FMR RESOURCES LIMITED — Capital/Financing Update 2012

May 13, 2012

14 May 2012

ASX Announcement & Media Release

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ORREX TO START BLUE SKY DRILLHOLE AT GOLDEN MILE SOUTH

HIGHLIGHTS:

• Orrex to commence a deep diamond drill hole at its Golden Mile South tenements before the end of May

• Geophysical work indicates that the Golden Mile Dolerite, host to the 70 million oz Kalgoorlie Super Pit gold deposit, extends into Orrex tenements

• The drill hole is designed to discover the long sought after extension of the famous “Golden Mile” of Kalgoorlie.

Diamond Drill Program:

The board and management of Orrex Resources Ltd (“Orrex” or the “Company”) are pleased to announce that they are finalising all details to commence its latest drill program before the end of May. The program will consist of one diamond drill hole of up to 1200m targeting the Golden Mile Dolerite and its associated mineralisation. It is an important milestone for Orrex given the amount of work completed to reach this stage and the exciting “blue sky” potential of the target.

The Blue Sky Target:

Orrex set out to delineate a strong target to confirm the presence of the Golden Mile Dolerite within its tenements (refer to Figure 1). The Company commissioned geophysical work to model magnetic and gravity data, and to re-process existing 2D seismic lines in the vicinity.

This work successfully assisted in the delineation of a very strong target. It clearly identified:

• a WSW dipping unit trending southeast from the Super Pit into Orrex’s tenements; and

• a splay structure running along the western edge of the Super Pit and continuing into our tenements.

The important implications are:

• the WSW dipping unit is interpreted to be the Golden Mile Dolerite (host rock to the +70 Moz Au Super Pit);

• splay structures are often the best place for gold mineralisation within the Eastern Goldfields as evidenced by the Super Pit;

The target was determined by choosing an area where the unit folds/thrusts back toward surface (for a potentially more economic extraction depth) and along the edge of the splay structure. It was further strengthened by the presence of:

• late stage NE fault structures bounding the target which can act as zones of dilation, facilitating increased flow of mineralising fluids and facilitating mineral precipitation in the locality;

• a bottom of hole multi-element geochemistry study showing widespread alteration overlying the target area that was characteristic of a distal hanging wall position lending support to a mineralised system; and

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• strong bedrock geochemical gold anomalies overlying the target which potentially reflects “leakage” zones and/or stacked gold mineralisation above the proposed main mineralised lode(s).

Given the importance of this hole, we have commissioned an additional geophysical study to refine the target. The results have just been received and the target is up to 250m shallower than the original geophysics indicated.

Government Funding:

Orrex applied for government assistance to fund this drill program under the Exploration Incentive Scheme financed by the State of WA acting through the Department of Mines & Petroleum. The Company was successful and accepted up to $150,000 to finance this drill hole for completion in 2012. This has provided a great opportunity to Orrex to mitigate the cost of the program.

We look forward to the implementation of this program and its results.

Yours Faithfully,

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Sonja Felderhof Managing Director

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. John Bartlett, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bartlett is a consultant to the company. He has sufficient experience which is relevant to the style of mineralisation and type of deposits 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. Bartlett consents to their inclusion in the report of the matters based on his information in the form and context in which it appears.

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Figure 1: Residual TMI image with the “Blue Sky Target” magnetic anomaly located in the northwest corner of Orrex’s Golden Mile South tenement package and along strike to the southeast of the Golden Mile – the Kalgoorlie Super Pit.