GENESIS RESOURCES LIMITED — Capital/Financing Update 2010

Dec 21, 2010

GENESIS RESOURCES LIMITED Website: www.genesisresourcesltd.com.au Email: info.genesisresourcesltd.com.au

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GENESIS RESOURCES LIMITED (ASX:GES)

ASX ANNOUNCEMENT

22 December 2010

Genesis Resources Limited is an Australian company with a portfolio (over 1,877 km[2] ) of quality iron, manganese, gold and base metal projects in the highly prospective Proterozoic and Palaeozoic metallogenic provinces of Australia.

Genesis has also signed a Joint Venture over the Plavica Project: an advanced project within the Former Yugoslav Republic of Macedonia. The Plavica Project is highly prospective for gold, copper silver, lead and zinc mineralisation.

Genesis is an exploration company committed to the creation of shareholder value through successful mineral exploration and development.

Registered Office

Level 3, 1 Collins Street, Melbourne 3004 VIC Australia

Metallurgical Test work Update: Plavica Project

Genesis Resources Limited (“Genesis” or “the Company”) announces the final results of its metallurgical test work program conducted for the Plavica Project located in the Former Yugoslav Republic of Macedonia (“FYROM” or “Macedonia”).

• Recovery of gold from direct leaching of oxide material over 14 days reached 95.4% and 97.9% on -12.5mm and - 3.35mm fractions respectively

• Sulphide material can be upgraded by froth flotation followed by leaching of flotation tailings, providing overall recovery of 83.5% gold

• Recovery of copper and silver are in line with previous data

• Drilling programme scheduled for Q1 2011

Tel: +61 3 9665 0411 Fax: +61 3 9650 5571

Eddie Pang, Chairman, commented:

ABN: 22 114 787 469

Directors and Management

Mr Eddie Pang Chairman

Dr John Parker Non-Executive Director

Dr Kerim Sener Non-Executive Director

Mr Deric Wee Non-Executive Director

Ms Sophie Karzis Company Secretary

ASX Code: GES Issued Capital: 53.08m

“The latest and final results from our metallurgical testwork programme on Plavica confirm the earlier data reported in detail in November and are very encouraging. Following the receipt of the latest data, SGS Minerals Services in the United Kingdom has concluded: ‘that there is a high likelihood that it will be economically feasible to process both ore types contained in the Plavica deposit’.

In recent months, our geologists have been on site gaining further insights in to the Plavica mineralised system. The geological work currently underway will assist the process of making detailed plans for a resource drilling programme on Plavica scheduled to commence towards the end of the first quarter of 2011.”

Plavica Project

The Plavica Project is located in the Kratovo District in northeastern FYROM and is situated approximately 65km to the east of the Macedonian capital, Skopje. The project is comprised of seven exploration concession licences covering over 184.94km[2] in the Carpathian Volcanic Arc (a major epithermal and porphyry province

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GENESIS RESOURCES LIMITED Website: www.genesisresourcesltd.com.au Email: info.genesisresourcesltd.com.au

running through Eastern Europe), which is considered highly prospective for gold, copper and silver mineralisation.

Genesis signed a joint venture agreement with Sileks AD Kratovo (“Sileks”) in December 2007 over the Plavica and Crn Vrv concession areas, which were officially granted by the Macedonian Ministry of Economics in April 2010. Genesis holds the right to acquire a 62% participating interest in the Plavica Project under the joint venture agreement by sole funding exploration on the project to completion of a final feasibility study. Genesis is manager of the joint venture with overall responsibility for operations. In June 2010, the Company reported on the first JORC mineral resource estimate established for the project (Table 1).

Table 1: Plavica Project JORC-compliant mineral resource estimate.

Element	Tonnes	Average Grade	Average Grade	Top	Status	**Contained Metal **	**Contained Metal **	**Contained Metal **
				Cut		Ounces	Kg	Lbs
Gold	57,237,226	0.9	g/t	5	Inferred	1,656,198	51,514	-
**Silver **		15.3	g/t	50	Inferred	**28,237,764 **	878,292	-
**Copper **		0.282	%	0.9	Inferred	-	16,140,898	32,679,184

For further information, please contact:

Eddie Pang Chairman Genesis Resources Limited Tel: +61 3 9867 3723 info@genesisresourcesltd.com.au

The information in this report that relates to the metallurgical test work program is based on information compiled by SGS Minerals Services UK Ltd. The data has been reviewed and summarised by Dr. Kerim Sener, a non-executive director of Genesis Resources Limited, who is a member of the Geological Society of London and the Institute of Materials, Minerals and Mining. Dr. Sener has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the subject matter of the report to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC code). Dr. Sener consents to the inclusion in the report of the matters based on his information in the form and context in which they occur.

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