RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2012

Oct 29, 2012

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ASX ANNOUNCEMENT

30 October 2012

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Quarterly Activities Report for the Period Ended 30 September 2012

Mr Jeffrey Moore Managing Director

Mr Bruce Franzen Executive Director

Riedel Resources Limited (“Riedel” or “the Company” , ASX: RIE) is pleased to present its September Quarter 2012 Activities Report:

Mr Andrew Childs Non-Executive Director

EXPLORATION HIGHLIGHTS

Marymia

• Over 6,000 metres of RAB/aircore drilling is planned to test seven new high priority copper, gold and/or base metals targets with coincident lithological and structural settings prospective for significant mineralisation.

Burkina Faso

• Numerous new gold geochemical anomalies delineated by auger drilling at Gonsin , including peak values of 1,939 ppb Au, 546 ppb Au, 541 ppb Au and 274 ppb Au.

• Significant northeast-southwest trending anomalous gold zone delineated in 7 kilometre long and 1.5 kilometre wide structural corridor at Gonsin.

• Numerous new gold-in-soil geochemical anomalies delineated by surface soil sampling at the Tagou , Keri and Moaga Projects.

• Significant assay results include 2,950ppb Au, 450ppb Au and 416ppb Au (Tagou), 159ppb Au (Keri) and 74ppb Au (Moaga).

COMPANY SECRETARY

Mr Bruce Franzen

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

Postal Address PO Box 1559 West Perth Western Australia 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

• Scout drilling around artisanal workings at Tagou returned promising results including 4m @ 2.60 g/t Au from 49m in TGRC011 (including 1m @ 9.79 g/t Au) , 11m @ 0.84 g/t Au from 28m in TGRC010 (including 2m @ 2.00 g/t Au) and 2m @ 2.44 g/t Au from 90m in TGRC009.

CORPORATE HIGHLIGHTS

• Issue of 16,263,316 shares at an average issue price of $0.075 per share to Sophisticated and Professional Investors to raise $1.22M .

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• General Meeting of Shareholders held on 27 September 2012, shareholder approval obtained for the ratification of prior issue of 8,131,658 shares to Sophisticated and Professional Investors.

• Annual General Meeting of Shareholders scheduled for 8:30 am, 12 November, 2012 at the Celtic Club, 48 Ord Street West Perth.

• Cash at 30 September 2012 - $1.0M .

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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 terranes of Western Australia and the rights to acquire five Permits in Burkina Faso with high prospectivity for Proterozoicage gold mineralisation (see Figure 1).

The Company has a mixture of advanced and early stage prospects, with an initial focus on four core Projects:

• Marymia (copper, gold, nickel and base metals) ;

• Burkina Faso (gold and copper) ;

• Cheritons Find (gold -[1] Inferred Resources of 1.4Mt @ 2.4g/t Au for 108,000 oz) ;

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

Furthermore, the Western Australian 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: Western Australia and Burkina Faso (West Africa) Project Locations

1 Sons of Gwalia – 29 November 2000

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WESTERN AUSTRALIA

MARYMIA PROJECT

Exploration Activities

During the Quarter Riedel completed a comprehensive review of 28 copper, gold, base metals and nickel targets which were identified from the results of geochemical soil sampling and geological mapping completed during 2011-2012, combined with the results of previous drilling and geophysical surveys within the Marymia Project area (see Figure 2 for project location) .

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Figure 2: Marymia Project - Location Map

Following the review, the targets were ranked on the basis of prioritising those which demonstrated the highest potential for the discovery of economic copper, gold and/or base metals mineralisation by cost effective shallow RAB and /or aircore drilling.

Accordingly, Riedel plans to test seven high priority targets which are prospective for copper/base metals and/or gold with an initial (phase 1) programme of approximately 6,200 metres of RAB and aircore drilling.

Target Selection

The Company has previously explained how the understanding of common associations of minerals and metals in unweathered rocks; for example gold-arsenic-antimony, coppermolybdenum-bismuth and zinc-indium; and the recognition of their near-surface weathered products and anomalies, greatly assists with the interpretation and targeting of underlying or near-by primary mineral deposits (ASX announcement 12 July 2012) .

