KING RIVER RESOURCES LIMITED — Capital/Financing Update 2011

Aug 24, 2011

ASX ANNOUCEMENT 25 August 2011

ASX Code: SPM

Capital Structure:

Shares on Issue: 130.7m Options on issue: 9.75m Exercise Price: 20c – 80c Market Cap: $32.7m (25c)

Financial Position:

Cash on Hand: circa $7.4m (June Quarter end)

Board of Directors:

Non Executive Chairman: Anthony Barton

Non Executive Director: Derek Carew-Hopkins

Executive Director: Richard Wolanski

Projects: Speewah Dome, 575 km[2]

Location: Kimberley, WA

Resources:

Vanadium/Titanium: 3.6 Billion tonnes @ 0.30% V2O5 and 2% Ti (at 0.23% V2O5 cut-off grade)

Fluorite:

6.7 Million tonnes @ 24.6% CaF2 (at 10% CaF2 cut-off grade)

Other prospects:

Copper/Gold/Silver & Lead Platinum

HYDROMETALLURGICAL PROCESS HAS POTENTIAL TO PRODUCE 99.8% TiO 2 PRODUCT

RESULTS

Speewah Metals Limited (“Speewah”) (ASX: SPM) advises that patented mixed chloride technology the Company is testing has produced very high grade Titanium Dioxide (TiO2) from testwork completed upon similar magnetite bearing ore by another company[1] .

TiO2 product grades of 99.8% have been reported, which have market values of approximately US$3,300 per tonne[1] . Vanadium Pentoxide (V2O5) which is also recovered through the process is currently valued at US$13,500 per tonne[2] .

Beneficiation of the magnetite bearing gabbro at Speewah, produces a magnetite/vanadium/titanium concentrate that assays 54% Fe, 2.48% V2O5 and 14.8% TiO2. The contained value of these high value commodities in the concentrate, assuming 100% recovery by a similar process route[1] , is:

	Target CommodityVanadium pentoxide	Grade inSpeewahConcentrate2.48% V205	TargetedCommodityProduct/ PurityV2O5	MarketValue/tonne(US$)13,500	Value/tonneconcentrate(US$)$330
	Titanium Dioxide	14.8% TiO2	TiO2(+99%)	3,300	$480
	Iron Oxide	54% Fe	Fe2O3	170	$130

BACKGROUND

The tenements contain Australia’s largest vanadium/titanium in magnetite deposit with combined Measured, Indicated and Inferred Resources totaling 3.6 Billion tonnes at 0.30% V2O5 and 2% Ti (at 0.23% V2O5 cut-off grade). The deposit is flat lying, outcrops at surface and up to 80 metres thick.

One of the key value add strategies implemented in 2011 is this type of hydrometallurgical testwork, using an acid leach on the magnetite concentrate to recover Ti and Fe alongside the V as high value end products. The opportunity for the Company is to potentially increase project valuation, with the Ti and Fe added as additional end products to increase revenues and potentially lower capital and operating costs.

DIRECTOR’S COMMENTARY

The hydrometallurgical processes the Company is testing may transition the business to a titanium focus, as the contained titanium end product value in the magnetite/vanadium/titanium concentrate does surpass that of the vanadium (see Table above).

The Company expects to provide further results of testing in the coming months and make a decision on the preferred route to development upon conclusion of the metallurgical test programme towards the end of 2011 .

Richard Wolanski

Director

SPEEWAH BACKGROUND

Speewah Metals Limited (ASX: SPM) is a mining and exploration company whose prime focus is the definition and development of its vanadium/titanium and copper/gold/silver discoveries in the East Kimberly region of Western Australia .

The tenements contain Australia’s largest vanadium/titanium in magnetite deposit with combined Measured, Indicated and Inferred Resources totaling 3,566 Mt at 0.30% V2O5 and 2.0% Ti (at 0.23% V2O5 cut-off grade) in three deposits, comprising a Measured Resource of 201 Mt at 0.33% V2O5, Indicated Resource of 826 Mt at 0.30% V2O5 and an Inferred Resource of 2,539 Mt at 0.3% V2O5.

Once a magnetite concentrate is created the upgraded concentrate assays at 56% Fe, 2.48% V2O5 and 14.8% TiO2.

The 2011 strategy has three value-add components. Two of these are related to the 2011 Exploration programme and will be the largest exploration programme in the history of the company. These value-add components include:

1. Significantly increase to what is Australia’s and one of the world's largest vanadium/titanium in magnetite resource, through drilling an exploration target[3] of an additional 2-5 Billion tonnes @ 0.3-0.32% V205 and 1.82.0% Ti ;

2. Continue exploration based on promising results of Copper/Gold/Silver and Lead mineralisation . This will include a maiden airborne EM survey conducted on the tenements that will target potentially highly conductive Cu/Au mineralisation against non-conductive background rock. This is expected to target copper/gold mineralisation identified both the vertical and horizontal dimensions.

3. Metallurgical work on the vanadium/titanium resource and investigate the potential to recover titanium and iron in addition to vanadium which may have the potential to multiply project values.

The tenements also contain a high-grade, high-quality fluorite deposit with Indicated and Inferred Resources totaling 6.7 Mt at 24.6% (at 10% CaF2 cut-off grade), comprising an Indicated Resource of 4.1 Mt at 25.3% CaF2 and an Inferred Resource of 2.6 Mt at 23.6% CaF2.

Speewah Metals Limited has a 100% interest in three granted Mining Leases (M80/267, M80/268 and M80/269) and three granted exploration licenses (E80/2863, E80/3657 and E80/4468), covering 575 km[2] located about 110 km southwest of Kununurra.

1. Argex Mining Inc (TSX V:RGX) July 2011 Presentation – Pathway to Production

2. www.minormetals.com

1. Exploration Target is not a mineral resource and further drilling is required which may not define these tonnes & grade. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if future exploration will result in the determination of a mineral resource.

Competent Persons Statement

The information in this report that relates to Exploration Results , Minerals Resources and Ore Resources is based on information compiled by Ken Rogers who is a Member of the Australian Institute of Geoscientists. Mr Rogers, Chief Geologist of Speewah Metals Limited, compiled the technical aspects of this report relating to the Speewah Project and content of this release. Mr Rogers has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code). Mr Rogers consents to the inclusion in the report of the matters in the form and context in which it appears.