GENESIS RESOURCES LIMITED — Capital/Financing Update 2010

Jul 18, 2010

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

ASX ANNOUNCEMENT 19 July 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

Registered Office

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

Preliminary VTEM Survey data detects High Grade Manganese over the McArthur River Manganese Project

Genesis Resources Limited (ASX: GES) is pleased to announce the preliminary results from the airborne VTEM survey over the McArthur River Manganese Project situated in the Northern Territory of Australia.

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Highlights

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• The VTEM survey has successfully detected the known high grade manganese mineralisation at Masterton No2, defined as 2 separate conductors over a strike of 900m.

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• An interpreted east-west trending structure extending across the survey area has been interpreted from the VTEM data and is thought to control the high grade manganese at Masterton No2.

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• An additional 10 targets that are believed to be highly prospective for manganese mineralisation have been defined.

• Follow up work and a scout drill program for 1,400m have been proposed.

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

The McArthur River project contains the high grade Masterton No2 manganese occurrence. Previous reviews of the available geophysical and geological data by Resource Potentials in 2007 and subsequent reconnaissance rock chip sampling in 2008 confirmed the location of the occurrence and the tenor of the manganese mineralisation (Figure 2). It is believed that the manganese mineralisation is structurally controlled and pods like, similar to the Woodie Woodie manganese deposits which are also conductive and can be detected by airborne electromagnetics (Hashemi, 2005).

A Versatile Time Domain Electromagnetic (VTEM) survey was commissioned to cover the Masterton No2 manganese occurrences and surrounds in order to detect known massive manganese occurrences, highlight other anomalies that may represent previously undiscovered or blind deposits at shallow depths and provide walk up drill targets.

Resource Potentials assisted in the planning and implementation of the helicopter electromagnetic (HEM) survey then provided ongoing quality control of the survey data and completed preliminary processing and interpretation of the results.

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The known manganese outcrops at Masterton No2 have been successfully detected in the VTEM survey. The VTEM depicts a single to double peaked anomaly indicting a steep dip, extending over 2 separate but semi continuous discrete zones over 1km (as per below Figure 1).

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Masterton No2 Anomaly
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Other significance features detected and interpreted is an east-west trending structure which runs through (and beyond) the known manganese mineralisation at Masterton No2 and may be an important control on the mineralisation as the Woodie Woodie deposits also follow major structures (Hashemi 2004) Figure 3.

The anomalies corresponding to the Masterton No2 area have been selected as Targets 1 and 2 and centred on 761200E, 8098060N and 760800E, 8097875N respectively. Target Anomaly 1 is 600m in length and target anomaly 2 is 300m in length.

Outside of the Masterton No2 area ten target anomalies have been selected (see Figure 3) of which four have been selected along or closely associate to the interpreted E-W structure.

Table 1: Target anomalies

Target	Easting	Northing	Length	Rank	Comment
1	761200	8098060	600	1	doublepeak anomalycorrespondingto Masterton No2
2	760800	8097875	300	1	doublepeak anomalycorrespondingto Masterton No2
3	759650	8097600	600	1	singlepeak anomalyalongstructure of Masterton No2
4	761795	8098000	200	3	singlepeak anomalyalongstructure of Masterton No2
5	762300	8097880	600	1	singlepeak anomalyalongstructure of Masterton No2

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Target	Easting	Northing	Length	Rank	Comment
6	763400	8098000	200	2	singlepeak anomalyalongstructure of Masterton No2
7	763400	8098000	200	3	discrete inglepeak anomaly
8	761700	8097445	400	2	strongest anomalyin survey
9	762250	8097350	200	1	doublepeaked anomalynorth dip
10	760500	8098200	300	2	single-doublepeak anomaly
11	760700	8096775	200	3	singlepeak anomaly
12	762000	8096250	500	3	singlepeak anomaly

A scout drilling program of 14 holes for 1,400m is proposed to test targets 1-7 as they are located along or close to existing roads and tracks in the area, Figure 3

Table 2: Proposed Drill collars

Target	Hole ID	Easting	Northing	Azimuth	Dip	Depth	VTEM Line
1	MCRC001	761100	8098015	0	60	100	10230
1	MCRC002	761200	8098015	0	60	100	10240
1	MCRC003	761300	8097985	0	60	100	10250
2	MCRC004	760700	8097815	0	60	100	10200
2	MCRC005	760800	8097850	0	60	100	10210
3	MCRC006	759600	8097595	0	90	100	10090
3	MCRC007	759700	8097595	0	90	100	10100
4	MCRC008	761795	8098000	0	60	100	10310
5	MCRC009	762100	8097820	0	60	100	10340
5	MCRC010	762100	8097820	0	60	100	10350
6	MCRC011	763500	8097920	0	60	100	10480
7	MCRC012	760900	8097500	0	60	100	10220
8	MCRC013	761700	8097485	180	60	100	10300
9	MCRC014	762300	8097350	180	60	100	10360

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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 McArthur River 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 Northern Land Council. At this stage we are hopeful the drilling will commence once all approvals have been granted to Genesis”.

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Figure 2: VTEM (B-Field) channel 13 image showing approximate outline of Masterton No2 manganese outcrop with Genesis 2008 rock chip samples. Pink star = 50-60%Mn, Red star = 40-50% Mn, Yellow star = 20-30% Mn Grey Star = <20% Mn

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Figure 3: VTEM (B-Field) Z component channel 13 image with target anomaly outlines and interpreted major structures.

For further information, please contact:

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

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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

Hashemi, A.,Meyers.J., and Rothery,E. 2005 Sub-audio magnetic surveying for shallow occurrences of conductive magnaese ore, woodie woodie area WA. Exploration Geophysics (2005) Vol 36, 170-175.

Cooper, M., 2007. McArthur River project: Data processing and target generation of airborne electromagnetic data. Unpublished Genesis Resources Ltd report .

Cooper, M., 2008. McArthur Manganese site visit. Unpublished Genesis Resources Ltd report .

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