Based on these key geochemical pathfinder relationships, numerous new high priority areas prospective for copper, gold and/or base metals mineralisation were identified from the

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results of geochemical soil sampling during 2012. The anomalies represent high-order targets with considerable potential for the discovery of mineral deposits. Furthermore, previously identified geochemical anomalies, where follow-up exploration was unsuccessful in locating associated minerals deposits, may have represented false or transported anomalies.

The Company also considers that a strong understanding of sub-surface geology and the associated structural setting is necessary to complement soil geochemical data analysis. A reinterpretation of detailed aeromagnetic data has contributed to the target review process along with the results of recently completed detailed geological mapping.

Also resulting from this review were several targets which were confirmed as very-high priority due to previous significant drill intersections, including a target which returned a drilling intercept of 5m @ 4.87g/t Au from 239 metres depth. This and similar targets will be tested with RC and diamond core drilling in a separate programme which will be partly funded by the grant of $150,000 for direct drilling costs pursuant to the Royalties for Regions Co-funded Drilling initiative.

First-Pass Drilling Targets

Seven high priority targets have been selected for RAB and aircore drilling, variously prospective for copper, gold and/or base metals, following the completion of Heritage surveys. These surveys are presently scheduled to occur in late October 2012.

Approximately 6,200 metres of drilling is planned for this first-pass programme and the rig may be retained and the programme extended if the initial results and geological observations justify further work. Target details and locations are highlighted in Figure 3. A strong bedrock copper geochemical anomaly trending into the south-west corner of the Project area which highlights the potential of Targets 12 to 14 is shown in Figure 4 and a summary of each of the seven targets follows:

Target 1

Copper/base metals target located near the northern boundary of the Project area. Recognised as a coincident molybdenum, arsenic and antimony soil geochemical anomaly occurring within Proterozoic sedimentary rocks of the Yelma Formation. There has been no previous exploration over this target. Approximately 10 vertical RAB/AC drill holes for a total of 500 metres are planned to test this anomaly.

Target 12

Copper/base metals target located in the south-west corner of the Project area. Identified from a multi-element bismuth, molybdenum, indium, arsenic and gold soil geochemical anomaly coincident with a north-west trending structural lineament and the Rooney Syncline and hosted within the Proterozoic Juderina Formation. There has been no previous exploration over this target. Approximately 20 vertical RAB/AC drill holes for a total of 1,000 metres are planned to test this anomaly.

Target 13

Copper/base metals target located in the south-west corner of the Project area. Recognised as a bismuth soil anomaly coincident with the Rooney Syncline and hosted within the Proterozoic Juderina Formation. There has been no previous exploration over this target.

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Approximately 14 vertical RAB/AC drill holes for a total of 1,400 metres are planned to test this anomaly.

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Figure 3: Marymia Project - Highest priority targets selected for RAB/aircore drilling

Target 14

Copper/base metals target located near the south-west corner of the Project area. Identified from a coincident molybdenum, bismuth and copper soil anomaly occurring proximal to the western flank of a porphyritic rhyolite dome and/or high-level intrusion. There has been no previous exploration over this target. Approximately 20 vertical RAB/AC drill holes for a total of 1,000 metres are planned to drill test this anomaly.

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Figure 4: Marymia Project – Location of high priority copper/base metals targets, pathfinder (bismuth) anomalies and regional setting

Target 16

Gold and base metals target located in the south-east part of the Project area. Identified from a multi-element indium, bismuth, arsenic and gold soil anomaly coincident with a north-east trending structural lineament. Occurs within Proterozoic Yelma Formation sedimentary rocks onlapping the Archaean Baumgarten Greenstone Belt. There has been no previous drilling over this target. Approximately 24 vertical RAB/AC drill holes for a total of 1,200 metres are planned to drill test this anomaly.

Target 24

Gold target located in the central part of the Project area within the Baumgarten Greenstone Belt. The target was defined by a strong arsenic soil geochemical anomaly coincident with north-east trending structural lineaments. There has been no previous drilling over this target. Approximately 20 angled RAB/AC drill holes for a total of 1,000 metres are planned to drill test this anomaly.

