RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2011

Mar 16, 2011

17 March 2011 For Immediate Release

MT MAGNET RESOURCE AND PROJECT UPDATE

The Directors of Ramelius Resources Limited (ASX:RMS) are pleased to provide the following update on resource definition and exploration activities at its wholly owned Mt Magnet gold project in Western Australia.

The Company has now completed more than 25,000m of Reverse Circulation (RC) drilling and more than 3,700m of diamond drilling to infill the open‐pit resource and to delineate new mineralisation, following acquisition of the project in July 2010. The majority of the drilling completed to date has been infill drilling on the current resource to provide further confidence in moving Mt Magnet into production.

A new resource estimation has now been completed for the Galaxy area to a depth of 200m below surface (250m RL). The new Galaxy resource only includes potential open‐pit oxide, transitional and fresh rock gold mineralisation adjacent to and below the existing Saturn, Mars, Perseverance, Titan, Jupiter and Brown Hill open‐pits (Figure 2). This resource does not include any material below 200m from surface and only covers a portion of the project’s existing 3.3 million ounce resource base.

The new JORC compliant Measured, Indicated and Inferred resource for Galaxy now stands at:

20.3 Mt at 1.65g/t Au for 1,075,000 ounces of gold

Significantly, the Company has been able to increase the resource grade in the same area from 1.5 g/t to 1.65 g/t and has also been able to included Measured mineralisation into the resource model. Overall, the total resource in this area has been increased by approximately 50,000 oz.

The resource has been estimated using ordinary kriging (OK) and inverse distance (ID[2] ) methods for grade estimation and is reported above a lower cut off of 0.7g/t Au. A breakdown of the mineral classifications is presented in Table 1 below and the resource estimates are summarised by the grade tonnage curve presented in Figure 1.

Table 1: Galaxy Open Pit Resource Estimate

Resource	Category	Tonnes	Gold Grade	Contained Ounces
Galaxy	Measured	2,150,000	1.73	120,000
	Indicated	10,554,000	1.87	634,000
	Inferred	7,569,000	1.32	321,000
	TOTAL	20,273,000*	1.65	1,075,000*

*Note: Cumulative tonnage and contained ounces figures have been rounded for reporting purposes

Resource models for the Galaxy and nearby Morning Star areas have been forwarded to the Company’s consultants in Perth. Pit optimisations and Reserve estimations are expected to be completed by the consultants by the end of this month. A new Feasibility Study is expected to be presented to the Board of Directors in April 2011.

On the exploration front, the Company is progressing deeper RC and diamond drilling below both the Saturn and Mars pits at Galaxy (Figure 2) as well as below the Morning Star pit (Figure 3), with the aim of delineating a series of high grade ore shoots amenable to underground mining.

Significant (>0.5 g/t Au) deeper exploration drill results continue to be received from this drilling campaign and include:

Galaxy Area:

• GXRC0260: 10m @ 13.1 g/t Au from 147m, incl. 5m @ 24.0 g/t Au from 147m

• GXRC0261: 11m @ 3.03 g/t Au from 74m, incl. 1m @ 17.8 g/t Au from 79m

• GXRC0262: 12m @ 2.36 g/t Au from 100m

• GXRC0263: 22m @ 2.15 g/t Au from 115m

• GXRC0264: 20m @ 2.25 g/t Au from 137m

• GXRC1137: 5m @ 140 g/t Au from 39m, incl. 1m @ 687 g/t Au from 41m

• GXRC1138: 9m @ 12.1 g/t Au from 178m, incl. 4m @ 22.5 g/t Au from 180m, 8m @ 4.99 g/t Au from 202m, incl. 2m @ 17.7 g/t Au from 202m

Morning Star:

• GXRC1126: 3m @ 57.4 g/t Au from 126m, incl. 1m @ 170 g/t Au from 126m

• • GXRC1130: 9m @ 8.47 g/t Au from 163m, incl. 1m @ 47.2 g/t Au from 169m • GXRC1132: 22m @ 3.65 g/t Au from 102m, incl. 1m @ 25.9 g/t Au from 119m

Encouraging shallower exploration drill results have also been returned to suggest potential still remains to delineate additional open pittable ore sources along strike from known mineralisation within the Galaxy area. Significant (>0.5 g/t Au) results include:

• GXRC0266: 5m @ 5.02 g/t Au from 38m, plus 15m @ 2.55 g/t Au from 106m, plus 9m @ 3.46 g/t Au from 163m

• GXRC0267: 2m @ 18.5 g/t Au from 50m

A complete list of new drilling results is shown in Table 2 below.

