Issue of Convertible Loan Notes

14 March 2011

LP Hill Plc

("LP Hill" or the "Company")

Issue of Convertible Loan Notes

LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals exploration and development company operating in Madagascar, is pleased to announce that the Hereford Group Limited ("Hereford"), an existing significant shareholder in the Company, has today agreed to subscribe £300,000 for additional convertible unsecured loan notes of the Company (the "Convertible Loan Notes").

The Convertible Loan Notes are interest bearing at a rate of 2 per cent. per annum above the base rate of the Royal Bank of Scotland plc from time to time and interest will be compounded annually on the principal outstanding loan amount.

The Convertible Loan Notes are unsecured and repayable on 14 March 2014 or, at the option of the Company, at any time prior to 14 March 2014 with the consent of Strand Hanson Limited, the Company's nominated adviser, such consent not to be unreasonably withheld or delayed. A redemption premium of 20 per cent. of the principal amount is to be paid by the Company in the event of any early repayment by the Company prior to 14 March 2014 or on any balance of the Convertible Loan Notes not ultimately converted into new ordinary shares at the conversion price of 10 pence per share. The noteholder is entitled to convert all or part of the principal loan amount advanced into new ordinary shares in the Company at a conversion price of 10 pence per ordinary share at any time until the final repayment date. The notes are transferrable in minimum tranches of £5,000 subject to certain limited restrictions.

The Company intends to use the net proceeds from the issue of the Convertible Loan Notes for general working capital purposes. The Company expects to raise additional equity and/or debt finance in due course to ensure that the group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements and potential future development opportunities.

Following the abovementioned subscription, Hereford now holds £300,000 of convertible unsecured loan notes due 2014, £100,000 of convertible unsecured loan notes due 2012 and is interested in 2,000,000 ordinary shares representing approximately 7.14 per cent. of the Company's issued share capital.

Gerry Nealon, LP Hill's Executive Chairman, commented:

"We are delighted with the continuing support provided by Hereford and look forward to them remaining a long term shareholder of the Company."

For further information, please contact:

or visit: www.lphill.com.au