Key Assets. Kanmantoo Copper/Gold Project Gold and Base Metals Explorer

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1 Indonesian Gold Projects 10 March 2009

2 Disclaimer This presentation should not be relied upon as a representation of any matter that a potential investor or their adviser should consider in evaluating the Company. Potential investors must make their own independent assessment and investigation of the matters contained herein and should not rely on any statement or the adequacy or accuracy of the information provided. The Company and its related bodies corporate or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements or representations contained in the presentation, and they do not accept any liability whatsoever (including in negligence) for any information, representation or statement made in or omitted from this presentation. This presentation may contain forward looking statements that are subject to risk factors associated with copper, gold, other minerals and gas businesses. Based on currently available information, the Company believes that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, interest and foreign exchange rates, availability of capital, political risks, project delay or advancement, approvals and cost estimates. Investors should undertake their own analysis and obtain independent advice before investingin HGO shares. All references to dollars, cents or $ in this presentation refer to Australian currency unless otherwise stated. 1.

3 Key Assets Australian Based with Asian Expansion Hillgrove Resources Limited (ASX:HGO) Kanmantoo Copper/Gold Project Gold and Base Metals Explorer Eastern Star Gas Limited ASX Code:ESG 19.9% Direct Coal Seam /Conventional Gas InterMet Resources Limited ASX:ITT 84.8% Direct Gold, Nickel, Uranium, Base Metals Indonesian Exploration Joint Ventures: 80.0% 0% Direct PT Fathi Resources Sumba PT Akram Resources Bird s Head Large scale epithermal/porphyry gold/copper targets 2

4 Introduction to Hillgrove Major Assets ASX listed natural resources company focused on development of its near term Kanmantoo copper/gold project Initial mine inventory of 12Mt supports a 6.5 year mine life producing 15 20kt p.a. of copper in concentrate with gold and silver credits Excellent potential to extend mine life >10 years and identify further base metal reserves in the Kanmantoo Trough Strategic 21.9% (fully diluted) shareholding worth approx $125 million in ASX 200 NSW coal seam gas developer Eastern Star Gas Limited (ESG) 21PJ of 1P, 336PJ 2P, 1,300PJ 3P and 6,128PJ 3C (PEL 238 ESG 65%) Extensive highly prospective exploration pipeline 85% of ASX listed InterMet iron ore, base metals, gold, Gawler Craton copper 80% of highly prospective Indonesian gold and gold/copper projects Source: ESG Company announcements and Iress share price information. ESG valuation based on share price of $0.70 as at 6 March2 009 and Hillgrove holdings of 151.8m ordinary shares and 24.3m $0.15 options. 3

5 Introduction to Hillgrove Board of Directors Legend Non-Executive Director Executive Director Management Team Dean Brown AO Chairman Ron Belz Director David Archer Managing Director John Quirke Director John Gooding Director Geoff Stewart General Manager Business Development Russell Middleton Chief Financial Officer & Company Secretary Dale Ferguson General Manager Exploration & Operations Good Governance, Project Development and Extensive Mining Expertise Hillgrove is an ambitious, well managed, exploration and mining company 4

6 Key Investors Top 10 Shareholders RBS Sempra 14.0% Subsidiary of RBS ANZ Nominees 11.0% European shareholders RMMI 5.7% RAK Minerals - UAE investor Archer Group 4.9% Managing Director and associates HSBC Custody 3.2% Global investment nominee Citicorp Nominees 28% 2.8% Investment t nominee Merrill Lynch 2.1% Global investment fund National Nominees 2.0% Investment nominee Cogent Nominees 1.5% Investment nominee 5

7 Metals Outlook Copper on the Move Right commodities at the Right Time Reuters London, March 5 The Chinese dragon is hungry for copper again and its buying has impacted the LME market much earlier than had been generally anticipated. Fraser Institute 2009 Commodity shortages could hinder recovery, the world may face a shortage of raw materials and skyrocketing commodity prices as the world economy moves past the recession and into renewed growth. 6

8 Metals Outlook Gold to Remain Strong ScotiaMocatta, March 2009 The United States is not alone in looking to print money, other central banks are planning to do the same, which may lead to competitive currency devaluation. This could prompt further diversification away from flat currencies to hard assets, such as gold and other commodities. 7

9 Regional Pipeline Indonesia Highly Prospective Advanced Gold Exploration 8

10 Regional Pipeline Indonesia Highly Prospective Advanced Gold Exploration Hillgrove s strategy is to discover world class ore bodies within the magmatic arc setting of Indonesia A new geological setting that hosts identified world class deposits Contains numerous large scale copper-gold porphyry systems and epithermal gold deposits In 2007/2008 Indonesia was noted by the Fraser institute as having the highest mineral potential of any single country in the world. First among 68 other countries* Two advanced projects: Bird s Head and Sumba with significant mineralisation already identified Respected local partners * (assuming no regulations in place and assuming industry best practices) 9

