PAINCHEK LTD — Capital/Financing Update 2012

Jul 8, 2012

9[th] July 2012

ASX ANNOUNCEMENT

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MERAH TO COMMENCE DRILLING ON PRIORITY LAWLERS TARGETS

• A review of the geological and exploration data received as part of the Bounty and McAuley farm-in arrangements has identified a number of drill ready targets.

• WA Department of Mines and Petroleum approval for the detailed programme of work has now been received.

• Drill programme to commence in July 2012.

• Initial 8 hole RC programme to test identified targets within the Agnew – Wiluna greenstone belt.

Merah Resources Limited (ASX:MEH) (“the Company”) is pleased to announce that the Company will this month commence its first drilling programme on priority targets within the Lawlers Project (P36/1730, P36/1742) in the North Eastern goldfields of Western Australia This is consistent with the exploration programme and budget for the projects as outlined in the Company’s prospectus dated 2 February 2012.

The Lawlers Project tenements are owned by Murchison Resources Limited (“Murchison”). The Company has the exclusive right to earn an 80% interest in the mineral rights within the Lawlers Project area pursuant to an agreement between the Company and Murchison.

The drilling programme will be initiated in late July following approval of the relevant Programme of Work by the WA Department of Mines and Petroleum on the 28[th] June 2012.

The proposed drilling programme at Bounty (P36/1730) will comprise 5 angled RC holes drilled on approximately 20m spacings along 4 east west sections approximately 20m apart.

The proposed drilling programme at McAuley (P36/1742) will comprise 3 angled RC holes drilled on approximately 20m spacings along north south sections approximately 20m apart.

The programme is expected to be completed in early August 2012.

In addition to and consistent with its overall objectives the Company continues to identify and evaluate other resources opportunities both within Australia and overseas.

For further information, please contact the Company at +61 89200 4436 or visit: www.merahresources.com.au

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David Deloub Managing Director Merah Resources Limited