ASARA RESOURCES LIMITED — Capital/Financing Update 2009

Dec 13, 2009

ASX/Media Announcement

14 December 2009

Gold-Copper Zone Expands at Falun in Sweden

• New drill results have expanded the size of known gold-copper mineralisation at Falun

• Gold-copper mineralisation now extends for over 100 m in width (on the 1[st] drill section)

• Local media following the drilling recently reported that past trial mining of the gold mineralisation at the 350 m level (335 m below surface), just prior to mine closure, was estimated to have an average grade of 8 g/t gold

• Gold price has tripled since the mine closed in the early 1990‟s

• Visible gold and sulphide mineralisation has already intercepted in the first of the deeper drill holes (Hole 13-09)

• 2[nd] drill rig to commence work next week

Golden Rim Resources Ltd (ASX: GMR, Golden Rim) today announced that new assay results from the Company‟s Falun Project in Sweden have expanded the dimensions of the known gold-copper mineralisation.

The Falun Project forms part of the Bergslagen Joint Venture between Golden Rim‟s 35% owned Abu Dhabi alliance company, Royal Falcon Mining LLC and Drake Resources Ltd (ASX: DRK).

The Bergslagen Joint Venture partners are drill testing a semi-vertical gold-copper shoot, in the Eastern Copper-Gold Zone, linking high grade gold near-surface with past gold workings at 350 metres depth.

Golden Rim‟s Managing Director, Mr Craig Mackay, said today‟s results were highly encouraging and that he was eager to mobilise a second drilling rig to site.

“The new results extend the presence of gold-copper mineralisation to both the west and east on the first drill section,” said Mr Mackay. “This is where significant gold-copper intercepts have previously been reported and we continue to be surprised just how much mineralisation remains around the historic mining operation at Falun.”

Mineralisation in the westernmost hole (12-09) extends from surface to 142 m down hole and selected new intercepts include:

• 10.1 m @ 4.9 g/t gold and 1.2% copper from 9.8 m;

• 6.4 m @ 2.6 g/t gold and 2.2% copper from 68.8 m;

• 5.5 m @ 3.9 g/t gold and 0.6% copper from 101.6 m;

• including 0.5 m @ 34.1 g/t gold and 0.6% copper

To date, 13 holes have been drilled for a total of 2,073 m. Three of the drill holes are repeat holes because of difficulties experienced with the original holes in penetrating old mining cavities. The overall drilling program comprises a total of 3,600 m.

Golden Rim Resources Ltd I ABN 39 006 710 774 I Level 2, 10 Outram Street, West Perth WA 6005, Australia I T + 61 8 9481 5758 I F + 61 8 9481 5759

==> picture [595 x 88] intentionally omitted <==

Copper – Gold Mineralisation Extended

The results from the drilling continue to demonstrate that gold-copper mineralisation occurs above, around and below the ores extracted in the historic mining operation at Falun. The new results extend the presence of gold-copper mineralisation to both the west and east on the first drill section (Johannes Lucas Section 075) on which significant gold - copper intercepts have been previously reported.

On drilling Section 075, Hole 12-09 (Figure 1) was drilled to determine the western margin of the zone of gold–copper mineralisation. The hole was completed at a depth of 166 m and assays have now been received to 120 m depth. Assays for 120 m to 166 m should be available mid-January 2010.

Mineralisation was encountered at regular intervals down-hole until 142 m depth and intercepts are listed in Table 1. These new intercepts have extended the known zone of gold – copper mineralisation by around a further 20 m to the west. Mineralisation has now been defined on this section with a horizontal width of more than 100 m (Figure 3).

Higher grade copper mineralisation was intercepted in Hole 12-09, compared to the previous holes completed by the Bergslagen Joint Venture. Very strong copper mineralisation, grading up to 5.89%, occurs, between 68-75 m down hole (Table 1 and Photograph 1).

Mineralisation extends onto the next drilling section (Johannes Lucas Section 030) located 45 m to the southeast. Hole 04-09 intercepted several narrow shallow zones of gold – copper mineralisation (Table 1), including 3.9 m @ 4.5 g/t gold and 1.31% copper.

