GRATIFII LIMITED — Capital/Financing Update 2012

May 22, 2012

ASX ANNOUNCEMENT

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23[rd] May 2012

Exploration campaign building momentum at Youkou/Mekambo Est Iron Project

• Drilling Continues on both the eastern and western limbs of the Youkou ridge

Ordinary shares on issue Options @ ~22c 28.4M Market cap. @ 11c Cash (March 2012)

• Initial independent laboratory assay results verifying hand held Niton XRF Results.

• Third drilling rig ordered to increase exploration campaign to speed initial resource calculations

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

Further Drilling confirms high iron ore grade

Terry Streeter

William Witham

Managing Director Peter Bennetto

Non Executive Director

Since 29 January 2012, two Company-owned and operated diamond rigs have been drilling on site. To date, thirteen drill holes have been completed, with over 649 metres drilled.

Another significant area of potential iron ore has been encountered in hole YKD033 where Fe mineralisation was discovered from 0 to 63 m @ 37% Fe including 15 metres at 44% using the hand-held Niton XRF. This hole is significant as it is further to the north and east of the previous drilling (see Figure 1).

Initial independent assay results for the remaining drill-holes are currently with the ALS laboratory in Johannesburg and will be reported as soon as they become available.

Company Secretary

CONTACT INFORMATION

AUSTRALIA – Head Office

T: +61 8 6365 4532

F: +61 8 6210 5510

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. So far the correlation between XRF Niton results and Assay results has been similar giving us the confidence to quote XRF results.

Managing Director Mr. William Witham said “Drilling has been continuing despite the wet season and exploration results are showing that the project consists of both DSO material and iron ore that can be beneficiated. To help increase the drilling rate, another track mounted drill rig has been purchased and is expected to commence working on site in the September 2012 Quarter. We will be also moving the rigs 5kms south from the current drilling area with the aim of confirming the strike and composition of the Banded Iron Formation and speed up our ability to reach our target resource ”.

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Figure 1 - Drill Plan Status of the Youkou/Mekambo Est Project (This map only shows the current drilling area, the strike continues to the North and south)

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Figure 2 - Youkou/Mekambo Est Project - Mapping over Lidar DTM

ENDS

For further information or media enquiries please contact:

William Witham Managing Director Waratah Resources Ltd. T: +61 8 6365 4532 W: www.waratahresources.com.au

Warrick Hazeldine or Greg Galton Purple Communications T: +61 8 6314 6300 E: WHazeldine@purplecom.com.au E: GGalton@purplecom.com.au

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Competent person statement: Technical information in this report is based on information compiled by Mr. William Witham B.Sc. Geology (Hons), Waratah Geologist and a member of the Australian Institute of Geoscientists. Mr. Witham has sufficient exploration experience which is 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 - Mineralised drill-core is being analysed using the portable Niton XLT hand held XRF analyzer (Niton). This equipment is being used by Waratah. Waratah is confident to use Niton as an indicator only of iron mineralisation to report exploration results. Waratah’s Niton procedure is to orientate and geologically log drill core. Then 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. A cross-check slice of NQ drill-core (47mm diameter), is cut and will be analysed as verification by commercial assay laboratories.

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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 flagship 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 JORCcompliant resource with its company owned drilling rigs and equipment.

WARATAH RESOURCES LIMITED – PROJECT LOCATION MAP

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