DEVELOP GLOBAL LIMITED — Regulatory Filings 2013

Oct 8, 2013

==> picture [256 x 86] intentionally omitted <==

==> picture [150 x 742] intentionally omitted <==

----- Start of picture text -----

ASX Announcement
ASX Code: VXR
Released: 9 October 2013
For further details
Michael Mulroney
Managing Director
T: +61 8 6389 7400
michael.mulroney@venturexresources.com
Board
Tony Kiernan
Chairman
Michael Mulroney
Managing Director
John Nitschke
Non-Executive Director
Ray Parry
Non-Executive Director
Trevor Hart
Company Secretary
Contact Details
Registered Office
Level 2
91 Havelock Street
West Perth WA 6005
T: +61 8 6389 7400
F: +61 8 9463 7836
admin@venturexresources.com
www.venturexresources.com
ABN: 28 122 180 205
----- End of picture text -----

LETTER TO SHAREHOLDERS COMPANY UPDATE

Dear Shareholder

I would like to take this opportunity to update Shareholders on how we plan to move Venturex Resources Limited (“Venturex”) forward and generate shareholder value.

In late 2012, the Company achieved a significant milestone with the completion of the Definitive Feasibility Study (“DFS”) for the development of the Pilbara Copper-Zinc Project (“Project”). This substantial study confirmed that the detailed design and operating parameters for the Sulphur Springs development were sound and achievable. Based on the 8.5 year ore reserve, Venturex’s development plan is capable of delivering average payable metal production of 16,400 tonnes per annum copper, 34,000 tonnes per annum zinc and 200,000 ounces silver. There is clear, visible potential to extend the life of the operation to in excess of 10 years based on our current knowledge of the deposits.

Nonetheless, in the face of rapidly deteriorating financial markets and negative resource investor sentiment, the Venturex Board took the strategic decision earlier this year to defer the commercialisation of the Project in order to preserve the Project’s long term value and the Company’s cash resources.

While this corporate decision disappointed many people, it was not taken lightly. The Board remains acutely aware that our ultimate objective is to create value for Shareholders through the exploration and ultimately, the commercialisation of the Company’s assets. The range of financing options available to fund the construction of the Project could have provided a path to production but only at the expense of all Shareholders’ long term interests.

With markets continuing to weaken, we moved quickly to streamline the Company’s operations and reduce corporate overheads including a reduction in staff numbers, a freeze or voluntary reduction in employee remuneration (including my own) and the cancellation of all STI bonuses for all employees for the year ended 30 June 2013. Directors and management also own shares in the company and therefore are personally motivated to see a rise in share price.

Moving forward, Venturex remains committed to generating value from our extensive asset base in the West Pilbara region. The consolidation of the Whim Creek and Sulphur Springs regions within one company provides a sound exploration and resource base for the future.

==> picture [174 x 59] intentionally omitted <==

During the past six months, I have met with many contractors, financiers, trading groups and Shareholders and a number of recurring questions have been raised which are worth briefly addressing:

1. What is the future way forward for the Project?

The way forward for Venturex, in the near term, is to increase the exploration activity principally in the Sulphur Springs and Kangaroo Caves area which is the core of our development plans. Our current reserve life of 8.5 years is conservative given both deposits remain open and there are a number of other priority targets within the Sulphur Springs region that demand initial evaluation.

The recent successful drilling programs at Sulphur Springs and Kangaroo Caves are the first steps in this approach. The Whim Creek region will not be ignored with the expansion of the high grade resource at Salt Creek a clear objective.

In parallel, we are striving to enhance the Project’s parameters by critically assessing all aspects of the Project’s development strategy to optimise the scale and economics of the Project against a background of volatile metal prices and cost environments. This review has commenced and is expected to continue well into the first half of 2014.

We have also made considerable progress in securing the major development approvals for the Project, something not achieved by previous owners of the Sulphur Springs site. The securing of these approvals, together with the construction and commissioning of the joint access road to the site by Atlas Iron Limited, are critical elements in realising the long term future and value of the Project.

The completion of the DFS has laid a solid foundation for the future development of the Project. Should the DFS have been deferred until further exploration was completed? Quite possibly, but the large amount of work we have completed has clearly demonstrated that the Project is technically robust and feasible within an acceptable environmental framework.

