BARYS RESOURCES LIMITED - Capital/Financing Update 2011

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4 October 20 1 1

De a r Optionh o lder

Notice to Optionholders of Rights Issue

We write to y ou as th e register e d holder o f Mining Group Li m ited (“Mi n ing Gr o up”) opti o ns as at today’s d a te. As announced o n 4 Octo b er 2011, the dir e ctors of M ining Gro u p have re s olved to u ndertake a fully und e rwritten n on‐ renounceable rights issue of app r oximatel y 6,512,50 0 new op t ions (wit h an exercise price of $0.20 e a ch and an expiry da t e of 1 July 2014) on t h e basis o f one ne w option for every fo u r Mining G roup sha r es held by sharehol d ers at an i s sue pri c e of $0.01 per new option, to r a ise appro x imately $ 6 5,125 ( Offer ). The O ffer is being unde r written b y Cygnet C a pital Pty L t d.

Th e Offer is a vailable t o Mining G roup sha r eholders r egistered on the re c ord dat e of 13 O c tober 2011 ( Record Date ) a n d who re s ide in Au s tralia or N ew Ze a land.

Th e Offer is b eing mad e pursuan t to a prospectus which was l o dged wit h the Au s tralian S e curities a nd Inve s tments Commissio n on 4 O ctober 2 011 ( Prospectus ) . The P r ospectus is availa b le at t h e Comp a ny’s website: w w w.mining g roup.net.a u or on t he ASX w ebsite (c o mpany a n nouncements sec t ion, ASX c o de: MNE) at www.a s x.com.au.

Key Dates: Th e current p r oposed ti m etable fo r the Offer i s as follo w s[*] :

Ev ent	D ate
An nounceme nt of Offer	4 October2 011
Lo dgemento f Prospectu s with the ASIC	4 October2 011
No tice to Sha reholders	4 October2 011
Ex ‐Date	6 October2 011
Re cord Date for determ ining Share holder en titlements	1 3 October 2011
Op ening Date and despa tch of Pro spectus to Shareholde rs	1 8 October 2011
Clo sing Date of Offer	2 Novembe r 2011
Op tions quot ed on a def erred settl ement bas is	3 Novembe r 2011
All otment an d despatch of holding statement s	1 0 Novemb er 2011

D_ _a tes subje_ _c t to change and indi_ _c ative only_ _. The Com_ _p any reser_ _v es the rig_ _h t to am_ _e nd this ti_ _m etable, in_ _c luding, su_ _bj ect to the Corporati_ _o ns Act 200_ _1 (Cth) an_ _d the Lis_ _t ing Rules_ _of ASX, to e_ _x tend the C_ _l osing Dat_ _e* .

173 MOUNTS BAY ROAD PERTH WESTERN AUSTRALIA 6000 TELEPHONE 08 9322 6424 FACSIMILE 08 9322 6778
www.mininggroup.net.au

Under the terms of the options you currently hold, there is no entitlement to participate in the Offer unless you exercise your options, and are entered onto the register as a shareholder on or before the Record Date.

If y o u wish to participate in the O f fer, it will be necess a ry for you to exercise all or p art of your options. A ccordingl y , you sho u ld compl e te a Notic e of Exerci s e of Op t ions ( Notice ) and l o dge the N otice wit h the Com p any, toge t her with y our pa y ment for the numb e r of shar e s you wi s h to tak e up. If pa y ment for the exercise of options is not received prior to 13 October 2011 (Re c ord Date), you wil l not be ab l e to partic i pate in th e Offer.

If y o u do not w ish to pa r ticipate i n the Offer (in respec t of your o p tions), yo u do not need to ta k e any action.

Bef o re deciding wheth e r to exer c ise any o r all of y o ur optio n s, you sh o uld co n sider the t erms of the Offer ca r efully, incl u ding the f act that t h e closing p rice of t h e Compa n y’s shares immediat e ly prior t o the anno u ncement o f the Offer was $0. 2 0 and the exercise p r ice of eac h your options is $0.20. If in any doubt, co n sult wit h your pro f essional a d viser.

If y ou have a ny querie s in relati o n to the O ffer, please to do n ot hesitate to co n tact Shan n on Coates, the Comp a ny Secret a ry on (08) 9322 642 4 .

Yo u rs faithful l y

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Sh a nnon Coat e s Co m pany Sec r etary

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