RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

31 July 2012

Quarterly Activities Report for the Period Ended 30 June 2012

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

EXPLORATION HIGHLIGHTS

Marymia

• Numerous multi-element soil geochemical pathfinder anomalies prospective for copper, gold and/or base metals mineralisation delineated, including:
  • ─ Strong arsenic anomalies defined gold targets;
  • ─ Large molybdenum and bismuth anomalies prospective for copper along trend from Sipa's Enigma copper prospect, and;
  • ─ Strong indium, bismuth and arsenic anomaly prospective for gold and/or zinc mineralisation.
• $150,000 grant from the Royalties for Regions Co-funded Drilling initiative awarded for diamond core drilling of high priority gold targets at the Chardonnay and Baumgarten's South prospects.

Burkina Faso

• High-grade gold vein rock chip sample results from Tagou, including 63.8g/t Au, 47.0g/t Au, 11.2g/t Au, 8.78g/t Au and 6.22g/t Au.
• 1,826 metre RC drilling campaign completed at Tagou Project.
• 833 auger drill holes for 5,995 metres completed at Gonsin Project with excellent initial gold assay results including 546 ppb Au and 541 ppb Au.
• 6,062 soil geochemical samples collected at Tagou, Moaga and Keri Projects.

Cheriton's Find

Exploration Licence 77/1793 granted, (contains Inferred Mineral Resources of 1.4Mt @ 2.4g/t Au for 108,000 oz of gold).

CORPORATE HIGHLIGHTS

• Issue of 8,608,704 Tranche 1 shares at $0.115 per share to Sophisticated and Professional Investors to raise $990,000.
• General Meeting of Shareholders held on 15 June 2012; shareholder approval obtained for the ratification of Tranche 1 shares issue, and the issue of future Tranche 2 shares.
• Cash at 30 June 2012 $0.9M.

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Mr Jeffrey Moore Managing Director

Mr Bruce Franzen Executive Director

Mr Andrew Childs Non-Executive Director

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

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 the following 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.

Figure 1: Western Australia and Burkina Faso (West Africa) Project Locations

1 Sons of Gwalia – 29 November 2000

WESTERN AUSTRALIA

MARYMIA PROJECT

Exploration Activities

Infill Soil Geochemistry Sampling

During the Quarter, exploration programmes including the collection of 3,873 infill soil geochemical samples and detailed geological mapping over a further ten square kilometres were carried out over previously unexplored or underexplored areas within the Company's Marymia Project area (see Figure 2 for project location).

Figure 2: Marymia Project - Location Map

The infill soil sampling focused on the highest priority areas within the tenements and samples were analysed for gold and a multi-element suite totalling 48 elements. As expected, positive results were received, which resulted in much better anomaly definition.

The completion of infill soil sampling during the Quarter finally enabled the Company to comprehensively interpret the results of all of the soil sampling work carried out within the project area during 2011/2012, and the findings are detailed below.

Soil Geochemical Sampling and Interpretation Methodology

Surface soil geochemical sampling over weathered in-situ regolith within the Marymia Project area commenced in November 2011 with orientation programmes designed to compare and contrast the results of several sampling techniques. This approach was taken to determine the most effective sampling methodology. Areas with significant transported cover or alluvial material were excluded from this programme in favour of future drilling to test for geochemical anomalism below the transported cover.

As a result of this orientation work it was concluded that soil sample material sieved to a size of less than 2 millimetres, with samples spaced 400 metres by 200 metres apart, should effectively discriminate areas prospective for the discovery of near-surface or buried copper, gold and base metals mineral deposits.

Interpretation of all 4,200 first-pass, multi-element soil geochemical assay results by consultant geochemist Scott Halley and Riedel geologists has identified numerous high priority areas prospective for copper, gold and/or base metals mineralisation. Closespaced, follow-up soil geochemical sampling2 has been undertaken within these priority areas to better define the trend and tenor of the soil anomalies prior to the commencement of drilling.

At Marymia, the near surface regolith or soil profile is typically highly oxidised and weathered, in some instances to depths in excess of one hundred metres. Frequently, weathering occurs with lateritisation, a process where near-surface rocks become strongly oxidised and enriched in iron to the extent that many elements and metals of interest, including copper and gold, become highly mobile and leached or dispersed in the near-surface environment.

