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Wednesday, 13 June 2012 STRONG DRILLING RESULTS FROM INDONESIA Hillgrove Resources Limited (ASX:HGO) is pleased to announce results from its ongoing drilling operations at the Karipi Prospect, Sumba and initial drilling results from the Bird s Head Prospect, West Papua, Indonesia. SUMBA Drilling has intersected significant gold values from widespread scout drill holes, confirming prospectivity of the Karipi epithermal gold prospect; Majority of holes less than 100m true length, with maximum depth 150m to date; A total of 34 holes have been drilled and assay results have so far been received for 26 holes; Figure 1: Karipi Drillhole Location Plan and Significant Intercepts IIII ACN 004 297 116 Level 41 Australia Square, 264 George Street, Sydney NSW 2000, Australia T +61 2 8221 0404 F +61 2 8221 0407 www.hillgroveresources.com

Better results include: o KP014: 3.75m @ 4.29g/t Au o KP015: 2.85m @ 22.37g/t Au, 19.81 g/t Ag And 6.10m @ 1.73g/t Au o KP019: 5.95m @ 1.52g/t Au, 31.18 g/t Ag And 6.50m @ 1.22g/t Au And 5.00m @ 1.38g/t Au And 7.00m @ 4.07g/t Au o KP023: 13.2m @ 1.21g/t Au o KP028: 7.95m @ 3.69g/t Au; Strike length of over 1.5km now tested; Numerous additional targets remain untested; Testing of IP geophysical targets has revealed blind gold mineralisation. BIRDS HEAD Results from first hole (WD-014) of four so far completed have now been received: First drill hole targeting the Green Cliffs structural zone; Target interpreted as a deep-seated structure that has localised mineralising fluids from an interpreted adjacent porphyry; Drilling has encountered strong potassic alteration, consistent with a near-porphyry environment; Disseminated copper sulphides are noted throughout the hole, with elevated copper and molybdenum values in the Green Cliffs structural zone confirming porphyry-related mineralisation; Better Intersections include: o o 11m @ 0.23% Cu, 444ppm Mo 5m @ 0.38% Cu, 213ppm Mo. SUMBA PT Fathi Resources Pte Ltd, in which Hillgrove has a direct 80% interest, is undertaking exploration on the island of Sumba in the Indonesian archipelago. Exploration on the island has focused on the Karipi prospect within the Masu project area in South East Sumba. The area has no forestry designation and is therefore not subject to Izin Pinjam Pakai (Indonesian Forestry Department drilling permit) requirements. The geology of Karipi consists of an island-arc volcanic sequence dated around ~80 million years old, largely covered by a more recent, thin layer of marine sediments. A number of veins and breccia systems outcrop adjacent to the sediment contact, with the presence of the sediment cover rendering significant portions of the prospect area blind to conventional exploration techniques such as soil sampling and trenching. Accordingly, in 2011, PT Fathi undertook both aeromagnetic and IP geophysical surveys to enable sub-sediment target identification. 2.

At the Karipi discovery area, sampling of outcropping epithermal quartz veins, breccias and associated strong hydrothermal clay alteration returned significant gold values to 61g/t Au in soils and 1,250g/t Au in rock chips. Figure 2: Karipi IP Chargeability and Drillhole Location Plan Subsequent trenching intersected broad zones of gold mineralisation, which were tested by a short scout drilling programme in late 2011. Drilling intersected significant gold mineralisation, including hole KP04: 17m @ 3.73g/t Au. Detailed geological mapping undertaken subsequent to initial drilling continued to identify additional goldbearing vein systems that could be tracked to the sediment contact. To gain a better understanding of where these vein systems might persist beneath cover and to assess the potential for additional target areas, geophysical ground IP and airborne magnetic and radiometric surveys were undertaken. 3.

