RIEDEL RESOURCES LIMITED — Capital/Financing Update 2012

Jul 11, 2012

==> picture [180 x 72] intentionally omitted <==

ASX ANNOUNCEMENT

12 July 2012

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Marymia Project Soil Geochemical Sampling Results Confirm Copper and Gold Potential

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 present results from geochemical soil sampling completed over the Marymia Project area as well as a plan for future work .

COMPANY SECRETARY Mr Bruce Franzen

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

HIGHLIGHTS

• Numerous multi-element soil geochemical pathfinder anomalies prospective for copper, gold and/or base metals mineralisation delineated, including:

Postal Address PO Box 1559 West Perth Western Australia 6872

Website www.riedelresources.com.au

• ─ Strong arsenic anomalies define gold targets;

• ─ Large molybdenum and bismuth anomalies prospective for copper along trend from Sipa’s Enigma copper prospect, and;

Email admin@riedelresources.com.au Phone +61 8 9226 0866

• ─ Strong indium, bismuth and arsenic anomaly prospective for gold and/or zinc mineralisation.

Facsimile +61 8 9486 7375

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

Background

Riedel holds two exploration licences (E52/2394 and E52/2395) 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.

==> picture [65 x 104] intentionally omitted <==

The exploration licences are 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.

==> picture [65 x 66] intentionally omitted <==

==> picture [141 x 56] intentionally omitted <==

==> picture [369 x 19] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 19] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 19] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 19] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 19] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

Figure 1: Marymia Project - Location Map

Soil Geochemical Sampling and Interpretation Methodology

Surface soil geochemical sampling over weathered in-situ regolith within the Marymia Project area commenced in November 2011 with orientation programmes designed to compare and contrast the results of several sampling techniques. This approach was taken to determine the most effective sampling methodology. Areas with significant transported cover or alluvial material were excluded from this programme in favour of future drilling to test for geochemical anomalism below the transported cover.

As a result of this orientation work it was concluded that soil sample material sieved to a size of less than 2 millimetres, with samples spaced 400 metres by 200 metres apart, should effectively discriminate areas prospective for the discovery of near-surface or buried copper, gold and base metals mineral deposits.

Interpretation of all 4,200 first-pass, multi-element soil geochemical assay results by consultant geochemist Scott Halley and Riedel geologists has identified numerous high priority areas prospective for copper, gold and/or base metals mineralisation . Closespaced, follow-up soil geochemical sampling has already commenced within these priority areas to better define the trend and tenor of the soil anomalies prior to the commencement of drilling.

At Marymia, the near surface regolith or soil profile is typically highly oxidised and weathered, in some instances to depths in excess of one hundred metres. Frequently, weathering occurs with lateritisation, a process where near-surface rocks become strongly oxidised and enriched in iron to the extent that many elements and metals of interest, including copper and gold, become highly mobile and leached or dispersed in the near-surface environment.

The recognition and understanding of the effects of these processes is therefore crucial to the meaningful interpretation of surface soil geochemical assay results at Marymia.

Page 2

==> picture [141 x 56] intentionally omitted <==

To compensate for the loss or dispersion of key metals of economic interest, including copper and gold, Riedel has adopted a multi-element approach where key “pathfinder” elements were identified to highlight surface and near-surface soil geochemical anomalies. Although these pathfinder elements are relatively stable in the near-surface weathered environment, in some instances those pathfinder elements may become preferentially enriched in the presence of iron.

At Marymia, this iron enrichment has greatly complicated the interpretation of the soil anomalies. Goethite, an iron-rich mineral, will scavenge most pathfinder elements leading to soil sample assay results which may be strongly elevated. Without proper recognition of this process, it is possible that many anomalies may be false anomalies due to the high goethite concentration at that locality.

To determine true anomalism, the concentration of the element of interest needs to be normalised, or adjusted, against the concentration of iron in the sample material to enable the meaningful recognition of pathfinders as proxies for the presence of important associated minerals, including copper, silver and zinc. This relationship is particularly relevant for the gold pathfinder element arsenic.

Summary

The understanding of common associations of minerals and metals in unweathered rocks, for example gold-arsenic-antimony, copper-molybdenum-bismuth and zinc-indium and the recognition of their near-surface weathered products and anomalies, greatly assists with the interpretation and targeting of underlying or near-by primary mineral deposits.

As this approach has not been previously used in the Marymia Project area, the Company believes that previously identified geochemical anomalies where exploration was unsuccessful in locating associated minerals deposits, may have represented false or transported anomalies. Riedel believes that the anomalies recognised by the key pathfinder elements, referred to above, represent high-order targets and that considerable potential exists for the discovery of mineral deposits including copper, gold/silver and base metals .