The recognition and understanding of the effects of these processes is therefore crucial to the meaningful interpretation of surface soil geochemical assay results at Marymia.

To compensate for the loss or dispersion of key metals of economic interest, including copper and gold, Riedel has adopted a multi-element approach where key "pathfinder" elements were identified to highlight surface and near-surface soil geochemical anomalies. Although these pathfinder elements are relatively stable in the near-surface weathered environment, in some instances those pathfinder elements may become preferentially enriched in the presence of iron.

At Marymia, this iron enrichment has greatly complicated the interpretation of the soil anomalies. Goethite, an iron-rich mineral, will scavenge most pathfinder elements leading to soil sample assay results which may be strongly elevated. Without proper recognition of this process, it is possible that many anomalies may be false due to the high goethite concentration at that locality.

To determine true anomalism, the concentration of the element of interest needs to be normalised, or adjusted, against the concentration of iron in the sample material to enable the meaningful recognition of pathfinders as proxies for the presence of important associated minerals, including copper, silver and zinc. This relationship is particularly relevant for the gold pathfinder element arsenic.

Summary

The understanding of common associations of minerals and metals in unweathered rocks, for example gold-arsenic-antimony, copper-molybdenum-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.

As this approach has not been previously used in the Marymia Project area, the Company believes that previously identified geochemical anomalies where exploration was unsuccessful

2 See detailed notes (attached) "Soil Geochemical Sampling Methodology".

in locating associated minerals deposits, may have represented false or transported anomalies.

Riedel believes that the anomalies recognised by the key pathfinder elements, referred to above, represent high-order targets and that considerable potential exists for the discovery of mineral deposits including copper, gold/silver and base metals.

A strong understanding of sub-surface geology and the associated structural setting is also necessary to complement soil geochemical data analysis so that the best drilling targets can be recognised and the Company has recently carried out detailed mapping programmes to strengthen target generation.

Interpretation of Gold Pathfinder Anomalies

At Marymia, primary gold mineralisation within the Baumgarten Greenstone Belt is associated with the pathfinder elements arsenic (As), lead (Pb), copper (Cu), silver (Ag), bismuth (Bi), tellurium (Te) and antimony (Sb). Of these gold associated elements, arsenic occurs at the highest concentrations and is generally considered to be the most useful pathfinder, particularly when normalised against the concentration of iron. The following scatter plot (see Figure 3) shows arsenic values normalised against iron content, with anomalous values plotted in red.

Figure 3: Scatter plot of iron versus arsenic showing anomalous soil geochemical arsenic values

Figure 4 (below) highlights the distribution of arsenic anomalies plotted as a plan. This data highlights numerous strong arsenic anomalies that correspond to known gold mineralisation within the northern portion of E52/2394, at the Chardonnay, Champagne and Baumgarten's Reward Prospects.

Figure 4: Distribution of normalised arsenic soil geochemical anomalies and key gold prospect locations

Of particular interest are the interpreted southern extensions to these known gold prospects. These extensions are identified by strong arsenic anomalies that extend for several kilometres and are coincident with prospective structures that have not been previously drilled.

Several large arsenic anomalies have also been identified within E52/2395 that are untested for gold mineralisation.

In the central eastern portion of E52/2394 a strong bismuth anomaly (see Figure 5) is coincident with arsenic and indium anomalies which overlie an interpreted north-east trending structure. This geochemical and structural association is considered particularly prospective for gold mineralisation.

Interpretation of Copper and Base Metals Pathfinder Anomalies

At Marymia, the entire project area has been subjected to intense weathering, to considerable depths in some parts, and accordingly copper is unlikely to form significant in-situ anomalies in the near-surface environment due to dispersion and leaching. Therefore, the recognition of the key copper pathfinder elements molybdenum and bismuth in soil sample results can highlight underlying copper mineralisation. Both molybdenum and bismuth have a strong association with copper mineralisation in primary unweathered rocks and these pathfinder elements are much less mobile in near-surface, strongly weathered regions.