Follow-up drilling, commencing in March 2012, targeted significant gold intersections in recent trenching, magnetic and IP geophysical targets both in outcropping volcanic units and beneath sediment cover and geological mapping targets. This drilling programme was designed to assess the variety of apparent target types and is therefore quite widespread in nature. Drilling has intersected additional significant gold intersections consistent with high level, low sulphidation epithermal style systems. Gold and silver values were encountered in quartz veins, breccias, intense hydrothermal clay alteration halos and fault zones, indicating a complex and broad mineralised system. Better values are presented in Table 2. Importantly, gold was also discovered under sediment cover in hole KP023 (13.2m @ 1.21g/t Au), testing a broad IP chargeability anomaly. This may represent a different style of gold mineralisation associated with the emplacement of an intrusive unit or complex. Drilling has for the most part been confined to shallow depths, targeting near-surface gold mineralisation accessible by open pit mining. Whilst exploration is still at an early stage, the confirmation of the widespread presence of gold mineralisation in association with hydrothermal alteration in drillholes, delineating a 1.5km strike length gold corridor is considered highly encouraging and warrants ongoing drill testing. Future drilling is intended to narrow in on better gold values already intersected with the aim of delineating an initial JORC compliant resource in the next 12 months. BIRDS HEAD PT Akram Resources Pte. Ltd., in which Hillgrove has an 80% beneficial interest through an executed JV Agreement with all commercial terms agreed, is undertaking exploration in the Bird s Head region of West Papua, Indonesia. Drilling at the Birds Head prospect commenced in March, targeting porphyry copper gold molybdenum mineralisation. Assay results from the first hole WD-014 have been received, which confirms field observations in the core of disseminated copper sulphides and associated intense potassic alteration. The first drill holes are targeting the Green Cliffs structural zone, which is interpreted as a deep-seated feature that has acted as a conduit for porphyry-related mineralising fluids to reach the surface. Elevated copper and strongly elevated molybdenum values were recorded within the main structural zone, reflecting the interpretation of fluids leaking from an adjacent porphyry. Table 1. Birds Head Drillhole Location and Significant Intercept Au Ag Mo Hole East North RL Depth Dip Azi From To Intercept g/t g/t PPM WDD 014 234340 9956730 255 500 71 73 41 52 11.00 m @ 0.23% Cu 0.08 1.85 444.09 72 77 5.00 m @ 0.38% Cu 0.06 2.68 213.40 220 232 12.00 m @ 0.27% Cu 0.11 2.54 50.42 Note: Gold assays determined by averaging up to 3 repeats using 50gm Fire Assay method Copper and Silver values calculated from multi element sweep using ICP analytical method Significant intercepts calculated as weighted average, maximum of 2m internal waste at a 0.2% Cu cut off Analyses conducted at Intertek Laboratories, Jakarta, Indonesia 4.

These results confirm that the Green Cliffs area is likely to be adjacent to a mineralising porphyry system. The intensee potassic alteration is indicative of a near-porphyry environment ass evidencedd by magnetite veining and potassium feldspar overprinting off the primary monzonitee lithology. The presence of strongly elevated molybdenum values within the Green Cliffs structural zone in association with intense potassic alteration iss consideredd highly encouraging and entirely consistent with the modelled presencee of a buried porphyry system. Figure 3: Birds Head Green Cliffs Drillhole Location Plan and Geology WD-014 Green Cliff Structural Corridor Drilling is continuing at West Delta as part of an initial 5,000m first-pass drilling programme. Results will be released as they become available. Commenting on the drilling results, Managing Director Drew Simonsen said Wee are very pleased with the results we have achieved to date in the current drilling campaign at both Sumba and Birds Head. 5.

