MOTIO LTD — M&A Activity 2011

Oct 17, 2011

18 October 2011

COMPANY UPDATE

Yellowstone Copper Acquisition

Red October Resources Limited ( ASX-ROS ) (“Red October” or “the Company”) refers to its previous ASX announcements dated 27 May 2011 and 28 July 2011 relating to the Company’s agreement (“Yellowstone Copper Acquisition Agreement”) with Uly Tau K LLP and its owners (together the sellers) to acquire a 51% interest in the Tesiktasskoye copper deposit (“Tesiktas Deposit”) located near Balkash in central Kazakhstan.

Due to current market conditions, the Company is not in a position to complete a capital raising sufficient to satisfy the terms of the Yellowstone Copper Acquisition Agreement. Red October has agreed to provide the sellers access to all technical reports and physical assets, funded by the Company during the due diligence process, in exchange for a refund of the estimated costs of $350,000 USD. This amount is to become payable on the sale of the Tesiktas Deposit to another party.

Akjilga Silver Acquisition

Red October refers to its previous ASX announcements dated 14 June 2011 and 22 June 2011 relating to the Company’s bid for the Akjilga Silver Project in Tajikistan (“Akjilga Project”) 100% owned by a Dutch registered company, Kytco (BV) (“Kytco”) (“Share Sale Agreement”).

The Company has received a Notice of Breach of Contract and has been requested to demonstrate its ability to complete the transaction contemplated by the Share Sale Agreement on or before 21 October 2011. The Company is holding discussions with the financial advisors raising the funds for this acquisition and will keep the market informed.

Ross Smith Managing Director