Target 25

Gold target located in the central part of the Project area within the Baumgarten Greenstone Belt. The target was defined by an arsenic soil geochemical anomaly coincident with northeast trending structural lineaments and sub-parallel north-northeast structural lineaments. Previous drilling returned anomalous gold values, however, subsequent reinterpretation of the drilling data indicates that the target may have been ineffectively tested and that significant primary gold potential remains. Approximately 16 angled RAB/AC drill holes for a total of 800 metres are planned to drill test this anomaly.

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WEST AFRICA

BURKINA FASO PROJECTS

Exploration Activities

Gonsin Project

During the quarter, all of the assay results from a previously completed 833 hole auger drilling programme targeting gold mineralisation below transported cover material in the north-east part of the Gonsin Permit were received. A total of 5,995 metres of drilling was carried out ( see Figures 5 & 6 ).

The interpretation of these results has generated numerous gold anomalies in a northeastsouthwest trending zone over a length of more than seven kilometres within the volcanosedimentary sequence in the north-eastern part of the project area. Some of the anomalies are characterised by highly significant results for gold, including 546 ppb Au, 541 ppb Au and 274 ppb Au . These results compliment previously announced significant auger drilling results, including 498 ppb Au and 335 ppb Au .

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Figure 5: Gonsin Project - Auger drilling area and Tenement Map

Further anomalies, with a peak gold value of 1,939 ppb Au , have also been delineated outside of this corridor to the east and west ( see Figure 6 ). These anomalies may be representative of previously undetected mineralised zones trending sub-parallel to the mineralised Kougtanga Prospect veins and associated geochemical soil anomalies, or extensions to these zones. Summary statistics for auger drilling geochemical sample results are detailed in Table 1.

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The highest priority anomalies warrant aircore drilling to test for the presence of primary mineralised quartz veins and/or mineralised structures and this work is planned for the forthcoming field season.

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Figure 6: Gonsin Project - Auger drilling and soil sampling results

To ensure that the optimal gold geochemical sample horizon was selected in each of the auger drilling holes, an additional 357 auger drilling samples were collected from 48 of the auger holes to validate the sample interval selected in the original sampling programme. Samples were collected from each down-hole metre of the auger holes and submitted to ALS Global (Ouagadougou) for analysis by the same LEACHWELL assay method (Au-AA15a) as the original samples [2] .

The full-hole results were compared with the original sample interval to check whether a more reliable or more anomalous horizon exists within the regolith, which could provide a preferential interval to test for gold mineralisation. It was subsequently determined that the original interval sampled in each hole, equating to the first metre of identifiable in-situ material, provides the most representative and reliable results.

Tagou Project

During the Quarter all of the assay results from 4,705 soil geochemical samples previously collected were received.

The interpretation of this data generated numerous strong gold-in-soil anomalies and in many instances, the anomalies are coincident with significant interpreted underlying structures. In the central portion of the Permit a broad 15 kilometre x 7 kilometre zone is characterised by

2 Refer to Table 1 Notes for detailed sample analysis methodology.

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elevated gold-in-soil geochemistry, representing a key focus for follow-up gold exploration including geophysical surveys and drilling.

The most significant results include 2,950ppb Au, 450ppb Au, 416ppb Au, 229ppb Au, 180ppb Au, 175ppb Au, 162ppb Au and 116ppb Au (see Figure 7) .

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Inset Area Map
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Figure 7: Tagou Project – Gold-in-soil geochemical Figure 8: Tagou Project - RC drillhole traces in the anomalies southern area and rock chip sample results

In June 2012 the Company secured a Reverse Circulation (RC) drill rig to complete 16 reconnaissance holes for 1,826 metres to test the width and tenor of near-surface goldbearing quartz veins identified by past and present artisanal mining sites.

All assay results have now been received from the programme, and 8 of 10 holes that targeted veins on the southern zone intersected gold mineralisation within granite or dolerite hosted quartz vein or veins.