11 Regional Pipeline - Indonesia Mining Law There has been a major, favourable change in circumstances resulting from the new mining law framework announced in Indonesia in December 2008 The two key features of which are the enablement of direct foreign ownership of exploration and mining licenses and the devolution of administrative responsibility from the central to regional governments There is now enthusiastic local support for exploration throughout the Indonesian archipelago and particularly in West Papua where Special Autonomy Status has been granted by the government of Indonesia in acknowledgement and support of the province s pro-development initiatives West Papua is now poised to assume the position as one of the most promising exploration terrains in the world for the discovery of world class ore bodies 10

12 Bird s Head, Indonesia Regional Setting Bird s Head covers part of the interpreted westward continuation of the New Guinea Orogenic Belt 11

13 Bird s Head West Papua Mineral Occurrences 12

14 Bird s Head Mineralisation Model Magmatic arc deposits are classified by the depth at which h they form Bird s Head has seen a number of phases of tectonic activity, including uplift and associated mineralising events that have led to the over printing or telescoping of epithermal mineralisation onto porphyry style mineralisation

15 Bird s Head Key Attributes The Bird s Head Project is located on the northern end of the Bird s Head Peninsula (Kepala Burung) in the province of West Papua, Indonesia and is situated about 150km from Sorong which is the administrate centre for Kepala Burung The project has not seen any focused exploration activity since Normandy withdrew in the 1990 s to concentrate on their Martabe Project in Sumatra Towards the end of the 1990 s many major companies withdrew from Indonesia due to a number of factors, including the Asian financial crisis in 1998, low commodity prices and a generally unfavourable political climate Hillgrove Resources, through its Indonesian partner, PT Akram Resources, was granted a Kuasa Penambangan ("KP 254") license over an area of 1,815km 815km² in December 2008, covering much of the original Normandy ground 14

16 Bird s Head Historical Drainage Anomalies Stream Sediment Anomalies by Gold Work by Normandy and past explorers highlighted 14 high order anomalies, with Bird s Head containing 10 of these 15

17 Bird s Head Key Attributes Bird s Head is an exciting exploration project; its key attributes t include: Favourable tectonic setting in tertiary volcanics Outstanding surface geochemistry Strong indications of multi-phased mineralising system, epithermal over printing porphyry Two advanced exploration prospects (Delta and Alpha), could be drill ready in 6 months Numerous high order stream anomalies still require follow up Limited drill testing has occurred but not at sufficient density to either e advance a or downgrade potential prospect areas 16

18 Bird s Head Local Geology Tertiary Volcanics (Andesites) key host unit for mineralisation 17

19 Bird s Head Delta Prospect Excellent targets for giant copper/gold deposits Delta Prospect: A high order 6 x 1.5km corridor of gold and base metal mineralisation defined by soil, rock chip and trench sampling High grade gold and base metal mineralisation in rock chip sampling with peak values of 205g/t gold, 471g/t silver, 17.9% copper, 6.3% lead and 7.5% zinc (not same sample) Significant intercepts in trench sampling including 4.51g/t gold and 1.09% copper & 13.6g/t gold and 2.4% copper (not same trench) Large soil anomaly with peak values of 5.4g/t gold, 17g/t silver, 0.63% copper, 0.85% lead and 0.28% zinc Significant ifi scout drilling results, such as 6.6m 5.96g/t gold and 1.71g/t gold Broad low grade zone at Delta of 0.21% copper suggests porphyry style mineralisation/target 18

20 Bird s Head Delta Prospect Copper Soil Geochemistry Extensive copper anomalism identified, 6 x 15k 1.5km corridor identified d Copper mineralisation associated with granodiorite intrusive Surface expression of a porphyry such as Batu Hijau in Sumbawa is only 400 x 200m 19

21 Bird s Head Delta Prospect Significant Trench Intercepts Trenching results confirmed presence of high grade epithermal mineralisation Follow up drilling has intersected: 1.71g/t 1 gold and 2.55g/t silver from 13m in KSD1, incl. 2.97g/t gold and 3.56g/t silver 1.25g/t gold and 2.96g/t silver from 19.1m and 5.96g/t gold and 3.18g/t silver from 54.9m KSD6 Drilling has been sparse and erratic to date; shoot geometry in an epithermal deposit usually necessitates t a high h density of drilling

22 Bird s Head Alpha Prospect Highlights Mineralisation in the Alpha Prospect is widespread, complex and multiphase and at least three phases of mineralisation which is strongly structurally controlled Highlights from previous work include: A 1200 x 400m gold and base metal anomaly y( (A18) defined by soil sampling and trench sampling with peak results including 14.61g/t gold, 20.77g/t gold, and 26.2g/t gold A 1200 x 200m gold and base metal anomaly (B15) defined by soil sampling and trench sampling with peak results including 5.81g/t gold, 5.18g/t gold and 1.7% lead A 1300 x 300m gold and base metal anomaly (A17/A19) defined by soil sampling and trench sampling with peak results including 8.69g/t gold, 70.95g/t gold, 54.5g/t gold and 34.9g/t gold A 750 x 250m gold and base metal anomaly (A7) defined d by soil sampling and minor trenching Significant scout drilling results such as 2.16g/t gold, 18.36g/t silver, 0.29% copper, 2.08% lead (AD1) and 5.31% zinc, and 108.5g/t gold and 16g/t silver (AD4) 21

