RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2011

Oct 30, 2011

ASX ANNOUNCEMENT 31 October 2011

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Quarterly Activities Report for the Period Ended 30 September 2011

Riedel Resources Limited (“Riedel” or “the Company” , ASX: RIE) is pleased to present its September Quarter 2011 Activities Report:

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Mr Bruce Franzen Executive Director

Mr Jeffrey Moore Managing Director

Mr Andrew Childs Non-Executive Director

Mr Wolfgang Zimmer Non-Executive Director

HIGHLIGHTS

Exploration

 Marymia

Field reconnaissance has confirmed the widespread distribution of prospective Yerrida and Earaheedy Group sedimentary rocks in Riedel’s tenements

Results from nearby exploration have greatly enhanced the potential for the discovery of:

• ─ Proterozoic sedimentary-hosted and structurally-controlled copper mineralisation, and;

COMPANY SECRETARY Mr Bruce Franzen

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

Postal Address PO Box 1559, West Perth WA 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

• ─ Archaean gold, copper and nickel deposits

Follow-up fieldwork planned for December Quarter

Corporate

 Cheritons East (E77/1223)

Completion of Cheritons East tenement disposal

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• Cash at September 30 2011 – $3.9M

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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.

The Company was incorporated on 9 April 2010 as a public company for the purpose of acquiring a portfolio of prospective exploration projects located in Western Australia from ADX Energy Limited ( ADX ), formerly AuDAX Resources Limited.

Riedel’s assets include a portfolio of gold, copper and nickel projects and significant land holdings in prospective areas in Archaean- and Proterozoic-age terranes of Western Australia. The Company has a mixture of early stage and advanced prospects, with an initial focus on the following four core Projects (see Figure 1) :

• Marymia;

• Millrose (Inferred Resources of 4.0Mt @ 2.4g/t Au for 309,000 oz);

• 1 2

• Cheritons Find ( Inferred Resources of 1.4Mt @ 2.4g/t Au for 108,000 oz), and;

• Mt Webb.

These Projects host Inferred Gold Resources and numerous advanced to conceptual copper, gold, nickel and copper-gold targets and are augmented with a number of additional prospects, including existing joint ventures, royalty agreements and free carried interests.

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Figure 1: Riedel Resources Project Locations

1 Under application 2 Sons of Gwalia – 29 November 2000

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Disposal of Cheritons East Tenement E77/1223

On August 12, 2011, the Company advised that it’s wholly owned subsidiary, AuDAX Minerals Pty Ltd ( ADXM ), had completed the agreement ( Agreement ) previously announced on 13 April, 2011, for the disposal of a 100% interest in the Cheritons East Tenement EL77/1223 ( Tenement ) to Silverstone Minerals Pty Ltd ( Purchaser ), a wholly owned subsidiary of Silver Stone Resources Limited ( Silver Stone ) (See Figure 1 for project location).

Material Agreement Terms

The Agreement was conditional upon ASX granting Silver Stone conditional approval to be admitted to the Official List of ASX, subject only to completion of the Agreement occurring and the satisfaction of such other conditions as may reasonably be within Silver Stone’s control.

The purchase consideration comprised:

• the issue to Riedel at completion of the Agreement of 500,000 fully paid ordinary shares in the capital of Silver Stone (ASX Code: SSZ ), and;

• $100,000 cash (plus any applicable GST), and;

• $10,000 for costs incurred by ADXM in respect of the Tenement.

The Agreement has now been completed, and Silver Stone hold a 100% interest in EL77/1223, known as Cheritons East.

Marymia Project Prospectivity Enhanced

On September 28, 2011, the Company advised that recent exploration results released to ASX from explorers with tenements adjacent to Riedel Resources Limited’s Marymia exploration tenements, including Sipa Resources Limited, Ventnor Resources Limited and Lodestar Resources Limited, have greatly enhanced the potential for the discovery of significant mineralisation in the Company’s Marymia Project area ( See Figure 2 for project location).

Background

Riedel holds two exploration licences (E52/2394 and E52/2395) covering an area of more than 425km[2] in the highly prospective Doolgunna-Thaduna region of the Proterozoic volcanosedimentary Bryah and Yerrida Basins and Archaean Baumgarten greenstone belt in the Marymia Inlier.

The exploration licences are located approximately 55 kilometres north-east of Sandfire Resources NL’s DeGrussa copper-gold mine, 12 kilometres east of Sipa’s Thaduna copper prospect and 12 kilometres east-north-east of Ventnor’s Green Dragon and Thaduna copper deposits.

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Figure 2: Marymia Project - Location Map

Geological Setting

Recent exploration results reported by Sipa and Ventnor highlighted the discovery of significant sedimentary-hosted (the Enigma Prospect) and structurally-controlled copper mineralisation (Thaduna and Green Dragon deposits) in Yerrida Group sedimentary rocks.

The Yerrida Basin is interpreted to be in faulted contact with the sedimentary and volcanic rock package belonging to the Bryah Basin, host to the rich DeGrussa copper-gold deposits, further illustrating the strongly mineralised nature of the entire stratigraphic sequence in the relatively under-explored Yerrida and Bryah Basins.

In addition to the prospective geology hosting the known DeGrussa and Enigma copper mineralisation, the deposits are also characterised by proximity to the regionally significant Jenkin Fault. This combination of favourable geology and structure may represent a highlyprospective exploration target area within a north-east trending, mineralised tectonostratigraphic corridor which trends into the south-western portions of Riedel’s Marymia tenements ( see Figure 3 for regional geological map) .

