PAINCHEK LTD — Capital/Financing Update 2014

Oct 5, 2014

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Entitlements Offer Shortfall Issue

6[th] October 2014

DIRECTORS

David Deloub Non Executive Chairman

Jeremy Read Managing Director

Ian Prentice Non Executive Director

Merah Resources Limited (Merah or the Company) (ASX:MEH) is pleased to announce that the shortfall in applications under the recently conducted 2-for-3 non renounceable Entitlements Offer was allotted to Patersons Securities Limited and its sub-underwriters in accordance with the Underwriting Agreement as detailed in the Entitlements Offer Prospectus. The shortfall in applications totalled 13,839,894 New Shares, raising a further $415,196.82

This concludes the Entitlements Offer which raised a total of $661,900 before capital raising costs.

Adam Davey Non Executive Director

Suzie Foreman Company Secretary

Merah wishes to thank its shareholders, Patersons and their clients for supporting the rights issue, enabling the full amount of funds to be raised. Merah will now look to accelerate its planned exploration programs on the Fyre Lake Project, Yukon and the Coober Pedy Project, South Australia.

SHARE INFORMATION

ASX Code: MEH

Issued Capital:

66.7M Fully Paid Shares 7.0M Unlisted Options

Notice under section 708A

Accordingly, the Company gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) (the "Corporations Act") in relation to the shortfall shares that:

1. As at the date of this notice:

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

• a. Merah has complied with the provisions of Chapter 2M of the Corporations Act as they apply to Merah;

• b. Merah has complied with section 674 of the Corporations Act; and

• c. there is no "excluded information" within the meaning of sections 708A(7) and 708A(8) of the Corporations Act which is required to be disclosed under section 708A(6)(e) of the Corporations Act.

Merah Resources Limited ACN: 146 035 127

An updated Appendix 3B will follow this Announcement.

On Behalf of the Board of Directors

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Suzie Foreman Company Secretary

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