RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2014

Apr 22, 2014

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ASX ANNOUNCEMENT

23 April 2014

COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman

Quarterly Activities Report for the Period Ended 31 March 2014

Mr Jeffrey Moore Managing Director

Mr Ed Turner Technical Director

Riedel Resources Limited (ASX: RIE, “Riedel” or “the Company” ) is pleased to present its 2014 March Quarter Activities Report:

Mr Andrew Childs Non-Executive Director

COMPANY SECRETARY Ms Sue Symmons

HIGHLIGHTS

Charteris Creek JV

FMG Resources Pty Ltd (“FMGR”) Earning Up to 80%

•  Exploration completed by FMGR during the quarter comprises the collection and compilation as well as a brief review of public available historic data. This yielded valuable new information about the geology, mineralogy and mineralising systems encountered during historic exploration activities around the Charteris Creek project area.

Corporate

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

•  With the aim of restoring shareholder value whilst best preserving the Company’s favourable capital structure, Riedel is actively pursuing capital raising initiatives, project divestment and farmout/joint venture arrangements. Consequently, technical due diligence is being conducted on the Marymia Project by two companies with a view to commencing negotiations on a farmin/joint venture arrangement if due diligence results are sufficiently positive.

ABN: 91 143 042 022 ASX CODE: RIE

• Cash at 31 March 2014 - $0.10M .

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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 (see Figure 1 for location of projects).

The Company has a mixture of advanced and early stage prospects, including:

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

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

• Millrose (gold -[2] 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 Project locations

1 Sons of Gwalia – 29 November 2000. This information was previously prepared and disclosed on the basis of compliance with the JORC Code – 2004 Edition. The Inferred Mineral Resources have not been subsequently updated to satisfy compliance with the JORC Code - 2012 Edition as the information has not materially changed since it was last reported.

2 Phil Jones (Al Maynard & Assoc) – 2010. This information was previously prepared and disclosed on the basis of compliance with the JORC Code – 2004 Edition. The Inferred Mineral Resources have not been subsequently updated to satisfy compliance with the JORC Code - 2012 Edition as the information has not materially changed since it was last reported.

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CHARTERIS CREEK JOINT VENTURE

FMG Resources Pty Ltd earning interests up to 80%

In January 2014, Riedel announced that FMG Resources Pty Ltd (“FMGR”), a wholly-owned subsidiary of Fortescue Metals Group Ltd, has entered into a Farm In and Joint Venture Agreement worth up to $1M over Exploration Licence 45/2763.

The Company’s 100%-owned tenement is 131km[2] in area and is located approximately 45km north of Nullagine and 50km south-east of Marble Bar in the Pilbara Region of Western Australia (see Figure 1 for project location) .

Key Terms of Agreement

• ─ By spending $200,000 on exploration within the Exploration Area within 3 years of the date of signing the Agreement (“Initial Earning Period”), FMGR can earn a 51% interest in the Tenement and a Joint Venture with RIE will be formed;

• ─ By spending a further $400,000 on exploration within the Joint Venture Area within 3 years of forming the Joint Venture (“Additional Earning Period”), FMGR can earn an additional 14% interest in the Tenement, and;

• ─

• By spending a further $400,000 on exploration within the Joint Venture Area within the Additional Earning Period, FMGR can earn an additional 15% interest in the Tenement.

• ─ If all milestones are met by FMGR within the Initial and Additional Earning Periods, FMGR will have earned an interest of 80% in the Tenement by the expenditure of $1,000,000 on exploration within the Joint Venture Area,

• ─ After FMGR has satisfied its earning obligations, FMGR and RIE will contribute to Joint Venture expenditure in proportion to their interest in the Joint Venture, alternatively standard dilution conditions will apply to non-contributing parties.

• ─ If a Joint Venturer’s Joint Venture interest reduces to less than 10%, the interest is converted to a 2% Net Smelter Royalty (“NSR”) for a period of 5 years from the Royalty Commencement Date and a 0.6% NSR thereafter.

Tenement Location and Geology

E45/2763 is located within the East Pilbara Granite Greenstone Terrain. Tectonically, it is encompassed by Marble Bar and Kelly Greenstone Belts and Mount Edgar Granitoid Complex in the west and northwest and McPhee Dome and Hamersley Basin to the east and southeast.

The Charteris Creek Project focuses on Archaean intrusive rocks, which are intruding the greenstones overlying the McPhee Dome structure. These are described as Gobbos Granodiorite, a locally porphyritic biotite granodiorite and monzogranite. Various copper and copper-molybdenum occurrences are reported in association with these intrusive rocks. Indications for a porphyritic source of the minerals have been given in previous exploration reports (see Figure 2) .

