ASARA RESOURCES LIMITED — Capital/Financing Update 2011

Dec 14, 2011

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ASX ANNOUNCEMENT

15 December 2011

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Riedel To Proceed With Burkina Faso Gold Permits Acquisition

Mr Bruce Franzen Executive Director

Mr Jeffrey Moore Managing Director

Riedel Resources Limited is pleased to announce that it has successfully completed its due diligence review for the right to acquire 100% interests in five highly prospective exploration permits in Burkina Faso from Golden Rim Resources Limited.

Mr Andrew Childs Non-Executive Director

Mr Wolfgang Zimmer Non-Executive Director

COMPANY SECRETARY Mr Bruce Franzen

Transaction Highlights

CONTACT DETAILS Principal & Registered Office Suite 1 45 Ord Street West Perth WA 6005 Australia

• Acquisition consideration to Golden Rim of:

  • Cash payment of US$875,000, and;

• ─

• ─ Scrip payment of 12,500,000 fully paid ordinary shares in Riedel (may be subject to shareholder and regulatory approval), all scrip consideration to be escrowed voluntarily for 12 months from issue.

Postal Address PO Box 1559, West Perth WA 6872 Website www.riedelresources.com.au

• Immediate commencement of field programmes directed by Exploration Manager Ed Turner in Burkina Faso.

Email admin@riedelresources.com.au Phone +61 8 9226 0866

• Burkina Faso appointments of:

• ─ In-Country Representative, Mohammed Munkailah;

Facsimile +61 8 9486 7375 ABN: 91 143 042 022 ASX CODE: RIE, RIEO

• ─ exploration management team, and;

• ─ preferred contractors to support the planned activities for the current field season.

• The Galgouli South, Gonsin, Keri, Moaga and Tagou Permits encompass a total area of 1,076km[2] , and cover:

• ─ major regional structures;

• ─ favourable Birimian Greenstone Belt host rocks;

• ─ areas of artisanal mining, and;

• ─ are highly prospective for the discovery of significant gold deposits with numerous ‘gold-in-soil’ anomalies and rock chip samples up to 65g/t Au being identified.

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• Multiple drill targets have been identified within each permit and several permits lie along strike from major gold deposits (Konkera 3.1M oz Au) and operating gold mines (Youga 1.1M oz Au and Kalska 0.6M oz Au).

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On 15 November, 2011 Riedel Resources Limited (“Riedel” or “the Company” , ASX: RIE) advised that it had entered into a binding agreement with Golden Rim Resources Ltd ( “Golden Rim” , ASX: GMR) for the right to acquire 100% interests in a package of five granted exploration permits known as Galgouli South, Gonsin, Keri, Moaga and Tagou, covering a total area of 1,076 km[2] in Burkina Faso (see Figure 1 for tenement locations).

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Figure 1: Tenement Locations

The permits exhibit excellent geological attributes, including:

• ─ major regional structures;

• ─ favourable host rocks within Birimian Greenstone Belts;

• ─ areas of artisanal mining;

• ─ numerous significant ‘gold-in-soil’ anomalies and rock chip samples up to 65.5 g/t Au, and;

• ─ the permits are considered highly prospective for the discovery of large gold deposits with several permits being located along strike from major gold deposits including (Konkera – 3.1M oz Au) and operating gold mines (Youga – 1.1M oz Au and Kalska - 0.6M oz Au).

Cursory Golden Rim exploration programmes have already identified multiple drilling targets within each permit.

Riedel has now completed to its satisfaction, legal and technical due diligence on the tenements with site visits already undertaken by Company personnel in late September 2011.

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Shortly, the Company will prepare and lodge a Notice of General Meeting, to seek shareholder approval for the issue of consideration shares to Golden Rim Resources Limited which is necessary to complete the transaction.

Mr Moore, Managing Director of Riedel said;

“This permit package offers Riedel a compelling opportunity to establish a significant position in the fastest growing gold producing region in the world. When coupled with our Marymia Project located in the Doolgunna – Thaduna region of WA, Riedel has significant tenement holdings in two of the most prospective precious- and base-metals minerals provinces in Western Australia and West Africa. We believe that these opportunities present excellent exploration upside and growth potential for a Company with a modest market capitalisation base”.

In anticipation of a favourable outcome to its due diligence studies, the Company has acted to identify and secure the services of all key technical personnel necessary to immediately implement exploration projects in Burkina Faso.

Exploration Manager, Mr Ed Turner will direct the Company’s exploration programmes both in Australia and Burkina Faso. Ed has 24 years of geological experience in Australia, Brazil, Romania, The Ukraine and of particular relevance, recent experience as Exploration Manager of a significant Democratic Republic of Congo focused mining company. Ed has acquired skills in project due diligence and acquisition, exploration programme planning and execution, building and training exploration teams, feasibility studies and resource modelling for commodities including gold, base metals, nickel and uranium.

The Company has also finalised the appointment of its In-Country Representative, Mr Mohammed Munkailah of SM Global SARL located in the capital Ouagadougou, together with exploration management and preferred contractors for commencement of field operations for the current field season.