A strong understanding of sub-surface geology and the associated structural setting is also necessary to complement soil geochemical data analysis so that the best drilling targets can be recognised and the Company has recently carried out detailed mapping programmes to strengthen target generation.

Interpretation of Gold Pathfinder Anomalies

At Marymia, primary gold mineralisation within the Baumgarten Greenstone Belt is associated with the pathfinder elements arsenic (As), lead (Pb), copper (Cu), silver (Ag), bismuth (Bi), tellurium (Te) and antimony (Sb). Of these gold associated elements, arsenic occurs at the highest concentrations and is generally considered to be the most useful pathfinder, particularly when normalised against the concentration of iron. The following scatter plot (see Figure 2) shows arsenic values normalised against iron content, with anomalous values plotted in red.

Page 3

==> picture [141 x 56] intentionally omitted <==

==> picture [369 x 251] intentionally omitted <==

Figure 2: Scatter plot of iron versus arsenic showing anomalous soil geochemical arsenic values

Figure 3 (below) highlights the distribution of arsenic anomalies plotted as a plan. This data highlights numerous strong arsenic anomalies that correspond to known gold mineralisation within the northern portion of E52/2394, at the Chardonnay, Champagne and Baumgartens Reward Prospects.

==> picture [369 x 24] intentionally omitted <==

==> picture [369 x 13] intentionally omitted <==

==> picture [369 x 23] intentionally omitted <==

==> picture [369 x 10] intentionally omitted <==

==> picture [369 x 6] intentionally omitted <==

==> picture [369 x 5] intentionally omitted <==

==> picture [369 x 4] intentionally omitted <==

==> picture [369 x 5] intentionally omitted <==

==> picture [369 x 5] intentionally omitted <==

==> picture [369 x 16] intentionally omitted <==

==> picture [369 x 18] intentionally omitted <==

==> picture [369 x 21] intentionally omitted <==

==> picture [369 x 7] intentionally omitted <==

==> picture [369 x 5] intentionally omitted <==

==> picture [369 x 22] intentionally omitted <==

Figure 3: Distribution of normalised arsenic soil geochemical anomalies and key gold prospect locations

Page 4

==> picture [141 x 56] intentionally omitted <==

Of particular interest are the interpreted southern extensions to these known gold prospects. These extensions are identified by strong arsenic anomalies that extend for several kilometres and are coincident with prospective structures that have not been previously drilled.

Several large arsenic anomalies have also been identified within E52/2395 that are untested for gold mineralisation.

In the central eastern portion of E52/2394 a strong bismuth anomaly (see Figure 4) is coincident with arsenic and indium anomalies which overlie an interpreted north-east trending structure. This geochemical and structural association is considered particularly prospective for gold mineralisation.

Interpretation of Copper and Base Metals Pathfinder Anomalies

At Marymia, the entire project area has been subjected to intense weathering, to considerable depths in some parts, and accordingly copper is unlikely to form significant in-situ anomalies in the near-surface environment due to dispersion and leaching. Therefore, the recognition of the key copper pathfinder elements molybdenum and bismuth in soil sample results can highlight underlying copper mineralisation. Both molybdenum and bismuth have a strong association with copper mineralisation in primary unweathered rocks and these pathfinder elements are much less mobile in near-surface, strongly weathered regions.

In the south-west portion of E52/2394 a distinct and strongly coincident molybdenumbismuth anomaly has been recognised (see Figures 4 and 5) , which may point to underlying, primary copper mineralisation. These coincident anomalies partly overlie the Rooney’s Syncline, a geological and structural feature which contains a thick sequence of prospective Proterozoic-age Yerrida Group rocks which also host Sipa Resources Ltd’s Enigma copper prospect located 12 kilometres to the west (see Figure 8) .

==> picture [369 x 14] intentionally omitted <==

==> picture [369 x 4] intentionally omitted <==

==> picture [369 x 15] intentionally omitted <==

Figure 4: Bismuth soil geochemical anomalies image and high priority copper, gold and zinc target locations

Page 5

==> picture [141 x 56] intentionally omitted <==

Soil geochemical sample assay results from the south-west portion of E52/2394 revealed highly anomalous molybdenum (up to 7.91 ppm) and bismuth (up to 2.28 ppm) compared to the low background concentration of these elements at Marymia (typically 0.5ppm Mo and 0.2 ppm Bi).

