2009 ANNUAL GENERAL MEETING. STAMFORD PLAZA HOTEL, ADELAIDE 24 June 2009

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1 2009 ANNUAL GENERAL MEETING STAMFORD PLAZA HOTEL, ADELAIDE 24 June 2009

2 Chairman s Address Net Profit After Tax $12,000,000 HGO - NPAT $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 -$2,000, $4,000,000 -$6,000,000 1

3 Chairman s Address Net Assets $90,000,000 HGO - Net Assets $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $

4 Copper, Gold and Gas ANNUAL GENERAL MEETING Managing Director s Presentation 24 June 2009

5 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 investing in HGO shares. All references to dollars, cents or $ in this presentation refer to Australian currency unless otherwise stated. 4

6 Key Assets Australian Based with Asian Expansion Hillgrove Resources Limited (ASX:HGO) Gold and Base Metals Explorer Kanmantoo Copper/Gold Project Indonesian Exploration Joint Ventures: 80.0% Direct PT Akram Resources Bird s Head PT Fathi Resources Sumba Large scale epithermal/porphyry gold/copper targets Eastern Star Gas Limited S&P ASX Code:ESG 17.8% Direct Coal Seam /Conventional Gas InterMet Resources Limited ASX:ITT 84.8% Direct Gold, Iron Ore, Uranium, Base Metals 5

7 Introduction to Hillgrove Major Assets Focused on development of its near term Kanmantoo copper/gold project 60km east of Adelaide 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 20.6% (fully diluted) shareholding worth approximately $145 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, basemetals, Uranium, Gawler Craton, QLD 80% of highly prospective Indonesian gold and gold/copper projects Source: ESG announcements and Iress share price information. ESG valuation based on share price as at 19 June 2009 and Hillgrove holdings of 151.8m ordinary shares and 24.3m $0.15 options 6

8 Introduction to Hillgrove Key Investment Metrics Hillgrove Resources 19/06/09 Share Price $ Week - high $ low $ 0.08 Ordinary shares # 413.0M Market capitalisation $ 78.5M Cash $ 10.6M Options # 48.9M Bond due 30/06/11 US$ 30.0M Price (A$) Trading History Hillgrove Resources ESG shares/options $145.6M Kanmantoo, PP&E $ 49.3M Volume Closing Price 7

9 Regional Pipeline Indonesia Highly Prospective Advanced Gold Exploration Advanced projects totalling 5,248km² with significant mineralisation already identified 8

10 Bird s Head Project Mineralisation Model Magmatic arc deposits are classified by the depth at which 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 9

11 Bird s Head, Indonesia Regional Setting Bird s Head covers part of the interpreted westward continuation of the New Guinea Orogenic Belt 10

12 Bird s Head Project West Papua Mineral Occurrences 11

13 Bird s Head Project Project Scale Geology & Geomorphology Multiple Diorite Granodiorite Intrusives, Magmatic Centre s Widespread Hydrothermal Activity 12

14 Bird s Head Project 3D Geology & Geomorphology Overall northward younging of the strata caused by the interaction of the topography and the overall shallow northward dips. The topography is broadly dip slope in character The major Sansapor fault (and probably also the Sorong fault) may be reverse faults or thrusts north Delta Alpha 13

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

16 Bird s Head Delta Prospect Kali Sute Copper Soil Geochemistry Extensive Cu anomalism in main target corridor 6 x 1.5km Cu mineralisation assoc. with granodiorite/diorite intrusive, same host rocks as large deposits like Grasberg Surface expression of a porphyry e.g. Batu Hijau in Sumbawa is only 400 x 200m (4.8Mt Copper) WDD7 0.21% copper Batu Hijau West Delta

17 Delta Prospect Geochemistry - Copper Delta Copper in Soils Soil anomalism (Au & Cu) are coincident with circular features which in turn appear to relate to a diorite body, magmatic centre, key driver for mineralising system This is a key component to all mineralising systems through the belt 16

18 Delta Prospect West: Geology & Soils Multi phased diorite granodiorite magmatic centre Strong Correlation with copper geochemistry Clear evidence of mineralised porphyry system WDD7 0.21% copper 17

19 Delta Prospect West Delta Area

20 Delta Prospect Geochemistry - Gold Delta Gold in soils Delta Gold mineralization is fault controlled lowsulphidation epithermal Two steep pervasive fracture sets are evident. Also, the prospect is transected by some strong 120 degree trending faults 19