23 Bird s Head Alpha Prospect Gold (g/t) Soil Geochemistry Extensive gold mineralisation, which appears to be strongly structurally controlled 22

24 Bird s Head Alpha Prospect Drilling, Trenching Locations on Gold (g/t) Soil Geochemistry Bonanza trenching grades, gold associated with epithermal quartz veins Very limited it drilling completed to date Significant scout drilling results including 2.16g/t gold, 18.36g/t silver, 0.29% copper, 2.08% lead and 5.31% zinc in AD g/t gold and 16g/t silver in AD4 23

25 Bird s Head Central Prospects Gold (g/t) Geochemistry Significant untested geochemical anomalies, i.e. stream anomaly at Quebec similar to that originally defined by Alpha/Bravo anomalies 24

26 Bird s Head Unigolf Prospect Gold (g/t) Geochemistry Significant geochemical anomaly at the intersection of two regional structures 25

27 Bird s Head 2009 Work Program The 2009 work program is currently being developed and subject to approval by Hillgrove s board is likely to include: Further historical data review and compilation Socialisation Logistical support Establish coastal and Delta base camp Geological mapping, rock chip sampling and trenching Geophysics Drilling 26

28 Bird s Head Summary The Bird s Head Project represents an excellent opportunity to explore for large scale epithermal and porphyry style mineralisation within a geological setting that has been proven to host world class deposits The Project covers a large area of what is interpreted to be the westward continuation of the New Guinea Orogenic Belt which contains the giant Ertsberg/Grasberg, g, Porgera and Ok Tedi deposits The Project has key ingredients to potentially host a deposit of significant size Two advanced prospects which could be drill ready in six months The Indonesian mining law has recently seen many favourable changes Well respected Indonesian partners Excellent potential to discover a company making world class ore body 27

29 Indonesia Sumba Island Prospect KP 350/KEP/HK/2007 general survey license granted on Sumba covering an area of 3,433km². Indonesian subsidiary of Hillgrove, PT Fathi Resources to undertake exploration work, studies and steps to advance the KP to exploration status in return for an indirect 80% interest Sumba offers a leg up into previously identified gold mineralisation zone (BHP) not followed up due to economic conditions of late 1990 s Better results from BHP trenching include: 49.38g/t gold 4m at 16.73g/t gold 4m at 6.7g/t gold 9m at 5.87g/t gold 9m at 6.1g/t gold 13m at 2.05g/t gold 16m at 1.56g/t gold Note: Trenching was largely conducted perpendicular to quartz veins and continuous sampling was conducted at 1m intervals. Hillgrove is still searching for reports that contain specific information on drill hole locations, assays and any other exploration data. 28

30 Sumba Pahandanjal Prospect BHP Trenching 29

31 Sumba 2008 Field Season Highlights from the end of the first field season (only 3 months) include: Masu Project Significant 200 x 200m gold in soil anomaly peaking at 0.67g/t defined at Pahandanjal prospect Potential mineralised corridor at Okajara Prospect extended to 1.5km in length Two additional prospects discovered within the Masu Project through rock chip sampling that host epithermal gold silver mineralisation: Pandanjara (8.56g/t gold and 2.7g/t silver) and Kanjilu (1.05g/t gold, 5.5g/t silver and 0.89% zinc) Tanah Daro Project Two new prospects identified that host epithermal gold-silver mineralisation Pelitalira rock chips up to 37.13g/t gold, 406g/t silver and 0.97% lead and Langela rock chips up to 3.29g/t gold and 43.4g/t silver 30

32 Sumba Pahandanjal Prospect Significant 200 x 200m gold in soil anomaly peaking at 0.67g/t defined d at Pahandanjal prospect Anomaly occurs between two major structures and is likely to represent a dilatational ti l zone

33 Sumba Project Summary Sumba is an exciting exploration project, its key attributes t include: Favourable tectonic setting in tertiary volcanics Outstanding surface geochemistry Significant epithermal mineralisation has been identified at Pahandanjal prospect with numerous potential satellite deposits within 10km Good potential for porphyry mineralisation at Tanah Daro Excellent location with most sites accessible by 4WD Limited drill testing has occurred but not at sufficient density to either advance or downgrade potential prospect areas 32

34 Exploration Results Competent Persons The information in this report that relates to Exploration Results announced by Hillgrove Resources Limited and InterMet Resources Limited is based on information compiled by Mr Dale Ferguson, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Ferguson is the Executive Director Exploration and Operations of Hillgrove Resources and has sufficient relevant experience 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. Mr Ferguson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Exploration Results announced by Hillgrove Resources Limited and InterMet Resources Limited is based on information compiled by Mr Adam Freeman, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Freeman is the Exploration Manager of Hillgrove Resources and has sufficient relevant experience 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. Mr Freeman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resource estimates is based on information compiled by Mr Paul Payne, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Payne is the Principal of Resource Evaluations Pty Ltd and has sufficient relevant experience 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. Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Ore Reserve estimates is based on information compiled by Mr Geoff Davidson, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Davidson is a principal consultant with Snowdens Mining Consultants and has sufficient relevant experience 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. Mr Davidson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.