At Sumba we continue to encounter significant gold mineralisation which is supporting our confidence in the potential of the prospect. Continued success could enable us to target the definition of an initial resource during the first half of 2013. In addition the early results at Bird s Head are very encouraging. While we have not yet intersected the interpreted porphyry, the core indicates that we are in a near-porphyry environment. We believe these results indicate the significant potential of our Indonesian exploration portfolio. Mr Simonsen continued When combined with our producing Kanmantoo Copper Gold mine in South Australia, Hillgrove has operating cash flow with exceptional upside potential through successful exploration efforts in both Indonesia and Kanmantoo. For more information contact: Drew Simonsen Jim Kerr Managing Director General Manager Exploration Tel: +61 (0)2 8247 9300 Tel: +61 (0)428 948 552 ABOUT HILLGROVE Hillgrove is an Australian mining company listed on the Australian Securities Exchange (ASX: HGO) focused on the operation of the Kanmantoo Copper Mine in South Australia, and exploration on its Indonesian tenements, where the Company is targeting the discovery of world class epithermal gold and porphyry copper/gold. The Kanmantoo Copper Mine is located less than 55km from Adelaide in South Australia. With construction now completed, Kanmantoo is an open-cut mine, and is ramping up to an initial throughput of 2.4Mt per annum in the first half of 2012, to produce approximately 80,000 tonnes of concentrate per annum. Global Mineral Resource (March 2012) In Situ Resource Long Term Stockpiles JORC Tonnage Cu Au Ag Bi Cu Metal Classification (Mt) (%) (g/t) (g/t) (g/t) (kt) Measured 4.2 0.85 0.13 2.26 173 35.3 Indicated 20.5 0.87 0.16 2.34 129 178.3 Inferred 6.5 0.66 0.15 1.73 114 43.0 Measured 1.1 0.46 N/A N/A N/A 5.0 Indicated 0.5 0.18 N/A N/A N/A 0.9 Total 32.8 0.80 0.15 2.20 132 262.6 Note: The estimation of Bi is based on limited sampling data. Bi is recognised as a potential penalty element at Kanmantoo. As at end of March 2012. 2012 In Situ Resource > 0.25% Cu. Long Term Stockpiles > 0.15% Cu. Au, Ag and Bi assays are not available. Ore Reserve (April 2010) Category Tonnage Cu Au Ag Mt (%) (g/t) (g/t) Proved 2.3 0.87 0.13 3.2 Probable 12.5 0.84 0.18 3.1 Ore Reserve 14.8 0.85 0.17 3.1 6.

