Interim Results

Wildhorse Energy ('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, is pleased to announce its interim results for the six months ended 31 December 2012. A full version of the report is available on the Company's website at www.wildhorse.com.au.

Highlights:

·; Successful completion and positive findings delivered from Cooperation Agreement study ('the Study') with the Hungarian Geological and Geophysical Institute and the University of Miskolc' Faculty of Earth Science and Engineering

o Expansive potential for UCG in Hungary demonstrated in the Study - considerable relevance to the national energy strategy due to its positive impact on energy security of supply and endorsing domestic clean coal technologies

o The Study has demonstrated that only minor amendments are needed to be incorporated into the legislative and regulatory framework to develop UCG projects - facilitating the development of UCG in Hungary by WHE and providing a model for replication in additional countries

·; Coal licence applications advancing in Central and Eastern Europe in line with roll-out strategy to become a leading provider of fuel in the region

·; Solid progress advancing strategic partner selection with discussions underway with several parties to evaluate the potential to WHE's initial commercial demonstration project ('CDP') in Hungary

o Non-binding Memorandum of understanding ('MOU') concluded with E.ON Hungária ZRt ('E.ON Hungária'), to examine and evaluate the feasibility of constructing a ~100MWt syngas, 50MWe UCG CDP within E.ON Hungária's distribution area in Hungary

·; Positive progress made with engineering re-design studies to refine the UCG project model in order to lower initial capital requirements and provide the ability to apply simplified licencing procedures

·; Completion of Hungarian Government due diligence evaluation and encouraging findings reported relating to the feasibility of recommencing uranium mining at the Mecsek Hills Uranium Project, one of the largest uranium deposits in Europe

Managing Director's Report

The WHE team has been primarily focussed on forging of relationships with key strategic partners during the period under review, in addition to establishing the necessary legislative and regulatory requirements relating to the facilitation of development of its UCG portfolio.

Significant advancements on both a commercial and operational front across WHE's UCG and uranium portfolio have underpinned the Board's conviction that the future for alternative and nuclear energy development in CEE is an area of enormous potential, and one which is increasingly gaining recognition from policy decision makers and investors alike. When considering the increasing importance being attached to energy security the urgent need to develop sustainable domestic sources of fuel is evident. Importantly, this stance is increasingly being adopted by governments and utilities companies in the region, which positions WHE strongly to capitalise on its first mover advantage and advanced applications in CEE.

UCG Portfolio

Cooperation Agreement - Regulation of UCG in Hungary

The period under review has been marked by the development and completion of WHE's technical and risk assessment study relating to the Cooperation Agreement with the Hungarian Geological and Geophysical Institute and the Faculty of Earth Science and Engineering of the University of Miskolc, and the associated development of the legislative and regulatory framework required to develop UCG projects in Hungary.

This study, which was completed and delivered in February, yielded highly positive results demonstrating the significant potential for UCG implementation in Hungary, underpinning our confidence that Hungary represents a good location for our initial commercial demonstration project ('CDP'). It was concluded that UCG is an exploitation technology, which falls within the same category as conventional coal mining and that the current, valid legal framework provides sufficient guidelines for the authorities to licence UCG, with minor modifications to ensure better management of environmental risks.

With the objective of efficiently formulating and implementing the appropriate regulatory modifications highlighted in our evaluation of the current framework, WHE continues to work actively with all parties and I look forward to providing further updates to this process in due course.

Strategic Partner Selection

As shareholders will be aware, the Board has been advancing negotiations with several potential strategic partners to fund the completion of the Bankable Feasibility Study ('BFS') for WHE's flagship Mecsek Hills UCG Project.

A great deal of progress has been in made in this process and in this vein, WHE announced a non-binding Memorandum of Understanding with E.ON Hungária. Under the terms of the MOU, E.ON Hungária, together with WHE, will examine and evaluate the feasibility of constructing a UCG CDP within E.ON Hungária's distribution area in Hungary and of a size of approximately 100 MWt syngas, 50 MWe.

