PAINCHEK LTD — Capital/Financing Update 2012

Apr 26, 2012

MERAH RESOURCES LTD ACN 146 035 127 T +61 892004436 Level 2 F +61 8 92004437 79 Hay Street E admin@merahresources.com.au SUBIACO, WESTERN AUSTRALIA, 6008 W merahresources.com.au

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18 April 2012

Fiona Murphy

Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Fiona,

USE OF FUNDS STATEMENT

Use of Funds	$2,819,000 Raised Subscription	Percentage of Funds Raised Under Offer (%)
ExistingCash Reserves	$133,410
Funds Raised from the Offer	$2,819,000
Total	$2,952,410
ALLOCATION OF FUNDS– YEARS 1 and 2
Year 1
Exploration expenditure – Mt Adamson Project	$254,850	8.6%
Exploration expenditure – Bountyand McAuleyProjects	$274,892	9.3%
Estimated Expenses of the Offer	$293,231	9.9%
Administration costs	$521,455	17.7%
Total Year 1	$1,344,428	45.5%
Year 2
Exploration expenditure – Mt Adamson Project	$423,539	14.35%
Exploration expenditure – Bountyand McAuleyProjects	$555,698	18.8%
Administration costs	$521,455	17.7%
Workingcapital andproject evaluation	$107,290	3.9%
Total Year 2	$1,607,982	54.5%
TOTAL YEARS 1 & 2	$2,952,410	100%

Yours faithfully,

David Deloub Managing Director