evaluation of mineral resources before the technical feasibility and commercial viability of extracting these resources can be proved. These expenditures are recognised as exploration and evaluation Assets presented by specific areas where the consolidated group has legal rights to explore certain (Uranium, Coal and CBM) mineral resources.

Accounting for exploration and evaluation expenditures is assessed separately for each 'area of interest'. An 'area of interest' is an individual geological area which is considered to constitute a favourable environment for the presence of a mineral deposit or has been proved to contain such a deposit.

Expenditure incurred on activities that precede exploration and evaluation of mineral resources, including all expenditure incurred prior to securing legal rights to explore an area, is expensed as incurred.

A regular review is undertaken to determine the appropriateness of the carrying value of exploration and evaluation assets.

There is no need of recognition of any impairment loss in the following cases:

· the carrying value of the assets is expected to be recovered through successful exploitation

· or expected to be recovered from sale of the area,

· or exploration and evaluation activities in the area have not reached a stage which permits a reasonable assessment of the recoverable value of the asset and active operations in, or relating to, the area are continuing.

Exploration and evaluation assets include:

· Acquisition of rights to explore;

· Topographical, geological, geochemical and geophysical studies;

· Exploratory drilling, trenching and sampling; and

· Activities in relation to evaluating the technical feasibility and commercial viability of extracting the mineral resource.

General and administrative costs are allocated to, and included in, the cost of exploration and evaluation assets only to extent that those costs can be related directly to the operational activities in the area of interest to which the exploration and evaluation assets relate. In all other instances, these costs are expensed as incurred.

Exploration and evaluation asset in respect of an area of interest which is abandoned is to be written off in full against profit in the year in which the decision to abandon the area is made. See accounting policy for impairment in Note 1(m).

(q) Intangible Assets

Intellectual properties are 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 one to three years.

(r) Assets held for sale

Assets held for sale are expected to be sold within 12 months and are measured at fair value. Their fair value is assessed based on their estimated realisable market value of the asset. The difference between the book value and estimated realisable market value is to be written off.

(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.

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 Director's Report.

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 Group 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 acquired 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 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 2013, 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 Group, except for AASB 9 Financial Instruments for which the Consolidated Group has not made an assessment of the impact of these amendments.

2. Financial risk management

The Consolidated Group 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 Group 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 Group. The Consolidated Group does not engage in any hedging or derivative financial instruments. The Consolidated Group 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 Group holds the following financial instruments.

Carrying value of the financial instruments

(a) Market risk

Foreign Exchange Risk

The Consolidated Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Hungarian Forint (HUF), Great Britain Pound (GBP), Euro (EUR), Czech Koruna (CZK), Polish Zloty (PLN), US dollar (USD) and South African Rand (ZAR).

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

The Consolidated Group 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 Group exposure to foreign currency risk at the end of the reporting was as follows:

Consolidated Group sensitivity

Exchange rates per AUD as at 30 June:

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

Price risk

The Consolidated Group and Company have no exposure to equity securities price risk as there are no financial assets of this type. Neither the Consolidated Group nor the Company are exposed to commodity price risk.

Cash flow and fair value interest rate risk

The Consolidated Group does not have any long-term borrowing or long term deposits, which would expose it to significant cash flow interest rate risk.

(b) Credit Risk

Credit risk is managed on a Consolidated Group 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.

The Consolidated Group does not have any past due financial assets and based on the credit quality assessment, the credit quality of financial assets is good.

The maximum exposure to credit risk of the company is equal to the carrying amount of the financial assets, $5,797,514.

(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 Group 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 Group had sufficient cash reserves to meet its requirements. The Consolidated Group therefore had no credit standby facilities or arrangement for further funding in place.

Financial assets and liabilities contractual cash flows equal their carrying value.

The financial liabilities of $601,488 (2012: $718,437) comprises of trade and other payables incurred in the normal course of the business are covered by cash and cash equivalents of $5,417,836 (2012: $10,804,818) at the end of the financial year. These were non-interest bearing and due within the normal 30 days terms of creditor payments.

(d) Fair Value Estimation

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

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

3. Critical accounting estimates

The Directors make estimates and judgements incorporated into the financial statements 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 Group.

