Interim Results

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 Europe, is pleased to announce its interim results for the six months ended 31 December 2011. A full version of the report is available on the Company's website at www.wildhorse.com.au.

Highlights

·; Ongoing development of the Mecsek Hills Underground Coal Gasification ('UCG') Project in Hungary ahead of the release of the Preliminary Feasibility Study ('PFS') in March 2012

·; Significant progress made with confirmatory drilling campaign at Mecsek Hills UCG Project with multiple coal seams intersected - completion of final two holes at Varalja exploration target anticipated shortly

·; Successful completion of 3D seismic programme at Mecsek Hills UCG Project focussing on identifying prospective coal blocks in Varalja to assist with UCG site selection

·; Memorandum of Understanding ('MOU') signed with world leading gases company Air Liquide to evaluate the potential to supply all the oxygen needs for the Mecsek Hills UCG Project

·; Supportive comments regarding the development of coal assets and the application of UCG in Hungary by Hungarian Office of Mining and Geology

·; Progress made in evaluating and securing coal deposits potentially suitable for UCG application in additional Central European countries

·; Successful listing on AIM in August 2011 to increase visibility within the European investor community

·; Appointment of Csaba Bokor, a European energy and resource development specialist as Chairman of Wildhorse Energy Hungary Kft, the Company's wholly owned subsidiary, to advance the Company's uranium interests in Hungary

Managing Director's Report

PFS, Drilling Programme & 3D Seismic at the Mecsek Hills UCG Project

Over the period, the Company has been actively advancing its confirmatory drilling campaign at the Mecsek Hills UCG Project which is being conducted in conjunction with its PFS to facilitate the identification of the most prospective UCG sites.

Multiple coal seams have been intersected and the Company is drilling the final two boreholes at the Varalja exploration target. Confirmatory holes have been drilled across the Komló, Pécs and Varalja target areas, using a mixture of Poly Crystalline Diamond ('PCD') and diamond coring techniques. On completion, the assay results will be reviewed to identify which coal seams may be most suitable for UCG.

Final site selection will follow the completion of the drilling programme and assessment of factors including geological structure, coal suitability, land access, local infrastructure and mining layout. After site selection is completed the important next steps directly linked to the site such as environmental permitting, hydrogeology studies as well as regulatory confirmation as to what mining licence(s) shall be required to permit conversion of coal into syngas utilising UCG technology.

As of 31 December 2011 drilling of the final two confirmatory boreholes, CH6 and CH7, in the Varalja exploration target area were underway and had intersected two and three seams at CH6 and three seams in CH7 all with UCG potential. As of 31 December borehole CH6 was at a depth of 537m and core recovery levels were above JORC requirements of 95%. CH7 was at a depth of 604m and core recovery was also above the JORC minimum of 95%. The programme is aimed at improving confidence in the large historic database, comprising approximately 558 drill holes, and to prove the resource potential of parts of the Mecsek Hills Project to the internationally accepted JORC reporting standard. As announced on 25 May 2011, the Company has already delineated a maiden JORC Inferred Coal Resource of 81 million tonne (80.6) for the Komló Target Area and the updated drilling results will be announced in conjunction with the PFS in March 2012.

Additionally WHE has also successfully completed a 3D seismic programme, comprising of 15 square kilometres to assist UCG site selection and drill programme planning for the further development of the project, particularly in relation to a potential Bankable Feasibility Study.

Memorandum of Understanding with Air Liquide

At the end of August 2011, the Company was pleased to announce an MOU which sets out the terms for exclusive negotiations and cooperation between the Company and Air Liquide, the world leader in gases for industry, health and the environment. 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 on WHE's UCG site in Pécs, Hungary 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.

In line with the initial findings of the ongoing PFS, focussed on utilising UCG technology for a >400 MWt UCG project on the Mecsek Hills UCG Project, WHE will require up to 300 tonnes of oxygen per day during Phase I of the project. Phase 1 is centred on commercial demonstration where approximately 130 MWt of syngas will be supplied to a Combined Cycle Gas Turbine to generate approximately 60 MWe (megawatt electrical) of which around 2 MWe shall be consumed through self-consumption. In line with this, the project will have incremental oxygen needs of up to 600 tonnes per day in Phase II, bringing the total daily oxygen requirement to 900 tonnes per day.