2. What is the exploration potential of the Sulphur Springs and Whim Creek regions?

The exploration potential is very good. We have a fundamental belief that the positions we hold in two major VMS provinces of the Pilbara region will yield further new discoveries and extensions to the existing deposits. This is not only based on the proven trend that VMS districts of all ages host multiple ore deposits (5-9 on average) but also because there has been limited exploration in the Whim Creek and Sulphur Springs districts over the past 30 years following the initial discoveries. The consolidation of our ground holdings at Whim Creek and now, the Sulphur Springs region, provides Venturex with the ability to undertake a considered, systematic evaluation of these two highly mineralised districts.

The rewards of a long term, consistent exploration approach are evident in some of our geological peers in WA. The ongoing successes through multiple discoveries at Golden Grove and more recently, Teutonic Bore, are a testament to a consistent long term exploration strategy in similar geological settings.

3. In terms of exploration, what are the goals for the next 12 months?

Our exploration priorities are two-fold. Firstly, the extension of both the Sulphur Springs and Kangaroo Caves deposits is the immediate objective with further drilling programs planned for late 2013 and into 2014. Clear targets exist at the western end of the Sulphur Springs deposit and within the surrounds of Kangaroo Caves. The Company hopes successful drilling at these targets will result in future resource and ore reserve extensions.

In addition, the first drilling within the corridor between the two deposits will commence this month at the Midway prospect. This area is completely untested and this first

2

==> picture [174 x 59] intentionally omitted <==

program, co-funded by the State Government’s Exploration Incentive Scheme, will test a conceptual target area and provide a vital 3D view of the regional mineralising system.

Our other priority is to expand the detailed regional understanding of the Whim Creek district, particularly around the high grade zinc-lead-copper-silver-gold mineralisation in the Salt Creek area. The ongoing evaluation program, using techniques adapted from experience in other VMS terrains, is providing an invaluable guide to coordinating future drilling targets for 2014.

4. Is the Company funded for the next 12-18 months?

The short answer is yes. The benefits of our cost reduction program combined with proceeds from asset sales and government rebates has increased the Company’s cash reserves to approximately $4.6 million. We have other asset sales and initiatives underway to further increase the Company’s cash resources to underwrite our exploration and predevelopment activities for the 12-18 months ahead.

The funding of any future development of the Project is likely to involve a mixture of debt, off take and equity funding. While we are encouraged by the large number of proposals received from debt providers, the Company has kept its funding, project ownership and off take options open to provide maximum flexibility while we refine the Project development strategy.

5. What is the future of the Brazil exploration assets?

The Brazilian activities are considered non-core and Venturex is seeking funding alternatives for the ongoing exploration of these assets. Discussions are continuing with a range of groups in Brazil as to the future of CMGM.

Ultimately, our strategy is to commercialise our interests in the Brazilian gold exploration assets since the Company’s main focus is the exploration and development of our Pilbara assets.

Nonetheless, our strategy of exploring for large scale gold deposits in northern Mato Grosso and the Tapajós gold district in Pará is ongoing and remains sound. However, our progress has been constrained over the last 12-18 months by delays in the tenement and environmental permitting processes emanating from the ongoing discussions around changes to the Brazilian Mining Code.

6. Why isn’t the share price higher?

Disappointment in the development of the Pilbara Project not proceeding earlier this year and the general collapse in the junior exploration market in the past year has seen our share price suffer. I have little doubt once we show the Company has a fully permitted Project with strong economics and begin to show the growth opportunity from considered exploration of our holdings, Venturex will see a significant re-rating. Until we can demonstrate that we have achieved these milestones, many people will continue to discount their view of the Project based on risk rather than looking at the project economics.

Copper and Zinc – the right metals

The copper and zinc markets have been volatile, reflecting the broader market sentiments on the direction of global economic fortunes. Nonetheless, while there have been some downward pressure on metal prices, Venturex and many market analysts are confident the medium to long term outlook for these metals continues to remain strong, particularly beyond 2016. The decrease in the $A/$US exchange rate is also a strong positive development for the potential economic returns of the Pilbara Copper-Zinc Project.

3

==> picture [174 x 59] intentionally omitted <==

The Pilbara Project is, in our view, continuing to move forward in readiness for future development. We have the advantages of being located in the heart of a major mining region in a first world location with access to good infrastructure and using simple, well proven, conventional technology. Our exploration portfolio is extensive with excellent potential to provide the long term success that will underwrite the future of the Project’s operations beyond the planned life.

We have the foundations of a strong Project that is moving ahead steadily. I look forward to updating you further on our progress as we advance towards our vision of building a significant copper-zinc Project.

Yours sincerely

==> picture [128 x 59] intentionally omitted <==

MICHAEL MULRONEY Managing Director

4