AERIS RESOURCES LIMITED — Capital/Financing Update 2012

Oct 31, 2012

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ASX: YTC
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1 November 2012

YTC MOVES TO 100% OF DORADILLA PROJECT

YTC Resources Limited (“YTC” or “the Company”) is pleased to announce it has reached agreement with Straits Resources Ltd (ASX: SRQ) to acquire 100% of the Doradilla Project in north-western NSW.

Background

Prior to the Agreement, YTC had been earning an initial 70% interest in EL 6258 (the “Doradilla Project”) from Straits Resources through sole funding exploration expenditure of A$1.5 million by 18 December 2012 pursuant to an Exploration Joint Venture Agreement (dated August 2007) between YTC and Templar Resources Pty Ltd, a 100% owned subsidiary of Straits Resources Ltd.

Under the Agreement, YTC will acquire 100% of the Doradilla Project tenement in consideration for the issue of $250,000 worth of YTC fully paid ordinary shares at a deemed price of $0.286 per share.

The Agreement is subject to the approval of the tenement transfer to YTC or its nominated subsidiary from the NSW Dept of Trade & Investment (Resources & Energy)

At the date of the Agreement, YTC had sole funded approximately A$1.25 million of exploration expenditure, and has recently completed a 1,830m aircore drilling programme on the tenement.

About the Doradilla Project

The Doradilla Project lies approximately 50km south-east of Bourke, NSW, and hosts a 16km long tinmineralised skarn referred to as the DMK Line, which hosts the tin-skarn deposits of Doradilla, Midway and 3KEL. Tin mineralisation occurs as fine grained cassiterite within the Doradilla primary zone and as silicates in the Midway-3KEL primary and oxide zones.

Historical exploration has concentrated on the primary zones of Doradilla, Midway and 3KEL, with YTC more focused on the oxide deposits. All previous exploration has highlighted the large scale of the mineralisation. Some of the stronger results from historic and YTC drilling include:

Doradilla Deposit:

DR20: 6m @ 1.16% Sn & 0.11% Cu DR22: 7m @ 1.2% Sn (deepest hole into Doradilla deposit) DOXD001: 38m @ 0.53% Sn (Doradilla Oxide Zone) DCMD002: 1.5m @ 683g/t Ag and 1.2% Bi

3KEL Deposit:

3KAC004: 40m @ 1.5% Sn, 0.52% Cu, 110ppm In & 0.35% Zn, including 18m @ 3.04% Sn, 0.85% Cu, 230ppm In & 0.73% Zn 3KAC016: 42m @ 1.32% Sn, 40ppm In, 0.23% Zn & 0.18% Bi including 10m @ 4.44% Sn and 106ppm In & 0.1% Bi

Midway Deposit:

EM3: 5.5m @ 0.36% WO3

In 2008 YTC completed an aircore drilling programme at 3KEL that was able to validate previous drilling and allow for the estimation of a JORC compliant Inferred Mineral Resource for the oxide zones at Midway-3KEL of 7.8Mt @ 0.29% Sn . The deposits also contain potentially economic levels of copper, zinc and indium which were not included in the Resource estimate.

Table 1: Midway & 3KEL deposits – Doradilla JV (YTC earning 70%) – February 2008

		Midway	Midway	3KEL	3KEL	TOTAL	TOTAL
Category	Sn Cut-off	Tonnes (M)	% Sn	Tonnes (M)	% Sn	Tonnes (M)	% Sn
Inferred	0.1%	4.63	0.25	3.18	0.34	7.81	0.29
Inferred	0.2%	1.97	0.4	1.85	0.48	3.82	0.44
Inferred	0.5%	0.38	0.92	0.56	0.89	0.94	0.90

YTC has also completed a metallurgical programme on the 3KEL oxide material which suggested tin-fuming was a potentially viable process available to extract the tin. A potential tin fuming process would require a substantially larger resource base to be delineated. The potential for a larger resource base is considered to exist along the untested oxide extension of the DMK line.

YTC has recently completed (September 2012) a programme of 1,830m of aircore drilling testing the oxide zone above the Doradilla tin deposit.

Competent Persons Statement – Exploration Results

The information in this report that relates to Exploration Results is based on information compiled by Rimas Kairaitis, who is a Member of the Australasian Institute of Mining and Metallurgy. Rimas Kairaitis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Kairaitis consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Competent Persons Statement – 3KEL-Midway Resource Estimation

The resource estimates of oxide material at 3KEL and Midway have been performed by Dr William Yeo, MAusIMM, who is an employee of Hellman & Schofield Pty Ltd and who qualifies as a Competent Person under the meaning of the 2004 JORC Code. He consents to the inclusion of these estimates, and the attached notes, in the form and context in which they appear.

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