RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2016

Jan 29, 2017

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ASX ANNOUNCEMENT

30 January 2017

Quarterly Activities Report for the Period Ended 31 December 2016

COMPANY DIRECTORS Mr Jeffrey Moore Executive Chairman

Mr Andrew Childs Non-Executive Director

Riedel Resources Limited (ASX: RIE, “Riedel” or “the Company” ) is pleased to present its 2016 December Quarter Activities Report:

New Projects

• Riedel continues to actively source and review new investment opportunities within the mineral resources sector.

Marymia Project

Mr Mark Skiffington Non-Executive Director

Mr Luke Matthews Non-Executive Director

COMPANY SECRETARIES Mr Henko Vos and Ms Abby Siew

CONTACT DETAILS Principal & Registered Office Suite 1 6 Richardson Street West Perth Western Australia 6005

Australian Mines Limited Earning Up to 80%

• Preparations to drill test extensions to the Dixon Prospect with a three-phase, 120 hole aircore drilling programme continue.

•  Formal Heritage Clearance Survey request submitted by Australian Mines to the relevant Native Title representative during the December quarter.

Charteris Creek Project

• Preparations for commencement of Heritage Clearance Survey impacted by the seasonal rain period.

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

• Exploration has identified a geophysical target prospective for porphyry copper-molybdenum-(gold) mineralisation at Charteris Creek.

Corporate

Financial

•  Cash at 31 December 2016 - $1.158M

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Riedel’s assets include two projects in prospective Archaean- and Proterozoic-age terranes of Western Australia (see Figure 1 for location of projects).

These include:

• Marymia – (copper, gold, nickel and base metals) Australian Mines Limited (“Australian Mines”) earning up to 80% by project expenditure of up to $3.3M;

• Charteris Creek – (copper, molybdenum, gold and base metals) Riedel 100%.

These projects are augmented by two Western Australian gold project royalty agreements.

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Figure 1: Western Australia Project locations

MARYMIA PROJECT JOINT VENTURE

Australian Mines earning interests up to 80%

Exploration licences 52/2394 and 52/2395 (“the Marymia Project”) are being explored under a joint venture arrangement with Australian Mines.

In 2015 Australian Mines earned a 51% interest in the Marymia Project by completing more than $1,000,000 worth of expenditure on exploration during the “Stage 1 Earn-in”. Australian Mines then elected to proceed with the “Stage 2 Earn-in”.

By spending a further $2,000,000 on exploration within a further 3 year period following the Stage 1 Earn-in, Australian Mines can earn an additional 29% interest (taking their total interest to 80%) in the Marymia Project.

Australian Mines have advised that they are on track to satisfying the exploration spending obligations to earn an 80% interest in the project by May 2018.

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Tenement location and geology

E52/2394 and E52/2395, which collectively form the Marymia Project, cover an area of 254 square kilometres in the highly prospective Doolgunna-Thaduna region of the Proterozoic volcano-sedimentary Bryah and Yerrida Basins and Archaean Baumgarten Greenstone Belt in the Marymia Inlier.

The Marymia Project is located approximately 40 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 Sandfire’s Green Dragon and Thaduna copper deposits (100,000 tonnes contained copper metal) in Western Australia’s Mid-West region (see Figure 2) .

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Figure 2: Marymia Project - Location Map

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Activities for the period ended 31 December 2016 and exploration forecast

During the quarter Australian Mines continued preparing for the next drilling programme at the Dixon Prospect, which is located 50 kilometres from the 5-million-ounce Plutonic Gold Mine[[1]] .

Drilling to date has been focused on a few hundred metres of an identified 6-kilometre-long target zone, centred around Australian Mines’ maiden drill hole (MMRC106), which returned a very encouraging 10 metres @ 8.79 g/t gold from 130 metres downhole in late 2015[[2]] .

As the gold mineralisation at the nearby Plutonic and Marymia ore bodies reportedly increase at depth, Australian Mines announced in July 2016 of its intention to test the Dixon Prospect’s potential to host a significant gold deposit via an 1,800 metre reverse circulation (RC) and 760 metre diamond core drilling programme. This programme, which is being cofunded by the Government of Western Australia through the competitive Exploration Incentive Scheme, was initially scheduled to be carried out in the previous quarter.

While this RC and diamond drilling programme remains targeted for completion in 2017, Australian Mines’ immediate focus is to test the prospectivity of the broader 6-kilometre-long fractionated dolerite unit, before honing in on individual anomalies like Dixon again for closer evaluation.

Due to the nature of shallow transported cover encountered across the prospect area, traditional soil sampling techniques are likely to be ineffective.

Accordingly, Australian Mines will instead utilise shallow air core drilling to test the continuity of the oxide/supergene gold known to occur above the higher-grade bedrock-hosted gold mineralisation. The results will then be used to guide future RC and diamond drilling work.

This is a strategy that has been applied with much success in analogue scenarios across the Eastern Goldfields[[3],[4] ] and Australian Mines has recently obtained approval from the Western Australian Department of Mines and Petroleum (DMP) to undertake this exploration programme, which comprises a total of 120 air core holes for an estimated 7,185 metres of drilling (see Figure 3).