The MOU follows a period of thorough evaluation conducted by WHE. Air Liquide was selected as a result of offering the most favourable set of solutions to supply the Company with oxygen at the site, on both a technical and economic basis. During the term of the MOU, the two parties will explore further avenues of cooperation, regarding the supply of gases for WHE's UCG project. Under the terms of the MOU, Air Liquide will have exclusive rights to negotiate the design and permitting of a Cryogenic Oxygen plant on WHE's UCG site in Pécs, Hungary and to build, own, and operate the plant which will produce at least 98% pure oxygen, providing favourable commercial value to both parties. Following completion of the PFS, Air Liquide and WHE will proceed with negotiations.

Successful Listing on AIM

On 2 August 2011, the Company announced that WHE had successfully commenced trading under the symbol 'WHE'. WHE is now dual-listed on both the AIM and ASX exchanges. The dual listing is 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.

At the time of listing, GMP Securities Europe LLP was the sole broker to the Company and Grant Thornton UK LLP its Nominated Adviser. Subsequent to the listing on AIM, the Company also announced the appointment of Liberum Capital Limited as joint brokers to the Company.

Appointment of European Energy and Resource Development Specialist as Chairman of Wildhorse Energy Hungary Kft

In line with WHE's strategy to create a world class energy projects management team in Hungary, the Company announced the appointment of Mr. Csaba Bokor as Non-executive Chairman of Wildhorse Energy Hungary Kft, the Company's wholly owned subsidiary which controls development of the Mecsek Hills Uranium Project ('Mescek Hills').

Mr. Bokor has extensive knowledge of the energy dynamic in Central Europe and a valuable network within the energy sector. Most recently, he was Exploration and Production ('E&P') Managing Director of the Hungarian national oil and gas company, MOL Rt., in charge of designing and implementing its E&P strategies and cost efficiency programme in the region. During this time, MOL Rt. became the leading oil company in Central and Eastern Europe. Additionally, Mr. Bokor has held positions on the Board of Ural Group Limited, a Kazakhstani oil company, and OOO ZMB, a Siberian oil company based in Moscow, Russia. In late 2010, the Hungarian government entrusted Mr. Bokor to design the new strategy and to oversee the task of the MD of MAL Hungarian Aluminium in response to the red sludge spill from the Ajkai Timfoldgyar Zrt plant. Mr. Bokor also previously held the positions of Chairman and Vice Chairman of the Hungarian Mining Association.

Mr. Bokor's success in driving resource projects throughout his career and his knowledge of operating in Central Europe, both operationally and regulatory, will be highly advantageous to the Company as it looks to advance and maximise the value of the Mecsek Hills Uranium Project, alongside in‐country uranium development partners Mecsek‐Öko and Mecsekérc. Additionally, Csaba's experience and contacts within the Hungarian government will also play an important role in consulting with the government regarding a range of corporate matters across the Company.

Suki UCG Project

The Company resolved during the period not to pursue exploration and evaluation of the Suki UCG Gas Project in Hungary following advice from the Hungarian Mining Authority that the Company's initial proposed exploration programme had been rejected. In line with this the grant of the Exploration Licence has been terminated. Although the decision is open to appeal, the Board has decided not to pursue the project due to the expense of the required onerous exploration programme which would have been at the expense of the other higher priority exploration projects the Company is now developing.

US Uranium Exploration Projects

The Company has sought expressions of interest in its three non-core uranium exploration projects in the United States during the period, being its interests in the Sweetwater and Bison Basin projects in Wyoming, and the Golden Eagle project in Colorado. The Company is looking to dispose of its interests in these non-core assets as they no longer fit the Company's strategic focus of becoming a leading provider of fuel in Central Europe.

Financial Position

The consolidated entity had cash and cash equivalents balances on hand at 31 December 2011 of $5,304,571 (30 June 2011: $13,494,340).

