RIEDEL RESOURCES LIMITED — Capital/Financing Update 2012

Oct 2, 2012

ASX ANNOUNCEMENT 3 October 2012

Burkina Faso Gold Projects Exploration Update

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COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Mr Jeffrey Moore Managing Director

Mr Bruce Franzen Executive Director

Riedel Resources Limited (“Riedel” or “the Company” , ASX: RIE) is pleased to provide an update on the results from initial work programmes, including soil geochemical sampling and drilling, at the Company’s Burkina Faso gold Permits.

These work programmes commenced in April 2012 and concluded in June with the onset of the seasonal rain period.

HIGHLIGHTS

• Numerous new gold-in-soil geochemical anomalies have been delineated by surface soil sampling at the Tagou, Keri and Moaga Projects.

• Significant gold-in-soil assay values include 2,950ppb Au, 450ppb Au and 416ppb Au (Tagou), 159ppb Au (Keri) and 74ppb Au (Moaga).

• Scout drilling around artisanal workings at the Tagou Project returned promising results including 4m @ 2.60 g/t Au from 49m in TGRC011 (including 1m @ 9.79 g/t Au) , 11m @ 0.84 g/t Au from 28m in TGRC010 (including 2m @ 2.00 g/t Au) and 2m @ 2.44 g/t Au from 90m in TGRC009.

Mr Andrew Childs Non-Executive Director

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

TAGOU PROJECT

Geochemical Soil Sampling

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At Tagou 4,705 soil geochemical samples were collected at 400 metre x 100 metre centres over areas not previously sampled, resulting in coverage over the entire project area. All assay results have now been received and numerous strong gold-in-soil anomalies have been identified.

In many instances the anomalies are coincident with significant interpreted underlying structures and in the central portion of the

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Permit a broad 15 kilometre x 7 kilometre zone is characterised by elevated gold-in-soil geochemistry, representing a key focus for follow-up gold exploration including geophysical surveys and drilling.

The most significant results include 2,950ppb Au, 450ppb Au, 416ppb Au, 229ppb Au, 180ppb Au, 175ppb Au, 162ppb Au and 116ppb Au (see Figure 1) .

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Inset Area Map
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Figure 1: Tagou Project – Gold-in-soil geochemical anomalies

Figure 2: Tagou Project - RC drillhole traces in the southern area and rock chip sample results

RC Drilling

In June 2012 the Company secured a RC rig to drill 16 reconnaissance holes for 1,826 metres to test the width and tenor of near-surface gold-bearing quartz veins which were identified by past and present artisanal mining sites.

All assay results have now been received from the programme and 8 of 10 holes that targeted veins on the southern zone intersected gold mineralisation within granite or dolerite hosted quartz vein or veins.

Best results include 4m @ 2.60 g/t Au from 49m in TGRC011 (including 1m @ 9.79 g/t Au) , 11m @ 0.84 g/t Au from 28m in TGRC010 (including 2m @ 2.00 g/t Au) and 2m @ 2.44 g/t Au from 90m in TGRC009 (see Figure 2, Table 1) .

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The drilling results highlight the spotty or nuggety nature of gold which exists in the northsouth trending quartz veins. It is encouraging to note that gold mineralisation has been shown to continue to depths of at least 100 metres in the veins and in low grade mineralised envelopes, as highlighted in the drilling intercept of 0.84 g/t Au over a width of 11 metres.

Since the completion of the drilling programme, results from geochemical sampling over the entire Tagou Project area have been received and the interpretation of all of the geochemical sampling and drilling results indicates that the preferred northeast-southwest structural trend (which has not yet been drilled) holds the best potential to yield gold mineralisation over significant widths. Several strong geochemical anomalies, which may reflect this preferred structural trend, have been identified and these anomalies will be further defined by mapping and magnetic survey work prior to drill testing.

KERI PROJECT

Geochemical Soil Sampling

Soil geochemical sampling at the Keri Project targeted 1,182 sample sites, although the programme was only partly completed by the end of June due to the onset of seasonal rains. The programme focused on the western half of the Permit which covers a NNE-SSW trending structural corridor and greenstone rock sequence.

Samples were collected at 100 metre intervals along east-west lines spaced 400 metres apart.

Numerous significant gold-in-soil geochemical anomalies were discovered (see Figure 3) , including a 1.8 kilometre long anomaly peaking at 159 ppb Au which is coincident with a gabbro–felsic volcanic contact in the north-western portion of the sample area. The anomaly is also coincident with an interpreted demagnetised zone that appears to be related to a significant structural jog in a regional structure.

