HELIX RESOURCES LIMITED — Capital/Financing Update 2012

Aug 20, 2012

Helix Resources Limited

Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

1[st] PAYMENT OF $1.5M RECEIVED FOR OLARY

OLARY MAGNETITE PROJECT - SOUTH AUSTRALIA

• Helix has executed a Share Subscription Agreement with Lodestone Equities Ltd [Lodestone] over the Olary Magnetite Project in South Australia reflecting the terms of the MoU announced 23 July 2012.

• Lodestone has acquired a 33% shareholding in the Helix wholly owned subsidiary, Olary Magnetite Pty Ltd [Olary], with an up-front cash payment of $0.5M to Helix and $1M towards the proposed work program. Olary’s sole assets are tenements EL3956 and EL4022 prospective for Braemar Fe Formation in South Australia.

• Upon all approvals being received to enable drilling to commence, Lodestone will provide a further $1M to earn 50% in Olary. Helix will oversee the work program, receiving a management fee, with drilling and assays used to establish an independently estimated maiden Inferred JORC compliant resource.

• Lodestone has one month after receipt of the independent JORC Report to elect whether to acquire the remaining 50% shareholding in Olary by an additional cash payment calculated in accordance with the following formula:

Cash Payment = JORC Resource tonnes x DTR% x $0.035 x 150%

with a floor price of $5M and a cap of $9M.

• If the Option to acquire the remaining 50% is not exercised by Lodestone, the parties will operate Olary as a corporate joint venture.

“The Olary deal is an example of the unlocked value of our Projects. It raises funds during challenging market conditions and supports our business model of targeting prospective areas and spending money in the ground to drive our Projects up the value curve” Helix Chairman Greg J Wheeler commented.

Competent Persons Statement

The information in this announcement that relates to Exploration

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Capital Structure

	ASX Ticker Code	HLX
	Share Price	±AU$0.04
	Market Cap	±$7M
	Issued Capital (Fully Diluted)	204M
	12 Month Range	AU$0.04 - $0.12

Directors and Management

	Greg J Wheeler	Executive Chairman/MD
	Michael Wilson	Executive Technical Director
	John den Dryver	Non-Executive Director
	Gordon Dunbar	Non-Executive Director
	Craig Johnson	Exploration Manager – Aust
	Alamiro San Francisco	Exploration Manager - Chile

Core Assets

	Cash/Investments [30/6/12]	$1.8 Million
	Restdown Gold JV (70%)	2.6Mt @ 1.2g/t Au
	Canbelego Copper JV (51%)	1.5Mt @ 1.2% Cu
	NSW - Lachlan Region	2,000 km2Au/Cu exposure
	Chile - Joshua Project	Significant Cu porphyry
	Chile - Huallillinga Project	Blanco y Negra Cu/Au Mine
	Chile - Hado Project	Au and Cu drill targets

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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