WildHorse Energy completes A$21.8M institutional and private placement

Friday, March 12, 2010

WildHorse Energy (ASX: WHE) has completed its $21,804,858 exempt placement to Institutional and Sophisticated Private Investors. The Company is today allotting the 64,131,934 Placement shares at an issue price of A$0.34 per share for gross proceeds of $21,804,858 before costs.

The net proceeds of the Placement will be used to fast track the development of the Company’s new Underground Coal Gasification (UCG) project in Hungary.

The company said the funds will be dedicated towards an initial coal drilling program aimed at converting the Company’s Exploration Target1 of 1-1.25 billion tonnes of coal into a JORC Inferred Resource, a follow up coal drilling program planned to delineate an Indicated Resource, completion of 3D seismic programs, UCG project pre-feasibility and engineering work, and general working capital.

The Placement was marketed to Institutional and Sophisticated Private Investors by a syndicate of brokers in Australia and the United Kingdom. All participating brokers are entitled to a 5% capital raising fee on monies raised, and a pro rata allocation of 1,090,243 broker options exercisable at the Placement issue price of 34 cents each with a 2 year expiry.

The Company has issued on 10 March 2010 a prospectus under a section 708A(11) of the Corporations Act to qualify the Placement shares for re-sale. The Placement shares will be issued from the 40,000,000 share placement approval given by shareholders at the general meeting held on 29 January 2010 and the existing 15% placement capacity.

WildHorse Energy is a European focused energy development company with two major assets, the Pécs Uranium Project and the Mecsek Hills Gas (UCG) Project.

WildHorse has recently completed the acquisition of the Mecsek UCG project which enhances WildHorse’s strategy of becoming a significant energy project developer in central Europe, through a portfolio of diversified assets at various stages of development.

Mark Hohnen, Ian Middlemas and Matt Swinney have recently joined the Board of WildHorse as part of the Company’s new strategic direction.

The Mecsek UCG project has a current Exploration Target1 of 1-1.25 billion tonnes of coal, established by independent resource geologists CSA Global.

This adds significant upside growth potential for WildHorse, and also increases the diversity of its energy projects in Hungary to cover both uranium and gas.

The Mecsek Hills Gas (UCG) Project is located adjacent to the Company’s Pécs Uranium Project, which has a current Exploration Target1 for the total Mecsek Hills project area of 90 to 120mlbs of contained U3O8 with a grade range of 0.08-0.12%.

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