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Figure 3: Keri Project - Geochemical soil sample anomalies

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MOAGA PROJECT

Geochemical Soil Sampling

A soil geochemical sampling programme was completed at the Moaga Project, comprising 436 sample locations over a NNE-SSW trending structural corridor which traverses the midwest part of the Permit.

Samples were collected at 100 metre intervals along east-west lines spaced 400 metres apart.

All assay results have now been received with numerous anomalous results, including 74 ppb Au and 41ppb Au, being returned from the central part of the sampled area (see Figure 3) . The sampling programme will be expanded into other parts of the Permit following the wet season.

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Figure 4: Moaga Project - Gold-in-soil geochemical anomalies

Proposed Exploration For 2012-2013 Field Season

Galgouli South:

• Soil geochemical sampling, comprising 3,500 samples on 400 metre x 100 metre centres over the remainder of the Permit, magnetic geophysical surveys and detailed geological mapping, prior to drill testing of key gold anomalies.

Gonsin:

• 4,000 metres of aircore drilling to test high priority auger geochemical gold anomalies.

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Tagou:

• Infill soil sampling over the highest priority gold-in-soil geochemical anomalies, detailed geological mapping and magnetic survey work to define drill targets.

Keri:

• Complete soil geochemical sampling programme and infill soil sampling over key anomalies to define drill targets.

Moaga:

• Complete soil geochemical sampling programme and infill soil sampling over key anomalies to define drill targets.

About the Burkina Faso Tenement Package

On 11 April, 2012 Riedel announced that it had successfully completed its acquisition of rights to acquire 100% interests in five highly prospective exploration permits in Burkina Faso. The package of five granted exploration permits known as Galgouli South, Gonsin, Keri, Moaga and Tagou, covers a total area of 1,076 square kilometres in Burkina Faso (see Figure 5 for tenement locations).

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Figure 5: Burkina Faso Permit Locations

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Table 1 : Tagou Project - significant RC drilling intercepts

Hole ID	Northing	Easting	Hole	From	To	Width	Grade
	m(N)	m(E)	Depth (m)	(m)	(m)	(m)	(g/t Au)
TGRC001	1,297,195	219,792	150	79	82	3	0.66
TGRC002	1,297,086	219,792	126	83	89	6	0.61
TGRC004	1,297,604	219,749	150	71	72	1	1.10
TGRC009	1,297,125	219,712	126	90	92	2	2.44
TGRC010	1,297,237	219,752	60	28	39	11	0.84
TGRC011	1,297,342	219,786	100	49	53	4	2.60
including				49	50	1	9.79
TGRC012	1,297,435	219,784	88	24	25	1	2.00
TGRC013	1,297,518	219,800	60	28	29	1	1.63

• N.B.: Gold results reported are for consecutive one metre drilling intercepts with assay result ≥0.3 g/t Au, allowing for maximum internal dilution of 2 metres.

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

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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Soil Geochemical sampling and assaying methodology

First pass soil sampling has been completed on 100 metre intervals on east-west oriented lines, spaced at 400 metres. A 100-200 gram sample is collected from the “B horizon” at approximately 10 centimetres depth at each sample location and sieved using a 10 mesh sieve. This sample is then placed into wet strength bags. Standards are inserted into the sample stream at a rate of 1 in 20 samples and field repeats are collected at a rate of 1 in 40 samples.

Samples are despatched to the ALS Global Laboratory in Perth, Western Australia and analysed for gold. The entire sample is pulverised to 85% passing 75 micron or better and split using a riffle splitter. A 25 gram sample is analysed for gold by method Au-TL43m which includes an Aqua Regia extraction with ICP-MS finish. Reporting limits are between 0.001 and 1.0ppm Au.

RC drilling sampling and assaying methodology

Samples are collected as four metre spear composite samples as well as single metre riffle split samples, when identified as geologically significant. All significant results reported are from single metre split samples. Standards are inserted into the sample stream at a rate of 1 in 40 samples and duplicates are also collected at a rate of 1 in 40 samples (alternating with the standards so a standard or duplicate is used every 20 samples). Samples are submitted to the ALS Global Laboratory in Ouagadougou, Burkina Faso and assayed for gold using method AuAA26. The entire sample is pulverised to 85% passing 75 micron or better, then split so that 50 grams of sample material can be collected for assay by fire assay with an AAS finish.

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