RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2011

Apr 28, 2011

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ASX ANNOUNCEMENT

29 April 2011

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Quarterly Activities Report for the Period Ended 31 March 2011

Mr Bruce Franzen Executive Director

Mr Jeffrey Moore Managing Director

Mr Andrew Childs Non-Executive Director

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

Mr Wolfgang Zimmer Non-Executive Director

COMPANY SECRETARY

HIGHLIGHTS

• Riedel successfully listed on the ASX on 31 January 2011 raising $5.22m;

• Appointment of Managing Director, Jeffrey Moore commenced on 4 April 2011;

• Acquisition of Minority Interests at Marymia Project;

• Completion of Farmin Joint Venture at Bronzewing South and Kara Tenements;

• Cash at Bank – as at March 31[st] 2011, Riedel had cash reserves of $4.56m.

During the quarter, the Company successfully listed on the ASX on 31 January 2011 raising $5.22m.

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

Riedel Resources Limited is an Australian-based exploration company established to explore for and develop mineral deposits.

The Company was incorporated on 9 April 2010 as a public company for the purpose of acquiring a portfolio of highly prospective exploration projects located in Western Australia from ADX Energy Limited ( ADX ), formerly AuDAX Resources Limited. Since incorporation, the Company has entered into a Share Sale Agreement with ADX to acquire ADX’s wholly owned subsidiary, AuDAX Minerals Pty Ltd ( ADXM ). This transaction was completed subsequent to Riedel listing upon the ASX.

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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

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( see Figure 1 )

• Cheritons East;

• Marymia;

• Millrose; and

• Mt Webb.

These Projects comprise an existing inferred gold resource, and numerous advanced to conceptual Cu, Ni, Au and Cu-Au targets.

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

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Appointment of Managing Director, Jeffrey Moore

During the quarter, Mr Jeffrey Moore was appointed Managing Director of Riedel. He is currently a Non Executive Director of the Company.

Mr Moore is a geologist with extensive technical, managerial and project finance experience in exploration and mining for publicly listed companies. During his career, he has generated and managed projects for commodities including precious metals, base metals, diamonds, nickel and industrial minerals throughout Australia, Central and South America, Africa and Asia.

Jeff has held previous directorships with Allied Gold Limited from 2004 to 2008 and Great Australian Resources Limited from 2005 to 2007 and is currently a Director of Abra Mining Limited (commencing 2006), a Director of Cougar Metals NL (commencing 2008), and a Director of Alchemy Resources Limited (commencing 2010). He is also a corporate member of the Australasian Institute of Mining and Metallurgy and a member of the Geological Society of Australia.

Jeff has commenced his new appointment with Riedel Resources on 4 April 2011

Acquisition of Minority Interests at Marymia Project

The Company advised that it had acquired through its wholly owned subsidiary AuDAX Minerals Pty Ltd ( ADXM ), the minority interests in the Marymia Project tenements EL’s 52/2394 and 52/2395.

Mr Franzen Executive Director of Riedel said that “This transaction effectively unencumbers these tenements yielding us a one hundred (100) per cent interest. We now have the currency to consider a number of exploration and development opportunities in the Doolgunna/Marymia Region.”

Background

Pursuant to a Heads of Agreement dated 12 April 2010 between ADX Energy and Galtrad Pty Ltd ( Galtrad ), in relation to tenements EL52/2394 and EL52/2395 (Marymia Project Tenements) (as assigned to ADXM on 20 May 2010), Galtrad is entitled to a ten (10) per cent free carried interest in relation to the portions of former EL52/592 and EL52/594 that are contained within the tenements. The free carry continues until a decision to mine, whereby Galtrad will contribute in accordance with its equity interest or dilute pro rata. Galtrad agrees to dilute its free carried interest to a five (5) per cent interest in relation to nickel and associated minerals should ADXM negotiate a joint venture with a third party for those commodities.

Sale and Purchase

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In consideration of the cash payment by ADXM to Galtrad (or its nominee), Galtrad agrees to sell and ADXM agrees to purchase and take assignment of all of Galtrad’s legal and beneficial right, title and interest in and to the Marymia tenements, free from encumbrances.

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Upon settlement of the transaction, ADXM will hold one hundred (100) per cent interest in relation to tenements EL52/2394 and EL52/2395 known as the Marymia Project.

The Marymia Project

The Marymia copper-gold project is located approximately 180km north-east of Meekatharra in Western Australia and lies within the Marymia Dome. It comprises an Archaean basement high, which hosts a complexly folded and faulted greenstone sequence which forms part of the major Proterozoic Capricorn Orogenic Belt. The Marymia Project Area is comprised of two major contiguous ELs, which overlie most of the Baumgarten Greenstone Belt ( See Figure 2 ) . EL52/2394 and EL52/2395 occupy a total area of approximately 431.37 km2. The project area is situated on the Ned’s Creek and Marymia pastoral leases and is approximately 50km north east from Sandfire Resources Ltd’s recently discovered DeGrussa copper-gold deposit, with tenements also directly overlying the highly prospective Jenkin fault.

Existing exploration targets include structurally controlled gold and copper-gold, magmatic nickel-sulphide and base metals mineralisation. Previous exploration has consisted of acquisition, processing and interpretation of remote sensing data, geological mapping, soil, lag and rock chip sampling, RAB and limited RC and diamond drilling.

