PAINCHEK LTD — Capital/Financing Update 2014

Jul 30, 2014

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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31 July 2014

Listing Rule 7.1A4(b) Disclosure and Appendix 3B

On 21 July 2014, Merah Resources Limited (“Merah” or “Company”) announced the completion of a placement of $123,000 via an issue of 4,100,000 Shares at $0.03 per Share to an existing substantial shareholder of the Company and Sophisticated Investor pursuant to s708(8) of the Corporations Act. As part of this placement the Company issued 1,450,500 shares pursuant to Listing Rule 7.1 and 2,649,500 shares pursuant to Listing Rule 7.1A.

That announcement did not include all of the information required in accordance with Listing Rule 7.1A4 (b) in relation to dilution to shareholders of ordinary securities caused by the above placement issue as set out in Listing Rule 3.10.5A(a). This information is provided for clarification purposes:

Listing Rule 3.10.5A(a) requires:

Detail of the dilution to shareholders of ordinary securities caused by the issue;

Dilution to existing shareholders as a result of the issue:

• Under Listing Rule 7.1 is 5.09%; and

• Under Listing Rule 7.1A is 9.30%.

Total dilution to existing shareholders as a result of the placement is therefore 14.39%.

Further details of the approximate percentage of the issued capital post the 7.1A placement held by the pre-placement security holders and new security holders are as follows:

are as follows:
Shareholder Class	% holding postplacement
Pre-placement security holders who did not	83.59%
participate in the placement
Pre-placement security holders who did	16.41%
participate in the placement
Participants in the placement who were not	0%
previously security holders

There are no changes to the other information already disclosed in relation to Listing Rule 7.1A4(b) as set out in Listing Rule 3.10.5A.

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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In addition, the Company wishes to specify that VWAP calculation disclosed in item 6g contained within Appendix 3B lodged on 21 July 2014 in relation to the above placement is from a data source, IRESS.

Yours faithfully

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Suzie Foreman

Company Secretary