RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2013

Oct 30, 2013

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ASX ANNOUNCEMENT

31 October 2013

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Quarterly Activities Report for the Period Ended 30 September 2013

Mr Jeffrey Moore Managing Director

Mr Ed Turner Technical Director

Riedel Resources Limited (“Riedel” or “the Company” , ASX: RIE) is pleased to present its 2013 September Quarter Activities Report:

Mr Andrew Childs Non-Executive Director

COMPANY SECRETARY Ms Sue Symmons

EXPLORATION HIGHLIGHTS

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

Marymia Project

•  Technical study of all recent and historic exploration data continued with the aim of prioritising future exploration work and drilling programmes for copper, gold and nickel targets at Marymia.

Cheritons Find and Millrose Gold Projects

•  Mechanisms to commercialise the Cheritons Find and Millrose gold deposits, via development or divestment options, continued to be explored throughout the Quarter.

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

CORPORATE HIGHLIGHTS

• Significant cost reduction strategies implemented across the Company’s business structure.

• Capital raising initiatives, including project divestment, continuing.

• Cash at 30 September 2013 - $0.26M .

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Riedel’s assets include a portfolio of gold, copper and nickel projects and significant land holdings in prospective Archaean- and Proterozoic-age terranes of Western Australia and the rights to acquire five Permits in Burkina Faso with high prospectivity for Proterozoic-age 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 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

Project Activities

During the Quarter Riedel continued with technical studies, using all of the Company’s recent and historic exploration data, to prioritise future exploration work on copper, gold and nickel targets at Marymia ( see Figure 2 for project location and Figure 3 for current target map ).

Subject to the Company sourcing adequate funding, future exploration programmes contemplate a project-wide aerial electromagnetic geophysical survey (VTEM) to test for conductive nickel and copper sulphide deposits and the drilling of the best gold targets using RAB and RC/diamond core techniques.

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Figure 2: Marymia Project - Location Map

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Figure 3: Marymia Project - Gold, copper and nickel targets

CHERITONS FIND GOLD PROJECT

Project Activities

Riedel’s 100%-owned Exploration Licence 77/1793 contains the Cheritons Find (Redwing) gold deposit which hosts [2] Inferred Mineral Resources of 1,400,000 tonnes @ 2.4g/t Au for 108,000 ounces of gold.

The exploration licence is located in the Forrestania-Southern Cross Greenstone Belt, approximately 48 kilometres south of Hanking Gold Mining Limited’s 2.2 Mtpa gold processing plant at Marvel Loch in the Eastern Goldfields Region of Western Australia.

During the Quarter the Company continued to explore strategies to commercialise the Cheritons Find gold deposit, including discussions with other regional gold explorers and producers in relation to toll treatment and other treatment options including resource consolidation strategies.

2 Sons of Gwalia – Inferred Resource Report – 29 November 2000

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Inferred Mineral Resources

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

TABLE 1: Redwing Gold Deposit – Inferred Mineral Resources

Material	Resource Category	Lower Gold Cutoff (g/t Au)	Top Gold Cut (g/t Au)	Tonnes	Gold Grade (g/t Au)	Contained Gold (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

N.B. See detailed notes (attached) “ Key inputs used for Inferred Mineral Resource estimation” .

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.

Annett’s interpreted cross-section is included as Figure 4 (below) .

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----- Start of picture text -----

Laterite gold deposit
mined 1993-1994
Quartz Lodes sub-parallel to bedding
on mafic and ultramafic contact
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Figure 4: Redwing Gold Deposit Cross-Section – All lodes projected to single section looking west.

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WEST AFRICA

BURKINA FASO PROJECTS

Exploration Activities

There were no field exploration activities completed during the Quarter.

To complete the acquisition of the five exploration Permits in Burkina Faso, payments totalling US$370,000 to the original Permit vendors and facilitators remain outstanding. By mutual agreement, all outstanding vendor and commission holder fees have been deferred to the end of 2013

TENEMENTS

No changes.

CORPORATE

On 1 October 2013, the Company announced that Mr Bruce Franzen has resigned as Company Secretary, effective 1 October 2013.

Mr Franzen is replaced by Ms Sue Symmons. Ms Symmons is a Corporate Services Executive with GDA Corporate. She has previously held the position of Company Secretary of listed entities Jetset Travelworld Limited, Automotive Holdings Group Limited and Evans & Tate Limited.

The Company held Cash Reserves at 30 September 2013 of $0.26M .

The Company remains committed to its policy of identifying and adopting prudent cash management measures to most-efficiently constrain near-term expenditure. In response to this strategy, significant cost reduction strategies have been implemented across the Company’s business structure.

Capital raising initiatives, including project divestment, continue to be explored by the Company with the aim of restoring shareholder value whilst best preserving the Company’s favourable capital structure.

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For further information please contact:

Ed Turner Executive Director Riedel Resources Limited Tel: +61 8 9226 0866 Email: ed.turner@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

Key inputs used for Inferred Mineral Resource estimation

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/m[3] , transitional material = 2.5t/m[3] , primary material = 2.8t/m[3] ;

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 (~97.5[th] 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 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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