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A detailed gravity survey was completed over the broader Galaxy/Morning Star project area last month. The survey was designed to test for blind banded iron hosted mineralisation. Results will be integrated into a detailed 3‐D geological model of the project. Processing and interpretation of the data has commenced.

For further information contact:

Ian Gordon Managing Director Ph: 08 9202 1127

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Figure 1: Galaxy Resource Estimate: Grade ‐ Tonnage Curve

==> picture [452 x 362] intentionally omitted <==

The Information in this report that relates to Resource Calculation Results is based on information compiled by Rob Hutchison and Exploration Results are based on information compiled by Kevin Seymour.

Rob Hutchison is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person. Rob Hutchison is a full‐time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Kevin Seymour is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person. Kevin Seymour is a full‐time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Table 2: New Drilling Results from Mt Magnet

Hole Id	Easting	Northing	Az/Dip	F/Depth	From (m)	To(m)	Interval (m)	g/t Au
GXDD0014	47284	80500	270/66	382	151	152	1	0.54
					170	171	1	0.56
					284	296.33	12.33	1.82
					307	310	3	5.98
					334	336	2	0.94
					346	350.3	4.3	8.7
GXDD0015	47286	80500	270/70	138 ABN			Precollar	Abandoned
GXDD0016	47289	80550	270/65	420.2	27	32	5	1.16
					40	42	2	1.73
					176.5	177.5	1	1.42
					181.6	184.6	3	1.09
					342.4	344.75	2.35	9.72
GXDD0017	47292	80450	270/70	390.3		Core	Results	Awaited
GXDD0018	47287	80498	270/72	433		Core	Results	Awaited
GXDD0019	47293	80450	270/71	in progress	1	2	1	1.07
						Core	Results	Awaited
GXDD0020	47355	79999	270/53	440.9	54	60	6	1.91
						Core	Results	Awaited
GXRC0253	47305	80080	274/45	185				NSR
GXRC0254	47023	81052	090/60	72				NSR
GXRC0255	47284	80500	090/55	66	53	59	6	0.51
GXRC0256	47407	80200	270/60	217	2	3	1	3.11
					8	9	1	11.25
					39	42	3	0.64
					57	58	1	3.26
					183	189	6	0.57
GXRC0257	47056	79663	270/60	126	0	4	4	0.61
					11	15	4	0.67
					36	40	4	1.64
					75	80	5	0.96
GXRC0258	47066	79675	270/60	90	36	38	2	1.61
					59	66	7	7.16
					74	80	6	2.94
					83	88	5	0.81
GXRC0259	47129	80560	270/58	120	18	20	2	2.31
					40	41	1	12.35
					113	115	2	0.94
GXRC0260	47162	80569	270/59	160	147	157	10	13.1
				incl.	147	152	5	24.0
GXRC0261	47160	80555	265/58	132	0	2	2	0.59

