diff --git a/src/main/java/org/wordinator/xml2docx/generator/DocxGenerator.java b/src/main/java/org/wordinator/xml2docx/generator/DocxGenerator.java
index 2f3f2d6..eeb0ed4 100644
--- a/src/main/java/org/wordinator/xml2docx/generator/DocxGenerator.java
+++ b/src/main/java/org/wordinator/xml2docx/generator/DocxGenerator.java
@@ -46,6 +46,7 @@
 import org.apache.poi.xwpf.usermodel.XWPFNum;
 import org.apache.poi.xwpf.usermodel.XWPFNumbering;
 import org.apache.poi.xwpf.usermodel.XWPFParagraph;
+import org.apache.poi.xwpf.usermodel.XWPFRelation;
 import org.apache.poi.xwpf.usermodel.XWPFRun;
 import org.apache.poi.xwpf.usermodel.XWPFStyle;
 import org.apache.poi.xwpf.usermodel.XWPFStyles;
@@ -1756,7 +1757,7 @@ private void makeFootnote(XWPFParagraph para, XmlObject xml) throws DocxGenerati
         }
       }
 
-      noteCursor.dispose();
+      noteCursor.close();
 
     }
 
@@ -2243,27 +2244,29 @@ private void makeHyperlink(XWPFParagraph para, XmlCursor cursor) throws DocxGene
     // Convention in simple WP XML is fragment identifiers are to bookmark IDs,
     // while everything else is a URI to an external resource.
 
+    // If the hyperlink is to a bookmark (just a fragment ID) then we we create a hyperlink with
+    // an anchor, otherwise we create an external hyperlink to a URI.
+
     CTHyperlink hyperlink = para.getCTP().addNewHyperlink();
 
     // Set the appropriate target:
 
     if (href.startsWith("#")) {
-      // Just a fragment ID, must be to a bookmark
+      // Just a fragment ID, must be to a bookmark, set @anchor attribute.
       String bookmarkName = href.substring(1);
       hyperlink.setAnchor(bookmarkName);
     } else {
-      // Create a relationship that targets the href and use the
-      // relationship's ID on the hyperlink
-      // It's not yet clear from the POI API how to create a new relationship for
-      // use by an external hyperlink.
-      // throw new NotImplementedException("Links to external resources not yet implemented.");
+      // Create an external hyperlink. This creates the necessary relationship.
+      // Not using the createHyperlinkRun() of paragraph because it doesn't handle the
+      // runs within the <hyperlink> as we need. Set the @rId attribute.
+      String rId = para.getDocument().getPackagePart().addExternalRelationship(href, XWPFRelation.HYPERLINK.getRelation()).getId();
+      hyperlink.setId(rId);
     }
 
     cursor.push();
     XWPFHyperlinkRun hyperlinkRun = makeHyperlinkRun(hyperlink, cursor, para);
     cursor.pop();
     para.addRun(hyperlinkRun);
-
   }
 
   /**
diff --git a/src/test/java/org/wordinator/xml2docx/TestDocxGenerator.java b/src/test/java/org/wordinator/xml2docx/TestDocxGenerator.java
index c21a579..930bd3c 100644
--- a/src/test/java/org/wordinator/xml2docx/TestDocxGenerator.java
+++ b/src/test/java/org/wordinator/xml2docx/TestDocxGenerator.java
@@ -251,7 +251,7 @@ public void testHyperlinkHandling() throws Exception {
     XWPFParagraph p = iterator.next();
     assertNotNull("Expected a paragraph", p);
     assertEquals("Issue 65: Data following hyperlink is dropped", p.getText());
-    // Normal footnote with generated ref
+    // Hyperlink to a bookmark (internal link):
     p = iterator.next();
     Iterator<IRunElement> runIterator = p.getIRuns().iterator();
     assertTrue("Expected runs", runIterator.hasNext());
@@ -259,9 +259,26 @@ public void testHyperlinkHandling() throws Exception {
     assertEquals("First run in para before the hyperlink", ((XWPFRun)run).getText(0));
     run = runIterator.next(); // Should be the hyperlink
     assertTrue("Expected a XWPFHyperlinkRun", run instanceof XWPFHyperlinkRun);
-    assertTrue("Expected fun following the hyperlink", runIterator.hasNext());
-    run = runIterator.next(); // Should be the hyperlink
+    assertTrue("Expected run following the hyperlink", runIterator.hasNext());
+    run = runIterator.next(); 
     assertEquals("Run after the hyperlink.", ((XWPFRun)run).getText(0));
+    // Now look for external link:
+    p = iterator.next();
+    assertNotNull("Expected another paragraph after internal hyperlink", p);
+    p = iterator.next();
+    assertNotNull("Expected another paragraph after internal hyperlink", p);
+    p = iterator.next(); // Should be paragraph with hyperlink
+    assertNotNull("Expected another paragraph after internal hyperlink", p);
+    runIterator = p.getIRuns().iterator();
+    assertTrue("Expected runs", runIterator.hasNext());
+    run = runIterator.next();
+    assertTrue("First run in para before the hyperlink", ((XWPFRun)run).getText(0).startsWith("External hyperlink:"));
+    run = runIterator.next(); // Should be the hyperlink
+    assertTrue("Expected a XWPFHyperlinkRun", run instanceof XWPFHyperlinkRun);
+    XWPFHyperlinkRun linkRun = (XWPFHyperlinkRun)run;
+    String rId = linkRun.getHyperlinkId();
+    assertNotNull("Expected and rId", rId);
+    
   }
 
   @Test
diff --git a/src/test/resources/docx/Manual-and-Styled-Lists.docx b/src/test/resources/docx/Manual-and-Styled-Lists.docx
index 174601f..84e2693 100644
Binary files a/src/test/resources/docx/Manual-and-Styled-Lists.docx and b/src/test/resources/docx/Manual-and-Styled-Lists.docx differ
diff --git a/src/test/resources/simplewp/simplewpml-issue-65.swpx b/src/test/resources/simplewp/simplewpml-issue-65.swpx
index 8f11ee5..2ef6fc7 100644
--- a/src/test/resources/simplewp/simplewpml-issue-65.swpx
+++ b/src/test/resources/simplewp/simplewpml-issue-65.swpx
@@ -64,5 +64,7 @@
       <run> 1996; 24: 1-11.</run>
       <bookmarkEnd id="IDunique_6_Connect_42_li_olb_5tg_tt"/>
     </p>
-  </body>
+    <p><run>External hyperlink: </run><hyperlink href="https://github.com/drmacro/wordinator"><run>Wordinator</run>
+    </hyperlink><run>After hyperlink para with external hyperlink</run></p>
+ </body>
 </document>
diff --git a/version.properties b/version.properties
index 2e8b9a7..1bf5794 100644
--- a/version.properties
+++ b/version.properties
@@ -1 +1 @@
-version=1.1.3
+version=1.2.0