In the south-west portion of E52/2394 a distinct and strongly coincident molybdenumbismuth anomaly has been recognised (see Figures 5 and 6), which may point to underlying, primary copper mineralisation. These coincident anomalies partly overlie the Rooney's Syncline, a geological and structural feature which contains a thick sequence of prospective Proterozoic-age Yerrida Group rocks which also host Sipa Resources Ltd's Enigma copper prospect located 12 kilometres to the west.

Figure 5: Bismuth soil geochemical anomalies image and high priority copper, gold and zinc target locations

Soil geochemical sample assay results from the south-west portion of E52/2394 revealed highly anomalous molybdenum (up to 7.91 ppm) and bismuth (up to 2.28 ppm) compared to the low background concentration of these elements at Marymia (typically 0.5ppm Mo and 0.2 ppm Bi).

Figure 6: Molybdenum soil geochemical anomalies image and high priority copper target locations

The coincident occurrence of anomalous gold (up to 16 ppb), which is more than 16 times the regional background for gold of 1.0 ppb Au, is also considered to be significant because the

strength of molybdenum and bismuth anomalism in this highly leached environment may point to the existence of an extensive sub-cropping hydrothermal copper system. Gold mineralisation is also usually emplaced hydrothermally, adding further encouragement that significant minerals potential may exist in this area.

It is significant to note that Sandfire Resources NL's DeGrussa copper-gold mine, located 55 kilometres to the south-west (see Figure 2), was discovered by the recognition of surface geochemical anomalies enriched in gold and strongly depleted in copper.

A strong molybdenum anomaly prospective for copper mineralisation (see Figure 5) has also been delineated in the north-east portion of E52/2395. This area is underlain by the Proterozoic-age Yelma Formation near the basin margin and is adjacent to the regionally important Jenkin Fault.

The base metal zinc is highly mobile in a supergene environment, even more so than copper, however, the strongly zinc-associated element indium is far more stable within weathered regolith. Therefore, indium is considered to act as a strong pathfinder or proxy for zinc in highly weathered environments.

The following scatter plot highlights indium anomalies from the results of all of the assay values for indium plotted against the corresponding values for iron (see Figure 7).

Figure 7: Scatter plot of iron versus indium showing anomalous soil geochemical indium values

Of particular interest is the strong linear indium anomaly within thin Proterozoic-age Yelma Formation in the south-east part of E52/2394 (see Figure 8).

The Yelma Formation is interpreted to overlie the Baumgarten Greenstone Belt in this area and the coincident indium, bismuth and arsenic anomalies highlight potential for gold within the underlying Baumgarten Greenstone Belt as well as potential for zinc deposits within the overlying Yelma Formation.

Figure 8: Normalised indium soil geochemical anomalies and high priority gold and zinc target locations

Royalties for Regions Co-Funded Drilling Grant of $150,000

Riedel has been awarded a grant of $150,000 to supplement direct drilling costs associated with the testing of high priority gold targets at the Chardonnay and Baumgarten's South prospects under the Royalties for Regions Co-Funded Government-Industry Drilling Program.

The targets were generated following a reinterpretation of historic RAB, RC and diamond core drilling results and the structural setting at Baumgarten's South, Chardonnay and Champagne Prospects within the Baumgarten Greenstone Belt.

Previous drilling at Baumgarten's South/Chardonnay was mostly shallow (average depth less than 50 metres), however, depth to fresh rock is typically in the order of 60 to 80 metres. Although extensive zones of supergene gold were discovered from the shallow drilling work at the Baumgarten's Reward and the Champagne prospects, follow-up drilling to find the primary source of the gold mineralisation focused on zones beneath the supergene enrichment and may not have been sufficiently deep or effectively oriented.

Previous shallow drilling intersections at Chardonnay include 2 metres @ 6.26g/t Au from 32 metres depth in RB551, 2 metres @ 5.07g/t Au from 29 metres depth in RB773 and 4 metres @ 3.74g/t Au from 31 metres depth in RB705. Deeper diamond drilling completed at Chardonnay (BD1, BD2 and BD3) returned a result of 5 metres @ 4.87g/t Au from 239.24 metres depth in BD1. The Baumgarten's South quartz vein that recently returned a rock chip assay result of 56.6g/t Au has yet to be effectively drilled (see Figure 9 for rock chip location).

