RIEDEL RESOURCES LIMITED — Capital/Financing Update 2017

Nov 20, 2017

ACN 143 042 022

Suite 1, 6 Richardson Street West Perth Western Australia 6005

ASX Code: RIE

riedelresources.com.au

KEY COMPANY INFORMATION

Capital Structure Ordinary Shares: 374m Unlisted Options: 42.9m

Top 20 Shareholders 64%

Cash Reserves A$2.65m (at 30 September 2017)

ASX and Media Release 21 November 2017

HIGH PRIORITY TARGETS IDENTIFIED AT CÁRMENES HIGH-GRADE COBALT-COPPER PROJECT

HIGHLIGHTS

• ³ 11 high priority targets already identified by JV Partner, SIEMCALSA.
• ³ Numerous targets identified from initial exploration covering less than 5% of Project area.
• ³ Highly significant results confirmed by coincident geophysical and geochemical testwork.
• ³ Confirms potential for additional cobalt-copper 'pipes' similar in structure and composition to the La Profunda and Divina Providencia mines.
• ³ All advanced targets show potential for similar or larger size than the pipe historically mined at La Profunda.
• ³ High-grade 'pipes' have been shown to host very significant minerals deposits such as that at the Tsumeb Mine in Namibia and Industrias Peñoles carbonate–hosted Ojuela mines at Mapimi in Mexico that produced over 6Mt of polymetallic ore.
• ³ Geophysical testing of highly prospective zones adjacent to the La Profunda high grade Cobalt-Copper mine to be prioritised.

Riedel Resources Limited (ASX:RIE) is very pleased to announce highly encouraging results from initial field work conducted by its joint venture partner SIEMCALSA at the Cármenes cobalt-copper project in Northern Spain.

The results, which cover less than 5% of the Project area, confirm the region to be highly prospective for cobalt-copper 'pipe' style ore bodies, similar in structure and composition to those found at the La Profunda and Divina Providencia1 former cobalt mines.

On the field work completed by its JV Partner, Riedel Executive Chairman, Mr Jeffrey Moore said "the initial geophysical and geochemical results surpass our expectations and demand the accelerated exploration of the Project area which is still largely untested."

Immediate plans have been made to step out geophysical and geochemical groundwork along the most prospective zones of the high-priority target corridor. This work will target the presence of further mineralised 'pipes' to the east and west of the La Profunda mine.

RECENT EXPLORATION SUCCESS

Riedel's JV Partner, SIEMCALSA, has conducted initial fieldwork at Central Cármenes, near the La Profunda former cobalt mine. Additional test work has also been carried out surrounding the Valverdin Mine to the south east.

Results from the geophysical testing were validated and confirmed to be of a high order by the Company's Australian consulting geophysicists, Resource Potentials.

In total, eleven key targets have already been identified from the analysis of data covering less than 5% of the Project area. The zones adjacent to the former La Profunda mine contain nine of the targets, the other two are located proximal to Valverdin.

Figure 1 – Location of key targets to date – La Profunda (9) and Valverdin (2)

All of the targets potentially represent polymetallic concealed (non-outcropping) minerals deposits. Such characteristics are consistent with the Company's hypothesis that the region is highly prospective due to concealed targets not being easily detected by historic exploration techniques.

Figure 2 – Radiometric image highlighting 9 initial targets at La Profunda

With a distinct advantage over their predecessors, SIEMCALSA were able to employ multiple modern geophysical and geochemical testing techniques to identify the current targets. The programme of work carried out included:

• ³ Pole-Dipole Induced Polarisation (PDIP) ³ Magnetic Surveys

• ³ Trenching, sampling and analysis ³ Lithogeochemical sampling

• ³ Radiometric Surveys ³ Detailed structural and geological mapping

• ³ Rock chip sampling and analysis ³ Ion-leach soil geochemical analysis

• ³ Soil pH analysis ³ Stream sediment analysis

Figure 3– Ground IP Surveys can be very effective in identifying non-outcropping minerals deposits

Figure 4– Rock samples from La Profunda – typical of cobalt-copper mineralisation

All of Targets 1 to 9 show a strong association with radiometric anomalism. Importantly, at Targets 1 to 3, where Pole-Dipole Induced Polarisation (PDIP) surveys have also been carried out, coincident IP and radiometric anomalies that are considered characteristic of this style of mineralisation are strongly evident.

Figure 5 – Profunda Targets 2 & 3 - PDIP anomalies (chargeability) already identified showing potential concealed mineralised deposits

Figure 6 – Exploration in historical mine stopes and adits La Profunda High Grade Cobalt Copper Mine

Significantly, the PDIP lines, which measure the chargeability and resistivity of the rocks, could be detecting additional sulphidic mineralisation such as that believed to be found nearby at the historic La Profunda high grade Cobalt-Copper mine.

