BARYS RESOURCES LIMITED — Capital/Financing Update 2012

Sep 12, 2012

13 SEPTEMBER 2012

ANNOUNCEMENT

MARKET AND EXPLORATION UPDATE

Highlights

• Rights issue raises $2.5 million

• Results received for KCPDH00001 and over 100m of porphyry style copper gold mineralisation intercepted at Kalamatan

• Gold targets identified from historic data

Mining Group Limited (ASX: MNE) is pleased to provide a market update on its recent capital raising initiative and exploration activities.

Pro-rata renounceable entitlement issue

The Company is pleased to confirm it has raised a total of $2.5 million through the issue of 25,000,000 new shares at an issue price of $0.10, pursuant to its pro rata renounceable entitlement issue, announced on 31 July 2012.

Commenting on the capital raising, Mining Group's Managing Director, Mr Zeffron Reeves, said “it is pleasing to see the level of support received from existing shareholders, as well as the support from Patersons Securities Limited and Cygnet Capital Pty Ltd in underwriting the raising.

“I'd like to take the opportunity to thank our shareholders for the positive response to this raising. Recent work has shown us that the Comval Project is shaping up to be prospective for not only copper/gold skarns, that have historically been mined, but also for large scale copper porphyry mineralisation and high grade epithermal gold. We are on schedule to deliver a maiden JORC resource by late October and plan to carry out an initial drill program over some of our gold targets in the coming months; funds from the entitlement issue will be used to do this " added Mr Reeves.

Kalamatan Porphyry Drilling

Results have been received from drillhole KCPDH00001 following up the Kalamatan porphyry target previously identified and drilled by Cadan Resources Corporation (“Cadan”). Kalamatan is located approximately 2km's north of the historic Tagpura open pit mine (Appendix 1). The Kalamatan target has had historical tunnelling and drilling carried out by Cadan, which identified an “at surface” copper oxide and gold, mineralised diorite (Figure 1).

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The hole was designed to drill below a previously reported intercept of 108.00m @ 0.46% Cu and 0.24g/t Au from surface including 63.00m @ 0.51% Cu and 0.33 g/t Au from surface (Figure 2). KCPDH00001 was drilled to a depth of 233.00m and intercepted over 130m of copper oxide mineralised diorite. Final assays have been received for the entire hole (Table 1).

The hole was drilled with HQ size core, geologically logged and half core samples were sent to Macphar Laboratories, Manila for analysis. Au was assayed using fire assay and an atomic absorption finish and Cu, Ag and Mo were assayed using a 4 acid digest and an ICPOES finish. Standard reference material check samples were submitted every 20 samples and a blank check submitted every 50 samples for QA/QC purposes.

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Figure 1 - Kalamatan drill plan - KCPDH00001 in red, historic drilling in blue, tunnels in black, red crosses=diorite, green v= andesitic volcanic

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Figure 2 - KCPDH00001 drill section- Pink=diorite, green=andesitic volcanics

													Comments
			LOCATION			ORIENTATION			Intersection(m)
					DEPTH (m)
HOLEID	PROSPECT	EAST	NORTH	RL		AZIMUTH	DIP	From	To	Interval	Cu%	Aug/t
KCPDH00001	KALAMATAN	845050.656	830032.813	522.692	233.00	135	-80	0.00	43.00	43.00	0.35	0.26
													including
KCPDH00001	KALAMATAN	845050.656	830032.813	522.692	233.00	135	-80	27.00	40.00	13.00	0.43	0.36
KCPDH00001	KALAMATAN	845050.656	830032.813	522.692	233.00	135	-80	70.00	74.00	4.00	0.38	0.23
KCPDH00001	KALAMATAN	845050.656	830032.813	522.692	233.00	135	-80	95.00	125.00	40.00	0.30	0.24
													including
KCPDH00001	KALAMATAN	845050.656	830032.813	522.692	233.00	135	-80	101.00	107.00	7.00	0.50	0.45
KCPDH00001	KALAMATAN	845050.656	830032.813	522.692	233.00	135	-80	202.00	206.00	4.00	0.42	0.26

Table 1 - KCPDH00001 significant intercepts from results received to date.

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Gold Targets Identified

Since acquiring the Comval Project, the Company has systematically compiled historic data and from this data a number of highly prospective gold targets have been identified in the northern part of the Project area on the EP1 lease(Figure 1). These gold targets are in addition to the Ugpo target (1100m mapped strike length and up to 118.70g/t Au ) and Balajadia targets (1.5m wide and 500m strike length vein, single rockchip sample of 7.54 g/t Au ) described in the Independent Geological Report from the Company's prospectus dated December 2011

A number of generations of historic work have comprised of surface mapping, stream sediment and BLEG sampling and semi-systematic rockchip sampling over vein swarms. This information has been collated by the onsite exploration team and a number of exciting near surface gold targets have been identified.

