RIEDEL RESOURCES LIMITED — Capital/Financing Update 2011

Sep 27, 2011

ASX ANNOUNCEMENT 28 September 2011

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Marymia Project Prospectivity

Enhanced

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Mr Bruce Franzen Executive Director

Mr Jeffrey Moore Managing Director

Recent exploration results released to ASX from explorers with tenements adjacent to Riedel Resources Limited’s Marymia exploration tenements, including Sipa Resources Limited, Ventnor Resources Limited and Lodestar Resources Limited, have greatly enhanced the potential for the discovery of significant mineralisation in the Company’s Marymia Project area ( see Figure 1 for project location).

Background

Riedel holds two exploration licences (E52/2394 and E52/2395) covering an area of more than 425km[2] in the highly prospective Doolgunna-Thaduna region of the Proterozoic volcano-sedimentary Bryah and Yerrida Basins and Archaean Baumgarten greenstone belt in the Marymia Inlier.

The exploration licences are located approximately 55 kilometres north-east of Sandfire Resources NL’s DeGrussa copper-gold mine, 12 kilometres east of Sipa’s Thaduna copper prospect and 12 kilometres east-north-east of Ventnor’s Green Dragon and Thaduna copper deposits.

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Mr Andrew Childs Non-Executive Director

Mr Wolfgang Zimmer Non-Executive Director

COMPANY SECRETARY

Mr Bruce Franzen

CONTACT DETAILS Principal & Registered Office Suite 1 45 Ord Street West Perth WA 6005 Australia

Postal Address PO Box 1559, West Perth WA 6872

Website www.riedelresources.com.au

Email admin@riedelresources.com.au

Phone +61 8 9226 0866 Facsimile +61 8 9486 7375

ABN:91 143 042 022 ASX CODE: RIE, RIEO

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Figure 1: Marymia Project - Location Map

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Geological Setting

Recent exploration results reported by Sipa and Ventnor highlighted the discovery of significant sedimentary-hosted (the Enigma Prospect) and structurally-controlled copper mineralisation (Thaduna and Green Dragon deposits) in Yerrida Group sedimentary rocks.

The Yerrida Basin is interpreted to be in faulted contact with the sedimentary and volcanic rock package belonging to the Bryah Basin, host to the rich DeGrussa copper-gold deposits, further illustrating the strongly mineralised nature of the entire stratigraphic sequence in the relatively under-explored Yerrida and Bryah Basins.

In addition to the prospective geology hosting the known DeGrussa and Enigma copper mineralisation, the deposits are also characterised by proximity to the regionally significant Jenkin Fault. This combination of favourable geology and structure may represent a highlyprospective exploration target area within a north-east trending, mineralised tectonostratigraphic corridor which trends into the south-western portions of Riedel’s Marymia tenements ( see Figure 2 for regional geological map) .

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Figure 2: Marymia Project - Regional Geological Map

The exploration potential of Riedel’s tenements is further illustrated by significant RAB and RC drilling programmes being carried out by Lodestar Minerals Limited, either underway or planned, in close proximity to Riedel’s tenements to:

• Test VTEM geophysical targets, and;

• Test geochemical targets along strike from Sipa’s Enigma prospect which trend towards Riedel’s exploration licences ( see Figure 3 for location of geochemical anomalies) .

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Figure 3: Marymia Project – Geological Map highlighting geochemical anomalies

Exploration Targets

Riedel’s Marymia exploration licences hold potential for the discovery of mineral deposits including:

• Sedimentary-hosted copper deposits in Proterozoic Yerrida Basin stratigraphy which onlaps the Marymia Dome, and;

• Structurally controlled gold, copper and nickel deposits in the Baumgarten Greenstone Belt of the Archaean Marymia Inlier.

Yerrida Basin

Yerrida Group sedimentary rocks are present in the south-western portion of Riedel’s tenements and in the eastern and northern areas prospective Proterozoic sedimentary rocks are also present, onlapping and marginal to the Marymia Inlier.

Since the recent DeGrussa, Enigma and Thaduna discoveries, the Proterozoic rock suite surrounding the Marymia Inlier has become increasingly important and Riedel’s tenements may hold potential for both sediment-hosted copper and SEDEX-type lead-zinc-silver deposits. Important precursors and associations for the formation of significant sedimenthosted and/or SEDEX deposits which are apparent in Riedel’s tenements include:

• ─ Proximity to major regional structures to provide fluid pathways;

• ─ Proximity to long-lived, stable basement highs to focus fluid flow;

• ─ Prospective host sedimentary rocks, and;

• ─ Presence of igneous intrusives or deep-seated magmatic rocks to provide the heat source to drive long-lived hydrothermal systems.

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* FIGURES 2-3 SOURCE DATA: Sipa Resources Limited – ASX Release 19 August 2011 Lodestar Minerals Limited – ASX Release 13 September 2011

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Baumgarten Greenstone Belt

Rocks belonging to the Baumgarten Greenstone Belt (“BGB”) underlie the central portions of Riedel’s exploration licences. The greenstone belt forms the eastern domain of the Marymia Inlier, an Archaean granite-greenstone terrane which hosts numerous significant gold deposits and mines in the western portion (the Plutonic Well Greenstone Belt), including gold production of more than 4.7M ounces since production commenced in 1990.

Previous exploration over the eastern BGB is relatively sparse due to the relatively poor geological understanding of the area and the presence of extensive, weathered cover sequences which may mask the location of important regional structures and any associated buried deposits.

Most historical exploration work occurred between 1990 and 1996, primarily focused on targets such as shallow laterite-hosted and supergene gold in deeply weathered areas, or in areas characterized by outcrop and aeromagnetic targets, leaving large areas of the greenstone belt only poorly explored, or not at all. The BGB has been shown to be regionally anomalous in gold and the Company considers that the area holds strong prospectivity for structurally-controlled gold, copper and nickel deposits below cover or in deeply weathered regions.

Exploration Programmes

The Company is presently planning exploration programmes, commencing in the south-west parts of the tenements, including:

• ─ Geological and regolith mapping, as a precursor to geochemical sampling;

• ─ Systematic surface geochemical sampling where applicable;

• ─ Reconnaissance bedrock geochemical sampling using RAB/aircore drilling where necessary;

• ─ Airborne and/or ground geophysical surveys, and;

• ─ RC and/or diamond drilling of priority targets identified.

For further information please contact:

Bruce Franzen Jeffrey Moore Executive Director Managing Director Riedel Resources Limited Riedel Resources Limited Tel: 61 8 9226 0866 Tel: 61 8 9226 0866 Email: bruce.franzen@riedelresources.com.au Email: j.moore@riedelresources.com.au

About Riedel Resources Limited

Riedel Resources Limited is an Australian Based exploration Company established to explore for and develop gold and base metals mineralisation. The Company was incorporated on 9 April 2010 as a public company for the purpose of acquiring a portfolio of highly prospective exploration projects located in Western Australia from ADX Energy Limited (formerly AuDAX Resources Limited). Riedel successfully listed on the ASX on 31 January 2011.

Further information can be found on Riedel Resources at the Company’s website www.riedelresources.com.au .

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Jeffrey Moore, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Moore has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves’. Mr Moore consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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