Key Estimates - Impairment

The Consolidated Group assesses impairment at each reporting date by evaluating conditions specific to the Consolidated Group 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 Group accounting policy for exploration and evaluation expenditure is set out in Note 1(p). The application of this policy requires management to make certain estimates and assumptions as to future events and circumstances, in particular, assumptions of future changes in resource prices and operating expenses, expected changes in market conditions and 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 Group 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.

For the year ended 30 June 2013, $1,734,099 of exploration and evaluation expenditure was impaired and is recognised in the comprehensive statement of income (included in Note 20 Exploration and evaluation expenditure).

Share based payments

The Consolidated Group'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.

Assets held for sale

Included in Note 17 is an amount relating to the groups United States uranium assets, reclassified from exploration assets last year. Based on fair value assessment an impairment charge of $46,251 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. To determine the net realisable value the company made assumptions about the Uranium asset market conditions and prices. The fair value assessment of non-current assets held for sale has been confirmed by management.

4. Prior period restatement

Following a review of capitalised exploration and evaluation expenditure with regards to the March 2010 acquisition of Peak Coal, prompted by the change in auditors, the Company determined that a certain component of capitalised exploration and evaluation expenditure had not been fully converted from the functional currency (HUF) of the relevant subsidiary to the reporting currency (AUD). In accordance with Australian accounting standards the amount of the currency variation between the time of the acquisition and the reporting date has to be recorded as an adjustment. It is the opinion of the Board that this does not affect the future potential of the assets due to the fact that it is only owing to the relative foreign exchange valuation of the HUF compared to the AUD.

The impact of the restatement on the statement of financial position is the following:

The impact of the restatement on the statement of comprehensive income is the following:

5. 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 to comprehensive income. 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 - 2013

1The elimination of segment liabilities decreased comparing to the previous period due to decrease of intercompany loans.

Segment Report - 2012

*See Note 4

6. Loss 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 2013 and 2012 as the Consolidated Group 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, earnings per share is identical for basic and diluted EPS calculation.

7. Other income

8. Other costs

The other operating expenses of $333,883 (2012: $424,416) includes telephone cost, IT cost, bank charge and other operating expenses.

9. Professional costs

Auditor's remuneration

Professional costs include tax and other advisory services provided by KPMG in the amount of $71,288.

10. Employee benefits

11. Financial income

12. Financial expense

13. Income tax expense

The Company has estimated income tax losses of $10,245,110 (2012: $9,225,060) available to be offset against future taxable income. A deferred tax asset in relation to the losses has not been recognised by the Consolidated Group on the basis that it is not probable that there will be future taxable income available against which the tax losses can be utilised.

Unused tax losses carried forward, for which no deferred tax asset has been recognised in the balance sheet comprises of the following:

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.

14. Cash and cash equivalents

Cash at bank and on hand, amounting to $3,529,373 (2012: $8,460,157) is non-interest bearing.

Deposits at call of $1,888,463 (2012: $2,344,661) are interest bearing at a fix interest rates of between 3.5% and 4.0 % (2012: between 1.35% and 5.4 %). Deposits at call have a weighted average interest rate 3.84% (2012: 4.96%). These deposits have an average period to repricing of 30 days (2012: 45 days).

15. Deposits held

Mining deposits are held with banks for the Hungarian tenements. During the current financial year the mining deposit of $822,178 has been realised for Mecsek Komló Hydrocarbon project which has been written of.

16. 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 Group. The credit quality of sundry debtors and other receivables is assessed to be adequate.

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 Group is provided in Note 2.

17. Assets held for sale

Exploration assets in the Consolidated Group relating to the U.S. operation (United States of America segment) are presented as assets held for sale. In August 2012 the Bison Basin Uranium assets were sold for 25,000 US dollars, which was equal to the asset's book value. During the current financial year the remaining Golden Eagle Uranium assets have been impaired (as a result of fair value assessment), resulting in an impairment charge of $46,251. During the fair value assessment management took into consideration the current conditions of Uranium asset market and their expertise in the sector.

18. Property, plant and equipment

Property, plant and equipment of the company comprise office equipments.

Reconciliation of movement in plant and equipment