REDIVIUM LIMITED — Capital/Financing Update 2012

Oct 15, 2012

ASX & MEDIA ANNOUNCEMENT

==> picture [286 x 41] intentionally omitted <==

16 October 2012

HANNANS SIGNS AGREEMENT TO SELL SWEDISH COPPER PROSPECT FOR $4M

Hannans Reward Ltd ( Hannans ) is pleased to announce it has executed a binding Heads of Agreement ( HOA ) with Avalon Minerals Limited (ASX:AVI) ( Avalon ) to sell its Discovery Zone Prospect located in Kiruna, Sweden to Avalon for $4 Million.

The divestment of the Discovery Zone Prospect is consistent with Hannans business strategy of divesting non-core assets and allocating funds towards the development of its Kiruna Iron Project in Sweden and copper-gold portfolio in Scandinavia.

Benefits for Hannans

Subject to Avalon completing due diligence to its satisfaction, the $4 Million raised from the divestment will assist Hannans with funding:

• Diamond drilling and metallurgical testwork to increase the global JORC resource of 473Mt @ 40% Fe at the Kiruna Iron Project located 1,200km north of Stockholm, Sweden (refer Appendix A);

• a scoping study for the Rakkurijoki JORC resource, the most advanced deposit within the Kiruna Iron Project; and

• exploration on Hannans’ extensive portfolio of copper-gold projects in Sweden and Norway.

Commenting on the transaction, Mr Damian Hicks, Managing Director of Hannans, said:

“ The sale of this non-core asset will provide Hannans with additional funds to advance its Kiruna Iron Project and in particular complete a scoping study on the Rakkurijoki deposit, which is located 60 metres from a sealed road, 600 metres from modern open-access rail and 6 kilometres from the largest iron mine in Europe. In addition to the Discovery Zone Prospect, Hannans has an extensive portfolio of valuable copper, gold and nickel prospects.”

Conditions Precedent

The transaction is conditional upon completion of legal and technical due diligence by Avalon of the Discovery Zone Prospect, to the satisfaction of Avalon by 23 November 2012. If the condition precedent is not satisfied, the HOA will terminate and the sale will not proceed.

==> picture [100 x 38] intentionally omitted <==

==> picture [240 x 51] intentionally omitted <==

Key Transaction Characteristics

Hannans (through its subsidiaries) has agreed to sell to Avalon the Discovery Zone Prospect (refer Appendix B), Mineral Rights and Mining Information in consideration for:

• a cash deposit of $100,000 when the Condition Precedents are satisfied ( First Payment );

• a cash payment of $300,000 when a formal sale and purchase agreement is executed by Hannans and Avalon. This formal agreement is required to be signed within 30 days of the First Payment unless otherwise agreed by the parties and will be consistent with the terms set out in the HOA and will contain customary terms and conditions for a transaction of this nature;

• a cash payment of $1,600,000 when written notification from the Mining Inspectorate of Sweden is received, noting that the Mining Inspectorate of Sweden formally approves the complete transfer or assignment of the Discovery Zone Prospect to Avalon on conditions (if any) acceptable to Avalon; and

• a cash payment of $2,000,000 when Avalon receives full, unencumbered title to the Discovery Zone Prospect. Up to $1,000,000 of this final payment may, at Avalon’s sole and absolute discretion, be paid by Avalon issuing Hannans or its nominee up to $1,000,000 worth of Avalon shares.

For further information please contact:

Hannans Reward Ltd Hannans Reward Ltd Damian Hicks Ben Della-Vedova Managing Director Business Development Manager Tel: +61 8 9324 3388 Tel: +61 8 9324 3388

2 | Page

APPENDIX A – Kiruna Iron Project Global JORC Resource

JORC INDICATED RESOURCES

Prospect	Mt	Fe (%)	P (%)	S (%)
Sautusvaara South	32.0	37.4	0.06	1.63
Sautusvaara North	11.4	39.7	0.09	0.44
Ekströmsberg	30.4	52.0	Unavailable	Unavailable
TOTAL	73.8	43.0	-	-

JORC INFERRED RESOURCES

Prospect	Mt	Fe (%)	P (%)	S (%)
Rakkurijärvi	69.6	28.5	0.07	0.93
Rakkurijoki	74.5	39.7	0.28	0.89
Discovery Zone	10.9	38.7	0.05	0.95
Tributary Zone	4.9	28.6	0.05	1.08
Sautusvaara South	6.8	26.6	0.09	1.82
Sautusvaara North	1.0	44.8	0.05	0.46
Vieto	14.0	35.7	0.14	1.46
Puoltsa	19.1	30.2	Unavailable	Unavailable
Renhagen	26.3	32.1	0.21	0.03
Harrejaure	16.2	43.4	0.04	0.01
Ekströmsberg	41.6	52.0	Unavailable	Unavailable
Tjårrojåkka	52.6	51.0	Unavailable	Unavailable
Pattok	62.4	44.2	1.96	Unavailable
TOTAL	399.9	38.1	-	-

