SIGNIFICANT GOLD MINERALISATION AT SUMBA FIRST PASS DRILLING AND TRENCHING AT MASU PROJECT ENCOUNTERS SIGNIFICANT GOLD MINERALISATION

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1 Wednesday, 28 July 2010 SIGNIFICANT GOLD MINERALISATION AT SUMBA FIRST PASS DRILLING AND TRENCHING AT MASU PROJECT ENCOUNTERS SIGNIFICANT GOLD MINERALISATION Hillgrve Resurces Ltd (ASX:HGO) is pleased t annunce results frm initial drilling and nging sil, rck and trench sampling f gld targets at the Masu Prject, Sumba Island, Indnesia. The Masu Prject cmprises the Pahandanjal, Okajara and Kanjilu prspects lcated within a hydrthermal alteratin system cnfirmed ver an 8km strike length (Figure 1). IIII Highlights A ttal f 11 drill hles cmpleted as part f the first pass recnnaissance drilling prgram; Drilling results cnfirm significant gld values in bth the West and East Veins; First tw hles cmpleted n the high grade West Vein intersected: MADPH002: 3.68g/t Au and 43.41g/t Ag frm 38.9m MADPH003: 4.14g/t Au and 7.71 g/t Ag frm 54.45m; East Vein drilling cnfirmed brad gld intersectins in trenching: MADPH009: 0.81g/t Au frm 14.35m MADPH011: 0.67 g/t Au, frm 33.45m MADPH012: 0.91 g/t Au; Trenching at Nrth Pahandanjal intersects significant gld values: 3.61g/t Au 4.83g/t Au 2.21 g/t Au 0.97 g/t Au; Secnd, larger rig mbilised t site; Recnnaissance sil sampling extends gld anmalism 8km t the nrth f the current drill targets, with previus results t 17g/t Au in sils; Gelgical mapping cnfirms intense, widespread hydrthermal clay and silica alteratin ver 8km strike length, with supprting high grade rck chips; Rck chip sampling f surface silicificatin at Kanjilu prspect returns values up t 72g/t Au; Numerus new epithermal vein ccurrences recrded; sample results awaited. HILLGROVE RESOURCES LIMITED ACN Level 41 Australia Square, 264 Gerge Street, Sydney NSW 2000, Australia T F

2 Hillgrve CEO Drew Simnsen said Fr an initial drill campaign, we are certainly seeing the results we were hping fr. We cntinue t encunter gld mineralisatin ver a very large area at Masu and ur initial scut drilling has cnfirmed the presence f gld at depth. In additin t the quality f the drill results, this initial drilling campaign has als yielded valuable infrmatin n the style and nature f mineralisatin. We are dealing with quite a large system and typically fr this type f explratin target, the discvery prcess is ne f steadily increasing ur knwledge and understanding f what we have encuntered. With this in mind, we have mbilised a secnd, larger drill rig t target deeper psitins, which will free up the scut rig t investigate the numerus targets in frnt f us. Hwever ne may chse t lk at Masu, we feel we are n t smething special, Mr Simnsen said. Drilling First pass drilling beneath gld values encuntered in trenching ver the Pahandanjal West and East Veins has intersected gld mineralisatin at depth. Due t persistent wet weather, nly tw hles were cmpleted n the higher grade West Vein befre mving t the East Vein, where drill access is mre straightfrward and less affected by heavy rains. Pahandanjal West Vein drill hles intersected significant gld mineralisatin at shallw depths cnsistent with trenching gld values. Gld mineralisatin is assciated with nrth suth striking, steeply dipping banded epithermal quartz veins and sulphides and remains pen alng strike and dwn dip. Drilling will recmmence n the West Vein as sn as weather cnditins allw fr safe site access. Drill hle lcatins and significant intercepts are presented in Table 2 and n Figure 2. Results frm nine hles cmpleted n the East Vein target have cnfirmed the presence f a brad, nrth west suth east trending, shallw dipping, lw gld grade breccia lde. The breccia zne is apprximately 20m thick and cntains grades f up t 2.81g/t Au and 30.3g/t Ag in drilling (see Table 2 and Figure 3). The Cmpany cnsiders gld mineralisatin within the East Vein encuraging as it demnstrates width and scale f mineralised structures present within the hydrthermal system. A key explratin target at Pahandanjal is the prjected intersectin f the higher grading West Vein with the brad, lwer gld grading East Vein. This target area is nrth f the current drilling and is pstulated t sit under shallw, pst mineralisatin cver. Trenching Trenching ver the Nrth Pahandanjal and Okajara Prspects is cntinuing, with results fr the first three Nrth Pahandanjal trenches returning significant gld intersectins as presented belw in Table 1 and pltted n Figure 4. The Cmpany cnsiders these trenching results very encuraging as they cnfirm the cntinuity f gld mineralisatin t the nrth f the current drill targets, further reinfrcing the Cmpany s explratin mdel that the Masu Prject is a large, gld-mineralised hydrthermal system. 2.