An extensive outcropping vein swarm at the Fatima and Taub targets have previously been identified by Cadan. Along strike sampling of an outcropping vein at Taub has recorded an average of 2.84g/t along 32m from 7 samples taken, with a sample high of 4.87g/t. At Fatima and Taub there is widespread evidence of small scale artisanal mining having been carried out in the past with a number of tunnels and hand dug pits having been located.

The mineralising system is interpreted to be stratigraphically above the copper system to the south and is a possible epithermal gold system. A number of outcropping gossans have also been identified. A list of surface sample results compiled to date is listed in Table 2.

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Figure 2 - Location and geology map of EP1 gold targets and location of historic surface sampling.

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N(WGS84 51N)	E(WGS84 51N)	Au(g/t)	Prospect	Remarks
837917.46	841290.71	2.435	Balajadia Prospect	Historic sample
837929.76	841290.62	1.04	Balajadia Prospect	Historic sample
837806.65	841276.15	1.25	Balajadia Prospect	Historic sample
837751.06	841242.79	7.54	Balajadia Prospect	Historic sample
837513.81	841180.04	0.075	Balajadia Prospect	Historic sample
837751.06	841242.79	22.433	Balajadia Prospect	Historic sample
840235.46	841179.06	4.511	North boundaryof ep1	Historic sample
836214.85	840581.64	1.425	Red clay prospect	Historic sample
836013.69	840402.01	0.05	Red clay prospect	Historic sample
835057.67	840893.66	0.86	Red clay prospect	Historic sample
834993.47	840946.28	0.13	Red clay prospect	Historic sample
834953.49	840946.57	0.22	Red clay prospect	Historic sample
834965.86	840955.69	1.305	Red clay prospect	Historic sample
837810.19	841773.26	4.866	Taub Prospect	Historic sample
837435.95	841475.19	0.033	Taub Prospect	Historic sample
837816.6	841810.04	0.6	Taub Prospect	Historic sample
837810.19	841773.26	3.633	Taub Prospect	Historic sample
837291.2	840580.15	118.69	Ugpoprospect	Historic sample
837183.46	840565.57	1.905	Ugpoprospect	Historic sample
837152.73	840568.86	3.185	Ugpoprospect	Historic sample
837115.7	840550.71	1.375	Ugpoprospect	Historic sample
837097.29	840556.97	0.64	Ugpoprospect	Historic sample
836986.37	840527.07	8.95	Ugpoprospect	Historic sample
836426.86	840555.59	0.005	Ugpoprospect	Historic sample
836787.47	840233.88	0.005	Ugpoprospect	Historic sample
836505.38	840352.5	0.17	Ugpoprospect	Historic sample
836477.77	840361.9	0.165	Ugpoprospect	Historic sample
836547.47	841082.57	0.055	Ugpoprospect	Historic sample
837183.46	840565.57	1.833	Ugpoprospect	Historic sample
836852.19	841120.3	0.055	Ugpoprospect	Historic sample
836780.81	841028.74	0.033	Ugpoprospect	Historic sample

Table 2 - Historic rockchip samples from the Comval Project.

Mining Group will conduct systematic mapping, sampling and trenching across the best of these gold targets and follow up with drilling in the coming months.

In addition to these exciting gold targets, the Company is also on schedule to deliver a maiden JORC compliant resource at the Tagpura and Maangob copper-gold skarns. The maiden resource estimate is estimated to be completed by late October 2012.

For further information please contact: Zeffron Reeves Managing Director zreeves@mininggroup.net.au P: + 61 8 9322 6424

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Media Investors Carrie Parsons Ronn Bechler LastSay Communications Market Eye carrie@lastsay.net.au ronn.bechler@marketeye.com.au P: +61-433 472 947 P: +61-400 009 774

About Mining Group Limited

Mining Group Limited (ASX: MNE) is an ASX listed, Australian based exploration company established to explore, evaluate and acquire commercially significant resource projects in Australia and overseas.

Mining Group seeks to develop the Comval Copper Gold Project in the Philippines along with exploring the prospective Western Australian based Boorara, Teutonic and Lake Christopher Projects.

Mining Group has a strong Board and management team with considerable technical, commercial and corporate experience in the resources sector.

For more information visit the Mining Group website at www.mininggroup.net.au

The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) (Applied Geology) MBA, MAIG), an employee of the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

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APPENDIX 1 - LOCATION MAP, PROSPECTS AND GEOLOGY - COMVAL PROJECT

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