Previous shallow drilling at the Champagne prospect discovered an east-west trending zone of supergene gold, characterised by significant shallow intersections including 3 metres @ 9.53g/t Au from 51 metres depth in BRC23 and 2 metres @ 7.15g/t Au from 4 metres depth in RB620. Follow-up diamond drilling (BD4 - total depth 219 metres), oriented to the south to intersect the interpreted primary source, failed to detect any gold mineralisation, however, the Company now believes that the primary mineralisation may be hosted by a northeast trending dextral shear zone located about 100 metres to the west of BD4.

Interpretation of the historic mineralised drilling intercepts from the Marymia Project Baumgarten Greenstone Belt strongly support Riedel`s new structural interpretation and mineralisation model for the area. The Company plans to test for extensions to the mineralisation intersected in BD1, BD2 and BD3 and in associated structures with five diamond drillholes (see Figure 9 for planned diamond core drilling of Baumgarten's South-Chardonnay Prospects).

Figure 9: E52/2394 - Chardonnay and Baumgarten's South Prospects - Planned Drillholes

CHERITON'S FIND PROJECT

Background

On 14 May 2012, the Company announced that its 100%-owned Exploration Licence 77/1793 had been granted.

The exploration licence is located in the Forrestania-Southern Cross Greenstone Belt, approximately 48 kilometres south of St Barbara Limited's 2.2 Mtpa gold processing plant at Marvel Loch in the Eastern Goldfields Region of Western Australia (see Figure 10).

The tenement contains the Cheriton's Find (Redwing) gold deposit which hosts Inferred Mineral Resources of 1,400,000 tonnes @ 2.4g/t Au for 108,000 ounces of gold.

Figure 10: Cheriton's Find and Redwing Gold Deposit – Location and regional geological map

Geological Setting

Exploration Licence 77/1793 covers a west-north-west striking sequence of mafic and ultramafic rocks, flanking the south-western part of the Parker Range Dome (see Figure 10).

At the Redwing deposit, significant gold mineralisation has been discovered along a strike length of 500 metres and to a vertical depth of 160 metres. The mineralised deformation zone dips shallowly to the south and has a true thickness of between 5 metres and 30 metres although the host rock sequence and associated structural deformation zone extends for at least a further 2,500 metres to the south of Redwing.

Within the overall mineralised/deformation zone, free gold is hosted by a series of stacked, sheeted quartz veins ranging in thickness from one to four metres within alteration halos which are characterised by calc-silicate, carbonate, garnet and pyrite assemblages (see Figure 11).

Figure 11: Cheriton's Find – Redwing Gold Deposit Cross-Section – All lodes and drill traces projected to single section looking west.

Inferred Mineral Resources

In 2000, resource estimation work carried out by Sons of Gwalia Limited ("SOG") resulted in an Inferred Mineral Resource Estimate3 of 1,400,000 tonnes @ 2.4g/t Au for 108,000 ounces of gold at the Redwing gold deposit (see Table 1 below).

3 See detailed notes (attached) "Key inputs used for Inferred Mineral Resource estimation".

Material	ResourceCategory	Lower GoldCutoff(g/t Au)	Top GoldCut(g/t Au)	Tonnes	GoldGrade(g/t Au)	ContainedGold(oz Au)
Oxide	Inferred	0.5	20	30,000	2.3
Transition	Inferred	0.5	20	100,000	2.0
Primary	Inferred	0.5	20	1,270,000	2.5
TOTAL	Inferred	0.5	20	1,400,000	2.4	108,000

TABLE 1: Redwing Gold Deposit – Inferred Mineral Resources

Riedel has subsequently carried out a peer review of the Resource Estimate using independent expert Bob Annett Consulting. This work has validated the overall geological and structural methodology adopted by SOG and the general tenor of the tonnage, grade and metal (ounces) estimates which resulted from SOG's work. Sample locations, drilling sample recoveries and analytical methods are deemed acceptable for resource estimation purposes.

Planned Work Programmes

Riedel plans to complete infill drilling with 50 metre deep, angled reverse circulation drill holes on 40 metre by 40 metre centres to upgrade the classification of the upper 30 metres of the Redwing gold deposit to measured and indicated status for the purpose of facilitating open-pit mining studies and optimisations. The planned resource drilling programme will consist of 22 RC holes for a total of 1,100 metres of drilling.

