RIEDEL RESOURCES LIMITED — Capital/Financing Update 2012

Oct 9, 2012

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ASX ANNOUNCEMENT 10 October 2012

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Marymia Project Drilling Planned for High Priority Copper and Gold Targets

Mr Jeffrey Moore Managing Director

Mr Bruce Franzen Executive Director

Mr Andrew Childs Non-Executive Director

Riedel Resources Limited (“Riedel” or “the Company” , ASX: RIE) is pleased to provide an update on proposed drilling for the Marymia Copper-Gold Project in Western Australia.

Riedel plans to test seven high priority targets which are prospective for copper/base metals and/or gold with RAB and aircore drilling.

HIGHLIGHTS

• Over 6,000 metres of RAB/aircore drilling planned to test seven new high priority targets.

• Targets were identified by ranking numerous multielement soil geochemical pathfinder anomalies prospective for copper, gold and/or base metals mineralisation.

COMPANY SECRETARY Mr Bruce Franzen

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

Postal Address PO Box 1559 West Perth Western Australia 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

• Highest priority targets have coincident lithological and structural settings demonstrating potential to host significant copper, gold and/or base metals mineralisation.

Approximately 6,200 metres of drilling is planned for this initial programme although the rig may be retained and the programme extended if the initial results and geological observations justify further work in this phase 1 programme.

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The commencement date for the drilling programme is governed by the completion of the requisite Heritage surveys, however, the Company is well advanced with planning for survey work to be implemented and completed by the end of October 2012.

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Introduction

Riedel holds two exploration licences (E52/2394 and E52/2395), which collectively form the Marymia Project, covering an area of more than 425 square kilometres 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 Marymia Project is located approximately 55 kilometres north-east of Sandfire Resources NL’s DeGrussa copper-gold mine, 12 kilometres east of Sipa Resources Limited’s Thaduna copper prospect and 12 kilometres east-north-east of Ventnor Resources Limited’s Green Dragon and Thaduna copper deposits in Western Australia’s Mid-West region (see Figure 1) .

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Figure 1: Marymia Project - Location Map

Target Selection

Riedel has recently completed a comprehensive review of 28 copper, gold, base metals and nickel targets which were identified from the results of geochemical soil sampling (carried out during 2011-2012) combined with the results of previous drilling, geophysical surveys and geological mapping.

The targets selected for this first-pass drilling programme were ranked as having the highest potential for the discovery of economic copper, gold and/or base metals mineralisation by means of cost effective shallow RAB and /or aircore drilling. These key targets have yet to be tested by drilling, or have not been adequately tested by drilling.

The Company has previously explained how the understanding of common associations of minerals and metals in unweathered rocks, for example gold-arsenic-antimony, coppermolybdenum-bismuth and zinc-indium and the recognition of their near-surface weathered

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products and anomalies, greatly assists with the interpretation and targeting of underlying or near-by primary mineral deposits (ASX announcement 12 July 2012) .

Based on these key geochemical pathfinder relationships, numerous new high priority areas prospective for copper, gold and/or base metals mineralisation were identified from the results of geochemical soil sampling during 2012. The anomalies represent high-order targets with considerable potential for the discovery of mineral deposits including copper, gold/silver and base metals. Furthermore, previously identified geochemical anomalies where follow-up exploration was unsuccessful in locating associated minerals deposits, may have represented false or transported anomalies.

The Company also considers that a strong understanding of sub-surface geology and the associated structural setting is necessary to complement soil geochemical data analysis. A reinterpretation of detailed aeromagnetic data has contributed to the target review process along with the results of detailed geological mapping completed during the 2012 field season.

Also resulting from this review were several targets which were confirmed as very-high priority due to previous significant drill intersections, including a target which returned a drilling intercept of 5m @ 4.87g/t Au from 239 metres depth. This and similar targets will be tested with RC and diamond core drilling in a separate programme which will be partly funded by the grant of $150,000 for direct drilling costs pursuant to the Royalties for Regions Co-funded Drilling initiative.

First-Pass Drilling Targets

Seven high priority targets have been selected for RAB and aircore drilling, variously prospective for copper, gold and/or base metals, following the completion of Heritage surveys. These surveys are presently scheduled to occur in late October 2012.

