AUSTRALIAN VANADIUM LIMITED — Capital/Financing Update 2013

Sep 10, 2013

Yellow Rock Resources Limited ABN: 90 116 221 740

420 Newcastle Street West Perth WA 6007 PO Box 332 Leederville WA 6903

Telephone: (08) 9227 6300 Facsimile: (08) 9227 6400 Email: yrrinfo@yellowrock.com.au

11 September 2013

YRR starts drilling potential Sulphide Anomalies at Gabanintha

HIGHLIGHTS

• YRR has commenced 3100 metres of RC drilling at its walk up drilling targets identified from IP, HeliTEM and Soil Surveys completed and announced in recent months.

• Sulphide deposits are known to be prospective for Copper and Gold mineralization

• Contractors Resource Drilling Pty Ltd and field crew are currently on site.

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Figure 1 – Location of Yellow Rock’s Gabanintha Tenements

Testing the IP target zones

Modeling of the helicopter–borne Time Domain Electromagnetic and Magnetic (HELITEM) survey at Gabanintha by Fugro geophysicists led to the identification of a new EM zone parallel to, and about one kilometre east of, the Gabanintha deposit.

The extensive EM zone has been the focus of a major ground IP survey so that geophysical targets can be more precisely defined in preparation for a drilling program.

The first drill program of 3100 metres and up to 350m in depth is now under way. See Figures 2 & 3 for approximate locations of planned drilling traverses to test the IP anomalies.

The IP targets to be drilled over the next few weeks are the NE anomaly (YRR ASX announcement February 2013) and the Central Eastern anomaly (YRR ASX announcement March 2013).

The IP anomalies occur at depths from close to surface to 350m below surface and have strike lengths of up to 1.5 kilometres.

Raw chargeability maps along with interpreted anomalies and proposed drilling traverses are highlighted on Figures 2 and 3.

The IP target zones in the NE anomaly are coincidental with Gold-In-Soil and Copper-In-Soil anomalies originating from the major soil sampling program completed by YRR in 2011. The soil samples were of less assistance in the Central Eastern anomaly due to ground cover. However these geochemical anomalies are coincidental with targets identified by the HeliTEM program.

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Figure 1 – Northeast area Raw Chargeability contour plan in relation to proposed drilling traverses.

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Figure 3 – Central East area Raw Chargeability contour plan and proposed drilling traverses.

Leslie Ingraham Executive Director

The information in this statement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by independent consulting geologist Brian Davis B.Sc (hons), Dip.Ed.

Mr Davis is a Member of The Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Brian Davis is employed by Geologica Pty Ltd.

Mr Davis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is undertaken 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. Davis consents to the inclusion in the report of the matters based on the information made available to him, in the form and context in which it appears”.