FOURTH QUARTER REPORTGREG HALL IIIII CEO & MANAGING DIRECTOR RUSSELL MIDDLETON IIIII CFOSTEVE MCCLARE IIIII GENERAL MANAGER - KANMANTOO28 FEBRUARY 2013

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DISCLAIMER

Important NoticeNo representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and itsofficers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (the “Document”), or the accuracy,likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, this Document or any part of it. This Document includesinformation derived from third party sources that has not been independently verified.

This Document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Hillgrove and certain plans andobjectives of the management of Hillgrove. Forward-looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’,‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. Indications of, and guidance on, production targets, targeted output, minedevelopment or timelines, exploration or expansion timelines, infrastructure alternatives and financial position and performance are also forward-looking statements.Any forecast or other forward-looking statement contained in this Document involves known and unknown risks and uncertainties and may involve significant elementsof subjective judgment and assumptions as to future events which may or may not be correct. Such forward-looking statements are not guarantees of futureperformance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Hillgrove, and may cause actualresults to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from thesestatements.

Various factors may cause actual results or performance to differ materially. These include without limitation the following: risks specific to Hillgrove’s operations; creditrisk; levels of supply and demand and market prices; legislation or regulations throughout the world that affect Hillgrove's business; insurance expenses; the risk of anadverse decision or other outcome relating to governmental investigations; class actions or other claims; growth in costs and expenses; and risk of adverse orunanticipated market, financial or political developments (including without limitation in relation to commodity markets).

You are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are based on information available to us as of thedate of this Document. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward-lookingstatements.

This Document is provided for informational purposes only and is subject to change without notice. Subject to any obligations under applicable laws, regulations orsecurities exchange listing rules, Hillgrove disclaims any obligation or undertaking to release any updates or revisions to this Document to reflect any change inexpectations or assumptions. Nothing in this Document should be interpreted to mean that future earnings per share of Hillgrove will necessarily match or exceed itshistorical published earnings per share, or that there has been no change in the affairs of Hillgrove since the date of this Document.

Nothing contained in this Document constitutes investment, legal, tax or other advice. The information in this Document does not take into account the investmentobjectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of this Document should make its ownassessment and take independent professional advice in relation to this Document and any action taken on the basis of this Document.

All currency referred to is Australian Dollars (AUD) unless otherwise indicated.

Hillgrove has a 31 January Year End, therefore quarter references are Q1 February-April, Q2 May-July, Q3 August-October and Q4 November-January.

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CORPORATE OVERVIEW

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CORPORATE SNAPSHOT

ASX listed: HGO

Shares on issue: 1,022.8 million

Cash and cash equivalents: AUD 27.4 million

Share price: AUD 0.135*

Market capitalisation: AUD 138.1 million*

AUD 50.4 million debt

EV AUD 188.5 million*

48% Institutional shareholders

Top 20 shareholders own ~50%

DETAILS AND SHAREHOLDER DISTRIBUTION AT 31 JANUARY 2013

Source: Orient Capital

* As at 31 January 2013

SHAREHOLDER DISTRIBUTION

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AUSTRALIAN AND INDONESIA FOCUSPRODUCTION AND EXPLORATION ASSETS

5

Sumba project

Bird’s Head project

Kanmantoo

Production and cash flow in Australia

Kanmantoo Copper Mine (100% owned), South Australia

Rim-of-Fire exploration upside in Indonesia

Sumba gold project (80% owned)

Bird’s Head copper/gold project (80% beneficial interest via JVA)

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HILLGROVE FOURTH QUARTER UPDATE

Significant increase in Kanmantoo Life of Mine potentially to 2023

Mining operations reached target capacity of 500kbcm per month with 23% increase in total material moved on previous quarter

Crushing circuit and ore processing plant performance continue to increase (9% increase on Q3 2013)

Continued improvement on safety performance with quarterly TRIFR of 11.8 a significant reduction on previous three quarters

Final assays for initial drilling programme at Greencliffs Prospect, at Birds Head, West Papua confirm widespread molybdenum mineralisation and elevated copper values consistent with near-porphyry environment

Greg Hall commenced as Managing Director on 11 February 2013

HIGHLIGHTSF

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KANMANTOO OPERATIONS

The focus during the quarter has been on establishing the new LOM plan and then aggressively moving the pit to the position required for maximum direct

pit ore feed to coincide with commissioning of the new primary crusher.

