AUSTRALIAN VANADIUM LIMITED — Capital/Financing Update 2011

Nov 3, 2011

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Yellow Rock Resources Limited ABN: 90 116 221 740

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420 Newcastle Street West Perth WA 6005

PO Box 332 Leederville WA 6903

Telephone: (08) 9227 6300 Facsimile: (08) 9227 6400 Email: info@yrr.com.au

Company Announcements Office ASX Limited Level 8, Exchange Plaza 2 The Esplanade PERTH WA 6000

MARKET ANNOUNCEMENT 3 November 2011

The Company advises that it proposes undertaking a non-renounceable, pro-rata rights issue to ordinary shareholders of one new share for every one share held on the record date to raise up to $6m via the issue of up to 319,026,205 shares. The minimum issue price of the shares will be at least 80% of the average market price for the ordinary shares. The average is calculated over the last 5 days on which sales in shares are recorded before the day on which the date the prospectus for the proposed rights issue is signed.

The Directors intend to raise funds in the next three to six months. Funds raised by the proposed rights issue will be used to:

• a) Fund the continuing feasibility studies on the Company’s Gabanintha Vanadium Project;

• b) Fund continuing exploration programs and drilling on various tenements that the Company holds.

Further information regarding the proposed pro rata offer, including the final issue price of the shares, the record date for shareholdings entitled to participate in the offer and the timetable for the offer will be the subject of further announcements to ASX by the Company.

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Simon Chesson Company Secretary