PAINCHEK LTD — Interim / Quarterly Report 2012

Oct 30, 2012

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Merah Resources Limited ACN: 146 035 127

ACTIVITIES REPORT

31[st] October 2012

DIRECTORS

Richard Homsany Chairman

SEPTEMBER QUARTER 2012

HIGHLIGHTS

David Deloub Managing Director

Ian Prentice Non Executive Director

Suzie Foreman Non Executive Director & Company Secretary

Merah Resources Limited (ASX: MEH) (“the Company” or “Merah”) completed its inaugural Reverse Circulation (RC) drilling program on the Bounty (P36/1742) and McAuley (P36/1730) tenements at the Lawlers Project.

SHARE INFORMATION

ASX Code: MEH

Issued Capital:

High grade gold was intersected in all three drill holes completed at the McAuley tenement including; 7meteres at 8.22 g/t Au from 11 meters down hole MRC001.

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

Follow up drilling is being considered to further assess the down dip extent of the high grade mineralisation identified at the McAuley tenement.

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

Merah has identified, reviewed and continues to identify and evaluate resources projects both in Australia and overseas consistent with its stated objectives.

As at 30 September 2012 the Company had a cash balance of $2.0 million.

The top 20 shareholders held approximately 69.5% of the Company’s issued capital.

GOLD PROJECT

Merah Resources Limited (“Merah” or “the Company”) has received the assay results from the reverse circulation (RC) drilling program completed on its Lawlers Project. The program consisted of eight holes for a total of 684 meters, with three holes for a total of 144 meters drilled at the McAuley tenement and five holes for a total of 540 meters drilled at the Bounty tenement.

The Company is utilising the results of the drilling completed, combined with the historical exploration and production data for both tenements, to assist in the design of potential additional drilling to further assess the down dip/plunge extent of the defined mineralisation.

PROJECT PIPELINE

Merah has identified and assessed a number of other potential projects over the quarter with none considered to be prospective enough to proceed to a more formal stage of negotiation. The Company continues to identify and consider acquisition opportunities on a range of resource projects both within Australia and overseas.

The evaluation of these opportunities is ongoing and consistent with the stated objectives of the Company to deliver shareholder value.

CORPORATE

As at the 30[th] September 2012 the Company had a cash balance of $2.0 million and the Top 20 shareholders held approximately 69.5% of the issued capital of the Company.

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.