Indonesian Gold ProjectsIndonesian Gold ProjectsIndonesian Gold Projects Indonesian Gold Projects

10 March 10 March 20092009

Disclaimer

This presentation should not be relied upon as a representation of any matter that a potential investor or theiradviser should consider in evaluating the Company. Potential investors must make their own independentassessment and investigation of the matters contained herein and should not rely on any statement or theadequacy or accuracy of the information provided. The Company and its related bodies corporate or any of itsq y y p p y p ydirectors, agents, officers or employees do not make any representation or warranty, express or implied, as tothe 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 orstatement made in or omitted from this presentation.This presentation may contain forward looking statements that are subject to risk factors associated withcopper, gold, other minerals and gas businesses. Based on currently available information, the Companybelieves that the expectations reflected in these statements are reasonable but they may be affected by avariety of variables and changes in underlying assumptions which could cause actual results or trends to differvariety of variables and changes in underlying assumptions which could cause actual results or trends to differmaterially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling andproduction results, reserve estimates, loss of market, industry competition, environmental risks, physical risks,legislative, fiscal and regulatory developments, economic and financial market conditions in various countriesand regions, interest and foreign exchange rates, availability of capital, political risks, project delay org , g g , y p , p , p j yadvancement, 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.

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, $ p y

Key AssetsAustralian Based with Asian ExpansionAustralian Based with Asian Expansion

Hillgrove Resources Limited (ASX:HGO)Hillgrove Resources Limited (ASX:HGO)• Kanmantoo Copper/Gold Project• Gold and Base Metals Explorer

Eastern Star Gas Limited • ASX 200 - 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% Direct• Joint Ventures: 80.0% Direct

PT Fathi Resources SumbaPT Akram Resources Bird’s Head

• Large scale epithermal/porphyry Large scale epithermal/porphyry gold/copper targets

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Introduction to HillgroveMajor Assets

ASX listed natural resources company focused on development of

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 y pp y p gp.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 Troughreserves 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) 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 pipelineExtensive 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• 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

Introduction to HillgroveBoard of Directors

Non-ExecutiveLegend

Board of Directors

Non ExecutiveDirector

ExecutiveDirector

ManagementgTeam

Dean Brown AOChairman

David ArcherManaging Director

Ron BelzDirector

John QuirkeDirector

John GoodingDirector

Dale FergusonGeneral Manager –

Geoff StewartGeneral Manager –

Russell MiddletonChief Financial Officer g

Exploration & Operationsg

Business Development & Company Secretary

Good Governance, Project Development and Extensive Mining Expertise

4Hillgrove is an ambitious, well managed, exploration and mining company

Key InvestorsTop 10 ShareholdersTop 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 associatesArcher Group 4.9% Managing Director and associates

HSBC Custody 3.2% Global investment nominee

Citi N i 2 8% I t t iCiticorp Nominees 2.8% Investment nominee

Merrill Lynch 2.1% Global investment fund

National Nominees 2.0% Investment nominee

Cogent Nominees 1.5% Investment nomineeg

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Metals OutlookCopper on the MoveCopper on the Move

“Right commodities at the Right Time”

Reuters London, March 5 – “The

“Right commodities at the Right Time”

Chinese dragon is hungry for copperagain and its buying has impacted theLME market much earlier than had beengenerally anticipated.”

Fraser Institute 2009 – “CommodityFraser Institute 2009 Commodityshortages could hinder recovery, theworld may face a shortage of rawmaterials and skyrocketing commoditymaterials and skyrocketing commodityprices as the world economy moves pastthe recession and into renewed growth.”

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Metals OutlookGold to Remain StrongGold to Remain Strong

ScotiaMocatta, March 2009 –“The United States is not alone inlooking to print money, othercentral banks are planning to dop gthe same, which may lead tocompetitive currency devaluation.This could prompt furtherThis could prompt furtherdiversification away from flatcurrencies to hard assets, suchas gold and other commodities ”as gold and other commodities.

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Regional Pipeline – IndonesiaHighly Prospective Advanced Gold ExplorationHighly Prospective Advanced Gold Exploration

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Regional Pipeline – IndonesiaHighly Prospective Advanced Gold Exploration

• Hillgrove’s strategy is to discover world class ore bodies within the

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• A new geological setting that hosts identified world class deposits

• Contains numerous large scale copper-gold porphyry systems and epithermal gold depositsepithermal 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 g p y g yamong 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)

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Regional Pipeline - IndonesiaMining LawMining Law

• There has been a major favourable change in circumstancesThere 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 governmentsadministrative 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 SpecialIndonesian 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 initiativesinitiatives

• 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

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promising exploration terrains in the world for the discovery of world class ore bodies

Bird’s Head, IndonesiaRegional SettingRegional Setting

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Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’

Bird’s HeadWest Papua – Mineral OccurrencesWest Papua Mineral Occurrences

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Bird’s HeadMineralisation ModelMineralisation Model

