PAINCHEK LTD — Interim / Quarterly Report 2014

Apr 29, 2014

==> picture [196 x 88] intentionally omitted <==

Merah Resources Limited ACN: 146 035 127

ACTIVITIES REPORT

30 April 2014

DIRECTORS

David Deloub Executive Chairman

Ian Prentice Non Executive Director

Jason Eveleigh Non Executive Director

Suzie Foreman Company Secretary

SHARE INFORMATION

ASX Code: MEH

Issued Capital:

28.5M Fully Paid Shares 7.0M Unlisted Options 2.0M Performance Rights

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

MARCH QUARTER 2014 HIGHLIGHTS

Exploration activity was subdued over the March quarter due to the holiday period and restrictive capital conditions.

The completion of the grant of the option with Castle Minerals on the Antubia project occurred in January 2014

Limited progress was made on the completion of the remaining conditions precedent to finalise the grant of the Option Agreement with Castle Minerals on the Kong project. These are now expected to be finalised within the second quarter of 2014.

Corporately, the focus was on cost management and capital conservation with a number of board changes recently announced and progress toward reducing other operational overheads being made.

As at 31 March 2014 the Company had a cash balance of approximately $320,000.

The top 20 shareholders held approximately 69% of the Company’s issued capital.

==> picture [125 x 35] intentionally omitted <==

PROJECT DEVELOPMENT (GHANA, WEST AFRICA)

The completion of the grant of the option with Castle Minerals (ASX:CDT) on the Antubia Gold Project occurred in late January 2014. In consideration of the grant of the option Merah made a cash payment of AUD$85,000 and issued 2,000,000 million fully paid ordinary Merah shares to Castle Minerals. The Company can exercise the Antubia option at any time on or before the date that is 24 months from the date of completion of the grant of the option.

Merah has completed a heliborne VTEM survey, ground magnetics and reconnaissance field visits at the Antubia Gold Project. Programs of infill soil geochemistry, trenching and subsequent RC drilling have been planned for the Antubia Gold Project.

Limited progress was made on the completion of the remaining conditions precedent to finalise the grant of the option agreement with Castle Minerals on the Kong Gold Project. These conditions precedent are now expected to be finalised in the second quarter of 2014.

The company continues to review its strategy in relation to the funding and execution of its proposed exploration activity on its Ghanaian gold assets, including a number of early stage discussions with potential project partners.

CORPORATE

Corporately, the focus was on cost management and capital conservation with a number of board changes recently announced and progress towards reducing additional corporate overheads being made including planning for an office relocation and rationalisation.

As at 31 March 2014 the Company had a cash balance of approximately $320,000 and the Top 20 shareholders held approximately 69% of the issued capital of the Company.

Yours Faithfully

==> picture [145 x 62] intentionally omitted <==

David Deloub

Managing Director