AUSTRALIAN VANADIUM LIMITED — Capital/Financing Update 2009

Aug 16, 2009

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Yellow Rock Resources Limited ABN: 90 116 221 740

35 Great Eastern Highway Rivervale WA 6103

Telephone: (08) 9361 5400 Facsimile: (08) 9361 5900 Email: info@aurium.com.au

17 August 2009

ASX Limited Company Announcements Office 20 Bridge Street SYDNEY NSW 2000

Share Placement

Yellow Rock Resources Limited is pleased to announce that it has reached agreement for the placement of 15,500,000 ordinary fully paid shares ( Shares ) at an issue price of $0.039 per Share, together with 15,500,000 free attaching options exercisable at $0.07 each on or before 30 September 2012 ( Options ), thereby raising $604,500. The placement will be made under the Company’s 15% placement capacity, as allowed under the ASX Listing Rules, and made to sophisticated investors pursuant to section 708 of the Corporations Act.

The funds raised from the issue will be applied in furtherance of the company’s exploration activities, the identification of potential new projects and other working capital expenditure.

Subject to shareholder approval, the Company has also resolved to undertake further placements of securities as follows:

• (i) the issue and allotment of 95,000,000 Shares at an issue price of $0.039 each, together with the grant of one free Option for every Share subscribed for and issued, to raise $3,705,000 (before expenses of the issue);

• (ii) the issue and allotment of up to 80,000,000 partly paid shares at an issue price of $0.0001 each to raise $8,000 (before expenses of the issue). The partly paid shares will be convertible to ordinary fully paid shares in the capital of the Company on payment of a further $0.0389 per partly paid share, raising an additional $3,112,000; and

• (iii) the issue of incentive options to Directors and officers of the Company on the following basis:

  • 4,666,667 options exercisable at 8 cents each on or before 1 September 2011;

  • 4,666,667 options exercisable at 11 cents each on or before 1 September 2012; and

  • 4,666,666 options exercisable at 14 cents each on or before 1 September 2013;

The options will have a vesting date of 1 September 2010.

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The Company will convene a meeting to be held in September 2009 to ratify and/or seek shareholder approval for the various issue of securities as outlined herein.

Yours faithfully

Catherine Anderson Company Secretary

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