Australian Mines submitted a formal Heritage Survey request to the appropriate Native Title representative during the December quarter and the Company will continue to keep shareholders updated on the progress of this request and the subsequent air core drilling programme at Doolgunna-Marymia (see Figure 3).

[1] Northern Star Resources NL, Plutonic Acquisition Presentation, released 23 December 2013

[2] Australian Mines Limited, High-grade gold zone extended at Dixon prospect, released 6 November 2015

[3] Breaker Resources NL, RC drilling underway to test potentially major gold discovery at Lake Roe Project in WA, released 15 February 2016

[4] Dampier Gold Limited, Prospectus, released 19 July 2010

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Figure 3: Plan view of the Dixon prospect displaying the maximum gold downhole intercept with the planned air core drilling (by phase) on aeromagnetic image background

CHARTERIS CREEK PROJECT

Tenement location and geology

Exploration Licence E45/2763 is located approximately 45km north of Nullagine and 50km south-east of Marble Bar in the Pilbara Region of Western Australia (see Figures 1 and 4 for project location) .

The tenement is located within the East Pilbara Granite Greenstone Terrain. The Project area has favourable geology for the discovery of mineral deposits, as highlighted by the presence of numerous gold, copper, base metals and specialty metals discoveries and deposits proximal to the Charteris Creek exploration licence and anomalous copper and molybdenum drill intersections within the licence (see Figure 4) .

The Company’s exploration focus is on Archaean intrusive rocks, which intrude the greenstone succession 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.

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Despite the strong similarities between the geological/structural setting at Charteris Creek to that which hosts nearby mineral deposits, only limited exploration has been previously carried out within the tenement.

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Figure 4: Charteris Creek Project – Geological Map highlighting known mineral occurrences and deposits

Exploration work carried during 2014-2015 has confirmed that there are structural and porphyritic elements interacting to control the zones of anomalous copper and molybdenum seen within the Project area.

Within E45/2763, several historic[5] percussion drillholes at the Lightning Ridge Prospect returned anomalous assay results for copper and molybdenum, including drillhole RS1 (58m) which returned 25m at 1.1% Cu and 3m at 0.1-0.2% Mo . In 1969 exploration highlighted potential for the presence of a copper deposit of about 100,000t @ 0.125% Mo and 66,000t @ 1.1% Cu within a lenticular molybdenum-body lying below surface copper mineralisation at Lightning Ridge.

Riedel considers this mineralisation to be distal and not in the centre of a larger porphyry body.

Mineralisation has also been previously defined at other prospects to the south of E45/2763, including at Gobbos. At Gobbos surface samples up to 41% Cu have been recorded as well as 13 metres @ 4.28% Cu from a costean. Historic shallow drilling has also intersected

5 Conwest/Mining Advisors, 1969 - MASTER, A. R., 1969. Lightning Ridge Area (W2/3). Wamex report no. 9621, 26p

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numerous significant interse ctions of +1% Cu. The mineralisation is interpreted as being part of the same large intrusive body of rocks that extend into Riedel’s drilling target area, under Fortescue Group cover.

Activities for the period ended 31 December 2016 and exploration forecast

As previously announced, Riedel was successful with its State Government 2016-2017 cofunded drilling application. A grant of up to $75,000 (or half of the direct drilling costs) from the State Government may be used to drill geophysical anomalies at Charteris Creek. The grant is awarded for innovative drilling programmes in previously untested locations and is designed to test for buried copper-molybdenum-(gold) mineralisation.

During the quarter the Company attempted to complete the requisite Heritage Survey prior to the commencing of drilling, however, this was not possible prior to the commencement of the wet season. During the wet season access is not possible due to numerous river crossings and boggy ground conditions. The heritage survey is now planned to follow the wet season.

Drilling is initially planned to test one of the large magnetic anomalies identified beneath cover rocks of the younger Fortescue Group for the presence of porphyry Cu-Mo (+/- Au) mineralisation. These magnetic peaks are within a circular feature approximately 1.5km in diameter (see Figure 5).

A 400 metre diamond drill hole will test one of the two magnetic peaks located closest to the surface. Figure 6 shows the planned drill hole trace and the 3D Inversion and Polygonal Magnetic Model Targets (looking west).

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----- Start of picture text ----- Drilling target area within circularmagnetic anomaly (in yellow)----- End of picture text -----

Figure 5: Circular magnetic anomaly interpreted as possible porphyry core within granodiorite intrusive

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Figure 6: Planned drill hole trace (Drillhole 1) and the 3D Inversion and Polygonal Magnetic Model Targets (looking west).

CORPORATE

During the quarter new Joint Company Secretaries Mr Henko Vos and Ms Abby Siew were appointed to replace Leonard Math.

The Company held Cash Reserves at 31 December 2016 of $1.158M .

TENEMENT SCHEDULE

Following is the schedule of Riedel Resources minerals tenements as at 31 December 2016.

Area of Interest	Tenement reference	Nature of interest	Interest
Charteris Creek	E45/2763	Direct	100%
Marymia	E52/2394	Direct	49%
Marymia	E52/2395	Direct	49%
West Yandal	M36/615	Royalty	0%
Porphyry	M31/157	Royalty	0%

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For further information please contact:

Jeffrey Moore Executive Chairman Riedel Resources Limited Tel: +61 8 9226 0866 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 consulting geologist to 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 2012 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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