Figure 7 –Valverdin Target 11 - PDIP anomalies (chargeability) already identified showing potential concealed mineralised deposit

ADVANCED TARGETS

From the eleven targets identified by SIEMCALSA, additional analysis on targets 1, 2 and 3 has already resulted in their target status being escalated to advanced. Importantly, the three most advanced targets are located near the historic La Profunda mine.

Most encouragingly, coincident signatures have been recorded from multiple tests and all of the advanced targets show potentially larger diameters than the pipe mined at La Profunda.

Target 1

• ü Pipelike polymetallic body (non-outcropping/concealed)
• ü Located north west of the historic La Profunda mine
• ü Target dimensions 80m North-South by 20m East-West
• ü Coincident signature indicators from multiple tests
  • Radiometrics
  • Magnetics
  • Ground IP (Chargeability)
  • Soil geochemistry (Cobalt, Copper and Gold present in soil)

Figure 8 – Advanced Target 1 at La Profunda – Confirmed by coincident geophysical and geochemical anomalies (Soil geochemistry – ppb, radiometrics cps)

Similar coincident signatures were encountered on the other advanced targets (2 and 3) near La Profunda and at target 11 near Valverdin (See Figure 9). Target dimensions also exhibited similar or larger sizes.

Figure 9 – Advanced Target 11 Valverdin – Confirmed by coincident signature indicators

Target 11

• ü Pipelike polymetallic body (non-outcropping)
• ü Located due north of Valverdin mine
• ü Target dimensions 80m N-S by 20m E-W
• ü Coincident signature indicators from multiple tests
  • Radiometrics
  • Ground IP (Chargeability)
  • Soil geochemistry (Co, Cu present in soil)

DEPOSIT ANALOGUES AND GLOBAL EQUIVALENTS

The deposits identified within the Cármenes Project investigation permit areas can all be linked to a single epithermal event with well-defined zonation that can be associated with a major regional fault-line known as the 'Léon fault'.

The La Profunda and Divina Providencia mines were comprised of 'pipe' or 'cylindrical' style ore bodies with subvertical orientation. It is highly encouraging that the recently identified target anomalies exhibit these same characteristics.

Other globally significant polymetallic mines possessing similar subvertical pipe morphology include:

• o Tsumeb Mine (Namibia) from 1905 to 1990 produced 25Mt (Cu, Co, Zn, Ag, Pb)
• o Mapimi Deposit (Ojuela Mine Mexico) produced 6Mt (Cu, Zn, Au, Ag, Pb)

Pozo 3º Figure 10 – La Profunda Mine (Spain) La Cuevona ('The Cavern') Stope Schematic similar to other globally significant mines

Figure 11 – Field work by SIEMCALSA has been successful in identifying initial targets with potential cobalt-copper mineralisation

Riedel now intends to accelerate the follow-up programmes and extend the exploration envelope to identify additional targets to the eleven already discovered near the historical La Profunda and Valverdin mines.

Further details on these fast-tracked programmes will be released to the market as soon as possible.

For further information please contact:

Jeffrey Moore - Executive Chairman - Riedel Resources Limited Tel: +61 8 9226 0866 Email: j.moore@riedelresources.com.au

About Riedel Resources Limited

Riedel Resources Limited listed on ASX on 31 January 2011 and is an Australian-based exploration company focused on the exploration and development of technology metals in Europe. Further information can be found at the Company's website www.riedelresources.com.au

About SIEMCALSA

SIEMCALSA (Sociedad De Investigación Y Exploración Minera De Castilla Y Léon S.A.) is a parastatal corporation established in 1988 devoted to the promotion and stimulation of the mining sector in the Castilla and León (Spain). Further information can be found at the Company's website www.siemcalsa.com

Competent Person's Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Jeffrey Moore, who is a Member of The Australian Institute of Mining and Metallurgy. Mr Moore is a full-time employee of Riedel Resources Limited. Mr Moore 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Moore consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

1 Excised from Carmenes Project joint venture tenement area. Currently under investigation permit application by SIEMCALSA.