21 Delta Prospect Kali Sute Significant Trench Intercepts Trenching results confirmed presence of high grade epithermal mineralisation Follow up drilling has intersected: 1.71g/t 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 a high density of drilling 2 Kilometres

22 Alpha Prospect Structural Setting Fault controlled lowsulphidation epithermal Two steep fracture sets are evident Mineralisation occurs at a dilational jog in the fault system Circular features potential magmatic centres Alpha high ground appears to be capped by a palaeoregolith remnant, possibly masking underlying geochemistry 21

23 Alpha Prospect Radiometrics Discrete Potassium anomaly on western side of Delta 22

24 Alpha Prospect Air Magnetics Coincident magnetic and potassium anomaly just west of Alpha suggestive of magmatic source 23

25 Bird s Head Project Alpha Prospect Gold (g/t) Soil Geochemistry 1 Kilometre Batu Hijau Extensive gold mineralisation, which appear to be strongly structurally controlled 24

26 Bird s Head Project Alpha Soils (Gold) and Geology 25

27 Bird s Head Project Alpha Soils (Gold) and Alteration Strong genetic relationship for mineralisation 26

28 Bird s Head Project Alpha Prospect Drilling, Trenching Locations on Gold (g/t) Soil Geochemistry Bonanza trenching grades, gold associated with epithermal quartz veins Very limited drilling completed to date, only 5 drill holes 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 B15 Anomaly A17/19 Anomaly A18 Anomaly 27

29 Bird s Head Project Key Attributes Bird s Head is an exciting exploration project: Favourable tectonic setting, interpreted western continuation of New Guinea Orogenic belt, which contains the giant Grasberg deposit Outstanding surface geochemistry Strong indications of a multi-phased mineralising system, epithermal over printing porphyry Two advanced exploration prospects (Delta and Alpha), could be drill ready in 6-9 months Numerous high order stream anomalies still require follow up The Indonesian mining law has recently seen many favourable changes Excellent potential to discover a company making world class ore body 28

30 Birds Head Project Budget Timeline April 2009 to January 2011 Establish a positive working relationship with local and regional government and with the local communities Establish a coastal base camp at Warmandi as the main base to service helicopter supported Reconnaissance and drilling operations Conduct detailed surface geochemistry programs including 2100 soil samples, 900 rock chip samples and 6000 trench samples (2m) Conduct detailed geomorphology, structural, alteration and lithological mapping to aid in drill target selection Commence a 10,000 metre diamond drilling program at the start of the 2010 field season 29

31 Birds Head Project Kali Sute - Exploration Soil Sampling Program (1000 samples) Rock chipping (400 samples) Follow up trenching (2000 samples, 2m composites) Detailed mapping (geological and structural) Drilling (3,000 5,000m) 30

32 Birds Head Project West Delta - Exploration Soil Sampling Program (1153 samples) Rock chipping (400 samples) Follow up trenching (2000 samples, 2m composites) Detailed mapping (geological and structural) Drilling (5,000 7,000m) 31

33 Birds Head Project Alpha Prospect - Exploration Detailed mapping (geological and structural) B15 Anomaly A17/19 Anomaly Rock chipping (100 samples) Follow up trenching (2000 samples, 2m composites) A18 Anomaly 32

34 Birds Head Project Alpha Prospect 33

35 Birds Head Project Building a Team 34

36 Birds Head Project Landing Barge Logistic Support 35

37 Birds Head Project Community Relationships 36

38 Bird s Head 2009 Work Program The 2009 work program is currently being developed and subject to approval 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 37

39 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, 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 Indonesian mining law has recently seen many favourable changes Highly energised Indonesian partners Excellent potential to discover a company making world class ore body 38

40 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. 39

41 Sumba Pahandanjal Region 40

42 Summary Targeting discovery of world class ore bodies: 5,248 km² West Papua and Sumba Investments: ~ $145 million of listed strategic resources investments East Coast Australia Gas: Strategic stake in leading coal seam gas independent Latent Copper Production: Kanmantoo production targeted for 2010/11, DFS complete, significant resource extension potential >10 years mine life People: Leading team of corporate, exploration and mining professionals Growth: Linked to expected medium term synchronised global growth 41

43 Hillgrove Resources Limited 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.