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SAFETY – 12 MONTH ROLLING KANMANTOO TRIFR

82.6

41.2

20.7

64.9

20.5 19.6

102.5

35.4 34.017.3

0.0

18.4

62.858.4

52.1 53.9

49.6 46.152.8 51.0 49.3

46.642.9 41.2

0.0

20.0

40.0

60.0

80.0

100.0

120.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Monthly TRIFR

YTD ‐ TRIFRTRIFR - Total Recordable Injury Frequency Rate

KANMANTOO COPPER MINEF

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Significant increase of 23% in material movements

Mining dilution and mill feed in line with resource estimation

Blended feed to mill included pit and lower grade stockpile ensuring continuity and rapid movement to LOM Plan

PRODUCTION OUTPUT

Period FY 2012 FY 2013 Q1 12 Q2 12 Q3 12 Q4 13

Ore to ROM from Pit (kt) 495 2,221 544 486 552 639

Ore to long term stockpiles (kt) 1,267 849 298 248 205 98

Mined Waste (kt) 7,446 11,777 2,639 2,683 2,805 3,650

Total Tonnes Mined (kt) 9,208 14,847 3,481 3,417 3,562 4,387

Mining Grade to ROM (%) 0.75 0.76 0.82 0.71 0.83 0.70

Ore Milled (kt) 331 2,303 488 572 595 648

Milled Grade (%) 0.56 0.66 0.63 0.67 0.74 0.62

Au (g/t) 0.11 0.16 0.14 0.13 0.17 0.20

Ag (g/t) 2.22 2.96 2.89 3.43 3.08 2.50

Recovery Cu (%) 69.6 89.9 86.8 90.5 91.3 90.1

Au (%) 67.5 54.7 58.0 50.4 56.7 53.0

Ag (%) 46.6 55.4 49.7 48.0 61.5 62.5

Cu Concentrate Produced Tonnes 4,774 56,431 10,316 13,280 17,007 15,827

Concentrate Grade Cu (%) 30.2 24.4 26.0 26.2 23.5 22.7

Au (g/t) 6.0 3.6 3.9 2.8 3.3 4.4

Ag (g/t) 79.9 67.0 67.8 71.1 66.2 64.0Contained Metal In Concentrate Cu (t) 1,481 13,744 2,681 3,473 3,994 3,595

Au (oz) 816 6,570 1,275 1,216 1,852 2,226

Ag (oz) 12,194 121,656 22,507 30,351 36,222 32,576

Total Concentrate Sold Dry metric t 4,263 56,526 8,590 15,462 16,292 16,182

KANMANTOO COPPER MINEF

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C1 costs higher primarily due to increased waste that enables delivery of desired LOM position in Kavanagh Pit

C1 cash costs of production were USD2.74/lb(average AUD/ USD exchange rate of 1.049)

Depreciation decreased to reflect new LOM

C1 PRODUCTION COSTS

PeriodUS cents per lb

Apr‐12QTR

Jul‐12QTR

Oct‐12QTR

Jan‐13QTR

Full Year

Mining Costs 132 116 85 155 120

Processing Costs 111 88 97 94 97

Other Direct Cash Costs 29 22 19 19 23

Total Onsite Costs 272 226 201 268 240

Transport & Shipping 18 18 17 18 18

Treatment, Refining & Smelter Charges 31 35 35 37 36

Total Offsite Costs 49 53 52 55 54

Precious Metals Credits (40) (43) (46) (49) (46)Total Direct Operating Costs (C1 Cash Costs) 281 236 207 274 248

Royalties 6 3 5 6 5

D&A 135 117 112 30 96

TOTAL  422 356 324 310 349

KANMANTOO COPPER MINEF

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KANMANTOO COPPER MINECURRENT RESOURCE ESTIMATE

* May 2012 has been depleted relative to Nov 2008 due to treatment of 667kt @ 0.68% Cu through the ore processing plant

Note: The estimation of Bi is based on limited sampling data. Bi is recognised as a potential penalty element at Kanmantoo. 2012 In Situ Resource > 0.25% Cu. Long Term Stockpiles > 0.15% Cu. Au, Ag and Bi assays are not available.