A net loss of $7,684,980 is reportable for the six months ended 31 December 2011 (31 December 2010: $3,509,363 loss), with a basic loss per share of 3.1 cents (31 December 2010: 1.5 cents loss per share).

Going Concern

The interim financial statements of Wildhorse Energy Limited have been prepared on the going concern basis of accounting, which assumes the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The consolidated entity incurred a loss of $7,684,980 during the six months ended 31 December 2011 bringing the accumulated loss for the consolidated entity to $51,550,822. As at 31 December 2011, the consolidated entity had current assets of $9,415,255 and sufficient cash and liquid securities to pay its debts and to fund near term anticipated activities.

In order to continue with the exploration and development programmes on the consolidated entity's underground coal gasification and uranium projects, further cash injections by way of equity, debt or other means will be necessary.

Subject to market conditions, the Company has the ability to raise additional equity as required and at the time of this report, the Directors consider that the Company could raise cash by way of equity to fund anticipated activities of the consolidated entity. The Directors will take the appropriate action to ensure these funds are available as and when they are required.

Equity

As at 31 December 2011, the Company had 250,928,627 ordinary shares on issue. The number of unlisted options on issue was 48,856,528.

Matthew Swinney

Managing Director

15 March 2012

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

Consolidated statement of comprehensive income

For the six months ended 31 December 2011

Consolidated statement of changes in equity

For the six months ended 31 December 2011

Consolidated statement of changes in equity

For the six months ended 31 December 2010

Consolidated interim statement of financial position

As at 31 December 2011

Consolidated interim statement of cash flows

For the six months ended 31 December 2011

Notes to the consolidated interim financial statements

1. Reporting entity

Wildhorse Energy Limited (the 'Company') is a company domiciled in Australia. The address of the Company's registered office is Level 21, Allendale Square, 77 St Georges Terrace, and Perth WA 6000. The consolidated interim financial report of the consolidated entity for the six months ended 31 December 2011 comprises the Company and its subsidiaries (together referred to as the consolidated entity).

This condensed consolidated interim financial report was approved by the Board of Directors on 15 March 2012.

2. Basis of preparation

Statement of compliance

These interim consolidated financial statements are for the six months ended 31 December 2011. They have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial report of the consolidated entity for the year ended 30 June 2011, and any public announcements made by Wildhorse Energy Limited during the interim accounting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Significant accounting policies

These consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 30 June 2011.

The accounting policies have been applied consistently throughout the consolidated entity for the purposes of preparation of these consolidated interim financial statements unless otherwise stated.

Going concern

The interim financial statements of Wildhorse Energy Limited have been prepared on the going concern basis of accounting, which assumes the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The consolidated entity incurred a loss of $7,684,980 during the six months ended 31 December 2011 bringing the accumulated loss for the consolidated entity to $51,550,822. Included in the loss for the period is an impairment of exploration assets held for sale of $3,790,309. As at 31 December 2011, the consolidated entity had current assets of $9,415,255 and sufficient cash and liquid securities to pay its debts and to fund near term anticipated activities.

In order to continue with the exploration and development programs on the consolidated entity's underground coal gasification and uranium projects, further cash injections by way of equity, debt or other means will be necessary.

Subject to market conditions, the Company has the ability to raise additional equity as required and at the time of this report, the Directors consider that the Company could raise cash by way of equity to fund anticipated activities of the consolidated entity.

The Directors will take the appropriate action to ensure these funds are available as and when they are required.

3. Estimates

The preparation of interim financial reports requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this consolidated interim financial report, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report as at and for the year ended 30 June 2011.

4. Segment reporting

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.

For six months ended 31 December 2011

5. Employee benefits

6. Non-current assets held for sale

(i) At each reporting date, the company assesses its projects to determine if their recoverable amount is less than its carrying value. When this occurs, the company impairs the asset to the recoverable amount value. During the period the directors determined that the recoverable amounts for the consolidated entity's US uranium assets was less than their carrying value. As a result an impairment charge of $3,790,309 has been recorded in the statement of comprehensive income.

7. Plant, property and equipment

8. Exploration expenditure

Movement in exploration and evaluation expenditure

(a) The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful development and commercial exploitation or sale of the respective areas of interest.

