AUSTRALIAN VANADIUM LIMITED — Capital/Financing Update 2013

Jul 28, 2013

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Yellow Rock Resources Limited ABN 90 116 221 740 Address 420 Newscastle Street | West Perth | WA | 6005 Mailing Address PO Box 332 | Leederville | WA | 6903 web www.yellowrock.com.au p (08) 9227 6300 f (08) 9227 6400 e yrrinfo@yellowrock.com.au

29 July 2013

YRR adds new tenement to Gabanintha portfolio

HIGHLIGHTS

• YRR has added new tenement application E51/1576 to the Gabanintha Project holdings at a cost of $3,274.90.

• The tenement lies 3.5km to the west of the existing Yellow Rock Resources (YRR) Gabanintha Project and occupies 10 blocks or 3,110 Ha.

• The exploration licence is situated over the Federal Bassett Shear Zone, a structure known to host gold mineralisation.

• Historical geochemical data generated by EMU Nickel confirmed a 1.7 kilometre long gold and arsenic anomaly exceeding 5 ppb Au within a zone of discontinuous gold anomalies extending for about 5 kilometres

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Figure 1: Project Location Map

Location

The tenement area is situated about 55km south of Meekatharra in the Murchison region of WA and lies approximately 3.5 kilometres west of the northern part of Gabanintha licence E51/843. See Figure 2 for location with respect to the YRR tenement holdings.

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Figure 2: Location of new tenement E51/1576 in relation to YRR Gabanintha tenements

Geology

The geological setting of the tenement is within the Archaean sequence associated with the Meekatharra and Lake Austin greenstone belts in the Murchison Province of the Yigarn Craton. The rocks comprise mafic and ultramafic volcanics, acid volcanics and volcaniclastics, sediments – including Banded Iron Formations as well as older granitoids and gneisses. Occasional outcrops of siliiclastic sediments, probably remnants of Proterozoic cover rocks are also found in the area. The contacts and shears through metabasalts, other mafic and ultramafic rocks are known to host gold and base metals in the region eg at Bluebird, Nannine, Gabanintha, Polelle etc

A shear zone known as the Federal-Bassett Shear Zone is a major feature through tenement E51/1576 and the metabasalts and other volcanics is the main target area for mineral exploration as are the contacts between the mafics, acid volcanics and sediments.

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Figure 3: Geological Setting of E51/1576

Tenement History

Generally the area has been part of much larger land holdings and therefore has only been considered as a regional exploration play while the nearby gold mining centres were developed.

The tenement area was held under the Windy Knob joint venture (EMU 51% and Aspire 49%) and is situated about 40km south of Meekatharra in the Murchison region of WA. Soil geochemical sampling has been conducted over a 5km strike length of the interpreted position of the Federal Bassett Shear Zone, a structure known to host gold mineralisation. The geochemical sampling resulted in a 1.7km long gold and arsenic anomaly within a 5km long zone of discontinuous weaker gold anomalies along the prospective structure. Gold values are up to 10 times background (range 5 to 16ppb Au). Figure 4 shows the soil sample results for gold and Figure 5 is a contour plot of other metals assayed.

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Figure 5: Geochemical Contour Plot for Soil Au, Cu, Pb, As and Mo on E51/1576 from historical data by the Windy Knob Joint Venture Contours are areas above background levels for the listed elements.

In 2010 to 2011 a scout program of 40 Air Core holes were drilled in four lines about 1km apart and average 40m deep. The drilling intersected a sequence of weathered mafic volcanics, sediments and felsic rocks. Hole WKAC98 on the most northerly line intersected anomalous gold (42m @ 78ppb Au) from surface including 8m @ 0.23g/t Au from 4m. Adjacent hole WKAC99 intersected anomalous gold (4m @ 61ppb Au from 32m) at the base of hole.

These anomalous intersections in wide-spaced, shallow drilling have not been followed up and YRR intends to take the opportunity to investigate further.

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”.