Proposed rights issue and Update

AIM and ASX listed Wildhorse Energy ('WHE' or 'the Company') is pleased to announce that is has today lodged a rights issue prospectus with the Australian Securities Investment Commission ('ASIC') in relation to a proposed pro rata non-renounceable rights issue to raise up to approximately Aus$1.435 million (before costs). The funds raised will be used as general working capital to further the Company's existing projects and also to identify and evaluate additional uranium and other resource projects.

Details of the Offer:

The Offer to shareholders is one (1) fully paid ordinary share ('Share') in the capital of the Company for every two (2) shares held by shareholders who are on the Company's register as at 5.00pm (WST) on 7 July 2014 (Record Date) at an issue price of Aus$0.007 per share.

Participation in the Rights Issue is available to Wildhorse Energy shareholders registered on the Record Date who reside in Australia, New Zealand and the United Kingdom ('Eligible Shareholders'). Option holders who wish to participate in the Offer must exercise their options and be entered onto the register as a Shareholder prior to the Record Date.

The Offer is not underwritten.

Any fractional entitlements arising from the Offer will be rounded up. 

As the Offer is non-renounceable, the rights cannot be transferred or sold. Based on the current capital structure of the Company, up to approximately 205,000,000 Shares will be issued pursuant to the Offer. Shares issued under the Offer will rank equally with all fully paid ordinary shares in the capital of the Company which WHE currently has on issue. The Company will make application for official quotation of the new Shares proposed to be issued under the Offer. Shareholders who do not take up all or any part of their entitlement will not receive any payment or value in respect of the entitlement not taken up and their equity interest in the Company will be diluted.

Outlined below is a timetable of relevant events and dates relating to the Offer. These dates are indicative only and subject to change. For further information shareholders are referred to the prospectus which is available on the Australian Stock Exchange ('ASX') and the Company's websites. Copies of the prospectus will also be posted to Eligible Shareholders. Subject to the ASX Listing Rules, the Corporations Act and other applicable laws, the Company's Board reserves the right to modify all dates, including the Entitlement Offer closing date.

Application for new Shares under the Offer may only be made by completing the Application Form which accompanies the prospectus. Shareholders eligible to participate in the Offer should read the prospectus carefully and consult professional advisers as necessary.

UPDATE ON SALE OF UCG ASSETS

The Company's half yearly financial report for the half-year ended 31 December 2013 included a going concern risk. It was noted that as at 31 December 2013, the Company had cash and cash equivalents of $1,223,840 (30 June 2013: $5,417,836) and the cash flow forecast at that time showed that it did not have sufficient funds to meet its minimum committed administrative and exploration expenditure for at least twelve months from the date of signing those financial statements.

It was further noted that in order to continue funding its operations, the Company will need to raise additional capital in the future and/or sell the assets. The going concern risk noted that in February 2013 the Company entered into a Heads of Agreement to sell its UCG assets to Linc Energy. Investors need to be aware that the Heads of Agreement has been extended and is now due to expire on 21 July 2014 (unless extended by mutual agreement). At the date of this Prospectus, the sale of the UCG assets to Linc Energy has not proceeded to a formal agreement stage and has not been finalised, and there is a risk that the sale will not be finalised. If the sale is not finalised, the Company will not receive the consideration set out above and the Company will cease funding the UCG assets.

At the time of signing the HOA, the Company also signed a Funding Agreement with Linc Energy whereby Linc Energy would provide A$400,000 in four equal tranches of A$100,000 payable at the beginning of each month as a contribution towards the Company's costs associated with the operations of the UCG entities. With a payment made at the beginning of June, 2014 Linc Energy has now completed all four payments.

Until the Company is certain that the sale to Linc Energy will proceed and the project is funded, the Company is now reducing all costs on site. If the sale to Linc Energy does not proceed, the licence will not be current and will be at risk of termination.

**ENDS**

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