9. Intangible assets

Movement in intangible assets

10. Commitments

There is no change in commitments since the last annual reporting date, 30 June 2011.

11. Contingencies

There is no change in contingent liabilities since the last annual reporting date, 30 June 2011.

12. Issued capital

The consolidated entity recorded the following amounts within shareholder's equity as a result of the issuance of ordinary shares:

Movement in ordinary shares capital for six months ended 31 December 2011

Movement in ordinary shares capital for six months ended 31 December 2010

Movement in share options for the six months ended 31 December 2011

* This represents the average fair value of the grants.

13. Related party transactions

Directors and officers, or their personally-related entities, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities.

a) Transactions with related subsidiaries

Arrangements with related subsidiaries continue to be in place. For details on these arrangements, refer to the 30 June 2011 annual financial report. There have not been any changes to these related subsidiaries' arrangements since lodgement of the 30 June 2011 annual financial report.

b) Transactions with key management personnel

In relation to the other Group directors and key management personnel, their remuneration has been set and paid based on the principles set forth in the 30 June 2011 remuneration report.

During the half-year, Mr Csaba Bokor was engaged as the Non-executive Chairman of Wildhorse Energy Hungary Kft, the company's wholly owned subsidiary. As a non-executive director, he is not employed under an employment contract, and is remunerated through director fees.

 c) Transactions with other related entities

Arrangements with other related entities continue to be in place. For details on these arrangements, refer to the 30 June 2011 annual financial report. Below are details of new related entities to Wildhorse Energy Limited ("WHE") arising during the period:

(i) Clean Global Energy Ltd (CGV) is a company associated with Mr Brett Mitchell, who is currently a Director of CGV.

(ii) Tamaska Oil & Gas Ltd (TMK) is a company associated with Mr Brett Mitchell, who is currently a Director of TMK.

14. Subsequent events

The following matters or circumstances have arisen since the end of the financial period which significantly affect or may significantly affect the operations of the consolidated entity, the results of those operations, or state of affairs of the Group in future financial years:

In February 2012, the Company signed a new non-binding Co-Operation Agreement ('the Agreement') with Mecsek-Öko and Mecsekérc, the state-owned corporations responsible for the development and rehabilitation of the Hungarian uranium sector. The Agreement is designed to develop a joint venture company to re-start uranium mining at the Mecsek Hills Uranium Project ('the Project') in southern Hungary, comprising the 42.9 sq km Pécs uranium licence, owned by the Company, and the 19.6 sq km MML-E licence, owned by Mecsek-Öko. Jointly, the Project has a JORC compliant Inferred resource of 48.3Mt at 0.072% U3O8 for 77Mlbs of U3O8 and a total JORC Exploration Target1 of a further 55-90Mlbs of U3O8 with a grade range of 0.075-0.10% ('U3O8'). This Project will be advanced in tandem with the Company's existing underground coal gasification ('UCG') portfolio, where the PFS for the flagship Mecsek Hills UCG Project is nearing completion.

**ENDS**

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.

Competent Persons Statement

The information in the report to which this statement is attached that relates to the Mecsek Hills Uranium Project Mineral Resource is based on information compiled by Mr Lauritz Barnes and Mr Neil Inwood who are both Members of The Australasian Institute of Mining and Metallurgy. Mr Barnes is an independent consultant and Mr Inwood is employed by Coffey Mining.

Mr Barnes is the Competent Person responsible for the database, modelling, estimation methodology and Classification. Mr Inwood has reviewed the resource estimate and consents to take dual responsibility for the estimation methodology and Classification.

Both Messrs Barnes and Inwood and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves"

Footnotes

1 The size and grade of the Exploration Target is conceptual in nature and it is uncertain if further exploration will result in the determination of a mineral resource. There is currently insufficient data to define a JORC compliant Mineral Resource for the Exploration Target. Mr Barnes and Mr Inwood (Competent Persons) have reviewed the historical data available for the Mecsek Hills Uranium Project and both made site visits to the area. They consider the Exploration Target to be reasonable based on the data available.