The 100% WHE-owned Mecsek Hills UCG Project is WHE's most advanced UCG project and having successfully demonstrated the attractive economic and technical potential of supplying syngas as a gas feedstock for a dedicated power station through its Pre-Feasibility Study in Q1 2012, the Company has since been evaluating a range of strategic partners to enable it to fund the completion of the BFS. Once secured, the Company intends to recommence the BFS and initiate a drilling programme to upgrade its current JORC compliant Inferred resource of 185 Mt to the Indicated and Measured categories.

E.ON Hungária is the Hungarian regional unit of the associated E.ON group of companies that comprises one of the largest privately owned power and gas companies in the world with sales of just under €113 billion in 2011. The Hungarian unit, as one of the largest companies in the country with over 3 million customers, is primarily engaged in power wholesale and power and gas distribution and retail.

Mecsek Hills UCG Project Engineering Studies & Work Programme

On an operational front, WHE has concentrated on the advancement of engineering re-design studies with the objective of reducing initial capital requirements and simplifying licencing procedures through the adoption of a phased development approach.

As part of the phased approach, the Company is focusing its engineering redesign works on developing the CDP in two phases, the first phase being 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 the Company 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 initial capital requirement to demonstrate successfully the de-risking of UCG gas production rates and quality and will therefore assist with future capital requirements. The required funding for the above ground facilities and equipment, components of the second phase of development, represents the most significant portion of the required project funds.

WHE has also progressed works to enhance environmental and resource definition and comprehension of its project target coal areas at the Mecsek Hills UCG Project. This work includes 3D seismic re-processing and interpretation, in consultation with the Hungarian Geophysical and Geological Association, MFGI, to develop a three dimensional model of the target project coal resource including geological discontinuities and stratigraphical horizons. A high resolution two dimensional seismic measurement and historical borehole logging is also being undertaken to further de-risk the project and define project target coal packages and coal mining panel selection in the site selection process. The WHE team, in conjunction with Golder and Associates, are also investigating environmental studies and baseline water monitoring to assist in building a database to understand the effect of seasonality on water quality and the water quality prior to any gasification operations.

A preliminary rock mechanical model to determine near and far field geotechnical behaviour associated with the gasification process will be completed in Q2 2013 and will address issues such as subsidence and mining panel geometry.

Central and Eastern European UCG Roll Out

As part of Wildhorse's regional UCG roll out strategy, Wildhorse has previously initiated coal exploration applications in five areas in the Czech Republic and a further six areas in Poland. These exploration areas contain significant coal resources that are believed to be suitable for the development of large scale UCG projects and thus form an important part of Wildhorse's corporate strategy.

Steady progress continues with these applications, with several Polish applications expected to be concluded during the coming half year.

Uranium Interests

Mecsek Hills Uranium Project

Turning to WHE's uranium interests, which consists of the Mecsek Hills Uranium Project, combining WHE's 42.9 sq km Pécs-Abaliget uranium licence and Hungarian state-owned Mecsek-Öko's ('MO') adjoining 19.6 sq km MML-E uranium licence. The project has a total JORC Inferred Resource of 48.3Mt 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.

Development has focussed on a Hungarian Government required due diligence evaluation with the objective of assessing the viability of recommencing uranium mining at the Mecsek Hills Uranium Project. The evaluation, which delivered positive findings during the period, examined the environmental, water protection, health and safety, mining design, public support and regulatory aspects of recommencing uranium mining at the Mecsek Hills Uranium Project.

This due diligence evaluation follows the formal pledge of support during the period from the Hungarian Government for the development of a Joint Venture ('JV') between the Company, MO and Mecsekérc, and Hungarian Electricity Ltd ('MVM'), the owner of Paks Nuclear Power Plant to evaluate the necessary conditions to restart uranium mining.

Financial position

The consolidated entity had cash and cash equivalents balances on hand at 31 December 2012 of $7,186,223 (30 June 2012: $10,804,818).

A net loss of $4,235,984is reportable for the six months ended 31 December 2012 (31 December 2011: $7,684,980 loss), with a basic loss per share of 1.1 cents (31 December 2011: 3.1 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 $4,235,984 during the six months ended 31 December 2012 bringing the accumulated loss for the consolidated entity to $59,953,058. Included in the loss for the period is an impairment of exploration expenditure of $1,278,171. As at 31 December 2012 the consolidated entity had current assets of $8,277,592 and sufficient cash and liquid securities to pay its debts and to fund near term anticipated activities.