The Company has also initiated discussions with other regional gold explorers and producers in relation to toll treatment and resource consolidation strategies.

Royalty

The Redwing gold deposit is subject to a 3.5% gross proceeds royalty, payable to St Barbara Limited and its associates.

WEST AFRICA

BURKINA FASO PROJECTS

Exploration Activities

Tagou Project

Commencing in late April 2012, exploration programmes completed during the Quarter include:

• ─ the collection of 119 rock chip samples, mostly from quartz veins;
• ─ the collection of 4,705 soil geochemical samples on 400 metre by 100 metre centres across all of the Tagou Permit area not previously sampled;
• ─ detailed geological mapping, and;
• ─ 16 RC drillholes for a total of 1,826 metres of drilling (results pending).

Exploration commenced at Tagou with 119 rock chip vein samples collected in conjunction with 1:5,000 scale geological mapping over an area of 65 square kilometres.

Samples were submitted to ALS Global (Ouagadougou) for gold analysis by Fire Assay Fusion with an atomic absorption spectroscopy (AAS) finish. Of the 62 rock-chip assay results returned to date, nine samples can be considered high-grade (>1g/t Au) including 63.8g/t Au, 47.0g/t Au, 11.2g/t Au, 8.78g/t Au, 6.22g/t Au and 3.43g/t Au (see Figure 12 for rock chip locations). Full assay results for the 62 rock chip samples processed to date in Ouagadougou are detailed in Table 2.

Figure 12: Rock chip and soil geochemical sample results for gold – Tagou Project

The high-grade gold assay results from Riedel's recent rock chip sampling work compliment previous sample results from the same area, including 65.5g/t Au, 28.0g/t Au and 14.3g/t Au.

Reverse circulation drilling comprising sixteen drill holes for a total of 1,826 metres of drilling was completed during the Quarter. The initial drilling targets were identified by positive rock chip sample results from outcropping quartz veins and the presence of extensive artisanal workings on the veins.

Three main areas were drill tested. Fourteen of the drill holes targeted a north–south trending structural corridor (see Figures 13 and 14) and two were drilled into a parallel structure approximately 400 metres to the west, identified by a coincident geochemical soil anomaly. The drill holes typically intersected quartz veining within granodiorite and diorite host rocks. Dolerite dykes occasionally occurred at the base of, or close to a chloritic alteration zone where the main mineralised structure was located.

Figure 13: Figure 14: Rock chip gold sample results & structural corridor Rock chip gold sample results & structural corridor

A total of 4,705 soil geochemical samples were collected on 400 metre by 100 metre centres in areas where no previous sampling had been undertaken. Assay results for 797 samples have been received so far, with encouraging initial results including 36ppb Au, 19ppb Au and 11ppb Au.

Each sample was sourced from the "B horizon" which lies below any surface organic material, sieved to minus 2mm in size in the field and approximately 150 grams of sample material was

collected and packaged for analysis. The samples were submitted to ALS Global (Ouagadougou) for transport to ALS Chemex (Perth) where the samples will be pulverised and assayed for gold by method Au-TL43. This method uses an aqua-regia digest with an ICP-MS finish. The pulps will be retrieved and tested with a hand-held NITON XRF analyser for multi element analysis for pathfinder elements.

Gonsin Project

In the northern half of the Gonsin Permit area, 833 auger holes were drilled for a total of 5,995 metres. The north-eastern part of Gonsin is interpreted to host multiple extensions to structures and shear zones that may control gold mineralisation in Cluff Gold PLC's 0.6M oz Kalsaka gold mine, which is located approximately 10 kilometres to the north-east of Gonsin. Auger drilling was preferred to soil sampling in this area as the depth of transported overburden is believed to increase to the north, possibly rendering surface soil sampling ineffective.

An auger sample is collected from the first metre of in-situ material in each hole and submitted to ALS Global (Ouagadougou) for gold assay by the LEACHWELL method. Assay results from 494 samples were received by 30 June 2012 with results for 339 samples still pending. Highly anomalous assay results for gold were returned from the first batch of samples, including 546 ppb Au and 541 ppb Au (see Figure 15).

