Hillgrove Gold Limited


Thursday, 2 October 2014

HILLGROVE GOLD LOAN REPAID IN FULL

Hillgrove Resources Limited (ASX:HGO) is pleased to advise that the Company has executed its obligations in regard to the Gold Loan which made up a portion of the Kanmantoo Project Financing package with Macquarie Bank Limited and Barclays Capital PLC.

The Gold Loan was put in place in March 2012 for A$15 million requiring a repayment of 10,413 ounces of gold in quarterly instalments between June 2012 and September 2014. The last repayment has now been made. The Company had total debt in place of A$55 million in 2012 and now has only A$23 million remaining.

"This is a very positive development for the Company and demonstrates the significant amount of free cash generation from the Kanmantoo project that has enabled the aggressive repayment of debt." said Greg Hall, Managing Director.

For more information contact:

Mr Greg Hall Mrs Shanthi Smith

Managing Director & CEO Company Secretary

Tel: +61 (0)2 8247 9300 Tel: +61 (0)2 8247 9300

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 with exploration projects on its Indonesian tenements. The Kanmantoo Copper Mine is located less than 55km from Adelaide in South Australia. With construction completed in late 2011, Kanmantoo is an open-cut mine with a throughput of

3.0Mtpa, to produce approximately 100,000 dry metric tonnes of copper concentrate per annum.

Kanmantoo Global Mineral Resource Estimate at end February 2013

JORC 2012 Tonnage Cu Au Ag

Classification (Mt) (%) (g/t) (g/t)

Measured 2.63 0.88 0.10 1.95

In Situ Resource Indicated 21.77 0.82 0.23 2.21

Inferred 5.0 0.67 0.13 1.79

29.46 0.80 0.20 2.11

Measured 1.39 0.46 N/A N/A Long Term Stockpiles

Indicated 0.50 0.18 N/A N/A

1.89 0.39 - -

Total 31.30 0.78 0.20 2.11

Note: In Situ Resource >0.20% Cu, Long Term Stockpiles >0.15% Cu.

HILLGROVE RESOURCES LIMITED ACN 004 297 116 www.hillgroveresources.com

Suite 1709, Level 17 Australia Square Tower, 264 George Street, Sydney NSW 2000, Australia T +61 2 8247 9300 F +61 2 8247 9399

HILLGROVE RESOURCES LIMITED

Kanmantoo Global Ore Reserve Estimate at end February 2013

JORC 2012 Tonnage Cu Au Ag

Classification (Mt) (%) (g/t) (g/t)

Proven 2.5 0.77 0.08 1.7

In Situ Reserve

Probable 18.2 0.72 0.20 2.0

20.7 0.73 0.18 1.9

Long Term Stockpiles

Proven

1.4

0.46

N/A

N/A

1.4 0.46 - -

Total 22.1 0.71 0.18 1.9

Note: In Situ Reserve >0.20% Cu. Long Term Stockpiles >0.15% Cu.

Competent Person's Statement

The information in this release that relates to Mineral Resources is based upon information compiled by Mrs Michaela Wright, who is a Member of The Australasian Institute of Mining and Metallurgy. Mrs Wright is a full-time employee of Hillgrove Resources Limited and has sufficient experience relevant to the styles of mineralisation and type of deposit under considerat ion to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)'. Mrs Wright has consented to the inclusion in the release of the matters based on their information in the form and context in which it appears.
The information in this release that relates to Ore Reserves is based upon information compiled by Mr Steven McClare, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr McClare is a full-time employee of Hillgrove Resources Limited and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration to qua lify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Explorat ion Results, Mineral Resources and Ore Reserves (JORC Code)'. Mr McClare has consented to the inclusion in the release of the matters based on their information in the form and context in which it appears.

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