• Magmatic arc deposits are classified by the d th t hi h th fdepth at which they form

• Bird’s Head has seen a number of phases of number of phases of tectonic activity, including uplift and associated mineralising events that mineralising events that have led to the over printing or telescoping of epithermal mineralisation epithermal mineralisation onto porphyry style mineralisation

Bird’s HeadKey AttributesKey Attributes

• The Bird’s Head Project is located on the northern end of the Bird’sThe 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 Burungp g

• 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 d e to a n mber of factors incl ding the Asian financialIndonesia 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 815km² in December 2008 covering much of the

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over an area of 1,815km in December 2008, covering much of the original Normandy ground

Bird’s HeadHistorical Drainage AnomaliesHistorical 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

Bird’s HeadKey AttributesKey Attributes

Bi d’ H d i iti l ti j t it k tt ib t i l dBird’s Head is an exciting exploration project; its key attributes include:

• Favourable tectonic setting in tertiary volcanics

• Outstanding surface geochemistry

• Strong indications of multi-phased mineralising system epithermalStrong indications of multi-phased mineralising system, epithermal over printing porphyry

• Two advanced exploration prospects (Delta and Alpha) could beTwo advanced exploration prospects (Delta and Alpha), could be drill ready in 6 months

• Numerous high order stream anomalies still require follow upNumerous high order stream anomalies still require follow up

• Limited drill testing has occurred but not at sufficient density to either advance or downgrade potential prospect arease e ad a ce o do g ade po e a p ospec a eas

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Bird’s HeadLocal GeologyLocal Geology

Tertiary Volcanics (Andesites) key host unit for mineralisation 17

Bird’s HeadDelta ProspectDelta Prospect

• Excellent targets for giant copper/gold depositsg g pp g p

• Delta Prospect:A high order 6 x 1.5km corridor of gold and base metal mineralisation g gdefined by soil, rock chip and trench samplingHigh 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 p g g , g , % pp , %7.5% zinc (not same sample)Significant intercepts in trench sampling including 50m @ 4.51g/t gold and 1 09% copper & 10m @ 13 6g/t gold and 2 4% copper (not same trench)1.09% copper & 10m @ 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% zincSi ifi t t d illi lt h 6 6 @ 5 96 /t ld d 14 35Significant scout drilling results, such as 6.6m @ 5.96g/t gold and 14.35m @ 1.71g/t gold

• Broad low grade zone at Delta of 102 4m @ 0 21% copper suggests• Broad low grade zone at Delta of 102.4m @ 0.21% copper suggests porphyry style mineralisation/target

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Bird’s HeadDelta Prospect

Copper Soil Geochemistry

Delta Prospect

Copper Soil Geochemistry

• Extensive copper anomalism identified, 6 x 1 5k id id tifi d1.5km corridor identified

• Copper mineralisation associated with granodiorite intrusive

• Surface expression of a porphyry such as Batu Hijau in Sumbawa is only 400 x 200m

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Bird’s HeadDelta ProspectDelta Prospect

Significant Trench InterceptsTrenching results confirmed presence Trenching results confirmed presence of high grade epithermal mineralisationFollow up drilling has intersected:

1 3 @ 1 1 / 2 /• 14.35m @ 1.71g/t gold and 2.55g/t silver from 13m in KSD1, incl. 7.55m @ 2.97g/t gold and 3.56g/t silver6 1m @ 1 25g/t gold and 2 96g/t • 6.1m @ 1.25g/t gold and 2.96g/t silver from 19.1m and 6.6m @ 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

it t hi h d it f d illinecessitates a high density of drilling

Bird’s HeadAlpha Prospect HighlightsAlpha Prospect Highlights

Mineralisation in the Alpha Prospect is widespread, complex and multiphase and at least three phases of mineralisation which is strongly structurally controlledHighlights from previous work include:• A 1200 x 400m gold and base metal anomaly (A18) defined by soil sampling and trench

three phases of mineralisation which is strongly structurally controlled

g y ( ) y p gsampling with peak results including 14m @ 14.61g/t gold, 6m @ 20.77g/t gold, and 2m @ 26.2g/t gold

• A 1200 x 200m gold and base metal anomaly (B15) defined by soil sampling and trench A 1200 x 200m gold and base metal anomaly (B15) defined by soil sampling and trench sampling with peak results including 8m @ 5.81g/t gold, 8m @ 5.18g/t gold and 12m @ 1.7% lead

• A 1300 x 300m gold and base metal anomaly (A17/A19) defined by soil sampling and • A 1300 x 300m gold and base metal anomaly (A17/A19) defined by soil sampling and trench sampling with peak results including 40m @ 8.69g/t gold, 8m @ 70.95g/t gold, 8m @ 54.5g/t gold and 1.46m @ 34.9g/t gold

A 750 250 ld d b t l l (A7) d fi d b il li d i • A 750 x 250m gold and base metal anomaly (A7) defined by soil sampling and minor trenching