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Figure 3: Marymia Project - Regional Geological Map

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The exploration potential of Riedel’s tenements is further illustrated by significant RAB and RC drilling programmes being carried out by Lodestar Minerals Limited, either underway or planned, in close proximity to Riedel’s tenements to:

• Test VTEM geophysical targets, and;

• Test geochemical targets along strike from Sipa’s Enigma prospect which trend towards Riedel’s exploration licences ( see Figure 4 for location of geochemical anomalies) .

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Figure 4: Marymia Project – Geological Map highlighting geochemical anomalies

Exploration Targets

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.

Yerrida Basin

Yerrida Group sedimentary rocks are present in the south-western portion of Riedel’s tenements and in the eastern and northern areas prospective Proterozoic sedimentary rocks are also present, onlapping and marginal to the Marymia Inlier.

Since the recent DeGrussa, Enigma and Thaduna discoveries, the Proterozoic rock suite surrounding the Marymia Inlier has become increasingly important and Riedel’s tenements may hold potential for both sediment-hosted copper and SEDEX-type lead-zinc-silver deposits. Important precursors and associations for the formation of significant sedimenthosted and/or SEDEX deposits which are apparent in Riedel’s tenements include:

* FIGURES 3-4 SOURCE DATA: Sipa Resources Limited – ASX Release 19 August 2011 Lodestar Minerals Limited – ASX Release 13 September 2011

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• ─ Proximity to major regional structures to provide fluid pathways;

• ─ Proximity to long-lived, stable basement highs to focus fluid flow;

• ─ Prospective host sedimentary rocks, and;

• ─ Presence of igneous intrusives or deep-seated magmatic rocks to provide the heat source to drive long-lived hydrothermal systems.

Baumgarten Greenstone Belt

Rocks belonging to the Baumgarten Greenstone Belt (“BGB”) underlie the central portions of Riedel’s exploration licences. The greenstone belt forms the eastern domain of the Marymia Inlier, an Archaean granite-greenstone terrane which hosts numerous significant gold deposits and mines in the western portion (the Plutonic Well Greenstone Belt), including gold production of more than 4.7M ounces since production commenced in 1990.

Previous exploration over the eastern BGB is relatively sparse due to the relatively poor geological understanding of the area and the presence of extensive, weathered cover sequences which may mask the location of important regional structures and any associated buried deposits.

Most historical exploration work occurred between 1990 and 1996, primarily focused on targets such as shallow laterite-hosted and supergene gold in deeply weathered areas, or in areas characterized by outcrop and aeromagnetic targets, leaving large areas of the greenstone belt only poorly explored, or not at all. The BGB has been shown to be regionally anomalous in gold and the Company considers that the area holds strong prospectivity for structurally-controlled gold, copper and nickel deposits below cover or in deeply weathered regions.

Exploration Programmes

The Company is presently planning exploration programmes, commencing in the south-west parts of the tenements, including:

• ─ Geological and regolith mapping, as a precursor to geochemical sampling;

• ─ Systematic surface geochemical sampling where applicable;

• ─ Reconnaissance bedrock geochemical sampling using RAB/aircore drilling where necessary;

• ─ Airborne and/or ground geophysical surveys, and;

• ─ RC and/or diamond drilling of priority targets identified.

Corporate

The Company held Cash Reserves at 30 September 2011 of $3.9M .

On July 14, 2011, the Company held a General Meeting of Shareholders at 8:30am at “The Celtic Club”, 48 Ord Street West Perth WA. The Company had advised that all resolutions put to the meeting were passed unanimously on a show of hands.

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Planned Activities for Next Quarter

• Marymia – Geological and regolith mapping as a precursor to geochemical sampling and systematic surface geochemical sampling.

• Cheritons Find – Planning and budgeting for infill RC drilling for the purpose of increasing/upgrading the existing Inferred Gold Resources hosted by sheeted quartz lodes (drilling programme to commence after the tenement is granted).

• Project Generation – Utilise the strong local and overseas contact network available to the Company’s corporate and technical team to source appropriate project opportunities for acquisition or joint venture with the aim of generating Company growth and increased shareholder value.

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

Competent Person’s Statement

The information in this report that relates to Exploration Results and the Cheritons Find Mineral Resources is based on information compiled by Mr Jeffrey Moore, who is a Member of The Australasian Institute of Mining and Metallurgy. 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Exploration Targets, 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.

The information in this report that relates to the Millrose Project Mineral Resources is based on information compiled by Mr Allen Maynard, who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists, with 30 years’ experience in mineral exploration and evaluation and more than 25 years’ experience in mineral asset valuation. Mr Maynard accepts responsibility for the accuracy of the Mineral Resources information contained within this report. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 Maynard consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

About Riedel Resources Limited

Riedel Resources Limited is an Australian Based exploration Company established to explore for and develop gold and base metals mineralisation. The Company was incorporated on 9 April 2010 as a public company for the purpose of acquiring a portfolio of prospective exploration projects located in Western Australia from ADX Energy Limited (formerly AuDAX Resources Limited). Riedel successfully listed on the ASX on 31 January 2011.

Further information can be found on Riedel Resources at the Company’s website www.riedelresources.com.au .