RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2018

Jul 24, 2018

Figure 1: Cármenes Project Location Map

• Initial diamond drilling programme underway to test highly prospective target clusters that may represent repetitions of Profunda-type cobalt-copper nickel-(gold) deposits

• Eleven radiometric target areas defined over 3km along the Profunda Mine Trend

• Highly mineralised dolomite vein material identified at a significant radiometric anomaly 1km to the east of La Profunda mine workings with similar characteristics and grade to veins and alteration sampled in wallrock in La Cuevona ("the Big Cave") stope at the historic Profunda Mine workings

• Ground Pole-Dipole Induced Polarisation (PDIP) surveys defined 3 significant target clusters within 200 metres of the historic Profunda Co-Cu-Ni Mine workings, two of which are coincident with radiometric and geochemical anomalies

• Newly constructed road along Profunda mine trend has facilitated vehicle and equipment access into areas previously considered difficult to explore

• Key focus on the identification and refining of new target anomalies at the Profunda East, Profunda West, Fontun and Providencia East Prospect through geophysical and geochemical surveys

• Australian Mines Limited (ASX: AUZ; USA OTCQB: AMSLF) increased its interest in the Marymia Gold and Copper Project in Western Australia to 80%, having satisfied its Stage 2 expenditure requirements

• Cash sale of the Charteris Creek Project (E45/2763) for A$500,000, (exclusive of GST) to LMTD Wits Pty Ltd ('LMTD') was completed

Cash at Bank 30 June 2018 - $2.34M

Riedel Resources Limited (ASX: RIE the Company) is pleased to provide shareholders with its Quarterly Activities Report for the period ended 30 June 2018.

CÁRMENES COBALT-COPPER PROJECT JOINT VENTURE, NORTHERN SPAIN

Project Overview

Riedel's flagship Cármenes cobalt-copper-nickel project in Spain is host to historical high grade cobalt-copper production with recorded concentrate grades of 14% cobalt and 33% copper. Significant historic cobalt, copper, nickel and gold mines exist within the Project area at La Profunda and Divina Providencia1 , with additional mines at Fontun and Valverdin.

On 21 July 2017 Riedel signed a Joint Venture and Earn-In Agreement with SIEMCALSA (Sociedad De Investigación Y Exploración Minera De Castilla Y León S.A.) whereby Riedel can earn interests of up to 100% in the Cármenes Cobalt-Copper-Nickel-Gold Project.

Riedel is focused on leveraging the significant exploration and development potential of Cármenes to supply a global market thirst for battery metals.

Figure 2: Cármenes Project prospect locations

Profunda Mine Prospect

During the June Quarter, Riedel's joint venture partner SIEMCALSA carried out extensive follow up ground geophysical, radiometric and geochemical surveys at Profunda Mine Prospect area and elsewhere throughout the Cármenes Project area.

Five mineralised vein sets and zones of alteration were selectively sampled from dolomite wallrock which forms the rim or edge of the previously mined La Cuevona stope at the La Profunda Mine2 .

1 Excised from Cármenes Project joint venture tenement area. Currently under investigation permit application by SIEMCALSA.

2 This work is described in more detail in RIE ASX and Media Release 26 April 2018.

Significant results compare favourably to historic sampling carried out by Riedel's joint venture partner SIEMCALSA (1998, 2004) and are also consistent with previous sampling carried out by Andrés Paniagua (1993)3 as part of his PhD thesis.

High grade veins & alteration

• 27.2% Cu, 0.27%Co, 35.3g/t Ag, 0.32% Sb, 0.24% Ni (sample 26625)
• 11.2% Cu, 0.51%Co, 14.2g/t Ag, 0.33% Ni (sample 26623)
• 7.20% Cu, 0.28%Co, 5.7g/t Ag, 0.15% Ni (sample 26624)

SIEMCALSA (1998, 2004)

• 12.2% Cu, 1.06%Co, 8.4g/t Ag, 0.39% Ni, 0.22% Zn (sample 891)
• 6.64% Cu, 0.75%Co, 8.3g/t Ag, 0.28% Ni, 0.30% Zn (sample 887)
• 2.88% Cu, 0.27%Co, 5.0g/t Ag, 0.56% Ni (sample 890)

