GRATIFII LIMITED — Capital/Financing Update 2012

Jul 26, 2012

ASX ANNOUNCEMENT

27[th] July 2012

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Drilling Update: Youkou/Mekambo-Est Iron Ore Project, Central Africa

• 24 holes totalling 1,107 metres drilled to date over a strike of 1.7 kilometres which remains open to further mineralisation to the north and south

Ordinary shares on issue 199M Options @ ~22c 22.4M Options @ 30c 11M Market cap. @ 5c 10M

• The Drilling Program is progressing as planned and the continuing results have confirmed DSO and Itabirite potential

• Large, third company-owned drill rig has arrived in Gabon to expedite drilling

• Samples continue to be exported for independent laboratory assay testing in Johannesburg

• Drilling continues and further results will be released when received

Terry Streeter

William Witham

Managing Director Peter Bennetto

African focused iron ore explorer, Waratah Resources Limited (ASX: WGO) (“Waratah” or “the Company”), is pleased to announce an update on the drilling program and development progress at its Youkou/Mekambo-Est Iron Ore Project in Central Africa.

Non Executive Director

Drilling Progress

Company Secretary

CONTACT INFORMATION

AUSTRALIA – Head Office

T: +61 8 6365 4532

To date, 24 drill holes have been completed, for a total of 1106 metres (see Figure 1). Waratah’s third new drilling rig has arrived in Gabon to expedite the advancement of the drill programme and speed up confirmation of the initial resource calculations. This drilling rig is a larger unit and should substantially improve drilling productivity.

Managing Director, Mr William Witham said, “In addition to increasing the drill rate through the commencement of the third drilling rig, we will be moving the rigs further along the mapped ridge with the aim of confirming the strike and composition of the Banded Iron Formation and speed up our ability to reach our target resource.”

F: +61 8 6210 1872

Assay results for the remaining drill-holes in the first batch sent to ALS Johannesburg have been received and are featured below (see Table 1). There is a good correlation between the assay results from the laboratory and hand-held XRF Niton.

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All core samples have been subject to preliminary analysis on site using a handheld portable XRF Niton. Each metre of core is analysed in at least three localities within the sample, taking into account minor changes in lithology. Comparison of ALS and Niton results show the Niton readings are on average 1% lower than the ALS results.

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Figure1. Youkou Project Drilling Borehole Status