3 Table 1: Nrth Pahandanjal Trenching Mineralised Intervals Trench ID UTM E Z51S UTM N Z51S TO UTM E Z51S UTM N Z51S INTERVAL Gld g/t Silver g/t FT m m FT m m m FT m including 4m m m including 2m Nte: Gld assays determined by averaging up t 3 repeats using 50gm Fire Assay methd Silver values calculated frm multi element sweep using ICP analytical methd Intervals calculated as a weighted average using 0.5g/t Au lwer cutff, maximum 2m internal waste East Sumba datum: WGS84 Zne 51 Suthern Hemisphere Sil and Rck Chip Sampling Sil and rck chip sampling has cntinued thrughut the Masu Prject area, with sil gld anmalism nw cnfirmed ver 8km f strike length. The nrthern-mst sil sampling line at the Kanjilu prspect encuntered strngly anmalus gld values t 17g/t Au, clearly indicating the Masu gld system remains pen alng strike t the nrth. Scut rck chip sampling in the Kanjilu prspect area returned values f 5.29g/t Au and 5.8g/t Au, with an utlying rck chip sample cllected 500m nrth f Kanjilu returning 72g/t Au, 31.7g/t Ag (Figure 1). Additinal sil sampling, mapping and trenching is planned at Kanjilu in due curse. Mr Simnsen said Hillgrve will maintain the current fcus f the explratin and drilling prgram, with an expanded scpe and impetus. This is a substantial prject pprtunity fr Hillgrve, and we are cmmitted t fully expliting this thrugh a ramped-up drilling prgram with the secnd rig and further investment in explratin, including gephysics, Mr Simnsen said. The Hillgrve team has been undertaking a diligent and methdical apprach t a carefully structured wrk prgram. As we cntinue t assess the big picture in light f nging results, we will als reassess the level f resurces applied. The size f the mineralised system we have encuntered lks very prmising and we are respnding accrdingly. Abut the Sumba Prject Sumba is lcated in the prvince f East Nusa Tengarra and is suth f the islands f Flres and Sumbawa in Indnesia. An Explratin Mining Business License (in Indnesian, an Izin Usaha Pertambangan r IUP ) has been awarded t Hillgrve s Indnesian jint venture partner, PT Fathi Resurces. The IUP (322/KEP/HK/2009) has been granted fr a term f six years and permits explratin fr metals, gld and ther assciated minerals ver an area f 999km². Hillgrve has an 80% ecnmic interest in the Prject. The IUP encmpasses highly prspective grund which has been shwn t cntain identified znes f gld and base metal mineralisatin. 3.

4 Abut Hillgrve Hillgrve is an Australian mining cmpany listed n the Australian Securities Exchange (ASX: HGO) fcused n develping its Indnesian, Suth Australian and Queensland base and precius metals prjects. The Cmpany is targeting the discvery f wrld class epithermal gld and prphyry cpper/gld depsits in Eastern Indnesia. Hillgrve s flagship develpment is the Kanmant Cpper Gld Prject, lcated less than 60km frm Adelaide in Suth Australia. Kanmant currently hsts a Mineral Resurce f 32.2Mt (2.3Mt Measured, 22.5Mt Indicated and 7.4Mt Inferred) grading 0.9% cpper and 0.20g/t gld, cntaining 292,200 tnnes f cpper, 191,100 unces f gld and 3,313,600 unces f silver. With prductin targeted fr the first quarter f 2011, Kanmant will be a 2Mt p.a. pen-cut mine prducing apprximately 17,000 tnnes f cpper in cncentrate and 8,000 unces f gld per annum. The infrmatin in this reprt that relates t Explratin Results is based n infrmatin cmpiled by Mr. Jim Kerr, wh is a Member f The Australasian Institute f Gescientists. Mr. Kerr is General Manager Explratin fr Hillgrve Resurces and has sufficient relevant experience t qualify as a Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr. Kerr cnsents t the inclusin in the reprt f the matters based n his infrmatin in the frm and cntext in which it appears. The infrmatin in this reprt that relates t Mineral Resurce estimates is based n infrmatin cmpiled by Mr Paul Payne, wh is a Member f The Australasian Institute f Mining and Metallurgy. Mr Payne is a full-time emplyee f Runge Limited and has sufficient relevant experience t qualify as a Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Payne cnsents t the inclusin in the reprt f the matters based n his infrmatin in the frm and cntext in which it appears. Fr mre infrmatin cntact: Mr Drew Simnsen Mr Jim Kerr CEO General Manager Explratin Hillgrve Resurces Limited Hillgrve Resurces Limited Tel: Tel: Mbile: Mbile:

5 Table 2: Pahandanjal Drill Hle Lcatin and Significant Intercepts Easting Nrthing RL Azimuth Inclinatin Final Intercept Au Ag Hle ID Z51L Z51L (m) ( ) ( ) Depth Frm (m) T (m) width (m) (g/t) (g/t) MADPH001 Abandned 2.6 MADPH including MADPH including MADPH including MADPH including MADPH MADPH RESULTS PENDING MADPH NSI MADPH including MADPH MADPH * N/A including * * * MADPH including Nte: Gld assays determined by averaging up t 3 repeats using 50gm Fire Assay methd Silver values calculated frm multi element sweep using ICP analytical methd Intercepts calculated using 0.5g/t Au cutff, maximum 2m internal waste East Sumba datum: WGS84 Zne 51 Suthern Hemisphere NSI: N Significant Intercept N/A Nt Available * preliminary assay nly 5.

6 Figure 1. Masu Prject, Prspect Lcatins, Sil and Rck Chip Sampling 6.

7 Figure 2. Pahandanjal West Vein Trenching and Drill Hle Lcatin Plan 7.

8 Figure 3. Pahandanjal East Vein Trenching and Drill Hle Lcatin Plan 8.

9 Figure 4. Nrth Pahandanjal Trenching, Sil Sampling and Rck Chip Plan 9.