Equity

As at 31 December 2012, the Company had 403,058,774 ordinary shares on issue. The number of unlisted options on issue was 47,831,455.

Lead Auditor's Independence Declaration under section 307C of the Corporations Act 2001

The lead auditor's independence declaration is set out on page 7 and forms part of the Directors' report for the half-year ended 31 December 2012.

Signed in accordance with a resolution of the Directors:

Matthew Swinney

Managing Director

Condensed consolidated interim statement of comprehensive income

For the six months ended 31 December 2012

*See note 4

The condensed consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated interim financial statements.

Condensed consolidated interim statement of financial position

As at 31 December 2012

*See note 4

The consolidated statement of financial position is to be read in conjunction with the notes to the consolidated interim financial statements.

Condensed consolidated interim statement of Changes in equity

For the six months ended 31 December 2012

Condensed consolidated interim statement of Changes in equity

For the six months ended 31 December 2011

The condensed consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated interim financial statements.

Condensed consolidated interim statement of cash flows

For the six months ended 31 December 2012

The condensed consolidated interim statement of cash flows is to be read in conjunction with the notes to the consolidated interim financial statements.

Condensed 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 283 Rokeby Road, Subiaco WA 6008. The consolidated interim financial report of the consolidated entity for the six months ended 31 December 2012 comprises the Company and its subsidiaries (together referred to as the consolidated entity).

This consolidated interim financial report was approved by the Board of Directors on 14 March 2013.

2. Basis of preparation

Statement of compliance

These interim consolidated financial statements are for the six months ended 31 December 2012. 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 2012, 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 2012.

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 $4,235,984 during the six months ended 31 December 2012. Included in the loss for the period is an impairment of exploration expenditure of $1,278,171. As at 31 December 2012, the consolidated entity had current assets of $8,277,592 and sufficient cash and liquid securities to pay its debts and to fund near term anticipated activities.

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 2012.

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 FX 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 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, which are not attributable to segments.

For six months ended 31 December 2012

For six months ended 31 December 2011

The below schedule contains the income and losses of Wildhorse Energy Ltd. and the reconciliation of reportable segment loss:

* Including Wildhorse Energy Limited and Wildhorse Energy South Africa

6. Employee benefits

7. Non-current assets held for sale

(i) In August 2012 the Company sold US Bison Basin Uranium assets for 25,000 US dollars (24,215 Australian dollars).

8. Plant, property and equipment

9. Exploration and evaluation expenditure

Movement in exploration and evaluation expenditure

(ii) A regular review is undertaken of each area of interest to determine the appropriateness of continuingto carry forward costs in relation to that area of interest. During the period the directors decided to relinquish Mecsek-Komló Hydrocarbon and Ajka projects based on the performed exploration and evaluation work. As a result an impairment charge of $1,278,171 has been recorded in the statement of comprehensive income ($1,248,318 for Mecsek-Komló Hydrocarbon project and $29,853 for Ajka project).

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.

10. Intangible assets

Movement in intangible assets

11. Commitments

There has been no change in leasing agreements and bank guarantees since the last annual reporting date, 30 June 2012.

12. Contingencies

There has been no change in contingent liabilities since the last annual reporting date, 30 June 2012.

13. 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 2012

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

Movement in share options for the six months ended 31 December 2012

* This represents the average fair value of the grants.

14. Related party transactions

Directors and Specified Executives

Remuneration of Directors and Key management personnel has been set and paid based on the principles set forth in the 30 June 2012 Annual Report.

Other related parties

There has been no change in other related parties since the last annual reporting date, 30 June 2012.

15. Subsequent events

No 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 the opinion of the directors of Wildhorse Energy Limited ("the Company"):

1. the interim financial statements comprising the statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity and notes set out on pages 13 to 19, are in accordance with the Corporations Act 2001 including:

1. giving a true and fair view of the financial position of the consolidated entity as at 31 December 2012 and of its performance and cash flows for the six months ended on that date; and

2. complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

2. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors:

Matthew Swinney

Managing Director