TOTAL	Mt	Fe (%)
Indicated & Inferred	473.7	40.5

3 | Page

JORC EXPLORATION TARGETS*

Kiruna Hub

Prospect	Tonnage Range (Mt)	Grade Range (Fe%)
Åkosjegge	10-15	23-30
Altavaara	55-60	26-29
Laukkujärvi	4-8	30-35
Leppäjoki	5-8	35-45
Tjåorika	15-30	45-55
Total Hub 1	89-121	31.8-38.8

Lannavaara Hub

Prospect	Tonnage Range (Mt)	Grade Range (Fe%)
Kevus	35-45	28-35
Paljasjärvi	40-60	30-40
Teltaja	39-47	40-48
Total Hub 2	114-152	32-41
TOTAL	Mt	Fe (%)
Hub 1 & 2	203-273	32.1-39.6

*The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by the Geological Survey of Sweden reviewed by Mr Thomas Lindholm, of GeoVista AB. The potential quantity and grade of the exploration targets is conceptual in nature, there has been insufficient interpretation to define a JORC Mineral Resource and it is uncertain if further interpretation will result in the determination of a JORC Mineral Resource.

4 | Page

APPENDIX B – Discovery Zone Prospect

==> picture [455 x 333] intentionally omitted <==

5 | Page

COMPETENT PERSONS STATEMENTS

The information in this document that relates to exploration results is based on information compiled by Ms Amanda Scott, Exploration Manager, Hannans Reward Ltd, who is a Member of the Australian Institute of Mining and Metallurgy. Scandinavian Resources is a subsidiary of Hannans Reward Ltd and Ms Scott is a full-time employee of Scandinavian Resources Ltd. Ms Scott has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the “Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms Scott consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Rakkurijärvi, Rakkurijoki, Discovery, Tributary Zone, and Puoltsa Mineral Resources

The mineral resource estimate for Rakkurijärvi, Rakkurijoki, Discovery, Tributary Zone and Puoltsa is effective from 13 January 2012 and has been prepared by Mr Thomas Lindholm, MSc of GeoVista AB, Luleå, Sweden acting as an independent “Competent Person”. Mr Lindholm is a member of the Australasian Institute of Mining and Metallurgy (Member 230476). Mineral resources of the Rakkuri iron deposits have been prepared and categorised for reporting purposes by Mr Lindholm, following the guidelines of the JORC Code. Mr Lindholm is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits.

Competent Persons Statement-Ekströmsberg, Tjårrojåkka and Pattok Mineral Resources

The mineral resource estimate for Ekströmsberg, Tjårrojåkka, and Pattok is effective from 22 July 2011 and has been prepared by Dr Christopher Wheatley of Behre Dolbear International Ltd, UK, acting as an independent “Competent Person”. Dr Wheatley is a member of the Institute of Materials Minerals and Mining (Member 450553). Mineral resources of the Ekströmsberg, Tjårrojåkka, and Pattok have been prepared and categorised for reporting purposes by Dr Wheatley, following the guidelines of the JORC Code. Dr Wheatley is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Dr Wheatley consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Vieto, Sautusvaara, Renhagen and Harrejaure Mineral Resources

The mineral resource estimate for Vieto and Sautusvaara is effective from 26 July 2011 and the mineral resource estimate for Renhagen and Harrejaure is effective from 13 January 2012 and has been prepared by Mr Geoffrey Reed of Minarco-MineConsult acting as an independent “Competent Person”. Mr Geoffrey Reed is a member of the Australasian Institute of Mining and Metallurgy (CP)(Member 205422). Mineral resources of Vieto, Sautusvaara, Renhagen and Harrejaure have been prepared and categorised for reporting purposes by Mr Reed, following the guidelines of the JORC Code. Mr Reed is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Mr Reed consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Persons Statement-Exploration Targets

The information in this document that relates to JORC Exploration Targets is based on information reviewed by Mr Thomas Lindholm of GeoVista AB, Luleå, Sweden acting as an independent “Competent Person”. Mr Lindholm is a member of the Australasian Institute of Mining and Metallurgy (Member 230476). Mr Lindholm is qualified to be a Competent Person as defined by the JORC Code on the basis of training and experience in the exploration, mining and estimation of mineral resources of gold, base metal and iron deposits. Mr Lindholm consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

*The JORC Exploration Targets have been subjected to diamond drill testing, ground geophysics and interpretation by the Geological Survey of Sweden reviewed by Mr Thomas Lindholm, of GeoVista AB. The potential quantity and grade of the exploration targets is conceptual in nature, there has been insufficient interpretation to define a JORC Mineral Resource and it is uncertain if further interpretation will result in the determination of a JORC Mineral Resource.

6 | Page