Hillgrove updates Indonesian gold, copper/gold projects

Tanah Daro gold Project, Central Sumba
Located in the northern portion of the IUP, Tana Daro was identified by BHP in the 1990s, where soil and rock chip sampling encountered anomalous gold and base metal values.

Hillgrove has completed local socialisation programmes and obtained relevant access permissions to undertake first-pass reconnaissance sampling over prospective volcanic lithology. Exploration conducted this quarter has included the establishment of a base camp and the collection of 150 soil samples at the Langela prospect, plus 220 samples from the Pelitilira prospect, with associated rock chip sampling in preparation for trenching and eventually drilling before the end of 2010.

Results from soil sampling are awaited.

Bird's head copper/gold project, West Papua
(Hillgrove 80%)

Hillgrove is an 80% beneficial shareholder in PT Akram Resources which holds IUP40/2010 in the Bird?s Head regi of West Papua (Plate 4). Hillgrove is responsible for the sole funding and management of all exploration ana development activities up to a decision to mine. The IUP Explorasi (Exploration and Mining Business Licence) covers 992.3km2 for a period of six years.

Exploration activities this quarter have included the satisfactory completion of detailed landowner and community access negotiations for the West Delta target area and continued geological mapping and geochemical sampling of extensive porphyry - related alteration around West Delta.

Exploration at Bird?s Head this quarter was slower than anticipated due to ongoing landowner negotiations centred on establishing continued and uninterrupted land access to the West Delta target area. Negotiations were successfully completed, granting PT Akram certainty of access to the West Delta target area and importantly, clearly identifying all affected landowners under an inclusive access and compensation agreement.

Geological mapping and sampling of monzonite at the Green Cliffs area continued this quarter, in conjunction with detailed geological mapping of the West Delta prospect.

Rock chip samples from the Green Cliffs area were submitted, with assays presented below. (end of edited excerpt)

Sample No.	Easting	Northing	Au ppm	Ag ppm	Cu ppm	Mo ppm
837	234520	9956723	1.07	9.8	635	342
484	234425	9956776	0.56	3.9	2680	260
600	234469	9956824	0.06	-0.1	2590	13
587	234428	9956824	0.47	5.4	2370	149
483	234424	9956776	0.24	1	2260	187
579	234435	9956785	0.22	0.2	789	1790
832	234515	9956728	0.03	4.8	1130	1560

Note:
Gold analysis by 50gm fire assay
Silver and base metal analysis by ICP
Analysis by Intertek Laboratories, Jakarta Indonesia