RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2011

Oct 30, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

	Name of entity	Name of entity	Name of entity	Name of entity
	Riedel Resources Limited
	ABN 91 143 042 022 Consolidated statement of cash flows
			30 September 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (3 .months) $A’000
		- (448) - - (321) - 60 - - -		- (448) - - (321) - 60 - - -
		(709)		(709)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Cash acquired with acquisition of subsidiary Net investing cash flows 1.13 Total operating and investing cash flows (carriedforward)		- - (2) 110 - - - - -		- - (2) 110 - - - - -
		108		108
		(601)		(601)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (broughtforward)	(601)	(601)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Capital Raising Costs Net financing cash flows	170 - - - - (16)	170 - - - - (16)
	154	154
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(447) 4,318	(447) 4,318
	3,871	3,871

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		$160
		Nil
1.25	Explanation necessaryforanunderstanding ofthe transactions
	Directors wages, Directors fees, and company secretarial fees, including Directors fees and company secretarial fees payable to Zen Magnolia Pty Ltd, a company to which Mr Bruce Franzen is a Director and Shareholder.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• During the September 2011 quarter the company disposed of its 100% interest in the Cheritons East EL77/1223 project receiving $100,000 (500,000 shares @ 20c) worth of shares in Silver Stone Resources Limited (ASX Code: SSZ) as part consideration.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	300
	Nil
	Nil
	300
Total	600

Reconciliation of cash

Total Reconciliation of cash	Total Reconciliation of cash		600
Reconciliation of cash at the end of the quarter (as
shown	in the consolidated statement of cash	Current quarter	Previous quarter
flows)	to the related items in the accounts is as	$A’000	$A’000
follows.
5.1	Cash on hand and at bank	121	215
5.2	Deposits at call	-	-
5.3	Bank overdraft	-	-
5.4	Other (provide details) - Term Deposits	3,750	4,103
	Total: cash at end of quarter(item 1.22)	$3,871	$4,318

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning **of quarter **	Interest at end of **quarter **
	EL77/1223 EL36/404	Disposed Surrendered	100% Royalty	0% 0%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

dates.
	**Total number **	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	Nil
	N/A
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	58,304,760	32,404,760
	86,660 10,000	86,660 10,000	$0.12 $0.20	$0.12 $0.20
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil
	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.7 Options (description and conversion factor) Performance Rights 7.8 Issued during quarter Options Performance Rights 7.9 Exercised during quarter 7.10 Expired during quarter	9,500,000 29,094,050 2,666,667 vesting when the Company’s share price is equal to or greater than Au27 cents for 20 consecutive trading days 2,666,667 vesting when the Company’s share price is equal to or greater than Au36 cents for 20 consecutive trading days 2,666,666 vesting when the Company’s share price is equal to or greater than Au45 cents for 20 consecutive trading days	Nil 29,094,050 Nil Nil Nil	Exercise price 30c 20c Nil Nil Nil	Expiry date 30 June 2014 30 Nov 2012 25 July 2014 25 July 2014 25 July 2014
	1,500,000 2,666,667 2,666,667 2,666,666	Nil Nil Nil Nil	30c Nil Nil Nil	30 June 2014 25 July 2014 25 July 2014 25 July 2014
	10,000	10,000	20c	30 June 2014
	Nil	Nil
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes(totals only)	Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

==> picture [119 x 42] intentionally omitted <==

Sign here: ............................................................ Date: 31 October 2011 (Director/Company secretary)

Print name: Bruce Franzen

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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