Competent Person's Statements The information in this report that relates to Exploration Results is based on information compiled by Mr Jim Kerr, who is a Member of The Australasian Institute of Geoscientists. Mr Kerr is General Manager Exploration for 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. The information in this report that relates to in situ Mineral Resource estimates is based on information compiled by Mr Aaron Meakin, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Meakin is a full-time employee of AMC Consultants Pty Ltd and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration 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 (JORC Code). 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 and Director of Mining and Cost Engineering 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 (JORC Code). The Competent Persons have consented to inclusion in the report of the matters based on their information in the form and context in which it appears. Table 2. Karipi Drillhole Location and Significant Intercepts Hole East North RL Depth Dip Azi From To Intercept Ag g/t Previously Released Intersections MADDKP001 303681 887326 935 70.75 50 240 0 2 2.00 m @ 0.79 g/t Au 0.5 9.4 22.4 13.00 m @ 0.81 g/t Au 2.72 24.9 28.1 3.20 m @ 2.30 g/t Au 9.08 47.6 47.95 0.35 m @ 4.06 g/t Au 11.6 MADDKP002 303753 887218 900 70 50 240 0 8.5 8.50 m @ 2.51 g/t Au 4.21 35.3 35.65 0.35 m @ 0.82 g/t Au 1.2 49.4 51.4 2.00 m @ 1.01 g/t Au 0.4 MADDKP003 303710 887291 938 60.3 50 240 0 2 2.00 m @ 1.65 g/t Au 0.5 8 10 2.00 m @ 0.83 g/t Au 1.1 16.7 29.5 12.80 m @ 1.10 g/t Au 4.17 MADDKP004 303646 887400 924 70.8 50 240 8 25 17.00 m @ 3.73 g/t Au 4.66 28.35 32.3 3.95 m @ 0.65 g/t Au 0.45 MADDKP005 303678 887369 931 75 50 240 0 5.2 5.20 m @ 0.93 g/t Au 0.8 10 12.1 2.10 m @ 3.63 g/t Au 2.03 17.1 17.4 0.30 m @ 0.53 g/t Au 0.8 MADDKP006 303775 887272 900 45.7 50 240 24 25.85 1.85 m @ 1.51 g/t Au 3.99 29.95 36.85 6.90 m @ 0.99 g/t Au 1.16 MADDKP007 303681 887326 935 54.4 80 60 0 2 2.00 m @ 1.14 g/t Au 0.4 11 20 9.00 m @ 0.85 g/t Au 1.27 25.9 31.4 5.50 m @ 0.82 g/t Au 1.44 44.8 45.15 0.35 m @ 7.41 g/t Au 7 MADDKP008 303604 887462 910 76.2 45 280 1.3 2.8 1.50 m @ 0.62 g/t Au 0.6 6.1 7.1 1.00 m @ 0.81 g/t Au 0.9 9.1 26.3 17.20 m @ 1.56 g/t Au 1.7 30.3 32.3 2.00 m @ 0.58 g/t Au 1.6 48.3 50.3 2.00 m @ 0.60 g/t Au 1.5 MADDKP009 303316 887678 966 75.1 50 318 4.7 6.6 1.90 m @ 2.77 g/t Au 4.4 8.6 9.2 0.60 m @ 0.54 g/t Au 0.4 14.2 16 1.80 m @ 1.61 g/t Au 0.61 20.3 25.15 4.85 m @ 1.33 g/t Au 2.62 52.8 55.4 2.60 m @ 1.18 g/t Au 0.65 MADDKP010 303388 887690 957 108.2 50 223 20.1 28.5 8.40 m @ 1.76 g/t Au 8.72 7.

Hole East North RL Depth Dip Azi From To Intercept Ag g/t MADDKP011 303409 887699 952 88.75 55 318 20.1 20.8 0.70 m @ 2.34 g/t Au 1.2 28.3 29.2 0.90 m @ 1.08 g/t Au 17.6 44.6 45.6 1.00 m @ 4.06 g/t Au 2.1 MADDKP012 303457 887666 952 90.05 55 223 21.7 22.55 0.85 m @ 1.42 g/t Au 0.8 25.2 26.2 1.00 m @ 1.03 g/t Au 1.3 41.7 42.65 0.95 m @ 0.87 g/t Au 2.65 53.3 54 0.70 m @ 2.34 g/t Au 1.9 72.15 73.15 1.00 m @ 1.06 g/t Au 0.7 MADDKP013 303589 887628 926 88.65 50 240 27.8 34.3 6.50 m @ 0.73 g/t Au 0.9 49.9 51.3 1.40 m @ 0.68 