RIEDEL RESOURCES LIMITED — Capital/Financing Update 2012

Dec 10, 2012

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Suite 1, 45 Ord Street West Perth Western Australia 6005

Tel: +61 8 9226 0866 Fax: +61 8 9486 7375

PO Box 1559, West Perth Western Australia 6872 www.riedelresources.com.au

ABN: 91 143 042 022 ASX: RIE

11 December 2012

ASX/Media Announcement

Share Placement - ASX Listing Rule 3.10.5A

The Directors of Riedel Resources Limited ( “Riedel” or “the Company” , ASX: RIE) have previously advised on 23 November 2012 that the Company has completed a Share Placement offered to sophisticated and professional investor clients of Oracle Securities in Australia and the UK.

The placement will raise up to $0.7 million before costs, with the issue of 9.33 million ordinary shares at an issue price of $0.075 per share and free attaching unlisted option on a 1:1 basis exercisable at 15¢ per share on or before 31 January 2016 (“Options”) as follows;

• ─ Up to 9.33 million new shares at 7.5¢ per share to raise circa $0.70 million to be issued within the Company’s 10% placement capacity under Listing Rule 7.1A.

• ─ Up to 9.33 million Options to be issued within the Company’s 15% placement capacity under Listing Rule 7.1.

The free attaching unlisted options to be issued on a 1:1 basis, being up to 9.33 million options, are to be issued under ASX Listing Rule 7.1, and will subsequently be put to shareholders for ratification at a General Meeting to be held in January 2013.

The placement will settle in two parts with Part 1 representing approximately $0.533 million announced (Appendix 3B and Cleansing Notice) on 7 December 2012. The balance being Part 2 of approximately $0.167 million, to be settled shortly and advised upon receipt.

Information required under ASX Listing Rule 3.10.5A

Riedel provides the information required under ASX Listing Rule 3.10.5A as it relates to Part 1 (7,111,107 shares, $0.5333 million) of the placement as follows:

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• a) Dilution to existing shareholders as a result of the issue under Listing Rule 7.1A is 6.8%, dilution to existing shareholders as a result of the issue under Listing Rule 7.1 is nil as securities issued are not quoted, and the total dilution to existing shareholders as a result of the placement is 6.8%.

Further details of the approximate percentage of the issued capital post the 7.1A placement (Part 1 – 7,111,107 shares) held by the pre-placement security holders and

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the new security holders are as follows:

Pre-placement security holders who didnot participate in the placement	98%
Pre-placement security holders who didparticipate in the placement	1%
Participants in the placement who were notpreviously security holders	1%

• b) Riedel issued shares to sophisticated and institutional investors as it was considered to be a more efficient mechanisim for raising funds given that funds were to be applied immediately against a drilling project that was underway at Marymia in Western Australia. The placement did not expose the Company to market volatility that may have been experienced over a longer time frame such as a pro rata issue to existing security holders.

• c) No underwriting arrangements were in place for the placement; and

• d) Fees payable to Oracle Securities was 6% of gross funds raised.

Yours sincerely

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Bruce Franzen Company Secretary

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