KING RIVER RESOURCES LIMITED — Capital/Financing Update 2012

Jun 18, 2012

ASX ANNOUCEMENT

19 June 2012

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----- Start of picture text ----- S PEEWAH RECEIVES R&DT AX R EBATE & EIS G RANTF UNDING----- End of picture text -----

ASX Code: SPM

2011 RESEARCH & DEVELOPMENT TAX REBATE BANKED

Capital Structure:

Shares on Issue: 130.7m Options on issue: 11.75m Exercise Price: 20c – 80c Market Cap: $18m (14c)

Board of Directors:

Non Executive Chairman: Anthony Barton

Non Executive Director: Derek Carew-Hopkins

Non Executive Director: Leon Charuckyj

TAX REBATE OF $747,000 RECEIVED FOR 2011 FINANCIAL YEAR EXPENDITURE

Speewah Metals Limited (“Speewah” or “the Company”) (ASX: SPM) is pleased to advise that it has received a Research & Development tax rebate based on research that forms part of the 2011 Exploration Programme.

The tax rebate, received this week, totaled $747,000 and will support working capital throughout the remainder of 2012.

Research conducted as part of the Exploration Programme completed during the 2011 Financial Year complies with the criteria set out for the Research & Development Scheme that allows the deductible cost of the research to be claimed as a Tax Rebate.

Executive Director: Richard Wolanski

ELIGIBILITY FOR REBATE FOR 2012 FINANCIAL YEAR EXPENDITURE

Projects:

Speewah Dome, 575 km[2 ] Kimberley, WA

Speewah expects that it will be eligible to receive a further Research & Development tax rebate based on research that forms part of exploration and detailed metallurgical testing that was completed during the 2012 Financial Year.

Resources:

Titanium/ Vanadium:

4.7 Billion tonnes @ 2% Ti and 0.30% V2O5 (at 0.23% V2O5 cut-off grade)

Fluorite:

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

Metallurgy:

Recovery from concentrate - Ti (+91.1%) - V (+94.6%)

• Fe (+97.0%)

Project Scoping:

The metallurgical testwork has shown that the mixed chloride leach and solvent extraction process tested generated +90% recoveries of Titanium (Ti), Vanadium (V) and Iron (Fe) as 3 separate high grade end products. This testwork is a natural progression from Research & Development project that sought to define and identify the unique mineralogical deposit that forms the Speewah JORC Resource.

Approval and receipt of this rebate is expected to occur in 2[nd] Quarter 2013.

RECEIPT OF STAGE 2 EIS GRANT FUNDS

Speewah also recently received final payment in respect of the 2[nd] stage of State Government Exploration Incentive Scheme (EIS) funds for the 2011/2012 Year.

The 2[nd] stage grant funds totaled $30,000 and represents grant funding support for exploration work Speewah completed earlier in the financial year.

Target production

• TiO2[75,000 tonne pa ] - V2O5[12,400 tonne pa ] Revenue: US$570 million pa NPV: US$1.4 Billion

Other prospects:

Copper/Gold/Silver & Lead PGE + Au

DIRECTOR’S COMMENTARY

The compliant and audited research program that has been in place for the past 4 years has resulted in the Company being able to recover a significant portion of annual exploration expenditure as a tax rebate that is returned to working capital for future exploration. Together with State Government EIS funding received, Speewah has been able to progress it’s exploration and projects at an advanced rate.

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.