Mr Munkailah has over 15 years of experience in the exploration and development of mineral deposits, exclusively within West Africa. He was responsible for managing numerous exploration and development projects ranging from grass-roots exploration management through to resource definition drilling throughout the region. Most recently, Mr Munkailah was Exploration Manager for DMC Mining Ltd’s Mayoko Iron Ore Project located in the Democratic Republic of Congo.

Prior to his role with DMC Mining, Mr Munkailah had over seven years of international consulting experience with RSG/RSG Global including holding the position of Chief Geologist - West Africa, where he gained considerable experience in project management and in the development of a number of major deposits located in Senegal, Burkina Faso and Ghana. Mr Munkailah is a member of the Australian Institute of Geoscientists and is fluent in nine languages including French and most West African dialects.

Mr Moore, commented;

“We are very fortunate to have attracted such high calibre personnel to the Company, with a strong track record of success and technical ability. Mr Turner and Mr Munkailah bring with them considerable industry knowledge, experience and sophisticated business development networks from which Riedel can draw upon as we move towards delivering exploration success from our projects pipeline.”

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Riedel aims to commit to aggressive exploration in 2012, commencing as soon as the Golden Rim acquisition is completed with geological mapping, geochemical/rock-chip sampling, trenching and drilling on the highest priority targets.

Material details of the agreement terms and technical summary follows.

Key Terms of Acquisition

Under the binding agreement the outstanding material terms are:

1. Cash consideration of US$875,000 payable upon completion following execution of the Formal Agreement;

2. Scrip consideration payable upon completion following execution of the Formal Agreement (may be subject to shareholder and regulatory approval) equivalent to 12,500,000 fully paid ordinary shares in Riedel (all scrip consideration to be escrowed voluntarily for 12 months from issue) ;

3. Riedel to assume all obligations under existing Letter Agreements, including future option payments, commissions, and royalties. The options and commissions are staged payments, payable over a further two (2) year period to the original Permit vendors and facilitators totalling US$621,000. The royalty payments are a 1% net smelter return royalty payable to the vendor on each of the Permits. Each royalty can be purchased at any time for US$1 million per permit.

4. Transaction may be subject to shareholder and/or regulatory approval.

About the Tenement Package

Galgouli South Permit

Galgouli South is located in southern Burkina Faso and covers an area of 250km[2] . The Permit lies approximately 330km to the south-west of the capital city, Ouagadougou and approximately 40km north-west of Ampella Mining Ltd’s 3.1M oz Au Konkera deposit.

Galgouli South lies at the southern end of, and along the eastern margin of the north-south trending Houndé greenstone belt. The Houndé greenstone belt hosts several major gold deposits.

A structural interpretation using regional airborne magnetic survey data highlighted a wide north-east trending structural corridor which intersects WNW–ESE structures related to a splay fault system running eastward into Ampella’s Konkera deposit area (see Figure 2) . This WNW–ESE trending fault system (Konkera Shear Zone) is interpreted to be a splay off the shear zone that hosts the Konkera deposit ([1] Indicated and Inferred Mineral Resources of 61.8Mt @ 1.6 g/t gold for 3.1M oz of gold, at a cut-off grade of 0.5 g/t Au) .

A series of active and abandoned artisanal diggings have been observed throughout the Permit area along several north-south trending corridors. Artisanal miners are exploiting gold from quartz veins up to 4 metres wide.

Work to date has included geological mapping, rock and soil sampling and orientation auger drilling.

1 Ampella Mining Ltd AGM Presentation 10 November 2011

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Figure 2: Geology and Aeromagnetic Image - Galgouli South Project

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Figure 3: Location of gold-in-soil anomalies and rock chip gold results - Wewekera prospect

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Soil sampling has covered several areas characterised by artisanal diggings or airborne magnetic anomalies. Results from the Wewekera Prospect soil sampling programme identified an anomalous 2.5km x 0.5km area (see Figure 3) which returned assay values up to 1.13g/t Au and rock chip sample results up to 2.39g/t Au . The highest rock chip sample results are coincident with the gold-in-soil anomaly and this key area of gold anomalism lies within the Konkera Shear Zone.

Gonsin Permit

Gonsin is located in the central northern part of Burkina Faso, approximately 110km northwest of Ouagadougou. The Permit has an area of 239.5km[2] and is located along strike from the 0.6M oz Kalsaka gold mine, operated by Cluff Gold plc.

Gonsin lies on a north-east trending belt of Birimian volcano-sedimentary rocks. On the surrounding properties held by Cluff, the operating Kalsaka gold mine is hosted by ENEstriking shear zones which can be traced through the Gonsin Permit before they converge with the Sabce Fault Zone. The Sabce Fault Zone is a major gold mineralised, regional fault or structural zone which hosts High River Gold’s 1.7M oz Au Bissa Hill Deposit, located 50km to the east of Kalsaka (see Figure 4) .