Figure 15: Auger drilling and soil sampling results - Gonsin Project

Moaga Project

Exploration commenced at Moaga during June with the collection 436 soil geochemical samples. Sampling targeted a north-northeast/south-southwest trending structural corridor and assay results are pending.

Keri Project

Exploration also commenced at Keri during June with the collection of geochemical soil samples at 919 locations. Sampling targeted the mid-west part of the Permit where prospective mafic volcanic rocks have been identified coincident with interpreted structures and at the contact between mafic rocks and granitic rocks. All assay results are pending.

Corporate

On 11 April 2012, the Company announced that it had completed the acquisition for the right to acquire 100% interests in a package of five granted exploration permits known as Galgouli South, Gonsin, Keri, Moaga and Tagou, covering a total area of 1,076 square kilometres in Burkina Faso (see Figure 16 for tenement locations).

Under the completed agreement the material terms are:

• 1. Cash consideration (paid during the Quarter) of US$875,000 payable upon completion following execution of the Formal Agreement;
• 1. Scrip consideration payable upon completion following execution of the Formal Agreement equivalent to 12,500,000 fully paid ordinary shares in Riedel (all scrip issued during the Quarter and is escrowed voluntarily for 12 months from issue);
• 1. Riedel to assume all obligations under existing Letter Agreements, including future option payments, commissions, and royalties. The options and commissions are staged payments, payable over a further two (2) year period to the original Permit vendors and facilitators totalling US$621,000. The royalty payments are a 1% net smelter return royalty payable to the vendor on each of the Permits. Each royalty can be purchased at any time for US$1 million per permit.

Figure 16: Burkina Faso (West Africa) Project Locations

On 24 April 2012, the Company announced that it had agreed to raise approximately $2.2 million before costs under a placement of up to 19,130,435 ordinary shares at $0.115 per share to sophisticated and professional investors (the "Placement") with Patersons Securities Limited as Lead Manager to the Placement.

• The placement was intended to raise approximately $2.2 million before costs, up to 19,130,435 ordinary shares at $0.115 per share, viz:
  • ─ Tranche 1 Placement of up to 10,120,714 shares to raise approximately $1.16 million before costs, issued under Listing Rule 7.1, (15% capacity), and;
  • ─ Tranche 2 Placement up to 9,009,721 shares to raise approximately $1.04 million before costs.

During the quarter, the Company issued 8,608,704 fully paid ordinary shares at $0.115 per share to raise $990,000 before costs to Sophisticated and Professional Investors, equivalent to Tranche 1.

A General Meeting of Shareholders was held on 15 June 2012 and shareholder approval was obtained for the ratification of previous issue of shares in Tranche 1, and the further issue of shares in Tranche 2.

The Company held Cash Reserves at 30 June 2012 of $0.9M.

Planned Activities for Next Quarter

Marymia

• ─ Infill soil sampling over high priority soil geochemical anomalies;
• ─ Drill testing of highest priority copper geochemical targets (subject to completion of heritage clearances);
• ─ Diamond core and RC drilling of high priority Chardonnay and Baumgarten's South gold targets, and;
• ─ Aircore drilling to test key gold targets and structural corridors (partly subject to completion of heritage clearances).

Burkina Faso

• ─ Geochemical soil sampling at Keri Project;
• ─ Plan follow-up exploration programs for Tagou, Gonsin, Moaga and Galgouli South Projects after all assay results have been received from exploration programmes completed during the June quarter.

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

Soil Geochemical Sampling Methodology – Marymia Project

First pass soil sampling has been completed on 200 metre intervals on east-west oriented lines, spaced at 400 metres. Infill sampling was carried out at 100 metre intervals by 100 metre spacing. 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 ALS Global Perth Laboratory and analysed for gold by trace element analysis and for ultra-trace level multi-element analysis. 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 Aqua Regia extraction with an ICPMS finish and a multi-element suite (Ag, Al, As, Au, B, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, Hg, In, K, Li, Mg, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr) by Aqua Regia with an ICPMS finish.

