September 2015 Quarterly Report

The Board of Wildhorse Energy Limited (the "Company" or "Wildhorse") presents its September 2015 quarterly report.

Highlights during, and subsequent to, the quarter include:

Ø The Company completed a shallow core drilling program at the Lake Wells Project, which confirmed that the brine saturated sediment across the Lake is at least 20 metres deep in most areas, with excellent porosity and brine chemistry for estimating a substantial initial resource. The program has also produced a comprehensive set of intact core and brine samples for geological interpretation, aquifer modelling and ongoing chemical analysis.

Highlights of the program include:

· Average depth achieved of 16 metres. Only 2 out of 32 holes appear to have encountered basement rocks.

· A zone of saturated coarser-grained evaporite sediments within the upper 3-4 metres of the Lake bed have been encountered in most drill holes in the program.

· All brine chemistry and porosity assay data have been received for the program with highly encouraging porosity results (average 46.4% v/v) and brine chemistry (average K: 4,012 mg/L and S04: 19,037 mg/L).

Ø Modelling and estimation of an initial JORC resource for the shallow portion of Lake Wells is underway.

Ø The Company has mobilised an aircore rig to test the deeper brine resource potential of the Lake. Results of this campaign will be announced in coming weeks.

Lake Wells Project

The Lake Wells Project comprises 522 km2 of granted Exploration Licences, substantially covering the Lake Wells Playa, as well as 604 km2 of Exploration Licence Applications, immediately contiguous to Lake Wells.

Lake Wells was the subject of reconnaissance drilling and sampling by the previous owner (see ASX announcement dated 9 April 2015). This work identified extensive, shallow, highly concentrated brines at Lake Wells with the potential for resources across the entire lake area considered suitable for producing fertiliser quality Sulphate of Potash (SOP - K2SO4) and other salt products.

The 2015 shallow drilling program, completed during August and September, was designed to test the lateral extent of brine in the lakebed sediments to a targeted drilling depth of approximately 20 metres.

The drill program utilised a lightweight auger rig capable of drilling hollow core to the targeted depth. This drill rig was towed by a tracked LandTamer amphibious vehicle with Argo vehicles providing support.

Hollow-core auger is a drilling technique suited to take samples from unconsolidated sediments in a similar manner to diamond drilling. The majority of the cores recovered during this drilling campaign were intact core which allowed for the completion of a range of analysis to support the estimation of brine resources. The drilling at Lake Wells recovered intact sediment cores in 0.75 metre long clear tubing, with the exception of holes LWG019, LWG051 and LWG052 where split cores were obtained for future reference.

After recovery from the drill string, the intact core tubes were immediately capped and sealed to retain the moisture and structure of the sediments. The cores were visually logged and the intervals for determination of porosity and entrained brine analysis marked up before dispatch to laboratory in Perth. The porosity determinations were performed in the lab for 0.1m lengths (core slices) at every 3 metre down each hole; likewise, the entrained brine analysis was performed on 0.1 metre core slices from representative lithological units, down each hole (typically 3 - 4 samples per hole).

On the completion of each hole, the drill hole was purged and a brine sample was collected using a downhole pump. The brine samples, along with the marked-up cores, were then despatched to Perth for laboratory analysis. The core samples were subjected to porosity determination by a gravimetric method (oven drying) and conversion to a volume / volume porosity using measured particle density values. Pore solutions for pre-determined core intervals for Entrained Brine analysis were obtained using a high speed centrifuge. Both the Entrained Brine and the bulk water samples were analysed for the same suite of major ions using ICP-AES, with chloride determined by Mohr titration and alkalinity determined volumetrically. Sulphate was calculated from the ICP-AES sulphur analysis. The analytical results were internally checked and then compiled in single data set for use in the estimation of a JORC compliant resource.

Brine analysis was undertaken by Bureau Vertitas Metallurgical Laboratory in Perth, and duplicate samples were submitted to Intertek Minerals Laboratory in Perth. Reference standard solutions were procured and sent to both laboratories. Inter-laboratory duplicate analysis reported a potassium concentration difference between duplicate pairs ranging from 1.2% to 2.2%. Analysis of reference standard solutions reported a potassium concentration error ranging from -0.5% to 0.7% (Primary Lab) and -2.1% to -1.7% (Secondary Lab) from the reference concentration.

Drill Program

A total of 32 hollow-core auger drill holes have been completed for a total of 504 metres of drilling. Of these 32 holes, 29 holes recovered intact core totalling 465 metres, and 3 holes recovered split core totalling 38m. The hole depths ranged from 1.5m to 22.95m with the average depth being approximately 16m (Appendix 1). The majority of holes ended in brine saturated sediment and therefore are effectively open at depth.

In the northern arm of the lake, two holes two holes, LWG007 and LWG024, appear to have encountered shallow basement, interpreted as Proterozoic meta-sediments, at 6.8m and 6.75m below lake surface, respectively.

To the west of hole LWG007, drilling encountered very stiff, clays and so holes were terminated at shallower depths without encountering basement. Within this area, hole LWG004 was equipped with slotted PVC casing to allow future monitoring of water levels, flow rates and brine chemistry.

The large area of the lake between LWG007 and LWG023 was drilled to an average depth of 19m, with a reasonably uniform sediment profile and all holes finishing in saturated sediments and effectively open at depth. LWG014 was equipped with slotted PVC casing to allow future monitoring of water levels, flow rates and brine chemistry.

