RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2011

Jul 28, 2011

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ASX ANNOUNCEMENT 29 July 2011

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Quarterly Activities Report for the Period Ended 30 June 2011

Mr Bruce Franzen Executive Director

Mr Jeffrey Moore Managing Director

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

Mr Andrew Childs Non-Executive Director

Mr Wolfgang Zimmer Non-Executive Director

HIGHLIGHTS

Exploration

• Mt Webb – Exploration and access clearance negotiations underway with Central Desert Native Title Services Ltd

• Millrose – Independent expert review of Inferred Gold Resource underway to assist with planning exploration and development strategies

• Cheritons Find (E77/1793 under application) – Independent expert review of Redwing gold deposit in progress to determine exploration and development options

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

Corporate

• Cheritons East (E77/1223) – Sale Agreement negotiated, to be satisfied by cash and shares

• Key senior technical appointments – Mr Ed Turner (Exploration Manager) and Ms Jackie Murphy (Senior Geologist)

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• Completion of Non Renounceable Entitlement Issue of Options to raise $291,040 before costs

• Cash at June 30[th ] 2011 – $4.32m

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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 regions 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) :

• Mt Webb;

• Marymia;

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

• Cheritons Find.

These Projects host Inferred Gold Resources and numerous advanced to conceptual copper, gold, nickel and copper-gold targets and the core Projects 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

* Under application

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Disposal of Cheritons East Tenement E77/1223

Riedel’s wholly owned subsidiary, AuDAX Minerals Pty Ltd (ADXM), entered into a conditional agreement (Agreement) 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).

Material Agreement Terms

The Agreement is 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 comprises:

• the issue to Riedel at completion of the Agreement of 500,000 fully paid ordinary shares in the capital of Silver Stone; and

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

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

Upon completion of the Agreement, Silver Stone will hold a 100% interest in E77/1223, known as Cheritons East.

Non Renounceable Entitlement Issue of Options

The Company advised that in accordance with the Prospectus dated 12 November 2010, the Directors had resolved to make a pro rata non-renounceable offer to issue approximately 29,104,050 New Options under a new Prospectus dated 4 May 2011, at an issue price of $0.01 (1 cent) per New Option to raise approximately $291,040 before expenses.

The new options have an exercise price of $0.20 and an expiry date of 30 November 2012. The New Options are being offered on the basis of one (1) New Option for every two (2) Shares held on the Record Date of 18 May 2011.

Each Shareholders entitlement under the Offer was set out in the Entitlement and Acceptance Form that accompanied the Prospectus, which was mailed to Shareholders registered at the Record Date.

The Company applied for official quotation of the Options issued under the Prospectus.

On June 7, 2011, the Company announced that the Non-Renounceable Entitlement Issue of Options offered pursuant to the Prospectus lodged on 4 May 2011 has closed. The shortfall of the issue was 16,821,111 options. The Company subsequently announced on 1 July 2011 that the Directors had allotted the shortfall which completed the offer.

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Corporate

The Company held Cash Reserves at 30 June 2011 of $4.32M .

Pursuant to the completion of the Non Renounceable Entitlement Issue of Options, a further $168,211 was banked in July 2011.

On June 14, 2011, the Company despatched to Shareholders a Notice of General Meeting and Explanatory Statement to be held at 8:30am on July 14, 2011, at “The Celtic Club”, 48 Ord Street West Perth WA.

Planned Activities for Next Quarter

• Millrose - Ongoing studies into determining optimal exploration and development options for the advancement of the Millrose Gold Project

• Mt Webb - Exploration and access negotiations with Central Desert Native Title Services Ltd, representative for the Tjamu Tjamu and Ngururrpa Groups to facilitate the commencement of geophysical field activities

• Cheritons Find – Independent expert review of the Redwing gold deposit to assess the potential to increase/upgrade the existing Inferred Gold Resources and to assess future development options and plan optimal exploration strategies

• Marymia – Geophysical targeting review and planning for field activities

• Project Generation – Utilise the strong local and overseas contact network available to the Company’s corporate and technical team to generate 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 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

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Competent Person’s Statement

The information in this report that relates to Exploration Results 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 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 in Western Australia. 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 .