Past drilling has indicated that mineralisation becomes more widespread with depth on Section 030 (Figure 5), and this area has not yet been tested with drilling by the Bergslagen Joint Venture.

Trial Mining of Gold at the 350m Level

Local interest in the drilling at Falun has generated new information in the media concerning past mining of high grade gold zones below the current drilling prior to mine closure.

The past mining operation at Falun completed a drilling campaign of the lower part of the gold-copper system now being drilled by the Bergslagen Joint Venture. This work led to a trial gold mining campaign in the late 1980‟s, just before the mine closure, on the 350 m level (335 m below surface), in ore that is reported to have averaged 8 g/t gold.

Although the owners of the mine made a significant investment to upgrade the processing plant to take the gold ores at that time the low gold price (approximately US$350/oz) and the significant momentum towards the mine closure prevented any significant commitment to mining of the gold mineralisation.

Improved mining and processing techniques, plus the three-fold increase in the gold price since the mine closed, have greatly improved the economics of any future mining of this gold mineralisation. Higher metal prices also allow much reduced cut-off grades to be considered and this will assist in adding additional tonnes to any resource estimate.

The ongoing drilling program aims to link the near-surface gold-copper mineralisation, which is being currently drilled with the gold mineralisation mined in the late 1980‟s. Past, poorly assayed, drilling suggests that this represents a single mineralised system.

Page | 2

==> picture [595 x 88] intentionally omitted <==

Visible Gold Intersected in First Deep Hole

The first phase of shallow drilling in the Eastern Copper – Gold Zone has now been completed and the Bergslagen Joint Venture partners are now focussed on testing the depth potential of the mineralisation by completing two deep holes to test copper-gold mineralisation identified in previous drilling at around 200 m and 350 m below the surface.

The first of these deep holes (13-09) is in the process of being drilled. It has a planned depth of 320 m and is designed to test the gold mineralisation at the 200 m level.

It is highly encouraging that visible gold and sulphide mineralisation has already been intersected at 152 m and 174 m depth in the drill hole, much earlier than the expected target depth of 220 m (Photograph 2). Assays should be available in mid-January 2010.

The second of these deep holes (14-09) has a planned depth of 430 m and is designed to test the gold mineralisation on the 350 m level.

The Bergslagen Joint Venture partners are suitably encouraged by the intercepts obtained to date at Falun that they have decided to mobilise a second drilling rig to the site to commence this hole next week.

-ENDS-

For further information, please contact:

Gilbert Rodgers Ann M Nahajski Golden Rim Resources AMN Corporate Executive Director +61 0 400 205 433 +61 8 9481 5758 ann@amncorporate.com Info@goldenrim.com.au

About Golden Rim Resources Limited

Golden Rim Resources Ltd (ASX: GMR) is an exploration and mining company with a focus on copper and gold. The Company is active in West Africa, with gold resources and tenements (Sepola, Sanso and Farada) in the highly prospective Birimian greenstone belt in Mali.

Abu Dhabi-based Royal Group is a substantial shareholder and strategic partner of Golden Rim. Through an alliance company, Royal Falcon Mining LLC, the companies have secured advanced copper/gold projects (Falun and Bersbo) in Sweden and are seeking further significant investments.

Golden Rim is pursuing an active drilling program in Mali and Sweden and is poised to deliver significant growth and value to shareholders.

