PAINCHEK LTD — Capital/Financing Update 2013

Sep 18, 2013

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VTEM Survey Identifies Drill Targets on the Boizan Gold Anomaly at the Antubia Gold Project

Highlights:

19[th] September 2013

DIRECTORS

Richard Homsany Chairman

David Deloub Managing Director

Ian Prentice Non Executive Director

Suzie Foreman Non Executive Director & Company Secretary

SHARE INFORMATION

ASX Code: MEH

• Helicopter borne VTEM / magnetics survey completed over 207 line kilometres on the Boizan gold anomaly at the Antubia Gold Project in south west Ghana.

• The survey identified a deep seated northnorth east trending structure that cross cuts a north-north west trending conductive zone which correlates with the black shale unit in the area of drill defined gold mineralisation at the Boizan prospect.

• Gold mineralisation identified in previous RC drilling at the Boizan prospect appears to correlate with, or is slightly to the east of, an interpreted contact between the black shales and a magnetic sequence.

Issued Capital:

26.5M Fully Paid Shares 7.0M Unlisted Options 3.0M Performance Rights

• Modeling indicates that this contact is sub vertical to west dipping, raising the possibility that the previous west dipping drilling may not have effectively tested the target zone.

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

• This interpreted contact zone represents a target for further RC drill testing, both along strike to the north and south as well as to the east of previous drilling.

• A ground magnetic survey is planned to assist in finalising an RC drill program at the Boizan prospect as a priority.

Merah Resources Limited ACN: 146 035 127

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Merah Resources Limited ( Merah or the Company ) is pleased to announce that it has received the final data and interpretation from the helicopter borne versatile timedomain electromagnetic ( VTEM ) / magnetics survey completed over the +3.5km long by 1.0km wide Boizan gold anomaly at the Antubia Gold Project in south west Ghana.

Boizan is a a very large high tenor gold in soil anomaly defined by the +40 ppb Au in soil contour (and including +1.0g/t Au in soil) situated in the north of the Antubia Gold Project, which is located adjacent to the highly prospective north-north east trending faulted western margin of the Sefwi gold belt, ~90km southwest of Newmont Mining Corporation’s 17.7Moz Ahafo Gold Mine.

The VTEM / magnetics survey, flown in June 2013, consisted of 207 line km flown on 100m line spacing with perpendicular tie lines on 1,000m spacing at an average altitude of 111m. Data collected consisted of electromagnetics, magnetics and radiometrics. The survey was designed to assist in the definition of a black shale rich marker horizon identified in drilling by previous operators and structural complexities within this very large gold in soil anomaly. Consultant geophysicist Graham Elliott has completed processing and interpretation of the data (see Figure 1).

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Figure 1 – Geophysical Interpretation over Regional Magnetics – Boizan area

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Modeling of the magnetics has identified an apparent deep seated north-north east trending structure that is located within the very large gold in soil anomaly (defined by targets 1A, 1B, 1C and 1D) and may extend to the north east. This structure is sub parallel to the major fault that forms the western margin of the Sefwi gold belt and is interpreted to represent a possible mineralising fluid pathway. The broader magnetics data has defined a sequence of magnetic trends oriented north-north west that appear to represent interbedded stratigraphy of volcanic and metasedimentary rocks that are cross cut by the deep seated north-north east trending structure.

The VTEM has identified a well-defined north-north west trending moderately conductive zone that correlates with the black shale unit in the area of drill defined gold mineralisation at the Boizan prospect. This zone is cross cut by the deep seated northnorth east trending structure adjacent to the Boizan prospect and appears to be associated with a magnetic trend that can be extrapolated over 5.0 km of strike (defined by targets 1A, 2A and 2B). A sub parallel north-north west trending moderately conductive and magnetic zone has been identified to the east of the Boizan conductive zone (defined by target 3A).

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Figure 2 – Geophysical Interpretation over Gold in Soil Image – Boizan area.

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In the area of the Boizan prospect 3D magnetic inversion has defined the apparent contact between the non-magnetic moderately conductive black shales and a magnetic (possibly volcanic) sequence. Gold mineralisation in previous operators drilling appears to correlate with, or is slightly to the east of, the interpreted contact. The modeling indicates that the contact in this area is sub vertical to west dipping, raising the possibility that the previous west dipping drilling may not have effectively tested the target contact zone.

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Figure 3 – Boizan Prospect – Area of Proposed Detailed Exploration.

Future Work

The interpreted contact between the non-magnetic moderately conductive black shales and the magnetic sequence represents a target for further RC drill testing, both along strike to the north and south as well as to the east of previous drilling. In addition it is intended to complete surface exploration consisting of a combination of soil sampling, trenching and ground magnetics to assist in further defining target zones associated with the deep seated north-north east trending structure and the extensions / repetitions of the north-north west trending moderately conductive and magnetic zone.

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CONCLUSIONS

Merah Managing Director David Deloub said the results from the recent geophysical survey are very positive and support further surface and subsurface exploration on the defined area as a priority. “These results support our view that the highly prospective geochemical anomaly previously identified at Boizan is consistent with a significant geological structure highly prospective for gold”.

Please contact David Deloub or Ian Prentice should you have any queries on this announcement.

Yours Faithfully

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David Deloub Managing Director

Exploration or technical information in this release has been prepared by Mr Ian Prentice BSc , who is a non-executive director of Merah and a full-time employee of Zephyr Consulting Group Pty Ltd and a Member of the Australian Institute of Mining and Metallurgy. Mr Prentice has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr Prentice consents to the report being issued in the form and context in which it appears.

About Merah Resources Limited

Merah was incorporated on 27[th] August 2010 for the purpose of identifying, evaluating and acquiring resource projects and assets in Australia and/or overseas that are considered by the board of directors to add potential shareholder value.

Objectives

The Company plans to actively explore the three project areas that make up its current asset portfolio by initiating a targeted and cost effective exploration program. The Company also intends to continue to identify, evaluate and if warranted, acquire additional resource projects and assets both in Australia and overseas. These projects may be acquired by way of direct project acquisition, joint venture, farm-in or equity investment.

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