Best results include 4m @ 2.60 g/t Au from 49m in TGRC011 (including 1m @ 9.79 g/t Au) , 11m @ 0.84 g/t Au from 28m in TGRC010 (including 2m @ 2.00 g/t Au) and 2m @ 2.44 g/t Au from 90m in TGRC009 (see Figure 8, Table 2) .

The drilling results highlight the spotty or nuggety nature of gold which exists in the northsouth trending quartz veins. It is encouraging to note that gold mineralisation has been shown

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to continue to depths of at least 100 metres in the veins and in low grade mineralised envelopes, as highlighted in the drilling intercept of 0.84 g/t Au over a width of 11 metres in TGRC010.

Since the completion of the drilling programme, results from geochemical sampling over the entire Tagou Project area have been received and the interpretation of all of the geochemical sampling and drilling results indicates that the preferred northeast-southwest structural trend (which has not yet been drilled) holds the best potential to yield gold mineralisation over significant widths. Several strong geochemical anomalies, which may reflect this preferred structural trend, have been identified and these anomalies will be further defined by mapping and magnetic survey work prior to drill testing.

Keri Project

During the Quarter all of the assay results from a soil geochemical sampling programme, previously completed at the Keri Project, were received. A total of 1,182 samples were collected at 100 metre intervals along east-west lines spaced 400 metres apart before the programme was terminated due to the onset of seasonal rains. The programme focused on the western half of the Permit which covers a NNE-SSW trending structural corridor and greenstone rock sequence.

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Figure 9: Keri Project - Geochemical soil sample anomalies

Numerous significant gold-in-soil geochemical anomalies were discovered (see Figure 9) , including a 1.8 kilometre long anomaly peaking at 159 ppb Au, which is coincident with a gabbro–felsic volcanic contact in the north-western portion of the sample area. The anomaly is also coincident with an interpreted demagnetised zone that appears to be related to a significant jog in a regional structure.

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Moaga Project

During the Quarter all of the assay results from a soil geochemical sampling programme previously completed were received. The programme comprised 436 sample locations over a NNE-SSW trending structural corridor which traverses the mid-west part of the Permit.

Samples were collected at 100 metre intervals along east-west lines spaced 400 metres apart.

Numerous anomalous results, including 74 ppb Au and 41ppb Au, were returned from the central part of the sampled area (see Figure 10) . The sampling programme will be expanded into other parts of the Permit following the wet season.

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Figure 10: Moaga Project - Gold-in-soil geochemical anomalies

Planned Activities for Next Quarter

Marymia

• ─ Drill testing the 7 highest priority copper, gold and/or base metals targets with approximately 6,200 metres of RAB and/or aircore drilling

Burkina Faso

• ─ RAB and/or aircore drilling of highest priority geochemical auger targets at Gonsin;

• ─ Follow-up geochemical soil sampling at the Tagou, Keri and Moaga Projects;

• ─ Complete first pass geochemical soil sampling and geological mapping programmes at the Galgouli South Project.

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Corporate

On 13 August 2012, the Company announced that it had completed a share placement to sophisticated and professional investor clients of DJ Carmichael Pty Limited in Australia and the United Kingdom.

The placement raised $1.22 million before costs, with the issue of 16,263,316 ordinary shares at an average issue price of $0.075 per share as follows;

• ─ Tranche 2 Placement of 8,131,658 shares at an issue price of $0.115 per share to raise $0.94 million before costs

• ─ Further placement of 8,131,658 shares at an issue price of $0.035 per share to raise $0.28 million before costs

Tranche 2 of the Placement, being 8,131,658 shares were issued in accordance with preapproval by shareholders received at a General Meeting held on 15 June 2012.

The further placement, being 8,131,658 shares were issued under the 15% capacity under ASX Listing Rule 7.1. It was subsequently put to shareholders and ratified at a General Meeting held on 27 September 2012.

The Annual General Meeting of Shareholders has been scheduled for 8:30am 12 November 2012, at The Celtic Club, 48 Ord Street, West Perth.

The Company held Cash Reserves at 30 September 2012 of $1.0M .

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 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.