Page | 3

==> picture [595 x 88] intentionally omitted <==

Table 1: Summary of New Falun Drilling Intercepts

	From	To		Intercept(m)	Gold (g/t)	Copper	Bismuth
						(%)	(ppm)
		Hole 04-09
	7.45	7.75		0.30	0.17	1.09	48
and	29.25	31.25		2.00	0.65	0.43	17
and	35.25	39.15		3.90	4.50	1.31	64
and	54.52	57.52		2.60	0.80	0.69	60
and	75.52	76.52		1.00	0.24	1.88	8
and	82.25	83.25		1.00	0.22	1.76	15
Hole 12-09	(upper 120 metres only)
	9.80	19.85		10.05	4.89	1.18	165
incl.	10.80	12.80		2.00	10.83	0.96	480
incl.	17.80	19.85		2.05	6.46	1.93	58
and	36.25	45.80		9.55	0.89	0.98	18
incl.	36.25	38.25		2.00	1.37	1.14	18
incl.	39.50	41.50		2.00	0.91	1.20	20
incl.	43.80	45.80		2.00	1.34	1.44	16
and	49.80	57.80		8.00	0.39	0.63	5
incl.	52.80	54.80		2.00	0.52	0.72	18
incl.	55.80	57.80		2.00	0.75	1.45	0
and	61.10	61.40		0.30	0.94	1.53	11
and	68.80	75.15		6.35	2.62	2.22	383
incl.	69.80	71.05		1.25	1.16	2.36	1761
incl.	72.10	75.15		3.10	4.66	2.96	23
incl.	72.10	73.10		1.00	9.16	0.62	23
incl.	74.15	75.15		1.00	2.87	5.89	18
and	86.10	90.10		4.00	0.33	0.74	15
incl.	88.10	90.10		2.00	0.42	1.02	16
and	101.55	107.00		5.45	3.88	0.62	89
incl.	101.55	102.00		0.45	34.10	0.41	249
incl.	103.40	105.40		2.00	1.81	1.31	42

All intercepts are defined by using a 1 g/t gold equivalent cut off and maximum of 2 m waste dilution. Gold and copper equivalents based on gold price (taken October 22[nd] ) of US$1057.8/oz and copper price of US$6565/t

About the Falun Project

The town of Falun is located in the Bergslagen district of Central Sweden (200km NE of Stockholm) and is host to one of the world‟s oldest and largest base and precious metal mines – its namesake, Falun.

The Falun mine, is situated on a world-class ore system, was mined for over a millennium (~700 – 1992) and was one of the largest copper producers in the world in the 17[th] and 18[th] centuries. During this time, the Falun mine accounted for 70% of the world‟s copper production. Records indicate that 35 million tonnes of high-grade ore was mined containing on average 1-3% copper, 2-6% zinc and 1-7 g/t gold.

Golden Rim‟s alliance company, Royal Falcon Mining LLC ( Royal Falcon ) has a farm-in and joint venture agreement („Bergslagen Joint Venture‟) with Drake Resources Ltd ( Drake ) and can earn up to 75% interest in the Falun project.

Page | 4

==> picture [595 x 88] intentionally omitted <==

Royal Falcon and Drake believe that there is considerable potential for substantial volumes of mineralisation to be discovered near the old mine.

Falun is located within a major siliceous alteration zone that extends continuously for 8 km within the exploration licence. This zone is up to 800 m in width and appears to continue at this size with depth. Comparisons with similar major ore systems (Rosebery and Golden Grove in Australia) suggest that only some 10% of the potential system at Falun may have been tested.

Exploration during mining at Falun focused on the immediate extensions of the massive sulphide body. However, there was also a programme to assess part of the adjacent copper-gold ores in the last few years of operation. Significant intersections of gold and copper were encountered during this programme, including:

• 20/1990: 15.2 m @ 9.3 g/t gold, 1.4% copper;

• 40/1990: 37.4 m @ 23.6 g/t gold, 0.5% copper;

• 41/1990: 12.9 m @ 23.5 g/t gold, 0.5% copper; and

• 21/1990: 50.8 m @ 3.4 g/t gold, 0.5% copper.

A recent compilation of historical drilling data by Drake suggests considerable volumes of high-grade gold and copper mineralisation remains at Falun, particularly to the east and west of the massive sulphide orebody, which was the focus of past mining. This remnant mineralisation is the focus the current drilling program.

Drilling by the Bergslagen Joint Venture in the second half of 2009 has confirmed the presence of high grade gold reported previously in historic assays, and demonstrate that broad zones of gold and copper mineralisation remains at the site.

