RIEDEL RESOURCES LIMITED — Share Issue/Capital Change 2012

Oct 29, 2012

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Suite 1, 45 Ord Street West Perth WA 6005 Australia

30 October 2012

Tel: +61 8 9226 0866 Fax: +61 8 9486 7375 PO Box 1559, West Perth WA 6872 Australia www.riedelresources.com.au ABN: 91 143 042 022 ASX Code: RIE, RIEO

Dear Option Holder,

Option Expiry (RIEO) 30 November 2012

Notice is hereby given that the final date for exercising the Company’s 20 cent, 30 November 2012 Listed Options is 5.00pm WST on 30 November 2012. The exercise price is 20 cents per Option. Option holders will be issued with one new fully paid Ordinary Share in Riedel Resources Limited for each Option exercised.

Options not exercised by 5.00pm WST 30 November 2012 will expire. Quotation of the Options will cease at the close of trading on Friday 23 November 2012. Failure to exercise the Option will result in the forfeiture of any rights that the Option holder may have in relation to Ordinary Shares.

On the basis that the Options remain ‘out of the money’, the Company has received approval for a waiver from Listing Rule 6.24 and will not send out option expiry notices to Option holders.

To convert your Option to Ordinary Shares (Exercise of Options), please complete the Application Form on the reverse and forward with your payment to:

Computershare Investor Services Pty Ltd GPO Box D182 Perth WA 6840

Cheques in Australian currency should be made payable to Riedel Resources Limited and crossed “Not Negotiable”. Receipt of payment will not be forwarded.

During the three months preceding the date of this notice, the highest sale price and the lowest sale price of Ordinary Shares in Riedel Resources Limited was $0.09 on 10 October, and $0.065 on 30 August respectively. The latest available market sale price on the Australian Securities Exchange before the date of this notice was $0.077 on 29 October 2012.

No Underwriting Agreement exists in respect of these Options.

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If you wish to clarify any taxation consequences relating to the Exercise of Options, please consult your solicitor, accountant, or professional adviser.

Yours faithfully, Riedel Resources Limited

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Bruce Franzen Executive Director

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Application Form on Exercise of Options Expiring 30 November 2012

To the Directors, Riedel Resources Limited,

I/We hereby exercise option(s) and hand you herewith my/our cheque for being $0.20 per share on application for ordinary shares in the capital of the Company.

I/We request that you allot me that number of shares and I/we agree to accept that number of shares on the terms below and the Constitution of the Company, and I/we authorise you to place my/our name on the register.

My/Our Holder ID (as shown on my/our Certificate) is

Sign Here – This section must be signed for your instructions to be executed

I/We authorise you to act in accordance with my/our instructions set out above.

Individual or Securityholder 1 Securityholder 2 Securityholder 3 Director Director/Company Secretary Sole Director and Sole Company Secretary Note: when signed under Power of Attorney, the attorney states that they have not received a Day/Date Month Year

Note: when signed under Power of Attorney, the attorney states that they have not received a notice of revocation. Computershare Investor Services Pty Limited needs to sight a certified copy of the Power of Attorney.

/ /

Terms and Conditions attached

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TERMS AND CONDITIONS OF OPTIONS EXPIRING 30 NOVEMBER 2012

• a) Each New Option will lapse if not exercised on or before 30 November 2012 ( Expiry Date ).

• b) The exercise price for each New Option is $0.20 ( Exercise Price ).

• c) Each New Option shall entitle the holder of the New Option (Holder) to subscribe for and to be allotted one fully paid ordinary share in the capital of the Company upon exercise of the New Option and payment to the Company of the Exercise Price.

• d) A New Option may be exercised by the Holder at any time prior to the Expiry Date by sending a completed and signed notice of exercise, together with the payment of the Exercise Price for each New Option exercised and the statement for the New Option, to the Company’s Registered Office. If the Holder holds more than one New Option, the New Options may be exercised in whole or in part.

• e) A notice of exercise is only effective when the Company has received the full amount of the Exercise Price in cash or cleared funds for each of the New Options Exercised.

• f) Subject to any restrictions in the ASX Listing Rules, within 14 days of receipt of a properly executed notice of exercise and the required Exercise Price, the number of Shares specified in the notice will be allotted.

• g) Each statement will bear a suitable form of notice of exercise of the New Options, endorsed on the back of the statement, for completion by the Holder (if required). If the New Options comprised in any such statement are exercised in part only, before the Expiry Date, the Company will issue the Holder with a fresh statement for the balance of the New Options held and not yet exercised.

• h) Subject to paragraph (k) below, the period during which the New Options may be exercised will not be extended.

• i) If there is a bonus issue to the holders of Shares, the number of Shares over which a New Option is exercisable may be increased by the number of Shares which the Holder would have received if the New Option had been exercised before the record date for the bonus issue.

• j) There are no participating rights or entitlements inherent in the New Options. The Holder will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the New Options. However, the Company will ensure that for the purposes of determining entitlements to any such issue, the record date will be at least 7 business days after the issue is announced. This will give the Holder the opportunity to exercise their New Options prior to the date for determining entitlements to participate in any such issue.

• k) In the event of any reconstruction (including consolidation, subdivision, reduction, cancellation or return) of the issued capital of the Company before the expiry of any New Options, all rights of the option holder, will be reconstructed (as appropriate) in accordance with the Listing Rules applying to a re-organisation of capital at the time of the re-organisation.

• l) Shares allotted pursuant to the exercise of the New Options will rank equally with the then issued Shares of the Company.

• m) The Company will apply for quotation of the New Options on ASX.

• n) The Company will apply for quotation of all Shares allotted pursuant to the exercise of New Options on ASX within 10 business days after the date of allotment of those Shares.

• o) Other than as set out above, an New Option does not confer the right to a change in Exercise Price, or a change to the number of underlying Shares over which it can be exercised.

LODGEMENT INSTRUCTIONS

Cheques shall be in Australian currency made payable to Riedel Resources Limited and crossed “Not Negotiable”. The application for shares on exercise of the options with the appropriate remittance should be lodged at the Company’s Registry, Computershare Investor Services Pty Ltd, GPO Box D182, Perth WA 6840.