Global Mineral Resource (March 2012)

JORC Cu Au Ag Bi Cu Metal Classification (Mt) (%) (g/t) (g/t) (g/t) (kt)

In Situ Resource

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

Long Term Stockpiles

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

An updated Mineral Resources estimate is anticipated to be released in Q2 and an Ore Reserves estimate in early Q3 2013

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EXTENSION OF MINE LIFEKANMANTOO COPPER MINE

New LOM planning with long-term pit optimisation provides a reasonable basis for indicative future planning and likely extension of mine life to 2023

Estimated period of operation initially increasing from 6.5 to 10 years

New plan contains total LOM Production Target of 30-32Mt @ 0.7-0.8% Cu for approximately 190kt of recoverable copper

Improved understanding of Resource and increased confidence about the mine production profile, pit design and future Exploration Targets near mine

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IMPLEMENTATION OF OPERATIONAL IMPROVEMENTSKANMANTOO COPPER MINE

Development of LOM Plan shows focus on bench turnover in Kavanagh and enhanced mill throughput to provide desired financial performance but requires continued use of lower grade stockpiled material through to April

Detailed planning, manufacturing, and site delivery is underway for new primary crusher, with installation planned through March and into April, and commissioning during April/May

Once operating satisfactorily, removal of ancillary crushing equipment from ROM will lead to lower unit costs and a substantial increase to mill throughput, targeted at 2.8Mtpa

Kavanagh bench turnover will continue to be prioritised in the next quarter to achieve consistent mill feed from April 2013

Continued high mill throughput, with improved grade performance and mining delivery, will lead to significantly improved metal production and revenueFor

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HILLGROVE FOURTH QUARTER PERFORMANCE

Hedging provides price protection above current spot prices

SOLID OUTLOOK FOR REALISED COPPER PRICES

Production started December 2011

 6,000

 6,500

 7,000

 7,500

 8,000

 8,500

 9,000

 9,500

 10,000Au

g‐10

Oct‐10

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Aug‐11

Oct‐11

Dec‐11

Feb‐12

Apr‐12

Jun‐12

Aug‐12

Oct‐12

Dec‐12

Feb‐13

Apr‐13

Jun‐13

Aug‐13

Oct‐13

Dec‐13

Feb‐14

Apr‐14

Jun‐14

Hillgrove AUD Copper Position

Spot Price (AUD) Committed Hedging (AUD)

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INDONESIAN EXPLORATION

The Company’s focused investment and exploration in Indonesia has successfully achieved the original objectives of establishing a high-quality

investment platform and delineating potential Tier One targets. In line with this goal, management are now mandated by the Hillgrove board to review the

potential for attracting suitable strategic investors to fund and support future exploration and development programs for both Sumba and Birds Head.

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PROJECT ATTRIBUTES

Hillgrove has an 80% beneficial interest in PT Akram through a JV Agreement

Moving to a corporatised ownership structure – PMA conversion in progress

IUP rights cover almost 1,000km², granted to March 2017

Hillgrove responsible for exploration & development activities to Decision to Mine

INDONESIA BIRD’S HEAD PROJECT

WEST DELTA

ALPHA

GOLF

QUEBEC

JULIET FOXTROT

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PROJECT EXPLORATION AREASINDONESIA BIRD’S HEAD PROJECT

Porphyry copper-gold, polymetallic and epithermal gold mineralisation recognised

West Delta easily accessed from the north coast

Granted Izin Pinjam Pakai Explorasi over West Delta target area

Established, strong relationships with local landowner groups and communities

AD001: 17.5m @ 2.16g/t Au, 18.26 g/t Ag, 0.29% Cu,

2.08% Pb, 5.31% ZnAD004:

1.6m @ 108.5g/t Au, 16 g/t Ag

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EXPLORATION PROGRAMMEINDONESIA BIRD’S HEAD PROJECT

Exploration activities focused on:

Reconnaissance geological mapping of the drainages both east and west of the main West Delta corridor

Detailed mapping at Suben/Rak Rak Prospects in preparation for drill testing

Assessing final results from the initial drilling at Greencliffs Prospect, which consisted of 10 holes for 4,911 metres

Assays for the final three holes were in line with earlier results, revealing significant molybdenum mineralisation with attendant copper mineralisation

Better molybdenum intercepts include:

WDD-021: 18m @ 271ppm Mo from 339m

WDD-022: 18m @ 149ppm Mo from 180m15m @ 103ppm Mo from 254m12m @ 106ppm Mo from 430mF

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PROJECT ATTRIBUTESINDONESIA SUMBA ISLAND

Hillgrove has a 80% direct shareholding in PT Fathi Resources through Singapore holding structures

Fathi already converted to PMA status

IUP rights cover almost 1,000km² , granted to December 2016. Reducing to 750km²

Hillgrove responsible for exploration and development activities and sole funding up to Decision to Mine

Island arc setting

Ex-BHP project: Extensive database of previous exploration results has delineated numerous targets

Principal targets of low sulphidation epithermal gold mineralisation throughout

South coast potential for porphyry copper-gold targets Masu

Karipi

Tanah Daro

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EXPLORATION PROGRAMMEINDONESIA SUMBA ISLAND

Aeromagnetic coverage over volcanic sequences

Potential porphyry related mineralisation in Masucorridor and South coast

Masu Project area in East Sumba the principal target area for exploration over numerous gold targets

No forestry restrictions within the licence area

Numerous gold targets identified by surface geochemistry, airborne and ground geophysics, trenching and drilling

Established and strong relationships with local landowner groups and communities

Karipi prospect the primary target area with low sulphidation epithermal gold mineralisation

Rock chips to 1,270g/t Au

4,594m of diamond drilling over 52 holes to dateFor

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MASU EXPLORATIONINDONESIA SUMBA

Final trench and rock chip samples from the MajapahitProspect included the following intercepts:

MATR178: 2m @ 7.01g/t Au and 5g/t Ag

MATR179: 6m @ 1.32g/t Au and 0.2g/t Ag

Numerous significant high grade gold rock chips were collected at Majapahit(30.6g/t), Laironja (58g/t) and Liandinger prospects; and a float sample showing stockwork veining with 1.52g/t gold and 0.2% copper at Laironja

LIANDINGER

BIG SULPHUR

KARIPI

MAJAPAHIT

LAIRONJA

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DISCLAIMERCOMPETENT PERSONS

The information that relates to Exploration Results and Exploration Targets for the Kanmantoo Copper Mine is based uponinformation compiled by Mr Steven McClare, who is a Member of The Australasian Institute of Mining and Metallurgy. MrMcClare is a full-time employee of Hillgrove Resources Limited and has sufficient experience relevant to the styles ofmineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition ofthe ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)’.

The information that relates to the Kanmantoo in situ Mineral Resource estimates is based on information compiled by MrAaron Meakin, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Meakin is a full-time employeeof AMC Consultants Pty Ltd and has sufficient experience relevant to the styles of mineralisation and type of deposit underconsideration 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 (JORC Code)’.

The information that relates to Exploration Results is based on information compiled by Mr Jim Kerr, who is a Member ofThe Australian Institute of Mining and Metallurgy. Mr Kerr is General Manager – Exploration for Hillgrove Resources andhas sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the ‘AustralasianCode for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

The Competent Persons have consented to the inclusion in the report the matters based on their information in the form and context in which it appears.

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