“We are extremely fortunate to hold 431km2 of tenements overlying a major structural feature in the Jenkin fault in arguably Australia’s most exciting major emerging multi commodity province”, Mr Franzen said. “These tenements have been overlooked by investors in recent years due to the fact that these assets were shelved by the former owners (ADX Energy Limited) ambitions to pursue oil & gas exploration. This is a great opportunity for the Company to explore in such a prospective area that has seen little exploration in more than a decade”.

“Our exploration program at Marymia is to conduct airborne geophysical surveys, ground geochemical work and electromagnetic surveys with a view to be drilling as soon as possible. We plan to leverage from a rapidly evolving regional geological understanding of the area,” Mr. Franzen said.

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Figure 2: Marymia Regional Geology with Project Area Tenements

Completion of Farmin Joint Venture Agreement at the Bronzewing South and Kara Tenements

The Company advised that it had completed a new joint venture agreement over its Bronzewing South and Kara tenements E36/215, E36/623, E36/509, E36/734, and M36/670 with Navigator Resources Limited ( Navigator) through its wholly owned subsidiary AuDAX Minerals Pty Ltd ( ADXM ).

Mr Franzen Executive Director of Riedel said that “The proximity of these tenements to the Bronzewing Mill, and participation by Navigator as partner and manager, places us in a strong position to monetise any further exploration success.”

Background

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Navigator (Bronzewing) Pty Ltd ( Navigator ), ADX Energy Limited ( ADX ) and Hot Holdings Pty Ltd ( Hot Holdings ) are parties to a Farmin Joint Venture Agreement in relation to E36/215, E36/623 and E36/509 ( Bronzewing South/Kara Tenements ) dated 22 August 2007 ( Previous Joint Venture Agreement ) (as assigned to ADXM on 20 May 2010).

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New Farmin and Joint Venture Agreement

On 14 March 2011 (being the commencement of the farmin), the parties entered into a new agreement between Navigator, ADXM (instead of ADX) and Hot Holdings ( New Joint Venture Agreement ), which replaces the Previous Joint Venture Agreement. The New Joint Venture Agreement amends some of the original farmin terms, expands the number of tenements to include the Delaney Well tenement (being E36/734) and an additional Bronzewing South tenement (being M36/670) in addition to the original Bronzewing South/Kara Tenements (collectively, the Tenements).

Under the New Joint Venture Agreement, the material terms are:

• a) (Earn in): Navigator will be entitled to earn a 51% joint venture interest (Initial Interest) by incurring expenditure of $1 million on the Tenements within 4 years from the commencement date of the New Joint Venture Agreement (Initial Expenditure). The Initial Expenditure commences from 1 April 2010. Navigator will be entitled to earn a further 19% joint venture interest (Further Interest) (to acquire a total joint venture interest of 70%) by incurring further expenditure of $1 million on exploration within 2 years after earning the Initial Interest.

• b) (Minimum expenditure - Initial Interest): Navigator may not withdraw from the New Joint Venture Agreement prior to earning the Initial Interest unless it has incurred minimum expenditure of $250,000, of which $50,000 must be expended on E36/734. After Navigator earns the Initial Interest the ownership of all the Tenements will be Navigator 51% and ADXM 49%.

• c) (Minimum expenditure – Further Interest): If Navigator elects to earn the Further Interest, Navigator may not withdraw from the farmin for the Further Interest unless it has incurred a minimum expenditure in connection with the farmin of the Further Interest of $250,000, of which $50,000 must be expended on E36/734.

• d) (ADXM Free carried): If Navigator earns a 70% interest, ADXM will be free carried on all further exploration up to commencement of mining on each Tenement and otherwise the parties will contribute to Joint Venture costs in proportion to their interest and dilution provisions apply.

• e) (Pre-emptive rights): Normal pre-emptive conditions apply.

The Bronzewing South/Kara Project

The Bronzewing South/Kara Project is located within the Yandal Greenstone Belt approximately 65km north-east of Leinster and immediately south of the Bronzewing Mine site (See Figure 1) . It includes tenements E36/734, E36/215, E36/623, M36/670, and E36/509.

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To date, work at this Project has included: prospecting, airborne magnetic / DTM / radiometric surveys, ground electromagnetic surveys, regolith mapping, geological mapping, rock chip sampling, soil and lag sampling surveys, RAB / Aircore / RC and diamond drilling.

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Until the discovery of the Bronzewing Mine in the mid 1990s, relatively little work had been done on the area. Since the grant of E36/215 in 2002, the area has been explored by Newmont Yandal Operations Limited “Newmont” , ADX, Independence Group NL “Independence” and View Gold NL / Navigator.

While results have generated a number of interesting anomalies and confirmed the geological prospectivity of the area, they have been disappointing in that they have not delivered a significant open pitable oxide resource. Model-driven exploration by Newmont and Independence, while generating a number of gold and nickel sulphide targets, meant that these companies did not follow up a number of targets.

The area is still considered to have excellent potential to host a small to moderate blind underground prospect. The area is under drilled relative to other areas within the eastern Goldfields and the Yandal Belt in particular. Due to its proximity to the Bronzewing Gold Mine, it is probable that material from any small resources would best be treated at the Bronzewing mill and is therefore best managed and explored by Navigator (Bronzewing) Pty Ltd, which owns the Bronzewing plant.

Planned Activities for Next Quarter

•  Data review, economic modelling, and budget preparations for field program at Millrose Project

•  Completion of desktop geophysical review, commencement of gravity surveys and geochemical sampling at Mt Webb Project

• Completion of geophysical review and preparations for field program at Marymia Project

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

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 highly 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 .

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