GENESIS RESOURCES LIMITED — Capital/Financing Update 2010

Aug 1, 2010

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

ASX ANNOUNCEMENT

2 August 2010

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Genesis Resources Limited is an Australian company with a portfolio (over 1,877 km[2] ) of quality iron, manganese, gold, uranium and base metal (copper-zinc-silver) in the highly prospective Archaean and Proterozoic metallogenic provinces of Australia. Genesis has also signed a Joint Venture over an advanced coppergold-silver (Plavica) project within the Republic of Macedonia (FYROM). The Plavica Project is highly prospective for gold, copper silver, lead and zinc mineralisation.

Company Highlights:

Total Inferred Resource over Plavica Deposit is 57,237,226t containing 1,656,198 oz Au and 28,237,764 oz Ag and 32,679,184 lb Cu

Preliminary XTEM Survey data detects IronCopper Anomalies over the Alice Spring Fe-CuAu Project

Genesis Resources Limited (ASX: GES) is pleased to announce the preliminary results from the airborne XTEM survey over the Alice Springs Iron-Copper Project situated in the Northern Territory of Australia.

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Highlights

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• Preliminary XTEM survey data over the Camp Hill and Magnetite Hill prospects have defined a number of anomalous electromagnetic responses that are considered to be prospective for copper mineralisation.

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• Strike extensive early time channel anomalies that correlate to known copper mineralisation from rock chip sampling occur at both prospects.

Registered Office

Suite 8, 52 Marina Boulevard, Cullen Bay, NT Australia 0820

Tel: 08 8981 8106 Fax: 08 8981 9127 ABN: 22 114 787 469

Directors and Management

Mr Eddie Yiu Pang Non-Executive Chairman

Mr Pedro Kastellorizos Managing Director

Dr Kerim Sener Non-Executive Director

Mr Deric Wee Non-Executive Director

Company Secretary Mr Robert Marusco

ASX Code: Issued Capital: Market Capital:	GES 53.08m $10.08m

• In addition the magnetics has defined a 500m strike anomaly associated with high iron rock chip results collected by Genesis at Magnetite Hill.

A review of the available geophysical and geological data by Resource Potentials in 2009 and subsequent reconnaissance field mapping by Richard Russell in 2010 highlighted the potential of the Alice Springs project to contain copper mineralisation. Rock chip sampling completed by previous explorers and Russell returned high grade copper mineralisation over a number of areas up to 30% Cu. The high grade copper mineralisation appears to be structurally controlled and associated with magnetite enrichment in some areas. Based on these results a helicopter electromagnetic (HEM) survey was commissioned over two prospect areas within the project in an effort to directly detect copper mineralisation and provide walk up drill targets

The XTEM surveys were flown by GPX Airborne Pty Ltd (GPX) over the Camp Hill and the Magnetite Hill in May 2010 (Refer to Figure 1). The Camp Hill survey was flown on north-south lines on 150m spacings, with tie lines flown east-west with 1500m spacing totalling 87 lines for 512 line km and the Magnetite Hill survey was flown on east-west lines on 150m spacings, with tie lines flown north-south with 1500m spacing totalling 43 lines for 241 line km

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Figure 1: Alice project location map. XTEM survey outlines in black, tenement in blue.

Results from Camp Hill Area

A total of 20 preliminary target areas considered prospective for copper mineralisation have been selected from the data. Of the 20 targets 5 are closely related to anomalous rock chip sampling conducted by Genesis and previous explorers, with the most significant anomaly (Target 20) extending over 1km and located along or paralleling a major structure that splays of the Cadney Fault, Figure 2.

In addition, some strong magnetic anomalies are evident in the preliminary magnetic image. Some of these correlate to the copper targets selected, and they also need to be reviewed with respect to iron mineralisation.