Approximately 6,200 metres of drilling is planned for this first-pass programme and the rig may be retained and the programme extended if the initial results and geological observations justify further work. Target details and locations are highlighted in Figure 2. A strong bedrock copper geochemical anomaly trending into the south-west corner of the Project area which highlights the potential of Targets 12 to 14 is shown in Figure 3 and a summary of each of the seven targets follows:

Target 1

Copper/base metals target located near the northern boundary of the Project area. Recognised as a coincident molybdenum (Mo), arsenic (As) and antinomy (Sb) soil geochemical anomaly occurring within Proterozoic sedimentary rocks of the Yelma Formation. There has been no previous exploration over this target. Approximately 10 vertical RAB/AC drill holes for a total of 500 metres are planned to test this anomaly.

Target 12

Copper/base metals target located in the south-west corner of the Project area. Identified from a multi-element bismuth (Bi), Mo, indium (In), As and gold (Au) soil geochemical anomaly coincident with a north-west trending structural lineament and the Rooney Syncline and hosted within the Proterozoic Juderina Formation. There has been no previous exploration

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over this target. Approximately 20 vertical RAB/AC drill holes for a total of 1,000 metres are planned to test this anomaly.

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Figure 2: Marymia Project - Highest priority targets selected for RAB/aircore drilling

Target 13

Copper/base metals target located in the south-west corner of the Project area. Recognised as a Bi soil anomaly coincident with the Rooney Syncline and hosted within the Proterozoic Juderina Formation. There has been no previous exploration over this target. Approximately 14 vertical RAB/AC drill holes for a total of 1,400 metres are planned to test this anomaly.

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Target 14

Copper/base metals target located near the south-west corner of the Project area. Identified from a coincident Mo, Bi and copper (Cu) soil anomaly occurring proximal to the western flank of a porphyritic rhyolite dome and/or high-level intrusion. There has been no previous exploration over this target. Approximately 20 vertical RAB/AC drill holes for a total of 1,000 metres are planned to drill test this anomaly.

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Figure 3: Marymia Project – Location of high priority copper/base metals targets, pathfinder (bismuth) anomalies and regional setting

Target 16

Gold and base metals target located in the south-east part of the Project area. Identified from a multi-element In, Bi, As and Au soil anomaly coincident with a north-east trending structural lineament. Occurs within Proterozoic Yelma Formation sedimentary rocks onlapping the Archaean Baumgarten Greenstone Belt. There has been no previous drilling over this target. Approximately 24 vertical RAB/AC drill holes for a total of 1,200 metres are planned to drill test this anomaly.

Target 24

Gold target located in the central part of the Project area within the Baumgarten Greenstone Belt. The target was defined by a strong arsenic soil geochemical anomaly coincident with north-east trending structural lineaments. There has been no previous drilling over this target. Approximately 20 angled RAB/AC drill holes for a total of 1,000 metres are planned to drill test this anomaly.

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Target 25

Gold target located in the central part of the Project area within the Baumgarten Greenstone Belt. The target was defined by an arsenic soil geochemical anomaly coincident with northeast trending structural lineaments and sub-parallel north-northeast structural lineaments. Previous drilling returned anomalous gold values, however, subsequent reinterpretation of the drilling data indicates that the target may have been ineffectively tested and that significant primary gold potential remains. Approximately 16 angled RAB/AC drill holes for a total of 800 metres are planned to drill test this anomaly.

Riedel Managing Director, Mr Jeffrey Moore commented;

“The selection of these first-pass drilling targets underscores the considerable minerals potential which exists at Marymia.

The tenements are prospective for the discovery of copper, gold, nickel and base metals deposits, a conclusion which is reinforced by the results of 12 months of field-based exploration work which was dominated by innovative pathfinder geochemical sampling and supported by detailed geological mapping and geophysical interpretation.

These compelling exploration results now position the Company to confidently move forward with drilling programmes to further unlock the minerals potential of the Marymia Project area”.

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 mineral deposits. Since listing on ASX on 31 January 2011 the Company has successfully secured the services of a core team of experienced corporate and technical professionals, experienced in all facets of exploring and developing minerals deposits in Australia and overseas.

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 and Mineral Resources is based on information compiled by Mr Ed Turner, who is a Member of The Australian Institute of Geoscientists. Mr Turner is a full time employee of Riedel Resources Limited. Mr Turner 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 Turner 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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