Key inputs used for Inferred Mineral Resource estimation – Cheriton's Find Project – Redwing Deposit

Drilling data from 61 reverse circulation (8,264 metres) and 1 diamond drill hole (177.7 metres) utilised; Drill hole density based on 80 metre spacing between drill lines and predominantly 40 metre spacing on drill lines; Petrographic, metallurgical and bulk density work completed;

Dry bulk densities estimated oxide material = 2.0t/m3 transitional material = 2.5t/m3 primary material = 2.8t/m3

; Resource sectional polygons (length weighted average polygons) based on minimum 2 metre down hole intercept >0.5g/t Au to define boundaries, maximum 2 metres of internal dilution, intercept grade calculated as weighted arithmetic mean of individual intercepts using 20g/t high cut

(~97.5th percentile);

Resource blocks projected midway between drill holes or maximum 20m down dip.

Metallurgical testwork based on 4 samples from 1 diamond hole with results confirming;

,

,

cyanide circuit recoveries >93% from oxide, transitional and fresh material,

gravity circuit gold recoveries from 35-70%;

ore exhibits low sulphide, As, Bi, Ni and Cu content with low reagent consumption predicted.

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 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.

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 on Riedel Resources at the Company's website www.riedelresources.com.au .

Sample No.	Local Easting	Local Northing	Au
	m(E)	m(N)	(ppm)
RR15021	5,824	21,030	<0.01
RR15022	5,829	21,060	<0.01
RR15023	5,836	21,088	0.01
RR15024	7,647	14,876	0.01
RR15025	7,657	14,895	8.78
RR15026	7,693	14,917	0.8
RR15027	7,698	14,912	0.01
RR15028	6,965	15,866	0.09
RR15029	7,275	15,778	0.02
RR15030	7,289	15,807	0.01
RR15031	7,734	15,801	0.06
RR15032	7,726	15,832	0.01
RR15033	6,821	19,193	0.01
RR15034	6,811	19,176	0.01
RR15035	7,745	18,766	0.01
RR15036	7,751	18,692	6.22
RR15037	7,755	18,670	63.8
RR15038	7,726	15,459	47.0
RR15039	7,726	15,459	1.64
RR15040	7,726	15,459	1.40
RR15042	6,824	19,192	0.01
RR15043	6,824	18,954	0.01
RR15044	7,702	14,920	0.05
RR15045	7,703	14,930	0.09
RR15046	7,702	14,921	1.41
RR15047	7,694	14,967	3.43
RR15048	7,632	15,710	0.02
RR15049	7,706	15,552	0.01
RR15050	7,710	15,034	0.05
RR15051	7,704	15,042	0.44
RR15052	7,714	15,053	0.14
RR15053	7,716	15,080	0.92
RR15054	7,975	15,764	0.23
RR15055	7,939	15,771	0.01
RR15056RR15057	7,7687,073	15,61415,289	0.030.01
RR15058	8,249	19,463	0.01
RR15059	8,121	19,027	0.01
RR15060	7,193	18,762	0.01
RR15061	7,237	18,655	0.08
RR15063	7,663	18,724	11.2
RR15064	7,741	18,722	0.02
RR15065	8,109	18,720	0.02
RR15066	7,351	18,315	0.01
RR15067	6,427	18,263	0.01
RR15068	6,438	18,290	0.01
RR15069	6,449	17,772	0.01
RR15070	6,446	17,769	0.01
RR15071	6,480	17,734	0.02
RR15072	6,506	17,733	0.01
RR15073	6,507	17,747	<0.01
RR15074	7,652	14,884	0.02

TABLE 2: Tagou Project Rock Chip Sample Results to 30 June 2012

Sample No.	Local Eastingm(E)	Local Northingm(N)	Au(ppm)
RR15075	7,946	17,413	0.01
RR15076	7,899	17,424	0.01
RR15077	7,839	17,456	0.01
RR15078	5,925	17,008	<0.01
RR15079	7,722	16,214	0.01
RR15080	7,198	16,206	0.01
RR15081	7,092	16,192	0.01
RR15082	7,000	16,314	0.01
RR15084	6,285	16,243	0.01
RR15085	7,589	16,061	0.01

N.B. Assay results for each element which fall within the top 10% of results (greater than the 90 percentile) are marked in bold text.

N.B. Grid coordinate system is "local grid".

Grab/rock chip samples are collected from outcrop and submitted to ALS Global Ouagadougou Laboratory for analysis by Fire Assay with an AAS finish, by method Au-AA26.