Andrés Paniagua (1993)

• 27.2% Cu, 1.13%Co, 22.2g/t Au, 9.2g/t Ag, 0.51% Ni (sample PF4)
• 9.99% Cu, 0.07%Co, 103.2g/t Au, 0.27% Zn (sample PF1)
• 4.50% Cu, 0.90%Co, 48.1g/t Ag, 2.07% Ni (sample PF109)

Sample 26623—11.2% Cu, 0.51%Co, 14.2g/t Ag, 0.33% Ni

Sample 26625—27.2% Cu, 0.27%Co, 35.3g/t Ag, 0.32% Sb, 0.24% Ni

Six lines and line extensions (2.7 line km) of IP (Pole-Dipole IP) were completed at the Profunda Mine Prospect to further define target clusters in preparation for drilling.

Three significant target clusters within 200 metres of the historic Profunda Co-Cu-Ni Mine workings were investigated in detail, two of which are coincident with radiometric and geochemical anomalies. The resultant anomaly extents were expanded, and drill targets were refined.

3 Mineralisation associated with Late Hercinic Fractures in the Southern Branch of the Cantabrian Zone (Spain), Universidad de Oviedo, Department de Geologia.

Post winter repairs were made to the newly access track and site preparations were completed prior to drilling.

Approvals for the stage-1 diamond drill programme at the Profunda Mine Prospect proposed in the March Quarter were received, and drilling commenced at CMN-1 (DDH-1bis) post-Quarter end.

The drill programme is testing two significant target clusters (Zones 1 and 3) located within 200 metres of the historic La Profunda Co-Cu-Ni Mine Target Zone 3 - south of the La Profunda Mine (Figure 3).

Profunda Mine Trend

The Company's joint venture partner SIEMCALSA completed extensive radiometric surveys during the Quarter at the Profunda Mine Trend, which comprises the Profunda Mine, Profunda East and Profunda West Prospects. Analysis and interpretation of the data identified eleven key target areas (see Figure 4) which have been selected for follow-up exploration including IP surveys, Ion-Leach soil geochemical surveys, detailed geological & structural mapping and diamond drilling4 .

Figure 3: Location of stage-1 drill holes, PDIP survey lines and chargeability anomalies

4 ASX release 15 May 2018

286000E							288000E
								Davina Providencia Mine
	Radiometric target areas
				PROFUNDA MINE TREND					SampleNumber26584	TARGET AREA 8Mineralised vein rock chip sampleCo$\frac{9}{6}$0.27	Cu$%$37.5	Agppm193	Ni%0.14
			$\overline{a}$	3	5			$\overline{7}$	8
Profunda West Prospect	TARGET AREA 2Mineralised rock chip sample			Profunda MineProspect					Profunda East Prospect
	SampleCu$%$Number265854.9	Sb$\frac{0}{0}$0.16	Agppm10		Profunda Mine wallrock vein rock chip samplesSampleNumber26623266242662526626	Co%0.510.280.270.20	Cu%11.27.227.27.6	Agppm14.25.735.34.0	Ni$%$0.330.150.240.21
286000E					26627	0.09	11.1288000E	35.2	0.16

Figure 4: Profunda Mine Trend - location of eleven key radiometric anomaly Target Areas

Approximately 10.5 line km of PDIP surveys were completed on 26 lines over radiometric targets identified in the greater Cármenes project area at Profunda East, Profunda West, Fontun and Providencia East Prospects.

Profunda East prospect - Target Area 8

Investigation of a significant radiometric spot anomaly (2,000cps) at Profunda East located highly mineralised dolomite vein material under cover with similar characteristics and grade to veins and alteration sampled in wallrock peripheral to the La Profunda mine workings 1 km to the west (see Figure 4). The Profunda East mineralised rock chips assayed 37.5% Cu, 0.27% Co, 193g/t Ag and 0.14% Ni (Sample 26584)5 .

Identification of the high-grade Profunda East mineralised dolomite highlights the potential for additional undiscovered La Profunda Cu-Co-Ni sulphide bodies elsewhere in the Cármenes Project area.

