PAINCHEK LTD — Board/Management Information 2014

Oct 1, 2014

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Settlement of Transactions

2[nd ] October 2014

DIRECTORS

David Deloub Non Executive Chairman

Jeremy Read Managing Director

Ian Prentice Non Executive Director

Adam Davey Non Executive Director

Merah Resources Limited (Merah or the Company) (ASX:MEH) is pleased to announce that following shareholder approval obtained at an Extraordinary General Meeting held on 29[th] September 2014, Merah has settled the acquisition of Oresearch Limited pursuant to the binding term sheet between Oresearch and Merah (Oresearch Agreement).

Pursuant to the Oresearch Agreement, the Company has issued 10,000,000 fully paid ordinary shares comprising the Initial, Additional Consideration Shares, and 50% of Tranches 1 and 2 Deferred Consideration Shares, to eligible shareholders of Oresearch Limited.

Suzie Foreman Company Secretary

SHARE INFORMATION

ASX Code: MEH

Issued Capital:

52.9M Fully Paid Shares 7.0M Unlisted Options

CONTACT INFORMATION

Registered Office:

Level 2, 79 Hay St Subiaco, WA 6008

T: +61 (8) 9200 4436 F: +61 (8) 9200 4437 www.merahresources.com.au

50% of Tranches 1 and 2 Deferred Consideration Shares were issued following 50% or more of the funds raised from the Entitlement Issue (including the shortfall) raised from persons or entities introduced by Oresearch Limited’s shareholders.

In addition Merah has also satisfied its condition to earn an initial 51% right, title and interest in the Fyre Lake Property pursuant to Fyre Lake Agreement with, by issuing CDN$50,000 in value of fully paid ordinary shares to Pacific Ridge Exploration Limited and settling the cash payment.

Management and Board Changes

Following completion of the Settlement of Oresearch Agreement, the Board welcomes two new directors of Oresearch Limited to join the Board of Merah, Mr Jeremy Read and Mr Adam Davey. Mr Jeremy Read has been appointed as Managing Director and Mr Adam Davey has been appointed as a non-executive director.

Merah Resources Limited ACN: 146 035 127

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Mr David Deloub has stepped down as Managing Director and remains on the Board as the non-executive chairman. Mr Deloub’s 2,000,000 Performance Rights B and C will lapse following this change of appointment.

Non-executive director, Mr Jason Eveleigh has resigned from the Board of Merah. The Board thanks Mr Eveleigh for his contribution to the Company during his time in office.

New Directors’ Remuneration Terms

The broad terms of Mr Jeremy Read’s Executive Service Agreement as Managing Director of the Company include remuneration payable of $10,416 per month exclusive of superannuation for the first three months to 31[st] December 2014. From 1[st] January 2015, Mr Read will be paid $250,000 per annum exclusive of superannuation for the remainder of a three (3) year term.

The agreement may be terminated by either party on a three (3) months’ written notice period or the Company can elect to pay Mr Read three (3) months’ salary and dispense of the notice period.

Mr Adam Davey will be paid a director’s fee out of the total non-executive director remuneration pool approved by shareholders.

On Behalf of the Board of Directors

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Suzie Foreman

Company Secretary

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