Table 1: Preliminary Target areas over Camp Hill

Target	Easting	Northing	Comment
1	440470	7448890	strongdiscrete e-w EM anomaly
2	441330	7448620	strongdiscrete nw-se EM anomaly
3	441190	7447990	strongdiscrete nw-se EM anomaly
4	443360	7447500	strongdiscrete nw-se EM anomaly
5	442490	7446670	moderate discrete EM anomaly

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Target	Easting	Northing	Comment
6	441240	7445780	strongdiscrete EM anomaly- 40% Cu in rock chip
7	442070	7445640	moderate discrete EM anomaly
8	439520	7445330	strongdiscrete nw-se EM anomaly
9	444070	7445320	strongdiscrete EM anomaly- follows drainage
10	444020	7444780	moderate discrete EM anomaly
11	443360	7444690	strongdiscrete EM anomaly- follows drainage
12	443100	7443360	strongdiscrete EM anomaly- elevated RC
13	444040	7443310	strongdiscrete EM anomaly- elevated RC
14	445560	7442760	moderate discrete EM anomaly
15	445210	7443780	strongdiscrete EM anomaly- follows CadneyFault
16	445500	7444470	moderate discrete EM anomaly- elevated RC
17	445240	7444870	moderate discrete EM anomaly- elevated RC
18	445870	7444800	moderate discrete EM anomaly
19	446370	7443590	strongdiscrete EM anomaly- follows CadneyFault
20	447900	7443340	strongdiscrete EM anomaly- 5% Cu in RC follows CadneyFault

Results from Magnetite Area

A total of 11 preliminary target areas considered prospective for copper mineralisation have been selected from the data. Only imagery from channels 1-10 have been used to select target areas as the later time channels are too noisy to provide interpretable results. Of the 11 targets only 1 (Target 26) is closely related to anomalous rock chip sampling conducted by Genesis and previous explorers. The anomaly extends over 400m and located along or paralleling a major structure, Figure 3. Rock chip sampling at this location named Open Valley by Oneva Exploration (Gregory 2002) returned 8.1% and 2.07% copper from quartz stringer veins up to 3m width in magnetite rich gneiss.

In addition, strong magnetic anomalies are evident in the preliminary magnetic image. The strongest have been outlined in Figures 3 and 4, one which is associated with Magnetite Hill. The magnetic imagery indicates that this anomaly extends 500m to the north from where the Genesis rock chip samples were taken, Figure 4.

Table 2: Preliminary Target areas over Magnetite Hill

Target	Easting	Northing	Comment
21	466170	7435430	strongdiscrete EM anomaly- alongdrainage
22	468330	7435350	weak discrete EM anomaly
23	468900	7435650	strongdiscrete EM anomaly- alongdrainage
24	467310	7434600	strongdiscrete EM anomaly- alongdrainage
25	467360	7433740	strongdiscrete EM anomaly- alongdrainage
26	468070	7433920	strongdiscrete EM anomaly- close to Open Valley
27	465880	7432940	strongdiscrete EM anomaly- alongdrainage
28	467870	7432330	strongdiscrete EM anomaly- alongdrainage
29	467680	7431510	strongdiscrete EM anomaly- alongdrainage

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Target	Easting	Northing	Comment	Comment
30	467510	7430960	strongdiscrete EM anomaly- alongdrainage
31	469110	7431830	strongdiscrete EM anomaly- alongdrainage
32	467190	7432850	strongmagnetic anomaly- Magnetite Hill
33	468340	7433180	strongmagnetic anomaly
34	468150	7435170	strong magnetic anomaly

In commenting on these positive results, Pedro Kastellorizos, Managing Director of Genesis, said:

“We are excited to have received such an excellent preliminary results over the Alice Springs Project. Based on the results we are currently seeking drilling approvals from the Northern Territory Department of Mines & Energy and a sacred site clearance from the Central Land Council. At this stage we are hopeful the drilling will commence once all approvals have been granted to Genesis”.

For further information, please contact:

Pedro Kastellorizos Managing Director Genesis Resources Ltd Tel: + 8 8981 8106 info@genesisresourcesltd.com.au

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Alf Gillman who is a fellow of the Australasian Institute of Mining and Metallurgy. Mr Gillman is a contractor of Genesis Resources Ltd and 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). Mr Gillman consents to the inclusion in the report of the matters based on his information in the form and context in which they occur.

References

Cooper,M., 2009. Alice Springs Project Geophysics Review. Unpublished Genesis Resources Ltd report .

Gregory,P., 2002. EL22292 First Annual Report for the Period ended 8 August 2002. CR2002-0225.

Russell R.,2010. Reconnaissance field evaluation of the Alice Springs and Arltunga Project areas, Central Australia. Genesis Resources Ltd confidential report, 85pp.

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