REGIS RESOURCES LIMITED — Capital/Financing Update 2011

Jan 17, 2011

==> picture [130 x 40] intentionally omitted <==

ABN 28 009 174 761

18 January 2011

Manager Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000

www.regisresources.com

Level 1 1 Alvan Street Subiaco WA 6008 Australia PO Box 862 Subiaco WA 6904 Australia P 08 9442 2200 F 08 9442 2290

Erlistoun Gold Deposit - Reserve Increased to 202,900 Ounces

Highlights

• JORC compliant gold Reserve at the Erlistoun gold deposit increased by 45,000 ounces to 2.68 million tonnes at 2.36g/t Au for 202,900 ounces.

• JORC compliant gold Resources at the Erlistoun gold deposit increased by 44,000 ounces to 5.27 million tonnes at 1.90g/t Au for 321,400 ounces.

• Total Regis gold Reserves increased to 2.15 million ounces and gold Resources increased to 5.5 million ounces.

• The increase in the Erlistoun reserve was the result of an optimisation review of the resource in light of further drilling at Erlistoun and Regis’ intention to process the ore at the proposed Garden Well processing plant which is only 7 kilometres away (previous reserve estimated on basis of trucking ore to Moolart Well processing plant 45km away).

• The Erlistoun gold deposit is the first of the 8 satellite deposits at Regis’ 100% owned Duketon Gold Project to be drilled and reviewed for reserve estimation with the remaining deposits to be reviewed over the course of 2011.

1

==> picture [66 x 21] intentionally omitted <==

Increased Reserve

The board of Regis Resources Ltd is pleased to announce a 45,367 ounce increase in the JORC compliant gold Reserve at the Erlistoun gold deposit at the Company’s 100% owned Duketon Gold Project. This increase was the result of ongoing drilling and an updated optimisation of the open pit design at Erlistoun. This increase takes gold Reserves at Erlistoun to 202,900 ounces and Regis’ total Reserves to 2,147,000 ounces.

The Erlistoun gold deposit is located 7 kilometres south west of the 1.34 million ounce Garden Well Gold Project (presently the subject of a definitive feasibility study). The estimation of a maiden Reserve at Garden Well and Regis’ intention to construct and operate a standalone processing facility at Garden Well has allowed the company to re-optimise the reserve study at Erlistoun to reflect the shorter haulage distance to Garden Well rather than trucking the ore to Regis’ processing plant at Moolart Well, approximately 45 kilometres away. The re-optimisation also included additional drilling results at Erlistoun (reported previously) since the maiden Reserve announced to the ASX in January 2010.

The following table details the updated Reserve statement at the Erlistoun gold deposit:

	Tonnes	Grade (g/t)	Ounces
Proven Reserve	1,257,000	2.34	94,700
Probable Reserve	1,420,000	2.37	108,200
Total Reserve	2,677,000	2.36	202,900

Pit optimisation completed using a gold price of A$1,000 per ounce. Lower cut 0.7g/t, upper cut 14.7g/t

The additional drilling and re-optimisation study has also allowed 47% of the updated Reserve to be classified as a Proven Reserve, whereas the maiden Reserve was wholly in the Probable category.

Key results of the Reserve study include:

Physical
Stripping ratio–tonnes (waste:ore)	10.76
Milling recovery	95%
Recovered gold (ounces)	192,738
Operating Costs & Surplus
Total operating cost (mining, milling & admin)*	A$117.3m
Total operating cost per ounce (A$/oz)*	A$609
Total operating cost per tonne (A$/tonne)*	A$43.82
Operating surplus (pre royalties and tax)#	A$114.0m

• before royalties ~~[# ]~~ using a gold price of A$1,200/oz

The development of the Erlistoun Project does not require any significant additional capital expenditure to that currently envisaged for the development of the Garden Well Gold Project. The project is located very close to Garden Well and ore mined from Erlistoun will be trucked to the proposed Garden Well ore stockpile for blending with Garden Well ore. The cost of trucking the ore to the proposed processing plant has been included in the above operating cost estimates and an allowance for the construction of a short haul road will be included in the DFS for Garden Well.

The portion of the Reserve located on one of the two mining leases at Erlistoun (170,938 recovered ounces) is the subject of a 2% NSR third party royalty, in addition to the normal WA State Government royalty.

2

==> picture [66 x 21] intentionally omitted <==

Increased Resource

The JORC compliant gold Resources at Erlistoun were also reviewed and updated to allow the Reserve revision. Resources at Erlistoun have increased to 321,400 ounces as tabled below:

	Tonnes	Grade (g/t)	Ounces
Measured Resource	2,310,000	1.92	142,600
Indicated Resource	2,960,000	1.88	178,800
Total Resource	5,270,000	1.90	321,400

The review of the Resource included the re-interpretation and statistical evaluation of the existing block model with the addition of new drilling and assay data. The new Resource was calculated by the polygonal method using the following parameters:

Resource Estimation Parameters
Lower Cut	0.5 g/t
Upper Cut	17.73 g/t (98 percentile)
Dilution-Internal	2 metre
-External	1 metre
Bulk Densities-Oxide	2.30
- Transitional	2.60
- Fresh	2.65
Maximum depth	175 metres

Regis Managing Director Mark Clark commented:

“The 45,000 ounce increase in the Reserve at Erlistoun is the result of the first Resource review conducted on any of the eight satellite gold deposits at the Duketon Gold Project which augment the 1.94 million ounces of Reserves at the Moolart Well and Garden Well projects. The process of reviewing the remaining satellite deposit Resources will be undertaken over the course of 2011.

