KING RIVER RESOURCES LIMITED — Capital/Financing Update 2012

Jul 16, 2012

ASX ANNOUCEMENT

17 July 2012

HYDROMETALLURGICAL PROCESS SUPPORTS MODULAR DEVELOPMENT

ASX Code: SPM

Capital Structure:

Speewah Metals Limited (“Speewah” or “the Company”) (ASX: SPM) confirms that the hydrometallurgical process that delivered recent positive Scoping project valuation (April 2012) supports a modular development that will substantially reduce technical and capital risk during project development by allowing the project to be built in stages that will allow commissioning and commercial production at materially lower start up capital requirements.

MODULAR DEVELOPMENT

Board of Directors:

The mixed chloride leach, solvent extraction and precipitation plant production facility can be developed in stages, allowing commercial production at lower target levels of production and then scaled up once commercialisation has been proven and customer and market levels dictate.

Initial development is likely to be planned around a production facility that would target annual production of:

• Titanium dioxide (TiO2) - 15,000 tonnes per year;

• Vanadium pentoxide (V2O5) – 2,450 tonnes per year;

• Hematite (Fe2O3) – 80,000 tonnes per year;

• Ammonium Sulphate ((NH4)2SO4) – 40,000 tonnes per year.

Projects:

Speewah Dome, 575 km[2 ]

This initial production facility represents 20% of the annual production targets modeled in the Full Scale Scoping Study released in April 2012.

This will result in a material reduction in the capital requirements detailed in the full scale Scoping Study that initially totaled an estimated US$896 million.

Resources:

Speewah would develop a construction plan through the feasibility process that will consider this staged development and estimate the capital requirements of this initial commercial production facility.

FULL SCALE SCOPING MODEL

Metallurgy:

Project Scoping:

The Full Scale Scoping Model was developed to provide economic parametres to a support development of the mixed chloride leach and solvent extraction process that generated +90% recoveries of Titanium (Ti), Vanadium (V) and Iron (Fe) as 3 separate high grade end products.

The Company conceptualized a production target that generates an estimated 75,000 tonnes per year of high grade TiO2 that would represent approximately 50% of annual revenue. The project would also produce high grade V2O5 (target production 12,400 tonne/year) that would represent an estimated 30% of annual revenue. The processing method also produces Fe2O3 (target production 410,000 tonne/year) and (NH4)2SO4 (target production 200,000 tonne/year) as valuable by-products that provide additional revenues.

The Full Scale Scoping Model generated a conceptual valuation of the project of US$1.4Billion.

DIRECTOR’S COMMENTARY

Other prospects:

The opportunity to develop an initial commercial production facility, which can then be replicated and expanded to meet market demand once commissioning risk is eliminated, represent a significant reduction in the development risk of the Ti/ V project.

Capital expenditure for the initial production facility is expected to be significantly reduced, in line with production output. The Company is re-working the Full Scale Scoping Study to develop Operating and Capital Cost estimates for this initial start phase of development and expects to provide guidance on these economic parameters later this quarter.

Richard Wolanski Director

BACKGROUND & SYNOPSIS OF SPEEWAH METALS LTD

Speewah Metals Ltd has established a portfolio of 100% owned tenements covering approximately 575 square kilometres in the East Kimberley region of Western Australia (“Tenements”).

Since Speewah was listed on the ASX in 2007, the company has focused on exploring an extensive zone of vanadiferous and titaniferous magnetite mineralisation. This exploration has delivered Australia’s largest titanium/vanadium in magnetite resource and a high grade Fluorite resource. The projects have advanced beyond exploration and have entered the feasibility and development phase.

The Titanium/ Vanadium/ Hematite Project represents the major asset and value add project for shareholders. Metallurgical studies have significantly reduced technical risk associated with the acid leach and solvent extraction processing technique and enables a focus towards development of a significant mining operation.

Initial planning envisages a mining /processing operation that produces a minimum of the following end products:

• Titanium Dioxide (TiO2) 75,000 tonnes per year

• Vanadium Pentoxide (V2O5) 12,400 tonnes per year

• Hematite (Fe2O3) 410,000 tonnes per year

• Ammonium Sulphate (NH4)2SO4 200,000 tonnes per year

Each of the end products is expected to be produced at high grade purity levels of >98% which would enable Speewah to secure premium pricing for the end products. The recovery process and testwork confirms that modular development of a mine and process facility could see Speewah commence at lower target production levels than were used in the attached financial model and then be scaled up to match capital availability and product demand.

Subject to adequate funding, the objectives for the next 12 months include:

1. Construction and completion of a pilot plant processing facility to demonstrate titanium/vanadium/hematite flowsheet and produce marketing sample to attract off-take and investment/strategic partners;

2. Input pilot plant results into pre-feasibility studies that will deliver optimised flowsheet, operating, and capital cost estimates that have the potential to significantly increase the existing project valuation of US$1.4 Billion.

3. Delivery of the following development approval requirements:

   • a. Achieving Reserve status on Titanium/Vanadium in magnetite Resource;

   • b. Mining Lease;

   • c. Mining Agreement with landholders;

   • d. Application for Environmental Impact Assessment.

4. Commencement of definitive feasibility studies on Titanium/Vanadium/Hematite project.

These objectives are designed to reduce commercial risk and facilitate mine development.