Independent Engineer's Review, Mecsek Hills UCG

AIM and ASX listed Wildhorse Energy Limited ('WHE' or 'the Company') is focussed on developing underground coal gasification ('UCG') and uranium projects in Central Europe and is delighted to announce the conclusion of an independent engineer's review of its flagship Mecsek Hills UCG Project ('Mecsek Hills' or 'the Project') design, conceptual engineering, scope of facilities, key technical assumptions and cost estimates.

WorleyParsons Europe Limited ('WorleyParsons')1 undertook the independent review for WHE as part of an internal due diligence procedure to validate the engineering design and cost estimation compiled by CDE Process Pty Ltd's ('CDE')2 which forms the technical backbone of the Company's Preliminary Feasibility Study ('PFS').

Highlights from the Independent Review:

·; The independent review provides WHE with an impartial assessment of the design quality, key technical assumptions, engineering standards and cost estimation to construct a UCG facility for the Project

·; Outcome provided confirmation to WHE that the engineering design forms a satisfactory basis of design for the Bankable Feasibility Study ('BFS')

·; The conclusions of WorleyParsons further underpin WHE's confidence in the UCG potential of the Project ahead of its PFS publication expected by the end of Q1 2012

WHE Managing Director Matt Swinney said, "WorleyParsons' independent review of the above ground engineering design for a UCG facility at Mecsek Hills is positive news for the Company and assists with the conclusion of our PFS, targeted for completion by the end of Q1 2012. CDE's engineering design is incorporated into the PFS and we look forward to progressing its design during our BFS, which will benefit from a solid understanding of gasification systems gained through work with Sasol and others."

Independent Engineer's Review

WorleyParsons was appointed by WHE to conduct an independent engineer's review of a PFS engineering design for the UCG facility planned to be constructed in southern Hungary. The above ground engineering design for the PFS was developed by CDE, a process engineering company from South Africa. CDE was chosen as the PFS Engineering Contractor due to its experience in gasification systems and expertise in utility plant design, having been involved in a number of similar projects for Sasol and others.

The engineering objective of a PFS is to identify a technology value chain and an associated process flow scheme that suits the business requirements. The PFS also confirms the technical feasibility and as final output predicts the constructed plant cost by producing an Order Of Magnitude (-15% / +30% potential deviation) cost estimate.

As part of the due diligence on the PFS engineering process, an independent review was required to assess the following key technical and design aspects:

·; Technology Evaluations,

·; Block Flow Diagrams,

·; Process Flow Diagrams,

·; Equipment Lists,

·; Design Basis,

·; Design Philosophies,

·; Scope Of Facility,

·; Key Assumptions, and

·; Order Of Magnitude Cost Estimate.

The general conclusion provided to WHE by WorleyParsons on the engineering work performed by CDE was that the Conceptual Engineering is comprehensive and addresses all reasonable aspects required; making the proposed engineering adequate and fit for purpose, given the stage of development and inevitable uncertainties.

In relation to the brief provided, the specific key findings provided to WHE were as follows:

1. The engineering process and methodology used to arrive at the given recommendation meet satisfactory engineering practices and are of good engineering standards.

2. Confirmation of the suitability of the proposed solution and that it is a satisfactory basis of design for Bankable Feasibility Study (BFS).

3. Confirmation that the Cost Estimation is representative of the technical scope.

The Company shall now continue with concluding the PFS and expects to complete it in this quarter.

**ENDS**

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

Further Information on Wildhorse:

Wildhorse Business Model

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

Business Strategy

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

Footnotes

1 The review was prepared pursuant to a scope of work provided by WHE and is based upon information made available to WorleyParsons by WHE. The review is for WHE's benefit to assist WHE in concluding its PFS by validating that the engineering process and methodology used in the PFS maintains good engineering practices and design standards and rolls over into appropriate cost estimation for the capital project. The report is not intended to be relied upon by any third party other than WHE and WorleyParsons accepts no third party liability with respect to the report. For more information visit www.worleyparsons.com

2 For more information visit www.cdeprocess.co.za