• Significant scout drilling results such as 17.45m @ 2.16g/t gold, 18.36g/t silver, 0.29% copper, 2.08% lead (AD1) and 5.31% zinc, and 1.6m @ 108.5g/t gold and 16g/t silver (AD4)

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Bird’s HeadAlpha ProspectAlpha Prospect

Gold (g/t) Soil Geochemistry

22Extensive gold mineralisation, which appears to be strongly structurally controlled

Bird’s HeadAlpha ProspectAlpha Prospect

Drilling, Trenching Locations on

• Bonanza trenching grades,

Drilling, Trenching Locations on Gold (g/t) Soil Geochemistry

gold associated with epithermal quartz veins

V li it d d illi l t d • Very limited drilling completed to date

• Significant scout drilling results Significant scout drilling results including 17.45m @ 2.16g/t gold, 18.36g/t silver, 0.29% copper 2 08% lead and 5 31% copper, 2.08% lead and 5.31% zinc in AD1

• 1.6m @ 108.5g/t gold and 16g/t

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1.6m @ 108.5g/t gold and 16g/t silver in AD4

Bird’s HeadCentral ProspectsCentral Prospects

Gold (g/t) Geochemistry

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Significant untested geochemical anomalies, i.e. stream anomaly at Quebec similar to that originally defined by Alpha/Bravo anomalies

Bird’s HeadUnigolf ProspectUnigolf Prospect

Gold (g/t) Geochemistry

25Significant geochemical anomaly at the intersection of two regional structures

Bird’s Head2009 Work Program2009 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 campEstablish coastal and Delta base camp

• Geological mapping, rock chip sampling and trenching

G h i• Geophysics

• Drilling

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Bird’s HeadSummarySummary

• The Bird’s Head Project represents an excellent opportunity to explore• 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 depositsg g g, g p

• 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 changesg y y g

• Well respected Indonesian partners

• Excellent potential to discover a company making world class ore body

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• Excellent potential to discover a company making world class ore body

IndonesiaSumba Island ProspectSumba Island Prospect

• KP 350/KEP/HK/2007 general survey license granted on Sumba covering an f 3 433k ²area 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 p pindirect 80% interest

• Sumba offers a leg up into previously identified gold mineralisation zone (BHP) not followed up due to economic conditions of late 1990’snot followed up due to economic conditions of late 1990 s

Better results from BHP trenching include:• 3m @ 49 38g/t gold • 3m @ 49.38g/t gold • 4m at 16.73g/t gold • 4m at 6.7g/t gold • 9m at 5 87g/t gold • 9m at 5.87g/t gold • 9m at 6.1g/t gold • 13m at 2.05g/t gold

16 t 1 56 /t ld • 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

Sumba Pahandanjal Prospect – BHP TrenchingPahandanjal Prospect BHP Trenching

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Sumba2008 Field Season

Highlights from the end of the first field season (only 3 months) include:

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 • 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 lengthPotential 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 g g j ( ggold 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 p p g g gLangela rock chips up to 3.29g/t gold and 43.4g/t silver

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SumbaPahandanjal ProspectPahandanjal Prospect

• Significant 200 x 200m gold in soil anomaly

ki t 0 67 /t d fi dpeaking at 0.67g/t defined at Pahandanjal prospect

A l b t• Anomaly occurs between two major structures and is likely to represent a dil t ti ldilatational zone

SumbaProject SummaryProject Summary

S b i iti l ti j t it k tt ib t i l dSumba is an exciting exploration project , its key attributes include:

• Favourable tectonic setting in tertiary volcanics

• Outstanding surface geochemistry

• Significant epithermal mineralisation has been identified atSignificant 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 4WDy

• Limited drill testing has occurred but not at sufficient density to either advance or downgrade potential prospect areas

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Exploration ResultsCompetent PersonsCompetent Persons

The information in this report that relates to Exploration Results announced by Hillgrove Resources Limited and InterMetResources Limited is based on information compiled by Mr Dale Ferguson, who is a Member of The Australasian Institute ofp y g ,Mining and Metallurgy. Mr Ferguson is the Executive Director – Exploration and Operations of Hillgrove Resources and hassufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Ferguson consents to the inclusion in the reportof 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 InterMetResources Limited is based on information compiled by Mr Adam Freeman, who is a Member of The Australasian Institute ofMining and Metallurgy. Mr Freeman is the Exploration Manager of Hillgrove Resources and has sufficient relevantexperience to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting ofexperience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves’. Mr Freeman consents to the inclusion in the report of thematters 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 PayneThe 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 EvaluationsPty 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 theinclusion 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 withSnowdens Mining Consultants and has sufficient relevant experience to qualify as a Competent Person as defined in the2004 Editi f th ‘A t l i C d f R ti f E l ti R lt Mi l R d O R ’ M

p pp

2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. MrDavidson consents to the inclusion in the report of the matters based on his information in the form and context in which itappears.