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BHID	EAST	NORTH	ELEV	DIP	AZI	EOH	SURVEY	STATUS	COMMENTS
YKD001	440020	88647	672	-90	0	72.16	GPS	COMPLETE	Fe mineralisation 29 - 61m @ 30% Fe
YKD002	439965	88662	672	-90	0	45.7	GPS	COMPLETE	No Fe intersection
YKD003	440041	88727	676.417	-60	100	43.51	GPS	COMPLETE	Fe mineralisation 7 - 40 m @ 32% Fe
YKD004	440022	88644	672.18	-60	100	40.83	GPS	COMPLETE	Fe mineralisation 14 - 37m @ 36% Fe
YKD005	439910	88838	676.508	-90	0	34.52	GPS	COMPLETE	Fe mineralisation 0 - 27m @ 38% Fe
YKD006	440188	89302	663.976	-60	85	37.71	GPS	COMPLETE	Fe mineralisation 0 - 31 m @ 36% Fe
YKD007	439950	88999	663.972	-90	0	36.69	GPS	COMPLETE	Fe mineralisation 2 - 28 m @ 62% Fe
YKD008	440122	89178	661.801	-60	105	60.79	GPS	COMPLETE	Fe mineralisation 14 - 60.79 m @ 31% Fe
YKD009	439981	89064	654.752	-60	100	26.1	GPS	COMPLETE	No Fe intersection
YKD010	439926	88933	669.849	-60	100	28.97	GPS	COMPLETE	Fe mineralisation 0 - 22 m @ 32% Fe
YKD011	439991	89179	641.842	-60	100	50.36	GPS	COMPLETE	Fe mineralisation 1 - 47 m @ 32% Fe
YKD012	440076	89352	654.482	-60	100	46.08	GPS	COMPLETE	Fe mineralisation 1 - 39 m @ 39% Fe
YKD013	440124	89462	666.231	-60	100	56.96	GPS	COMPLETE	Fe mineralisation 0 - 45 m @ 32% Fe
YKD014	440172	89631	668.961	-60	100	64.86	GPS	COMPLETE	Fe mineralisation 2 - 59 m @ 34% Fe
YKD015	440130	89859	650.592	-60	105	100	GPS	In Progress	Below hole YKD007
YKD031	440201	89468	669.402	-60	95	40.76	GPS	COMPLETE	Fe mineralisation 1 - 41 m @ 31% Fe
YKD032	440240	89638	673.619	-60	100	25.86	GPS	COMPLETE	Fe mineralisation 0 - 25.86 m @ 31% Fe
YKD033	440249	89828	682.463	-60	100	63.85	GPS	COMPLETE	Fe mineralisation 0 - 63 m @ 37% Fe
									Including4 – 16 m @ 49% Fe
									Including6 – 10 m @ 57% Fe
YKD034	440259	90039	682.9	-60	100	76.8	GPS	COMPLETE	Fe mineralisation 2 -46 m @ 37% Fe
YKD035	440259	90243	672.662	-60	100	25.95	GPS	COMPLETE	Fe mineralisation 2 -23 m @ 41% Fe
YKD036	440341	90418	665.718	-60	105	37.85	planned	COMPLETE	Fe mineralisation 2 - 23 m @ 22% Fe
YKD037	440410	90610	664.681	-60	105	19.92	planned	COMPLETE	No Fe intersection
YKD038	440370	90628	660.857	-60	105	17.02	planned	COMPLETE	No Fe intersection
YKD039	440275	90436	652.069	-60	105	26.02	planned	COMPLETE	Fe mineralisation 1 - 5m @ 15%
YKD040	440219	90234	672.675	-60	105	28.56	planned	COMPLETE	Fe mineralisation 10 -28 m @ 43% Fe
YKD041	440225	90041	668.993	-60	105	100	GPS	In Progress	End of mineralisation around 120m

Table 1. Youkou Project Drill Hole Collar Information

ENDS

For further information or media enquiries please visit www.waratahresources.com.au or contact:

William Witham Warrick Hazeldine: Managing Director Canning Purple Waratah Resources Ltd. T: +61 8 6314 6300 T: +61 8 6365 4532 E: WHazeldine@purplecom.com.au

Competent person statement: Technical information in this report is based on information compiled by Mr. William Witham B.Sc. Geology (Hons), Waratah Geologist and member of the Australian Institute of Geoscientists. Mr. Witham has sufficient exploration experience relevant to the styles of mineralisation and types of deposit 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’ (“JORC 2004”). Mr. Witham consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

XRF Analytical method: Waratah is using a portable Niton XLT hand held XRF analyzer (Niton) to analyse drill-core. Waratah’s Niton procedure is to orientate and geologically log drill core. All core samples are subject to preliminary analysis on site using a handheld portable XRF Niton. Each metre of core is analysed in at least three localities within the sample, taking into account minor changes in lithology. Following this, a Waratah geologist uses the Niton to record spot readings taken over a 30 second period for iron every 30cm. Results are averaged for intervals of drill core and reported on minimum widths of 1m.

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ABOUT WARATAH RESOURCES LIMITED

Waratah Resources Limited (ASX: WGO) (“Waratah” or “the Company”) is an ASX listed iron ore company with a focus on its projects in the Republic of Congo (“ROC”) and Gabon (“Gabon”) and on the acquisition of other iron projects in the area.

The Company’s Youkou/Mekambo-Est Iron Project is located on the Ivindo Massif which is host to at least 4 billion tonnes of iron ore, including the world class Belinga, Nabeba, Avima and Badondo projects.

Waratah is well positioned to take part in the development of this region into the world’s newest iron ore province, and has developed strong relationships with the ROC and Gabon governments. The Company is currently aiming to define a JORC-compliant resource with its company owned drilling rigs and equipment.

WARATAH RESOURCES LIMITED – PROJECT LOCATION MAP

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