PROJECTS

Hillgrove Resources Limited are working on a number of projects. These projects are listed below:

Alford (Hillgrove 20%)
Exploration Project
Hillgrove entered into an option agreement with Kelaray Pty Ltd, a wholly owned subsidiary of Argonaut Resources N.L. (ASX: ARE). Under the terms of the option Hillgrove expended $220,000 on exploration and paid Argonaut $30,000 in 2005 in order to earn the right to initiate a Farm-in Joint Venture and take a 20% interest in the tenement. The Joint Venture Agreement then provided that Hillgrove may earn a further 50% interest by spending $4,000,000 in five years provided exploration expenditures do not fall below $150,000 in any one year.
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Eastern Star Gas (Hillgrove Investment 23.1% fully diluted)
Gas Development Company
Hillgrove sold its 32.5% farm-in in the PEL 238 coal bed methane development project in New South Wales in October 2006 for a 19.9% stake in Eastern Star Gas (ASX:ESG). ESG's interests concentrate on gas reserves and extend from New South Wales down through Victoria.
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Kanmantoo Copper/Gold Project (Hillgrove 100%)
Brownfield Development
Hillgrove has consolidated a series of tenements in South Australia which give it control of the important Kanmantoo Trough including the former Kanmantoo Copper-Gold Mine.
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