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Hole Id	Easting	Northing	Az/Dip	F/Depth	From (m)	To(m)	Interval (m)	g/t Au
					9	12	3	2.60
					48	57	9	0.66
					74	85	11	3.03
				incl.	79	80	1	17.8
					89	92	3	1.24
					97	102	5	0.85
					105	114	9	1.16
GXRC0262	46781	80275	270/56	168	75	76	1	0.65
					100	112	12	2.36
				incl.	111	112	1	8.74
					120	122	2	1.01
					142	146	4	0.54
GXRC0263	46776	80288	270/58	174	61	62	1	0.67
					86	87	1	0.53
					92	93	1	0.55
					111	112	1	0.58
					115	137	22	2.15
					157	162	5	1.12
GXRC0264	46783	80263	270/57	168	8	10	2	0.72
					137	157	20	2.25
GXRC0265	46783	80250	270/56	174	11	13	2	1.49
					17	21	4	0.68
GXRC0266	47625	80875	270/60	210	25	28	3	1.20
					38	43	5	5.02
				incl.	39	40	1	14.2
					58	66	8	0.69
					73	85	12	1.70
					92	95	3	0.99
					106	121	15	2.55
				incl.	117	119	2	11.6
					157	159	2	2.34
					163	172	9	3.46
				incl.	169	170	1	26.3
					180	183	3	2.76
					190	194	4	2.58
GXRC0267	47724	80875	270/60	180	38	41	3	2.06
					44	46	2	3.09
					50	52	2	18.5
				incl.	50	51	1	35.1
					64	72	8	0.83
					104	110	6	0.57
					114	116	2	6.53
				incl.	114	115	1	11.3

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Hole Id	Easting	Northing	Az/Dip	F/Depth	From (m)	To(m)	Interval (m)	g/t Au
					132	135	3	1.29
					140	143	3	0.71
					149	163	14	0.69
GXRC0268	47825	80875	270/60	180	0	2	2	1.23
					5	7	2	0.7
					92	97	5	2.26
GXRC1124	49276	78025	090/58	181				NSR
GXRC1125	48961	78230	090/46	205	57	59	2	0.56
					64	71	7	2.7
					127	135	8	1.68
					171	173	2	0.55
GXRC1126	48926	78123	090/50	247	117	119	2	1.44
					126	129	3	57.4
				incl.	126	127	1	170
					161	166	5	1.43
GXRC1127	48926	77924	090/58	127	22	31	9	0.62
					45	51	6	1.16
					80	84	4	1.22
GXRC1128	48905	77936	339/46	109				NSR
GXRC1129	48890	77975	090/46	264	137	142	5	2.04
					148	151	3	0.73
					155	157	2	1.19
					217	219	2	0.97
GXRC1130	48890	78000	090/46	264	150	152	2	3.35
					163	172	9	8.47
				incl.	165	166	1	11.5
				plus	169	170	1	47.2
					195	197	2	3.82
GXRC1131	48916	78100	090/45	254	25	30	5	1.66
					58	61	3	0.75
					122	125	3	0.49
					150	153	3	1.57
					157	159	2	0.94
					205	208	3	1.48
					219	222	3	0.84
GXRC1132	49368	78075	090/47	170	102	124	22	3.65
				incl.	102	103	1	10.9
				plus	109	110	1	10.0
				plus	119	120	1	25.9
					147	150	3	0.74
					153	155	2	1.46
GXRC1133	47282	80601	270/70	349	47	52	5	0.94
					66	74	8	1.44

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Hole Id	Easting	Northing	Az/Dip	F/Depth	From (m)	To(m)	Interval (m)	g/t Au
					274	279	5	1.07
GXRC1134	47282	80651	270/67	90 ABN			Results	Awaited
GXRC1135	47282	80649	270/67	157 ABN			Results	Awaited
GXRC1136	47288	80550	270/55	127 ABN			Results	Awaited
GXRC1137	47286	80550	270/52	360	39	44	5	140
				incl.	41	42	1	687
					126	128	2	7.58
					144	148	4	1.97
					233	245	12	1.05
GXRC1138	47281	80649	265/67	312	178	187	9	12.1
				incl.	180	184	4	22.5
					202	210	8	4.99
				incl.	202	204	2	17.7

NSR: No significant result

Reported significant gold assay intersections (using a 0.5g/t Au lower cut) calculated over a minimum down hole interval of 1m at plus 0.5g/t gold and may contain up to 2m internal dilution. ABN denotes the drill hole was abandoned before reaching its target depth. NSR denotes no significant results above 0.5g/t Au. Gold determination is by Fire Assay using a 50 gram charge and AAS finish, with a lower limit of detection of 0.01g/t Au.

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Figure 2: Drill collar plan for Galaxy Area

==> picture [452 x 497] intentionally omitted <==

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Figure 3: Drill collar plan for Morning Star area

==> picture [449 x 584] intentionally omitted <==

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