RAIDEN RESOURCES LIMITED — Capital/Financing Update 2012

Oct 17, 2012

Company Announcements Supervision 18 October 2012 Australian Securities Exchange 20 Bond Street Sydney NSW 2000

Attention: Companies Officer

Zambia Resource Ventures Pty Ltd - Two emerald targets defined in Kafubu Emerald Field, Zambia – Drill testing to commence

Background

Zambian Resource Ventures Pty Ltd (ACN 156 602 487) (ZRV), a company which is 34% owned by SVC Group Limited, as previously disclosed to market entered into an Option to Joint Venture with Cannan Oil Exploration Mining Limited, a Zambian company which holds two emerald mining licences in the Kafubu area of Zambia. Further to this ZRV has entered into a Subscription Agreement allowing for Mr. Quogiang Wu to subscribe for a total of 15,000,000 shares at $0.027 per share to raise a total of $400,000. The first tranche of $100,000 has been received by ZRV. Mr. Wu now has until December 31st 2012 to place the remaining $300,000 at the same price.

If the Option with Cannan Oil Exploration Mining Limited is exercised the JVA will become an executed agreement that will require ZRV to propose a trial mining programme and supervise the execution of the mining and processing of the emeralds. The costs would be born by ZRV alone in return for 65% of the net profit from the sale of emeralds.

Geophysical Survey Completed

ZRV recently completed a ground magnetic survey on the two emerald mining licenses subject to the Option to Joint Venture in the Lufwanyama area at Kafubu that has defined two prominent linear magnetic anomalies. These exciting targets are interpreted as potential talc-magnetite schists, known elsewhere in the Kafubu area to host significant emerald mineralization. The magnetic zones strike NW-SE over distances of 900m and 1,000m respectively within the license area (Targets A and B, Figure 1).

Modeling of the magnetic data is in progress in order to determine the approximate width and dip of the target zones prior to drill testing.

Drilling to Commence

ZRV has planned approximately 400m of core drilling that will be sufficient to confirm the presence or otherwise of talc-magnetite schists and pegmatites that would constitute a favourable geological environment for emerald formation. A local drilling contractor will be engaged to mobilize to site and commence drilling prior to end October.

Future Planning

Dependent on the outcome of the drilling program ZRV would move to identify a suitable location for an initial trial pit to target shallow emerald mineralization expected in the area. Further drilling may be required to define the ultimate limits of the trial pit.

About Kafubu Emerald Area

In the past three decades Zambia has become a significant gem-producing country. The Kafubu Emerald Restricted Area in the Lufwanyama District (below) has supplied up to 20 per cent of the world's emerald production, and is believed to be second in value only to Colombia. The Kafubu area has become a significant producer of good-quality emeralds with high economic potential. Because of new discoveries (such as at Kamakanga, Pirala, Mitondo, Fwaya-Fwaya, Kabashila, Dabwisa, Libwente, and Fibolele) and extensive illegal mining, the area has been declared by the government as a restricted zone. All access routes are patrolled and entry is by permit only.

Location of the Kafubu Emerald Field

Figure 1. Total Magnetic Intensity Image, Cannan mining licenses, Kafubu Emerald Field

Please do not hesitate to contact the Company for any further information or clarification on the matters addressed in this update.

Yours faithfully,

Richard Pritchard Chairman and joint Company Secretary SVC Group Limited

Competent Persons Statement

The information in this report that relates to Exploration Results and other activities is based on information compiled by Lance Govey, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Govey 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'. Mr Govey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements:

This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning SVC's planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although SVC believes that its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.