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Figure 4: Geology and Tenement Map - Gonsin Project

To date, the only area which has been explored by Golden Rim is a 4km[2] area immediately surrounding artisanal gold mining workings at the Kougtanga prospect. Initial exploration activities included soil sampling, rock chip sampling, basic geological mapping and reverse circulation drilling which returned narrow gold intercepts up to 2.23g/t Au. The highest soil sample result was 7.04g/t Au and soil sampling defined a number of discontinuous anomalies

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trending northeast-southwest for up to 2.3 kilometres. Rock chip samples were collected primarily from around the artisanal workings and returned values of up to 6.07g/t Au .

Gold mineralisation observed at Kougtanga consists of multiple auriferous quartz/pyrite veins and artisanal mining is developed on two parallel quartz vein systems up to 2 metres wide and associated vein stockworks to depths of approximately 30 metres.

The remainder of the Permit area is yet to be visited.

Tagou Permit

Tagou covers an area of 205.5km² and is located in south-east Burkina Faso, approximately 250km south-east Ouagadougou. The Tagou Permit lies along the north-east trending Fada greenstone belt in a similar geological setting as that hosting Mount Isa Metals’ high-grade Nabanga gold discovery, located 30km to the south.

Artisanal diggings have been observed throughout the Permit area in diverse geological settings. Gold mineralisation exists in quartz-sulphides veins, siliceous pegmatites and sulphide-magnetite-bearing conglomerates. Veins up to 20 metres in width are present, generally oriented parallel to the trend of the major regional north-east trending shear zone that traverses the Permit.

At Tagou, geological mapping has been completed in conjunction with reconnaissance rock chip sampling, returning excellent assay results up to 65.5g/t Au, 28.0g/t Au and 14.3g/t Au . The 65.5g/t Au rock chip sample is from a quartz vein up to 5 metres in width which can be traced over a strike length of at least 350 metres. Subsequent, selective soil sampling completed over five prospective targets areas outlined significant gold-in-soil anomalism with values up to 300ppb Au.

An interpretation of regional airborne magnetic data suggests there may be a plus 10 kilometre wide, north-east trending structural corridor characterised by multiple-parallel faults that bisects the Permit area over a strike distance of approximately 10 kilometres.

Moaga Permit

Moaga covers an area of 242km² and is located in south-east Burkina Faso, 220km from Ouagadougou on the north-east trending Tenkodogo greenstone belt. A major regional structure, the Youga Shear, passes through the Permit area and this structure hosts Endeavour Mining Corporation’s 1.1M oz Youga gold deposits, 60km along strike to the south-west. The Youga Shear is a splay structure related to the Markoye Fault, a structure which is interpreted to control a number of multi-million ounce gold deposits in Burkina Faso.

The geology at Moaga is dominated by mafic to intermediate volcanics and sediments which have been interrupted by a series of gabbro, diorite, granodiorite and granite intrusives.

During 2011, field activities at Moaga included geological mapping and cursory reconnaissance rock chip sampling, however, as yet no systematic geochemical sampling has been conducted.

Keri Permit

Keri covers an area of 139km² and is situated in north-east Burkina Faso along the border with Niger, approximately 365km to the north-east of Ouagadougou. Keri covers part of the

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north-east trending Sebba greenstone belt and a major shear splay related to the regional Markoye Fault system.

In the western portion of the Keri Permit the geology is dominated by a north-east trending belt of volcano-sedimentary rocks and in the east by a sequence of granitoids. The volcanosedimentary sequence is intruded by a number of mafic and felsic units which are generally orientated northeast-southwest and the structural architecture of the Permit is dominated by major northeast-southwest trending faults that appear to define the boundaries of the volcano-sedimentary package. Significant north-west trending cross structures can be identified in the regional magnetic data, cutting the granitic sequence in the east.

Mineralisation identified to date at Keri is related to gold-bearing quartz veins. A number of major artisanal mining sites have been located within the Permit area where sulphidic and manganiferous quartz veins are being exploited. The most extensive artisanal workings observed are developed on a sheeted quartz vein system which is exposed over a strike length of 400 metres.

In April 2011 a detailed airborne magnetic/radiometric survey was flown over Keri with subsequent interpretation identifying several major zones of faulting, offering prospective target areas for exploration. Notwithstanding, only limited field work has been carried out at Keri, focussed on geological mapping and rock chip sampling. No systematic geochemical sampling has yet been conducted.

For further information please contact:

Bruce Franzen Executive Director Riedel Resources Limited Tel: 61 8 9226 0866 Email: bruce.franzen@riedelresources.com.au

Jeffrey Moore Managing Director Riedel Resources Limited Tel: 61 8 9226 0866 Email: j.moore@riedelresources.com.au

Competent Person’s Statement

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

About Riedel Resources Limited

Riedel Resources Limited is an Australian Based Exploration Company established to explore for and develop gold and base metals mineralisation. The Company was incorporated on 9 April 2010 as a public company for the purpose of acquiring a portfolio of prospective exploration projects located in Western Australia from ADX Energy Limited (formerly AuDAX Resources Limited). Riedel successfully listed on the ASX on 31 January 2011.

Further information can be found on Riedel Resources at the Company’s website www.riedelresources.com.au .

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