==> picture [369 x 14] intentionally omitted <==

==> picture [369 x 4] intentionally omitted <==

==> picture [369 x 16] intentionally omitted <==

Figure 5: Molybdenum soil geochemical anomalies image and high priority copper target locations

The coincident occurrence of anomalous gold (up to 16 ppb), which is more than 16 times the regional background for gold of 1.0 ppb Au, is also considered to be significant because the strength of molybdenum and bismuth anomalism in this highly leached environment may point to the existence of an extensive sub-cropping hydrothermal copper system. Gold mineralisation is also usually emplaced hydrothermally, adding further encouragement that significant minerals potential may exist in this area.

It is significant to note that Sandfire Resources NL’s DeGrussa copper-gold mine, located 55 kilometres to the south-west (see Figure 8) , was discovered by the recognition of surface geochemical anomalies enriched in gold and strongly depleted in copper.

A strong molybdenum anomaly prospective for copper mineralisation (see Figure 5) has also been delineated in the north-east portion of E52/2395. This area is underlain by the Proterozoic-age Yelma Formation near the basin margin and is adjacent to the regionally important Jenkin Fault.

The base metal zinc is highly mobile in a supergene environment, even more so than copper, however, the strongly zinc-associated element indium is far more stable within weathered regolith. Therefore, indium is considered to act as a strong pathfinder or proxy for zinc in highly weathered environments.

The following scatter plot highlights indium anomalies from the results of all of the assay values for indium plotted against the corresponding values for iron (see Figure 6) .

Page 6

==> picture [141 x 56] intentionally omitted <==

==> picture [369 x 250] intentionally omitted <==

Figure 6: Scatter plot of iron versus indium showing anomalous soil geochemical indium values

Of particular interest is the strong linear indium anomaly within thin Proterozoic-age Yelma Formation in the south-east part of E52/2394 (see Figure 7) .

The Yelma Formation is interpreted to overlie the Baumgarten Greenstone Belt in this area and the coincident indium, bismuth and arsenic anomalies highlight potential for gold within the underlying Baumgarten Greenstone Belt as well as potential for zinc deposits within the overlying Yelma Formation.

==> picture [369 x 25] intentionally omitted <==

==> picture [369 x 12] intentionally omitted <==

==> picture [369 x 56] intentionally omitted <==

==> picture [369 x 4] intentionally omitted <==

==> picture [369 x 4] intentionally omitted <==

==> picture [369 x 7] intentionally omitted <==

==> picture [369 x 15] intentionally omitted <==

==> picture [369 x 20] intentionally omitted <==

==> picture [369 x 7] intentionally omitted <==

==> picture [369 x 24] intentionally omitted <==

Figure 7: Normalised indium soil geochemical anomalies and high priority gold and zinc target locations

Page 7

==> picture [141 x 56] intentionally omitted <==

Planned Exploration Programmes

• Aircore and/or RAB drilling to test for primary copper mineralisation below the highpriority coincident molybdenum-bismuth anomaly which partly overlies the Rooney’s Syncline in the south-west portion of E52/2394;

• Aircore and/or RAB drilling to test for primary copper mineralisation highlighted by the strong molybdenum anomaly in the north-east portion of E52/2395;

• Drilling programme comprising approximately 70 aircore holes to test for gold and zinc mineralisation highlighted by the coincident indium, bismuth and arsenic anomaly in the central portion of E52/2394. Drilling was originally scheduled for commencement in April 2012, however, heritage clearance survey delays have forced the rescheduling of this programme;

• Diamond core and RC drilling of Chardonnay, Champagne and Baumgarten’s South Prospects, and;

• Drilling programme comprising approximately 75 vertical aircore holes to test key structural corridors in areas deemed unsuitable for geochemical soil sampling due to the presence of transported sediment cover within drainage systems, most likely preferentially developed over the structural corridors.

Geological Setting

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.

==> picture [370 x 44] intentionally omitted <==

==> picture [370 x 6] intentionally omitted <==

==> picture [370 x 35] intentionally omitted <==

==> picture [370 x 7] intentionally omitted <==

==> picture [370 x 40] intentionally omitted <==

==> picture [370 x 6] intentionally omitted <==

==> picture [370 x 16] intentionally omitted <==

==> picture [370 x 79] intentionally omitted <==

Figure 8: Marymia Project - Regional Geological Map

Page 8

==> picture [141 x 56] intentionally omitted <==

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 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.

Soil Geochemical sampling Methodology

First pass soil sampling has been completed on 200 metre intervals on east-west oriented lines, spaced at 400 metres. Infill sampling is planned or underway at 100 metre intervals by 100 metre spacing. 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 ALS Global Perth Laboratory and analysed for gold by trace element analysis and for ultra-trace level multi-element analysis. 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 Aqua Regia extraction with an ICPMS finish and a multi-element suite (Ag, Al, As, Au, B, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, Hg, In, K, Li, Mg, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr) by Aqua Regia with an ICPMS finish.

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

Page 9