LINDIAN RESOURCES LIMITED — Capital/Financing Update 2011

May 18, 2011

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Lindian Resources Limited

ABN

53 090 772 222

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to be 1. Fully paid ordinary shares issued 2. Listed options 3. Fully paid ordinary shares 4. Listed options 5. Listed options 2 Number of[+] securities issued or to 1. 30,000,000 be issued (if known) or maximum 2. 30,000,000 number which may be issued 3. 6,393,013 4. 6,393,013 5. 12,000,000

3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	1. Shares rank equally with existing quoted ordinary shares 2. ASX: LINOA – exercise price 15 cents, expiry date 31 December 2011 3. Shares rank equally with existing quoted ordinary shares 4. ASX: LINOA – exercise price 15 cents, expiry date 31 December 2011 5. ASX: LINOA – exercise price 15 cents, expiry date 31 December 2011

• See chapter 19 for defined terms.

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Appendix 3B Page 1

4 Do the+securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering+securities into uncertificated holdings or despatch of certificates 8 Number and +class of all +securities quoted on ASX (_including_the securities in clause 2 if applicable)	1. Yes 2. Yes 3. Yes 4. Yes 5. Yes	1. Yes 2. Yes 3. Yes 4. Yes 5. Yes
	Placement and Shortfall of Rights Issue (refer item 6 below)
	1. and 2.Shares and listed options – issued pursuant to placement as approved by shareholders and detailed in notice of meeting dated 14 March 2011. 3. and 4.Shares and listed options issued pursuant to rights issue as per prospectus dated 22 February 2011. 5. Options issued as part of capital raising costs.
	18 May 2011
	Number	+Class
	150,308,753 135,980,161	Ordinary Shares Options exercisable at 15 cents on or before 31 December 2011

9 Number and +class of all +securities not quoted on ASX (_including_the securities in clause 2 if applicable)	Number	+Class
	550,000 550,000 1,000,000 500,000	Ordinary Shares Options exercisable at 15 cents on or before 31 December 2011 Options – exercisable at 20 cents on or before 01/07/2011 Options – exercisable at 30 cents on or before 31/12/2011

• 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

• 11 Is security holder approval No required?

• 12 Is the issue renounceable or nonNon Renounceable renounceable?

• 13 Ratio in which the[+] securities will One (1) Share for every two (2) Shares held be offered together with one (1) free attaching Option for every one (1) new share subscribed for and allotted.

• 14 +Class of +securities to which the Fully Paid Ordinary Shares and listed options offer relates

• 15 +Record date to determine 3 March 2011 entitlements

• 16 Will holdings on different registers N/A (or subregisters) be aggregated for calculating entitlements?

• 17 Policy for deciding entitlements in Round Down relation to fractions

• See chapter 19 for defined terms.

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18 Names of countries in which the entity has+security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker?	The entitlement issue is only open to shareholders based in Australia and New Zealand
	24 March 2011
	Cunningham Peterson Sharbanee Securities Pty Ltd
	6%
	N/A
	N/A
	N/A
	N/A
	9 March 2011
	22 February 2011
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

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1/1/2003

31 How do[+] security holders sell part N/A of their entitlements through a broker and accept for the balance?

32 How do[+] security holders dispose of their entitlements (except by sale through a broker)?

N/A

33 +Despatch date

1 April 2011

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities ( tick one )

(a) √ Securities described in Part 1.

• (b)[All other securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35[If the ][+][securities are ][+][equity securities, the names of the 20 largest holders of the ] additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36[If the ] +securities setting out the number of holders in the categories[+][securities are ][+][equity securities, a distribution schedule of the additional ] 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37[A copy of any trust deed for the additional ][+][securities ]

• See chapter 19 for defined terms.

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Entities that have ticked box 34(b)

38 Number of securities for which +quotation is sought 39 Class of +securities for which quotation is sought 40 Do the+securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) 42 Number and+class of all+securities quoted on ASX (_including_the securities in clause 38)
	.
	Number	+Class

• See chapter 19 for defined terms.

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1/1/2003

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the[+] securities to be quoted, it has been provided at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Scott Funston (Director/Company secretary)

Date: 19 May 2011

Print name:

• See chapter 19 for defined terms.

1/1/2003

Appendix 3B Page 7