RIEDEL RESOURCES LIMITED — Capital/Financing Update 2011

May 2, 2011

ASX ANNOUNCEMENT

3 May 2011

Non-renounceable Entitlement Issue of Options

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COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Mr Bruce Franzen Executive Director

Mr Jeffrey Moore Managing Director

Mr Andrew Childs Non-Executive Director

Riedel Resources Limited (“Riedel”) is pleased to advise that in accordance with the Prospectus dated 12 November 2010, the Directors of the Company have resolved to make a pro rata non-renounceable offer to issue approximately 29,104,050 New Options under a new Prospectus at an issue price of $0.01 (1 cent) per New Option to raise approximately $291,040 before expenses.

The new options will have an exercise price of $0.20 and an expiry date of 30 November 2012. The New Options are being offered on the basis of one (1) New Option for every two (2) Shares held on the Record Date of 13 May 2011.

Each Shareholders entitlement under the Offer will be set out in the Entitlement and Acceptance Form that will accompany the Prospectus, to be mailed to Shareholders registered at the Record Date.

The Company will apply for official quotation of the Options issued under the Prospectus.

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

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The timetable for the offer is as follows:

	time
		table for the offer is as follows:
EVE	NT		DATE
Ann	ounce	ment of Option Issue	3 May 2011
Pros	pectus	lodged with ASIC and ASX	4 May 2011
Noti	ce of O	ption Issue sent to Shareholders	6 May 2011
“Ex”parti	Datecipate	(date from which Shares commence trading withou	t the entitlement to9 May 2011
		in the Option Issue)
RecOpti	ord Daon Issu
		te (date for determining Shareholder entitlementse)	to participate in the13 May 2011
Pros	pectus	sent to Shareholders and Opening Date	19 May 2011
Clos	ing Da	te	2 June 2011
Opti	ons be	gin trading on ASX on a deferred settlement basis	3 June 2011
Notif	ication	to ASX of Shortfall	7 June 2011
Des	patch d	ate/Options entered into Shareholders’ security holdin	gs10 June 2011
Clos	e of S	hortfall Offer	15 June 2011

Notes

Dates are indicative only. Subject to the Listing Rules, the Directors may vary the dates without prior notice.

For further information please contact:

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

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

About Riedel Resources Limited

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Riedel Resources Limited is an Australian Based exploration Company established to explore for and develop gold and base metals mineralisation in Western Australia. 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 .