Selected intercepts from this drilling include

• 11.6 m @ 61.2 g/t gold, 1.2% copper and 0.09% bismuth from 57.0 m (Hole 06-09); including 0.75 m @ 887 g/t gold, 5.92% copper and 0.7% bismuth;

• 21.4 m @ 6.8 g/t gold, 0.9% copper and 0.07% bismuth, from 16.6 m (Hole 03-09); including 0.6 m @ 91.4 g/t gold, 1.6% copper and 0.8% bismuth; and

• 32.8 m @ 1.8 g/t gold, 0.5% copper and 0.02% bismuth, from 51.8 m (Hole 03-09)

• 32.0 m @ 3.42 g/t gold, 0.7% copper and 0.04% bismuth from 32.9 m (Hole 02-09); including 1.0 m @ 32.4 g/t gold, 1.4% copper and 0.15% bismuth, and

• 14.7 m @ 2.5 g/t gold, 0.8% copper and 0.01% bismuth, from 95.9 m (also Hole 02-09)

• 18.6 m @ 3.2 g/t gold, 0.9% copper and 0.03% bismuth, from 8.8 m (Hole 08-09)

• 13.0 m @ 2.2 g/t gold, 0.4% copper and 0.02% bismuth from 205.5 m (Hole 09-09)

Recently, new drill targets in the Falun East and Rogsån permits were identified based on information derived from a VTEM geophysical survey completed in 2008. Given the positive characteristics of these new regional targets, the Bergslagen Joint Venture is considering a drilling program later in 2009.

Falun contains significant bismuth. Bismuth compounds are used in cosmetics, medicines, and in medical procedures. As the toxicity of lead has become more apparent in recent years, alloy uses for bismuth metal as a replacement for lead have become an increasing part of bismuth's commercial importance.

Page | 5

==> picture [595 x 88] intentionally omitted <==

==> picture [509 x 392] intentionally omitted <==

Figure 1. Planned and Completed Hole Locations at Falun Mine.

Page | 6

==> picture [595 x 88] intentionally omitted <==

==> picture [510 x 413] intentionally omitted <==

Figure 2. Drilling Results Previously Announced by Bergslagen JV on Johannes Lucas Section 075.

Page | 7

==> picture [595 x 88] intentionally omitted <==

==> picture [508 x 356] intentionally omitted <==

Figure 3. New Drilling Results on Johannes Lucas Section 075 and updated interpretation on the position of the mineralisation.

Page | 8

==> picture [595 x 88] intentionally omitted <==

==> picture [460 x 653] intentionally omitted <==

Figure 4. Location of deep drill holes and past gold mining on Johannes Lucas Section 075.

Page | 9

==> picture [595 x 88] intentionally omitted <==

==> picture [438 x 664] intentionally omitted <==

Figure 5. Drilling Results on Johannes Lucas Section 030.

Page | 10

==> picture [595 x 88] intentionally omitted <==

==> picture [505 x 176] intentionally omitted <==

Photograph 1. High grade copper mineralisation from 70.4 to 70.8 m in Hole 12-09 containing chalcopyrite-pyritepyrrhotite. This mineralisation makes up part of a 6.35 m intersection (68.80 to 75.15 m) containing 2.38 % copper and 2.85 g/t gold.

==> picture [505 x 334] intentionally omitted <==

Photograph 2. Visible gold (highlighted with arrows) and chalcopyrite mineralisation at 174 m depth in the current drill hole 13-09.

Page | 11

==> picture [595 x 88] intentionally omitted <==

The information in this report that relates to exploration results and mineral resources is based on information compiled by Mr Craig Mackay who is a member of The Australasian Institute of Mining and Metallurgy. Mr Mackay is a consultant of Golden Rim Resources Ltd through Earth Science Solutions Pty Ltd. Mr Mackay 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 Mackay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Further Company Information: Further Company Information:

Capital Structure

Issued Shares: 225,013,812 Unlisted Options: 33,150,000

Major Shareholders

PAL Technology Services LLC 13.94% Rick Crabb 8.06%

E: info@goldenrim.com.au W:goldenrim.com.au

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6000 AUSTRALIA

T: + 61 8 9315 2333 F: + 61 8 9315 2233 E: registrar@securitytransfer.com.au W: securitytransfer.com.au

Page | 12