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

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TABLE 1: Gonsin Project - auger drilling geochemical sample results – statistical analysis

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Element Maximum Minimum Total No. of Assay Value Ranges (ppb Au) and Map
Assay Assay Auger Contour Intervals
Value (ppb) Value (LLD) Samples
Percentile Assay Values No of
(ppb)
Ranges Corresponding Samples
to Percentile Within
Ranges Percentile
(ppb Au) Range
Au (gold) 1,939 <1 833 >99 >77 8
97 - 99 24 - 77 25
95 - 97 17 - 24 42
90 - 95 9 - 17 83
75 – 90 4 - 9 208
50 – 75 2 - 4 417
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LLD refers to “lowest level of detection” applicable to the relevant analytical technique.

First pass auger drilling geochemical sampling has been completed on 100 metre intervals on east-west oriented lines, spaced at 400 metres. One sample is collected from each auger drill hole from the first metre of in-situ material which is located below the transported overburden. Each sample is submitted for analysis by the LEACHWELL assay method for gold (Au-AA15a) at the ALS Global laboratory in Ouagadougou. The LEACHWELL method is particularly suitable for the detection of gold in soil or oxidised horizons. Samples are oven dried and pulverised so that >85% of the sample is less than 75 microns (0.075mm) in size. Samples are split and a sub-sample of 0.5kg of material is leached in a cyanide solution (LEACHWELL reagent) and the gold content determined by an AAS (atomic absorption spectroscopy) finish.

TABLE 2: Tagou Project - significant RC drilling intercepts

Hole ID	Northing	Easting	Hole	From	To	Width	Grade
			Depth
	m(N)	m(E)	(m)	(m)	(m)	(m)	(g/t Au)
TGRC001	1,297,195	219,792	150	79	82	3	0.66
TGRC002	1,297,086	219,792	126	83	89	6	0.61
TGRC004	1,297,604	219,749	150	71	72	1	1.10
TGRC009	1,297,125	219,712	126	90	92	2	2.44
TGRC010	1,297,237	219,752	60	28	39	11	0.84
TGRC011	1,297,342	219,786	100	49	53	4	2.60
including				49	50	1	9.79
TGRC012	1,297,435	219,784	88	24	25	1	2.00
TGRC013	1,297,518	219,800	60	28	29	1	1.63

• N.B.: Gold results reported are for consecutive one metre drilling intercepts with assay result ≥0.3 g/t Au, allowing for maximum internal dilution of 2 metres.

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Soil Geochemical sampling and assaying methodology for Burkina Faso

First pass soil sampling has been completed on 100 metre intervals on east-west oriented lines, spaced at 400 metres. A 100-200 gram sample is collected from the “B horizon” at approximately 10 centimetres depth at each sample location and sieved using a 10 mesh sieve. This sample is then placed into wet strength bags. Standards are inserted into the sample stream at a rate of 1 in 20 samples and field repeats are collected at a rate of 1 in 40 samples.

Samples are despatched to the ALS Global Laboratory in Perth, Western Australia and analysed for gold. The entire sample is pulverised to 85% passing 75 micron or better and split using a riffle splitter. A 25 gram sample is analysed for gold by method Au-TL43m which includes an Aqua Regia extraction with ICP-MS finish. Reporting limits are between 0.001 and 1.0ppm Au.

RC drilling sampling and assaying methodology for Burkina Faso

Samples are collected as four metre spear composite samples as well as single metre riffle split samples, when identified as geologically significant. All significant results reported are from single metre split samples. Standards are inserted into the sample stream at a rate of 1 in 40 samples and duplicates are also collected at a rate of 1 in 40 samples (alternating with the standards so a standard or duplicate is used every 20 samples). Samples are submitted to the ALS Global Laboratory in Ouagadougou, Burkina Faso and assayed for gold using method AuAA26. The entire sample is pulverised to 85% passing 75 micron or better, then split so that 50 grams of sample material can be collected for analysis by fire assay with an AAS finish.

Competent Person’s Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ed Turner, who is a Member of The Australian Institute of Geoscientists. Mr Turner is a full time employee of Riedel Resources Limited. Mr Turner 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 Turner consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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