GENESIS RESOURCES LIMITED — Capital/Financing Update 2012

Mar 27, 2012

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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 Macedonia. The Plavica Project is highly prospective for gold, copper, silver, molybdenum, lead and zinc mineralisation.

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

ASX ANNOUNCEMENT

28 March 2012

1.86 Moz gold JORC Inferred Resource defined for the Plavica Project

Genesis Resources Limited ( Genesis or the Company ) is pleased to announce the results of its updated JORCcompliant Mineral Resource estimate for the Plavica Project located in the (FY) Republic of Macedonia ( Macedonia ).

Highlights:

Registered Office

Level 3, 1 Collins Street, Melbourne VIC 3000 Australia

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

ABN: 22 114 787 469

Directors and Management

Mr Eddie Pang Chairman

• Inferred Gold Resource estimate of 1.86 million ounces at an average grade of 1.0 g/t Au

• Grades of copper and silver increase substantially as a result of undertaking resource estimation in copper and silver specific domains

• Inferred Copper Resource estimate of 33.9 million kilograms at an average grade of 0.43% Cu

• Inferred Silver Resource of 28.2 million ounces at an average grade of 25 g/t Ag

• Oxide resource potential is highlighted at the Plavica Ridge

• Potential remains to define further oxide sources along the Northern Ridge and Maricanski Ridge.

Dr John Parker Non-Executive Director

Mr Deric Wee Non-Executive Director Ms Sophie Karzis Company Secretary

ASX Code: GES

Issued Capital: 53.08m shares

Eddie Pang, Chairman, reported:

Genesis is very pleased with the new resources estimate which has improved both the size and grade of the gold resource and which has also improved the level of confidence.

The results highlight the scale and potential of this deposit as a world class gold-copper-silver system.

During the coming year, the Company looks forward to undertaking further resource definition drilling and a scoping study to examine the mining potential of the deposit.

GENESIS RESOURCES LIMITED ACN 114 787 469 Level 3, 1 Collins Street, Melbourne, Victoria 3000, Australia Tel: +61 3 9665 0411 | Fax: +61 3 9650 5571 | www.genesisresourcesltd.com.au

The Plavica Project

The Plavica Project is located in the Kratovo District in the north-east of Macedonia and is situated approximately 65km to the east of the Macedonian capital, Skopje. The project comprises seven exploration concessions covering an area of 184.94km[2] .

Genesis signed a joint venture agreement with Sileks and Kratovo in December 2007 over the Plavica and Crn Vrv concessions which were granted by the Macedonian Ministry of Economics in April 2010. Genesis holds the rights 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.

The Plavica Project is related to a volcanic complex within the Kratovo-Zletovo region. It represents the remains of a volcanic caldera which covers an area of approximately 20km[2] . A series of NW- and NEtrending faults cut across the structure, some of which host epithermal gold mineralisation and lead-zinc mineralisation.

The geology at Plavica consists of a package of intermediate volcanic rocks of mixed sub-aerial and sub-marine facies. The package varies from coarse-grained crystal and lithic tuffs to finely laminated sub-aqueous epiclastics that dip approximately 30 degrees to the south-south-west. This volcanic package is cut by sub-vertical vughy silica bodies that can be traced to approximately 100-150m depth, that run along the crests of ridges at Plavica in a horseshoe morphology in plan.

The dimensions of the Plavica resource area as defined by historic drilling is over 1.5km in length, 500m width and with mineralisation delineated to a depth of 800m from surface. The project is the site of historic mining activity, most recently by British Selection Mines during the 1930s. More recently the Plavica Project has been the subject of substantial exploration by the Yugoslav Government, Rio Tinto and European Minerals, confirming the significant potential of the project.

Mineral Resource Estimate

The resource estimate has been generated by Mr Alfred Gillman of Odessa Resources Pty Ltd in compliance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004). The resource estimate has been prepared using historic diamond drilling data in addition to the recent drilling data produced from the Genesis exploration programme which was completed in 2011.

The resource estimate is based on the results of 108 diamond drill holes, totalling 34,408 metres. The resource has been classified as an Inferred Resource due primarily to the 100 x 100m drill spacing of the majority of historic holes.

A total of 8,043 gold assays and 12,845 silver and 15,707 copper results were used in the grade estimation. It is notable that complete assay information for all three elements is not consistently available for all holes and that the historic sampling and assaying was not completed in a manner that provided consistent Au, Ag and Cu determinations for all samples. Assay methodology for the drilling completed by Genesis involved fire assay and ICP-MS methods for gold and other elements respectively.

The resource estimate is reported within grade domains defined by a lower cut-off of 0.35 g/t for gold, 5g/t for silver and 0.2% for copper as shown in Figure 1 below. These grade domains, created using Leapfrog software, were used as the controlling constraints in the grade estimation and block model reporting. Within the constraining domains the grades were interpolated using the inverse distance squared method using assay data composited to 1m. Following univariate statistical analysis of the composited assay date, top cuts of 2.5 g/t Au, 50 g/t Ag and 0.5% Cu were applied prior to grade interpolation. Grades are reported above a lower cut-off of 0.75 g/t Au, 15 g/t Ag and 0.4% Cu.

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A conservative bulk density of 2.4g/cm[3] was used for the tonnage calculation in the absence of any relevant data. No mining, metallurgical, marketing, economic or environmental studies are or have been considered to determine the economic viability of the project, particularly the relevant economic factors concerning mining along the estimated strike and depth of the resource.

The tabulated resource estimate is split in to three commodities and is reported on an estimated in-site grade and tonnage basis (Table 1).

Table 1: Classified Joint Ore Reserves Committee ( JORC ) resource statement for the Plavica Project, with grade and tonnage reported separately for gold (Au), silver (Ag) and copper (Cu) based on domains established for each element individually.

Element	Cut Off (ppm)	Tonnes	Grade	Au (oz)	Ag (oz)	Cu (kg)	Classification
Au*	0.75	55,465,647	1.0 g/t	1,858,611			Inferred
Ag**	15	34,766,222	25 g/t		28,232,352		Inferred
Cu***	4,000	7,975,180	0.43%			33,921,304	Inferred

• reported from within Au defined domain

• ** reported from within Ag defined domain

• *** reported from within Cu defined domain

In comparison with the earlier resource estimate reported in 2010 the major differences are:

1. Exclusion of a large zone of mineralisation that had been identified based on limited drilling on Maricanski Ridge. The results of historic drilling in this location included 90m at 0.59 g/t Au which was drilled by Rio Tinto.

2. The addition of a zone of mineralisation along Plavica Ridge in which Genesis completed drilling in 2011.

3. The verification of historic drilling results in the central part of the current resource.

4. Calculation of mineral resources based on separate domains for Au, Ag and Cu.

Consequently, the current mineral resource estimate provides for a significant improvement in confidence over the earlier resource, which was based entirely on the historic data.

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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 Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Alfred Gillman who is a fellow of the Australasian Institute of Mining and Metallurgy. Mr. Gillman is a consultant to Genesis Resources Limited 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 Competent Person and 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.

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Figure1: Oblique view (facing south west) showing Au grade domain

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Figure 2: Oblique view (facing south west) showing Ag grade domain

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Figure 3: Oblique view (facing south west) showing Cu grade domain

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