September 2013
QUARTERLY REPORT
About Hot Rock
Hot Rock Limited is an Australian energy company formed to develop geothermal energy in Australia and overseas.
Strategically, the Company is focussed on exploring and developing its extensive portfolio of volcanic prospects in Chile and Peru complimented with Hot Sedimentary Aquifer prospects in Australia.
The Company moved early and acquired a wholly owned portfolio of projects with good evidence for geothermal reservoirs suitable for electricity generation in countries with attractive infrastructure, markets and government policy.
Executive Management Mark Elliott -Executive Chairman Peter Barnett - Managing Director
Hot Rock Limited
Registered and Head Office
ACN 120 896 371
Level 5, 10 Market Street
Brisbane 4000
Australia
Phone (+61 7) 3212 6200
Fax (+61 7) 3212 6250
www.hotrockltd.com
Strategic Review
The Board of Hot Rock Limited (HRL) has completed a strategic review of the Company and its projects. This includes potential options for a restructuring, cost cutting and refocusing program for the Company's projects which may include the sale or other disposal of projects currently held.
This comes in response to current market conditions in which the ability of the Company to raise sufficient capital or to attract joint venture partners to develop the current projects has proved to be extremely difficult, despite the independently verified quality of the projects held by HRL.
During the review period the Company opened a data room to interested parties to acquire or to joint venture, in any of the projects held by the Company. The Company has now completed an evaluation of options available relating to the possible sale or disposal of its projects.
As a result of the strategic review, HRL has closed its offices in Chile and Peru to significantly reduce costs, while still maintaining management of its tenements via part-time managers. Most of the tenements have been put up for sale to cash up the company for it to assess its future direction.
Any sale which may arise will be subject to amongst other things, approval of HRL shareholders.
Letter of Offer
In October, HRL entered into a binding letter of offer (LOO) with its current Joint Venture Partner, Energy Development Corporation (EDC) for the potential sale of the Company's Quellaapacheta project and for some or all of HRL's remaining Chilean and Peruvian tenements along with drill casing owned by HRL.
EDC and HRL have under the potential offer terms entered a period of exclusivity during which EDC will undertake final due diligence with a view to negotiating the final terms of a sale agreement in the near term, acceptable to both parties and consistent with the LOO.
HRL and EDC are currently working towards finalising the sale agreements for the tenements and the casing in November.
Page 1 www.hotrockltd.com
Hot Rock Limited Report for Quarter Ending 30 September 2013
CORPORATE DIRECTORY
Board of Directors - HRL
Mark Elliott Executive Chairman
Peter Barnett Managing Director
Mike Sandy Non-Executive Director
Stephen Bizzell Non-Executive Director
Company Secretary & CFO
Paul Marshall
Issued Share Capital
Hot Rock has 345.4million ordinary
shares currently on issue and 30.038 million options.
Registered and Head Office
Hot Rock Limited
Level 5, 10 Market Street
Brisbane QLD 4000
Australia
Phone (61 7) 3212 6200
Fax (61 7) 3212 6250 www.hotrockltd.com
Share Registry
Link Market Services Limited Level 12, 300 Queen Street Brisbane QLD 4000
Phone 1300 554 474
Fax (61 7) 3228 4999 www.linkmarketservices.com.au
Please direct shareholding enquiries to the share registry
Page 2 www.hotrockltd.com