g/t Au 0.6 Current Drilling Programme Latest Results MADDKP014 303725 887442 953 112.65 50 265 37.4 37.8 0.40 m @ 7.57 g/t Au 9.2 43.5 45 1.50 m @ 0.77 g/t Au 1.32 55 57.3 2.30 m @ 1.02 g/t Au 0.94 62.5 63.45 0.95 m @ 1.91 g/t Au 4.77 76.3 80.05 3.75 m @ 4.29 g/t Au 4.71 99.15 103.3 4.10 m @ 1.06 g/t Au 10.17 107.1 107.6 0.50 m @ 0.54 g/t Au 3.7 MADDKP015 303721 887442 954 112.65 50 240 42.9 45.75 2.85 m @ 22.37 g/t Au 19.81 72.9 79 6.10 m @ 1.73 g/t Au 3.01 82.5 84.65 2.15 m @ 0.96 g/t Au 1.5 94.25 96.25 2.00 m @ 1.17 g/t Au 8.9 MADDKP016 303747 887373 930 76.25 65 233 17.55 25.7 12.65m @ 0.83 g/t Au 0.55 44.25 54.25 10.00 m @ 0.91 g/t Au 6.78 MADDKP017 303644 887555 939 147.05 50 243 20.95 21.15 0.20 m @ 0.66 g/t Au 3.1 44.25 46.7 2.45 m @ 1.32 g/t Au 1.7 59 61 2.00 m @ 3.45 g/t Au 0 63.6 70.6 7.00 m @ 1.79 g/t Au 6.77 109 112 3.00 m @ 0.68 g/t Au 0.37 MADDKP018 303282 887624 927 84.15 50 293 0 1 1.00 m @ 0.54 g/t Au 0 3.3 6.96 3.66 m @ 0.70 g/t Au 0.32 22.8 23.5 0.70 m @ 0.99 g/t Au 0 45.6 46.33 0.73 m @ 1.35 g/t Au 2.82 MADDKP019 303547 887477 904 60 50 78 7 12.95 5.95 m @ 1.52 g/t Au 31.18 15.2 21.7 6.50 m @ 1.22 g/t Au 7.83 25.7 30.7 5.00 m @ 1.38 g/t Au 2.2 34.7 41.7 7.00 m @ 4.07 g/t Au 1.23 MADDKP020 303547 887478 904 36.55 50 158 2.2 12.2 10.00 m @ 2.62 g/t Au 21.82 26.15 30.15 4.00 m @ 0.77 g/t Au 0.5 35.3 35.9 0.60 m @ 1.75 g/t Au 2.1 MADDKP021 304427 886874 965 87.15 50 238 7.2 7.5 0.30 m @ 12.55 g/t Au 2.4 12.45 12.9 0.45 m @ 0.86 g/t Au 0.1 MADDKP022 304477 886994 987 72.1 45 268 4 5 1.00 m @ 0.75 g/t Au 1.7 56.8 57.7 0.90 m @ 1.22 g/t Au 0.23 MADDKP023 304674 886724 993 132.85 55 248 61.3 61.9 0.60 m @ 0.86 g/t Au 1.50 92.15 97.7 5.55 m @ 0.83 g/t Au 1.45 115.7 128.9 13.20 m @ 1.21 g/t Au 2.44 MADDKP024 304265 886782 955 121.45 45 133 14.1 15 0.90 m @ 0.59 g/t Au 0.60 15.9 16.5 0.60 m @ 0.58 g/t Au 0.80 76.85 77.4 0.55 m @ 0.94 g/t Au 3.80 8.

Hole East North RL Depth Dip Azi From To Intercept Ag g/t MADDKP025 303929 887454 920 112.45 50 303 0 7 7.00 m @ 0.52 g/t Au 0.07 18.9 20.4 1.50 m @ 0.74 g/t Au 0.10 35.1 36.8 1.70 m @ 0.52 g/t Au 0.05 41.9 47.1 5.20 m @ 1.34 g/t Au 7.81 55.9 56.3 0.40 m @ 1.51 g/t Au 2.60 73.05 75 1.95 m @ 0.56 g/t Au 0.05 80.1 80.55 0.45 m @ 0.58 g/t Au 1.80 109.7 110.5 0.80 m @ 0.66 g/t Au 1.20 MADDKP026 303929 887454 920 176.75 50 60 11.4 11.9 0.50 m @ 3.88 g/t Au 2.90 15.9 20.7 4.80 m @ 0.71 g/t Au 0.40 82.45 90.6 8.15 m @ 0.98 g/t Au 2.87 Note: Gold assays determined by averaging up to 3 repeats using 50gm Fire Assay method Silver values calculated from multi element sweep using ICP analytical method Significant intercepts calculated as weighted average, maximum of 2m internal waste at a 0.5 g/t Au cut off Analyses conducted at Intertek Laboratories, Jakarta, Indonesia 9.