PAINCHEK LTD — Share Issue/Capital Change 2012

Apr 26, 2012

MERAH RESOURCES LTD ACN 146 035 127 Level 2 79 Hay Street SUBIACO, WESTERN AUSTRALIA, 6008

T +61 892004436 F +61 8 92004437 E admin@merahresources.com.au W merahresources.com.au

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18 April 2012

Fiona Murphy Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Fiona,

Exercise of Murchison Option and Issue of Vendor Securities

The Directors of Merah Resources Limited (“Merah”) are pleased to confirm that it has exercised the Option to earn an interest in (“Option”), and to enter a joint venture in respect of prospecting licences 36/1730 and 36/1742 (“Tenements”) in accordance with the terms of the agreement with Murchison Resources Pty Ltd dated 21 September 2011 (Murchison Agreement).

In accordance with the terms of the Murchison Agreement, Merah has issued and allotted 150,000 fully paid ordinary shares to Murchison Resources Pty Ltd (“Murchison”) on 17 April 2012 (“Exercise Date”).

Yours faithfully,

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David Deloub

Managing Director