In the southern arm of the lake, most holes encountered a similar sedimentary profile to the northern arm, finishing in saturated sediments at an average depth of 16m, and effectively open at depth.

Holes LWG025 and LWG026 were drilled in a distinctly coarser grained sedimentary zone of the lake, identified in the drilling program by the previous operator. Here, gypsiferous sand is the dominant lithology from surface to depth. Both holes recorded gypsiferous quartz sand interbedded with silt down to 4m. LWG026 was equipped with slotted PVC casing to allow future monitoring of water levels, flow rates and brine chemistry.

Holes LWG021, LWG031 and LWG035 were drilled on islands within the lake playa to test geological continuity beneath the islands, and to assess the impact of islands on brine chemistry. The data demonstrates that the islands are a surficial feature, and the shallow stratigraphic sequence is continuous beneath the islands. Shallow (0-10m depth) brine beneath the islands exhibits lower concentration (Average 2,000 mg/L K) compared to the Lake. A deeper brine sample from 14 m depth reports a higher concentration of 4,280 mg/L K indicating that the dilution effect is limited in depth. Additional samples at depth are being analysed. This is a phenomenon recorded from salt lakes in the Yilgarn Block and elsewhere in Australia.

Brine Analysis

Brine analysis has been completed on bulk water samples pumped from 30 holes on completion of each hole. Of the 28 holes for which intact core was recovered, brine analysis has been completed on 57 entrained brine samples. The average brine chemistry for all 87 water samples is set out in Table 1 below and full data is provided under Appendix 2.

Table 1: Major Element Chemistry of Bulk Water and Entrained Brine Samples from Lake Wells

The above brine analysis results, together with the wide aerial extent of drilled area in the northern and southern arms of the lake, clearly point to presence of a substantial volume of highly concentrated brine pool within the near-surface sedimentary fill of the Lake Wells. Equally important, this brine pool is characterised by elevated concentration of potassium, magnesium and sulphate elements and distinctly deficient in calcium ion. Such a chemical makeup is considered highly favourable for efficient recovery of SOPM from the lake brines (the main feedstock for SOP fertiliser production), using conventional evaporation methods.

It should be noted that this leg of the exploration program was limited to auger drilling down to 20 metre below the lake surface, and that the vast majority of the drill holes finished in saturated sediments. Accordingly, this vast near-source brine pool is effectively open at depth.

Sediment Porosity

All results of the porosity data returned from the laboratory are currently being reviewed and assessed. There has been no previous porosity test work on the project and the results to date have been very encouraging. From the 144 samples analysed to date, the average porosity value is 46.4%, with a low of 31.2% and a high of 63.7% (Appendix 3).

These results, once finalised, will be used to determine the in-situ brine volumes that will support the resource estimates.

Ongoing Exploration

An aircore drilling program commenced in late September aimed at testing the deeper brine resource potential of the Lake and studying the deeper sediment and basement geology. Results are expected to be available in the coming weeks. An evaporation trial program has been prepared for implementation following the collection of bulk samples during the aircore drilling program.

Other Projects

Wildhorse also holds exploration licences and/or applications covering all or parts of Lake Irwin and Lake Minigwal and Lake Ballard in Western Australia, Lake Lewis in the Northern Territory and Lake Macfarlane and Island Lagoon in South Australia.

The Company is compiling and assessing available data on these properties to allow an initial assessment of their prospectively for large scale Sulphate of Potash production from brines.

Golden Eagle Uranium and Vanadium Project

The Golden Eagle Uranium and Vanadium Project holds nine U.S. Department of Energy (DOE) Uranium/Vanadium Mining Leases, covering 22.7 km2 located in the Uravan Mineral Belt, Colorado USA.

Technical reports for a number of the lease have been drafted based on historic data, however, exploration drilling and core analysis need to be completed in order to finalise these reports. The leases will expire eight years after the courts complete their review of the Record of Decision (ROD) published in 2014 in the Federal Register and the DOE allows the lease holders to resume activates on their leases.

Wildhorse also possess an option on Gold Eagle Mining Inc. (GEMI) leases; GEMI has three DOE properties of which two have active operating permits.

The Company has commenced a technical review of existing exploration information and is now focusing on establishing the project's scales and potential for exploration upside.

Mecsek Hills Uranium Project

Subsequent to the quarter, Wildhorse disposed of its residual exploration interest in Hungary. This was achieved through the sale of the Company's Hungarian subsidiary, Wildhorse Energy Hungary Kft, in exchange for a 1.5% Net Sales Royalty in the Mecsek Hills Uranium Project, and allows management to focus on the development of the SOP Potash and Golden Eagle Uranium Projects.

Table 2 - Summary of Exploration and Mining Tenements

As at 30 September 2015, the Company holds interests in the following tenements:

Australian Projects:

*Application granted during quarter

Other Projects:

Competent Persons Statement

The information in this report that relates to Exploration Results for Lake Well's drill program is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

APPENDIX 1 - Lake Wells Project Auger Drill Hole Collar and Survey Details

APPENDIX 2 - Bulk Water Samples Chemical Analysis Results

APPENDIX 3 - Entrained Brine Samples Chemical Analysis Results

APPENDIX 3 - Interim Sediment Porosity Determinations