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Figure 2: Charteris Creek Project – Geological Map highlighting known mineral occurrences and deposits

Work Activities

Exploration activities carried out by FMGR during the first quarter of 2014 were limited to desktop-based studies of the area. This includes the compilation and reviewing of historic exploration reports, as well as collection and digitizing of relevant data such as historic drill hole locations and assays, geochemical data (stream- soil- and rock chip data) as well as geological maps.

These data points will be used to assess the area and plan an initial field visit, which will be conducted during the upcoming quarter. The field visit will focus on the intrusive rocks and greenstones in their vicinity. Previous workers suggest a copper-molybdenum porphyry system being responsible for the mineralisation occurring in the area, based on their observations made from outcrop and drilling. This model will be used, but is regarded as a possible guideline only. The geological setting within Archaean rocks is uncommon for mineralised porphyry systems, though not unknown.

Field investigations will check outcropping rocks for typical, porphyry related alteration within the project area and at previously reported sites therein to assess the potential of a mineralised copper-molybdenum porphyry system at/close to surface and at depth. Other styles of mineralisation will be considered as well during the field trip.

Depending on the work progress during the first visit, possible additional field trips might follow to allow more time for following up more targets or detailed investigation of by then identified areas of interest.

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Conclusions

FMGR sees great potential for substantial copper-molybdenum mineralisation within the JV project Charteris Creek. Historic exploration reports prove the existence of these commodities within the project area, though it probably was not tested properly. FMGR has the opinion that a new investigation and evaluation of the project area is needed, using the information available today to aid this process. The already planned initial field visit will test and reassess the historic conclusions and potentially help to define a new concept for mineralisation within this project.

MARYMIA PROJECT

The Marymia Project is located approximately 30 kilometres east of the 4.7M oz Plutonic gold mine, 55 kilometres north-east of Sandfire Resources NL’s DeGrussa copper-gold mine (550,000 tonnes contained copper metal), and 12 kilometres east-north-east of Ventnor Resources Limited’s Green Dragon and Thaduna copper deposits (100,000 tonnes contained copper metal) in Western Australia’s Mid-West region (see Figure 3) .

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Figure 3: Marymia Project - Location Map

Significant regional structures identified in the project area include the Jenkin Fault and prospective, mineralised geology including the Archaean-aged Baumgarten Greenstone Belt and Proterozoic-aged sediments belonging to the Yerrida and Earaheedy Groups.

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The project is prospective for copper, gold and nickel mineralisation and Riedel has delineated numerous high priority targets for each of these commodities (see Figure 4). Technical due diligence is being conducted on the Marymia Project by two companies with a view to commencing negotiations on a farm-in/joint venture arrangement if due diligence results are sufficiently positive.

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Figure 4: Marymia Project - Gold, copper and nickel targets

OTHER PROJECTS

Riedel continues to investigate options to commercialise the Millrose and Cheritons Find Gold Projects, including project development by way of toll treatment and/or other treatment opportunities or by project divestment.

CORPORATE

The Company held Cash Reserves at 31 March 2014 of $0.10M .

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TENEMENT SCHEDULE

Following is the schedule of Riedel Resources minerals tenements as at 31 March 2014.

Area of Interest	Tenement reference	Nature of interest	Interest
Western Australia
Charteris Creek	E45/2763	Direct	100%
Bronzewing South	E36/623	Indirect	80%
Bronzewing South	M36/670	Indirect	80%
Delaney Well	E36/734	Direct	100%
West Yandal	M36/615	Royalty	0%
Marymia	E52/2394	Direct	100%
Marymia	E52/2395	Direct	100%
Millrose	E53/1304	Direct	100%
Millrose	E53/1305	Direct	100%
Porphyry	M31/157	Royalty	0%
Dulcie	P77/3727	Direct	20%
Dulcie	P77/3728	Direct	20%
Dulcie	P77/3729	Direct	20%
CheritonsFind	E77/1793	Direct	100%

For further information please contact: Ed Turner Jeffrey Moore Executive Director Executive Director Riedel Resources Limited Riedel Resources Limited Tel: +61 8 9226 0866 Tel: +61 8 9226 0866 Email: ed.turner@riedelresources.com.au Email: j.moore@riedelresources.com.au

About Riedel Resources Limited

Riedel Resources Limited listed on ASX on 31 January 2011 and is an Australian-based exploration company established to explore for and develop mineral deposits.

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

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, 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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