Sample 26584—37.5% Cu, 0.27% Co, 193g/t Ag and 0.14% Ni

Profunda West Prospect - Target Area 2

Ground mapping over an area several hundred metres to the west of the historic Profunda Mine has also identified copper mineralisation in rocks associated with a small historic excavation. Rock sample 26585 returned values of 4.9% copper and 0.16% antimony (see Figure 4).

5 ASX release 15 May 2018

Next Steps

Post-period end, a diamond drilling programme commenced on the Profunda Mine prospect at CMN-1 (DDH-1bis). The initial programme comprises three holes for 831 metres (see table below for locations). Results from drilling will assist with the understanding of the nature of the interpreted geophysical PDIP chargeability and resistivity anomalism relative to mineralisation of economic interest.

Hole ID		Easting(utm X)	Northing(utm Y)	Elevation(m.)	Azimuth(º)	Dip (º)	Proposedlength (m.)
CMN-1	(DDH-1BIS)	287308	4759933	1,409.5	N 229	45	190
CMN-2	(DDH-6)	287070	4760196	1,572.0	N 112	42	220
CMN-3	(DDH-4BIS)	287286	4760163	1,532.0	N 164	40	421
Total planned metresProjection system: ETRS89 / UTM zone 30N

Regional radiometric, ground magnetic and Ion Leach soil geochemistry surveys will be completed during the September Quarter to explore for mineralisation at prospects along the Profunda Mine Trend (Profunda West, Profunda, Profunda East), Providencia East, Fontun and Valverdin.

Further releases will be made to market as results become available.

WESTERN AUSTRALIAN PROJECT OVERVIEW

TENEMENT SCHEDULE

Following is the schedule of Riedel Resources minerals tenements as at 30 June 2018.

Area of Interest	Tenement reference	Nature of interest	Interest
Marymia	E52/2394	Direct	20%
Marymia	E52/2395	Direct	20%
West Yandal	M36/615	Royalty	0%
Porphyry	M31/157	Royalty	0%

Changes during the quarter

Area of Interest	Tenement reference	Nature of interest	Interest
Charteris Creek	E45/2763	Divested	100%
Marymia	E52/2394	Interest Transferred	29%
Marymia	E52/2395	Interest Transferred	29%

During the quarter, Riedel completed the cash sale of the Charteris Creek Project (E45/2763) for $500,000, exclusive of GST, to LMTD Wits Pty Ltd ('LMTD').

Australian Mines Limited (ASX: AUZ; USA OTCQB: AMSLF) increased its interest in the Marymia Gold and Copper Project in Western Australia to 80%, having satisfied its Stage 2 expenditure requirements.

Management Commentary

Riedel's Executive Chairman, Mr Jeffrey Moore commented:

"We are very encouraged by the significant progress made during the June Quarter in respect to Riedel's exploration activities at our flagship Cármenes Cobalt-Copper Project in Northern Spain, culminating in the commencement of our maiden drilling programme post-Quarter end.

"After an extensive target-generation programme, we are now drill testing some of the high priority targets identified at Cármenes, which are situated some 200 metres from the historic La Profunda Mine.

"We look forward to reporting results from our initial drilling program as they come to hand and we will also remain focused on generating further drill targets to form the basis of our future drill programmes."

-ENDS-

For further information please contact:

Jeffrey Moore - Executive Chairman - Riedel Resources Limited Tel: +61 (08) 9226 0866 Email: j.moore@riedelresources.com.au

Released through Sam Burns, Six Degrees Investor Relations, +61 400 164 067

About Riedel Resources Limited

Riedel Resources Limited listed on ASX on 31 January 2011 and is an Australian-based exploration company focused on the exploration and development of technology metals in Europe.

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

About SIEMCALSA

SIEMCALSA (Sociedad De Investigación Y Exploración Minera De Castilla Y Léon S.A.) is a parastatal corporation established in 1988 devoted to the promotion and stimulation of the mining sector in the autonomous community of Castilla and León (Spain).

Further information can be found at the Company's website www.siemcalsa.com

Competent Person's Statement

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