EMPIRE RESOURCES LIMITED — Capital/Financing Update 2010

Aug 31, 2010

Level 2, 33 Ord St, West Perth, WA 6005 PO Box 1665, West Perth, Western Australia 6872 Tel: (+61 8) 9481 4440 Fax: (+61 8) 9321 0070 info@giralia.com.au www.giralia.com.au

Giralia Resources NL ABN 64 009 218 204

1 September 2010

ASX Operations Announcement Office Level 10, 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam

Please find attached a copy of an announcement made today by Empire Resources Limited regarding its proposed acquisition of La Mancha Resources Australia’s interests in the Yuinmery Joint Venture in Western Australia. Giralia Resources NL holds a 24.18% interest in the tenements.

Yours faithfully

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Bruce Acutt

Company Secretary

Attach.

GIR/MJ/Announcements/1 Sept 2010 ASX – Empire Yuinmery release

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ACN 092 471 513

1 September 2010 ASX Release

EMPIRE ATTAINS DOMINANT TENEMENT POSITION IN AN EMERGING WA COPPER PROVINCE

• Empire enters into option agreement with La Mancha Resources to acquire 75.82% interest in a 149km[2] granted tenement holding surrounding the Company’s Yuinmery copper-gold resource project

• Multiple untested EM geophysical targets considered prospective for new copper sulphide discoveries

• Empire emerges as a dominant land holder in the base metal rich but underexplored Youanmi Greenstone Belt located 185km east of the Golden Grove mine

• New copper targets ready for drilling

Perth based base metals explorer Empire Resources Limited (ASX:”ERL”) is pleased to announce that it has entered into an option agreement to purchase an interest in three granted exploration licences and two granted prospecting licences held by La Mancha Resources Australia surrounding the Company’s advanced Yuinmery copper – gold resource project in Western Australia.

The five tenements are the subject of a joint venture between La Mancha Resources Australia and Giralia Resources Limited in which La Mancha currently holds an interest of approximately 75.82%. Under the terms of the option agreement, Empire must spend a minimum of A$150,000 per annum for up to three years while retaining an option to purchase La Mancha’s interest for a cash consideration of A$750,000. A 2% net smelter royalty capped at A$5,000,000 will be payable by Empire on any minerals produced from the La Mancha tenements.

Previous exploration on the tenements has mainly been for gold which located many areas of anomalous copper and gold geochemistry. A recently completed airborne EM survey by La Mancha identified up to 22 previously untested conductive zones considered by Empire to be prospective for massive sulphide mineralization.

At ERL’s wholly owned Yuinmery project , diamond drilling is planned to expand the size of the Just Desserts resource where the Company has previously announced an Indicated and Inferred resource of 1,070,000 tonnes at 1.82% copper and 0.78g/t gold . Additional drilling will also be undertaken to follow up the exciting Trajan discovery located immediately along strike of Just Desserts where a recent RC drill hole intersected 5m at 3.1% copper and 0.38g/t gold.

Empire’s Managing Director, Mr David Sargeant, said: “ This deal has trebled the size of our tenement position to 227km[2] in this emerging base metal camp under our growth strategy to develop a core copper-gold business in W A . We are excited by the potential of the EM targets outlined by La Mancha, particularly as comparable anomalies on our ground are associated with significant copper sulphide mineralization. Another immediate target for us is “A Zone” which straddles our northern tenement boundary. At this prospect, previous drilling by Empire intersected 7m at 1.81% copper and 0.48g/t gold.”

“ The discovery of additional copper sulphide deposits on the La Mancha tenements will assist us in rapidly growing our resource base and better position the Company to advance our planned mining feasibility studies” Mr. Sargeant said. He went on to state that a ground EM survey is expected to commence this month on the La Mancha tenements and be immediately followed by drill testing of the most prospective targets.

For further information on the Company visit www.resourcesempire.com.au David Sargeant – Managing Director Phone: +61 8 9361 3100 Adrian Jessup – Executive Director Phone: +61 8 9361 3100

The information in this report that relates to Exploration Results has been compiled by Mr. David Ross B.Sc(Hons), M.Sc. who is an employee of the Company. He is a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to 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”. David Ross consents to the inclusion in the public release of the matters based on his information in the form and context in which it appears.

Notes on the Yuinmery Resource

The resource estimate for the Just Desserts prospect at Yuinmery was completed and announced to the market on 9 April 2009. The Mineral Resource by category to a depth of 250m below surface is reported below. The resource comprises no oxide mineralization, only transitional and fresh.

Just Desserts Classified Mineral Resources – March 2009

Category Tonnes Grade Grade Grade* Cu% Au g/t Ag g/t 1%Cu cutoff Indicated 104,000 1.65 0.86 1.32 Inferred 966,000 1.84 0.77 2.12 TOTAL 1,070,000 1.82 0.78 2.06 1.5%Cu cutoff Indicated 46,000 2.11 1.14 1.58 Inferred 536,000 2.34 0.92 2.68 TOTAL 582,000 2.33 0.93 2.61

*High assays have been cut to 9% Cu, 20g/t Au and 10g/t Ag.

Resource modelling consultants Datageo reported the above estimate in accordance with the 2004 JORC Code utilising all drill hole information available on Prospecting Licence P57/1215 up to the end of June 2008.

The resource grade was estimated using ordinary kriging based on the drill hole data composited downhole to 1m intervals within constraining shapes representing the mineralization. Assumed specific gravity values used were:transitional 2.7t/m[3] ; fresh 3.2t/m[3] .

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Location of Yuinmery Project in relation to nearby copper gold mining operations

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Resource and mineralization on existing Empire tenement area

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Combined tenement holdings

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Location of principal geophysical conductors