HELIX RESOURCES LIMITED — Capital/Financing Update 2012

Oct 14, 2012

Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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15 October 2012

The Manager Company Announcements Office Australian Stock Exchange

BY ELECTRONIC LODGEMENT

DESPATCH OF ENTITLEMENT ISSUE DOCUMENTS

Helix Resources Limited [ASX: HLX] is pleased to advise that it has received confirmation that the Entitlement Issue Prospectus and the Entitlement and Acceptance forms were despatched to shareholders today 15 October 2012.

The Chairman’s letter to shareholders accompanying the Prospectus is attached to this announcement. As a reminder the indicative timetable for the entitlement issue is set out below:

Announce Entitlement Issue, Lodgement of Prospectus with ASIC and ASXand lodgement of Appendix 3B with ASX	2 October 2012
Notice sent to Shareholders	4 October 2012
Ex Date	5 October 2012
Record Date for determining Shareholder Entitlements	11 October 2012
Prospectus despatched to Shareholders and Company announces despatchhas been completed	15 October 2012
Closing Date of Offer*	29 October 2012
Securities quoted on a deferred settlement basis	30 October 2012
Notify ASX of under-subscriptions	31 October 2012
Despatch date/Shares entered into Shareholders’ security holdings	1 November 2012
Quotation of Options issued under the Offer*	2 November 2012

• The Directors may extend the Closing Date by giving at least 6 Business Days notice to ASX prior to the Closing Date. As such the date the Options are expected to commence trading on ASX may vary.

Yours sincerely

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Joneen McNamara Company Secretary

Helix Resources Limited A.C.N. 009 138 738 Incorporated in Western Australia Suite 7 / 29 Ord Street, West Perth WA 6005

Email: greg.wheeler@helix.net.au Email: mick.wilson@helix.net.au

P: +61 8 9321 2644 F: +61 8 9321 3909 www.helix.net.au

Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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CHAIRMAN’S LETTER TO SHAREHOLDERS

15 October 2012

Dear Shareholder

CAPITAL RAISING TO CONTINUE EXPLORATION ACTIVITIES

As each shareholder should be aware, securing and completing exploration activities on mineral prospects takes a number of years. Since emerging from the GFC in late 2009, we have secured significant Copper and Gold project portfolios in ‘infrastructure rich’ Central NSW and Chile. Helix is among only a handful of junior ASX listed entities operating in Chile and we see this as a tremendous opportunity to combine Australian exploration skills with a country that enjoys significant mineral endowment/mining culture with limited new discoveries over the past 20 years. Exploration interest in Chile has increased significantly, with Latin America attracting 25% of Global exploration expenditure in 2011.

During 2011/2012 we drilled and defined Resources in NSW, identified additional prospective areas for drilling, and in Chile identified a significant copper porphyry at Joshua [which has attracted interest from Chilean based investors and miners], as well as advanced our Hado and Huallillinga Projects.

Broker forecasts on copper remain bullish due to strong demand from China, growing middle class development in Asia and an eventual rebound from US Housing starts. Supply has been constrained by falling ore grades and a lack of substantial new projects and the copper market is expected to be in deficit for at least the medium term.

The management team consider the current Helix value proposition compelling. As an example, using Lodestone’s $2.4M funds to complete drilling at our Olary iron ore project may result in a $9M cash payment should a resource similar to nearby deposits be determined, meaning all our other Mineral Assets are valued at $nil.

Given the limited share trading over the past 12 months, where less than 10% of our shares on issue have traded, I do not consider the ASX Market Capitalisation reflective of value. For example, we have seen our Market Cap fall $1M in a day on share sales worth less than $200.

SNAPSHOT OF MINERAL ASSETS:[ *Refer Helix website for details of Resource estimation process and CP statement ]

Chile Strategy

• Chile hosts world class copper & gold mines and mineralized systems, is very supportive of foreign investment and Helix considers it an appropriate location to achieve geographic diversification.

• Confirm Joshua Target 1 copper porphyry size potential [[COMPLETED 1H12] ]; attract JV partner to fund Resource drilling and technical/economic studies; advance up ‘value curve’ and sell to re-invest in advancing our other Chile Projects.

• Confirm Joshua Target 2, 3 and 4 copper porphyry potential; track construction and DDH drilling of targets identified from IP survey/ground magnetics; repeat Joshua Target 1 strategy.

• Huallillinga Project – drill +600m IP chargeable feature below Blanco y Negro mine to confirm Cu/Au mineralisation at depth; drill regional targets identified from IP survey and geological mapping which identified mineralisation associated with the regionally significant Los Mantos Fault.

Helix Resources Limited A.C.N. 009 138 738 Incorporated in Western Australia Suite 7 / 29 Ord Street, West Perth WA 6005

Email: greg.wheeler@helix.net.au Email: mick.wilson@helix.net.au

P: +61 8 9321 2644 F: +61 8 9321 3909 www.helix.net.au

Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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• Hado Project – complete geochemistry program over gold target +1,500m long x 500m wide at surface prior to RC drill program; drill test IP chargeable feature to confirm nearby Cu porphyry target.

Cobar Region NSW - Strategy

• Grow Resource from current 100,000 oz Au and 18,000t Cu within our 2,000 km[2] tenement holding in the prospective and infrastructure rich Lachlan region; explore potential to toll-treat our ore at nearby mines with excess capacity; monitor exploration success emerging from regional competitors.

Olary Magnetite SA - Strategy

• Having attracted a JV partner in Lodestone, complete $2.4M Resource drilling program as soon as approvals received and sell to Lodestone per MoU terms.

Tunkillia JV Strategy

• Dilute our JV interest to ±20% at Decision to Mine 3Q13 [assumes MUX spends $6M in 2012 for PFS and $8M in 2013 for BFS] and then sell de-risked project given we hold tenements 100% and JV agreement requires 100% participant approval to move to mine development.

Yalleen JV Strategy

• Negotiate acceptable JV agreement with API; await WPIOP infrastructure solution and access terms; reassess Project viability; sell tenements/JV interest or dilute to Royalty.

• API has spent +$6M on Yalleen to date, +$430M on its WPIOP regional focus of which Yalleen forms a part, and API’s shareholders [AQA and AMCI] invested +$10M in HLX shares in 2007 at prices between $0.22 and $0.48.

Notwithstanding these current challenging times, I look forward to your support for the Option issue which will ensure our activities continue and the potential value from our mineral assets emerge.

Yours faithfully

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Greg J Wheeler Executive Chairman

Competent Persons Statement

Any information that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation and type 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’. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Details of the assumptions underlying any Resource estimations are contained in previous ASX releases or at www.helix.net.au

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Helix Resources Limited A.C.N. 009 138 738 Incorporated in Western Australia Suite 7 / 29 Ord Street, West Perth WA 6005

Email: greg.wheeler@helix.net.au Email: mick.wilson@helix.net.au

P: +61 8 9321 2644 F: +61 8 9321 3909 www.helix.net.au