ASARA RESOURCES LIMITED — Capital/Financing Update 2009

May 12, 2009

13 May 2009

INITIAL SWEDEN JOINT VENTURE PROGRAMME AND BUDGET APPROVED

Drake Resources (ASX: DRK, “Drake”) is pleased to announce that the partners in the Bergslagen Joint Venture have approved the programme and budget for the exploration of Falun and Bersbo Projects in Sweden.

The programme includes a major exploration program to define the position and grade of gold-copper mineralisation at the Falun mine, and test geological and geophysical targets in other Swedish permits in the region.

Approximately 17 diamond holes for 3,600 metres are planned to test the large volumes of remnant mineralization that comprise the Eastern and Western coppergold ore bodies at Falun. Drake had advised the market of the potential of this mineralisation in three releases earlier in 2009.

An additional 6 holes for 700 metres are planned to test regional targets. Drilling is expected to commence in the third quarter of 2009.

Royal Falcon has approved a budget of US$1,000,000 for the Bergslagen Joint Venture for the next 6 month period.

It is anticipated that work on the ground will commence later this month.

The Projects comprise 15 separate exploration permits in the Bergslagen Province west of Stockholm

Royal Falcon Mining LLC (Royal Falcon) is a strategic alliance company established to acquire, explore, develop and manage mineral projects. The alliance partners are Golden Rim Resources Ltd and PAL Technology Services LLC, a member of the Royal Group of Companies of Abu Dhabi, United Arab Emirates.

The main elements of the agreement with Royal Falcon include:

• 1. Royal Falcon must spend US$3 million to earn a 51% interest in the Falun and Bersbo Projects. Royal Falcon can withdraw from the agreement after spending a minimum of US$1.0 million; Drake retains a 100% interest in the Projects until the US$3 million is expended.
• 1. Royal Falcon can elect to spend a further US$3 million to earn an additional 24% interest in the Falun and Bersbo Projects.
• 1. Drake will have the right to fund their respective share (49% or 25%) of project exploration, feasibility, mine development, or mine development costs when these funding requirements have been met
• 1. If Drake’s project interest falls below 5% then their interest will revert to a 2% Net Smelter Royalty (“NSR”) on production from the Falun or Bersbo Projects.
• 1. Drake will, initially, continue to manage all exploration on the Falun and Bersbo Projects

-ENDS-

For further information, please contact:

Dr Bob Beeson Managing Director Drake Resources +61 (0)3 9890 0292 bob@drakeresources.com.au

About Drake Resources

Drake Resources (ASX: DRK, “Drake”) is a base metals and gold/silver explorer with advanced projects in Sweden and Australia.

In the three years since listing on the ASX, Drake has established a robust portfolio of projects. Drake’s competitive advantages include a premier position in the worldclass Falun copper-zinc belt in Sweden, an experienced technical team with a successful track record, and a pipeline of projects and opportunities.

Drake’s objective is to become a successful and profitable exploration and mining company. The Company aims to achieve this goal by pursuing exploration and mining opportunities and exploring high quality projects in a technical, cost-effective manner.

Drake considers that copper, zinc and gold ores remain within the historic Falun Mine area and have put in place a program to assess the economic potential of remaining ore and new ore bodies. In addition recent rock chip samples at Digertäkt have given exceptional zinc grades (up to 27%), indicating the potential in the surrounding permits.

A $0.75 million airborne electromagnetic survey completed in 2008 has defined numerous targets in the Drake permits. These remain to be followed up.

The information in the About Drake Resources section of this announcement that relates to Exploration Results, Mineral Resources, or Ore Reserves is based on information compiled by Dr Robert Beeson. Dr Robert Beeson 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, and is a member of the Australian Institute of Geoscientists. This qualifies Dr Beeson as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Robert Beeson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.