The Reserve and Resource upgrade at Erlistoun takes Regis’ JORC gold Reserves to 2.15 million ounces and resources to 5.50 million ounces.

Regis will continue to expedite the development of the Garden Well project (in conjunction with Erlistoun) with a view to commencing development in 2011 and gold production in 2012. Successful development of the Garden Well deposit should lift Regis gold production to around 250,000 ounces per annum, commencing in financial year 2012/13.”

Yours sincerely

Regis Resources Limited

==> picture [116 x 69] intentionally omitted <==

Mark Clark

Managing Director

3

==> picture [66 x 21] intentionally omitted <==

Qualification Statements

The technical information in this report that relates to Ore Reserves of the Erlistoun gold deposit is based on information compiled by Mr Glenn Williamson who is a member of the Australasian Institute of Mining and Metallurgy. Mr Williamson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the mining method undertaken to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Williamson is a director and full time employee of Mining Resources Pty Ltd and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The other technical information, including Resources and Reserves other than the Erlistoun gold deposit reserve, in this report has been reviewed and approved by Mr Morgan Hart who is a member of the Australasian Institute of Mining and Metallurgy. Mr Hart has sufficient experience which is relevant to the style of mineralisation and type of deposit 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 the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Morgan Hart is a director and full time employee of Regis Resources Ltd and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

4

==> picture [66 x 21] intentionally omitted <==

APPENDIX 1 JORC GOLD RESERVES

	Proven	Proven			Probable			Total		Cut- off Grade g/t
Project	million tonnes	grade	gold	million	grade	gold	million	grade	gold koz
		g/t	koz	tonnes	g/t	koz	tonnes	g/t
Garden Well				27.5	1.52	1,340	27.5	1.52	1,340	0.60
Moolart Well
Laterite	9.5	1.44	437	0.6	0.98	19	10.1	1.41	456	0.50
Oxide	1.2	1.85	71	1.2	2.02	77	2.4	1.94	148	0.50
Total Moolart Well
	10.7	1.48	508	1.8	1.66	96	12.5	1.51	604
Erlistoun	1.3	2.34	95	1.4	2.37	108	2.7	2.36	203	0.70
Total Reserves
	12.0	1.56	603	30.7	1.56	1,544	42.7	1.56	2,147

Notes – all reserves other than Garden Well and Erlistoun quoted at 30/6/10.Tonnes and Ounces are rounded, rounding errors may occur. MT = million tonnes, g/t = gold grade in grams per tonne, koz = thousands of ounces

5

==> picture [65 x 21] intentionally omitted <==

APPENDIX 2 JORC GOLD RESOURCES (INCLUSIVE OF RESERVES)

	Measured	Measured		Indicated	Indicated			Inferred		Total Resources	Total Resources	Total Resources
													Ctff
													u-o Grade g/t
Project	million	grade	gold	million	grade	gold	million	grade	gold	million	grade	gold
	tonnes	g/t	koz	tonnes	g/t	koz	tonnes	g/t	koz	tonnes	g/t	koz
Garden Well				30.7	1.43	1,415	11.7	1.15	434	42.4	1.36	1,849	0.50
Moolart Well
Laterite	9.8	1.45	459	1.0	0.90	29	0.3	0.88	8	11.1	1.39	496	0.50
Oxide	1.2	1.85	71	3.9	1.52	192	6.7	1.45	314	11.8	1.51	577	0.80
Sulphide							2.4	1.37	108	2.4	1.37	108	1.00
Low Grade	4.0	0.42	54	13.9	0.47	212	48.5	0.50	774	66.4	0.49	1040	0.30
Total Moolart Well	15.0	1.21	584	18.8	0.72	433	57.9	0.65	1,204	91.7	0.75	2221
Erlistoun	2.3	1.92	143	3.0	1.88	179				5.3	1.90	322	0.50
Satellite Deposits
Dogbolter							0.9	2.91	87	0.9	2.91	87	1.00
Rosemont							14.7	1.72	815	14.7	1.72	815	1.00
KingJohn							0.7	3.18	72	0.7	3.18	72	1.00
Russells Find							0.4	3.84	55	0.4	3.84	55	1.00
Baneygo							0.8	1.70	43	0.8	1.70	43	0.50
Reichelts Find				0.1	3.69	17				0.1	3.69	17	1.00
Petra							0.4	3.12	42	0.4	3.12	42	2.00
Total Satellite Deposits				0.1	3.69	17	17.9	1.94	1,114	18.0	1.95	1,131
Total	17.3	1.31	727	52.6	1.21	2,044	87.5	0.98	2,752	157.4	1.09	5,523
Regis share												5,501

Notes – all resources other than Garden Well and Erlistoun quoted at 30/6/10.Tonnes and Ounces are rounded, rounding errors may occur. MT = million tonnes, g/t = gold grade in grams per tonne, koz = thousands of ounces

6