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

Criteria	Commentary
Sampling techniques	•Overlaying geophysical and geochemical surface sampling results wereused to locate potential massive sulphide drill targets. Techniquesinclude:Ground radiometric U surveyingoGeochemistry (soil and stream)oSoil pHoRock chip samplesoGround magneticsoPole-Dipole Induced Polarization surveysoGradient Array Induced Polarization surveyoGround magnetic surveyoTrenching, sampling and analysisoDetailed structural and geological mappingoLithogeochemical samplingoAir photoso•This style of exploration is appropriate for the copper-cobalt 'pipe'style mineralization prevalent in the project area.
Drilling techniques	•No drilling completed to date
Drill sample recovery	•No drilling completed to date
Logging	•No drilling completed to date
Sub-sampling techniquesand sample preparation	•Approximately 500 g of soil is collected from near surface (10-20 cmdepth)
Quality of assay data andlaboratory tests	•Rock chip samples submitted to ALS Seville for multi element (61elements) and atomic absorption spectroscopy (Au)•Radiometric survey – Hand held SAIC Exploranium GR-135 G Plusmeter•Soil samples submitted to ALS Chemex, Seville Spain for IONIC LeachICP multi-spectral analysis and pH; replicates submitted at a rate ofapproximately 1 in 20•Ground magnetic survey – GEM overhouser magnetometer set with a 3second sampling rate; assumed diurnal correction was applied
Verification of samplingand assaying	•Sample data is stored in an MS Access database•Currently no verification of analytical data has been completed
Location of data points	•Hand held GPS and orthophoto accurately locate data points to < 1 m inthree dimensions•Projection system is ETRS89 / ETRS-TM30•Topographic surface derived from digital terrain model which isadequate for topographic control of surface sampling
Data spacing anddistribution	•Ground radiometric U surveying on a 25m × 25m grid•Geochemistry and pH (soil and stream) – Ion Leach 10 × 10m•Ground magnetics ~ La Profunda five NNW-SSE traverse 5m to 15mline spacings; Valverdin ten N to S traverses on 50m line spacings•Pole-Dipole Induced Polarization surveys ~ La Profunda 3 PDIPtraverses 1,600m total line length 10m to15m electrode spacings•Gradient Array Induced Polarization survey on 50m line spacings, 20mreceiver dipole and spacings•Ground magnetic survey using roving overhouse magnetometer (3second sampling rate) N to S traverses, 50m apart, line lengthsapproximately 400m

Criteria	Commentary
Orientation of data inrelation to geologicalstructure	•Sampling grid traverse exposed geology•Sampling bias is not expected
Sample security	•All sampling carried out under the control SIEMCALSA•Samples stored at laboratory
Audits or reviews	•Geophysical consultants, Resource Potentials have reviewed, verifiedand confirmed the results of geophysical testing

Section 2 Reporting of Exploration Results

Criteria	Commentary
Mineral tenement and landtenure status	•Spanish Mineral investigation Tenements PI 1507 Cármenes and PI1506 Valverdín are held by Sociedad De Investigaciόn Y ExploraciόnMinera De Castilla Y Léon S.A. ("SIEMCALSA") and managed by ReidelResources Limited (Reidel) through a Joint Venture whereby Riedel canearn-in an interest up to 90% in the Cármenes Project by way of fundingstaged exploration and development expenditure, with provision toacquire the remaining 10%•PI 1506 Valverdín is valid until May 12, 2021•PI 1507 Cármenes is valid until May 12, 2021•Agreements with land owners and authorizations for works have beenreceived by SIEMCALSA with respect to PI 1506 Valverdín•There are no known impediments to obtaining a licence to operate orexplore in the tenements under consideration
Exploration done by otherparties	•Available exploration results described above have been prepared bySIEMCALSA•Details of prior exploration and mining is under compilation
Geology	•Located in the Castilla y Leon region of Spain, within the CantabrianZone of the Iberian Massif of Northern Spain on the southern slope ofthe Cantabric range, within a 60 km Paleozoic belt•Host rocks are limestones and dolomites of Namurian andCarboniferous ages and the whole area was subject to intensehydrothermal dolomitization•Mineralisation is fracture related, hydrothermal, stratiform carbonatereplacement deposit (Cu-Co-Ni (=/-Au-U) as sulphides and arsenides(La Profunda), Au (Valverdin) and Pb-Cu-Zn-Ag (Fontun) in limestoneand shale stratigraphy•Extensive alteration•Sub-vertical bodies as pipes and chimneys
Drill hole Information	•No drilling completed to date
Data aggregation methods	•No data aggregation applied
Relationship betweenmineralisation widths andintercept lengths	•No drilling completed to date
Diagrams	•Maps and diagrams are provided in body of the report
Balanced reporting	•Data is presented for both positive and negative results and can beconsidered balanced
Other substantiveexploration data	•No other substance work completed
Further work	•Continued development of geological framework and prioritisation of drilltargets