SUPERIOR RESOURCES LIMITED — Capital/Financing Update 2012

Jun 21, 2012

Superior Resources Limited

ABN 72 112 844 407

Registered Office: Level 2, 87 Wickham Terrace, Spring Hill, QUEENSLAND, 4000. Postal Address: PO Box 10288, Brisbane Adelaide Street, QUEENSLAND, 4000. Telephone: 07 3839 5099 Facsimile: 07 3832 5300 Email: manager@superiorresources.com.au

ASX RELEASE 22 JUNE 2012

Report on One Mile Drilling Program

Superior Resources Limited (ASX Code: SPQ) is pleased to announce that the drilling program at its One Mile Mining Lease has now been completed and all assay results for the main sulphide intersections have been received with preliminary interpretation of results completed.

The most significant result from the drilling is that drill hole SPOM023 intersected copper, gold and zinc mineralisation in massive, semi-massive and disseminated sulphides over a combined 21.3m interval including two intervals of higher-grade.

These intervals are: 389.7m to 393.0m - 3.3m @ 0.54% Cu, 0.63g/t Au, 2.16% Zn and 8.3g/t Ag and 395.9m to 401.1m - 5.2m @ 0.51% Cu, 0.64g/t Au, 1.77% Zn and 7.3g/t Ag.

The total 21.3m interval from 386.0m to 407.3m averaged 0.31% Cu, 0.43g/t Au, 0.98% Zn and 4.9g/t Ag.

Hole SPOM023 was drilled some 160m down plunge of hole SPOM004 which was the best hole drilled in the 2011 program.

Hole SPOM016, drilled 130m above hole SPOM023, intersected 3.7m from 283.6m to 287.3m averaging 0.47% Cu, 0.40g/t Au, 0.14% Zn and 4.2g/t Ag.

The intersection in hole SPOM023 indicates that the sulphide body continues its southerly plunge. Whilst the average grade of the combined intersection in hole SPOM023 is similar to that in hole SPOM004 the increase in the width of the mineralisation is significant and gives encouragement for further drilling in the area.

Encouragement also comes from an increase in intensity and width (to approximately 100m true width) of the alteration zone which encloses the mineralisation in hole SPOM023.

On the basis of the work completed to date, the One Mile prospect is considered to have good potential for the discovery of an economic volcanogenic massive sulphide deposit (VMS) deposit and further work including drilling is planned.

The Balcooma, Reward and Thalanga deposits in the northeast Queensland area are VMS deposits which occur in volcanic rocks of similar age to those that host the One Mile prospect.

VMS deposits are a type of metal sulphide deposit representing a significant source of the world's copper, lead, zinc, silver and gold. They were formed on or close to the sea floor during volcanic-associated hydrothermal events (black smokers) in submarine environments. The deposits are often originally layered accumulations of sulphide minerals on the sea floor which become interbedded with the enclosing sediments and are subjected to later deformation and metamorphism during tectonic events.

One of the features of VMS deposits is that the ore bodies containing the valuable metal sulphides are often associated with adjacent barren or poorly mineralised pyrite accumulations. Drilling at One Mile has been, and still is, justified on the basis that the subeconomic massive and semi-massive sulphides may be adjacent to an economic sulphide deposit. The intersection in hole SPOM023 and the wide intense alteration zone provide further support for the possibility of an economic deposit occurring at One Mile. The amount of sulphide indicated by the drilling to date also supports the possibility of a large VMS deposit in the area.

The most obvious target zone for further drilling at One Mile is around the intersection in hole SPOM023 including down the southerly plunge. The prediction of a southerly plunge to the sulphide body comes from the structure in the enclosing rocks and the concept has usefully been applied to rapidly progress One Mile to its current situation. A southerly structural plunge at Balcooma was also used successfully in the early stages of exploration. However, other controls may become important as the centre of the mineral system is approached and drill holes testing other target areas will be necessary as exploration progresses.

These targets include those generated from interpretation of geophysical data. Work on compiling and interpreting geophysical surveys completed by MIM and Beacon around One Mile has been progressing in conjunction with the drilling program and a number of targets have been outlined from this work including one high-priority target. This work is expected to be completed and details of the targets are expected to be available within the next few weeks. None of these targets have been drilled to date. Most of the targets lie just outside of the mining lease and granting of EPM18987 will be necessary before drilling can be completed.

Drilling Program

The One Mile Mining Lease is located 210km west-northwest of Townsville in northeast Queensland, Australia (Figure 1). A drilling program was completed on the mining lease in 2011. This intersected substantial massive and semi-massive sulphides with sub-economic grades of copper, gold and zinc.

A follow-up drilling program (2012 drilling program) commenced at One Mile on 30 April 2012 and a brief update was provided on 30 May 2012. This report provides a more comprehensive update on the results of the drilling program following receipt of assays from the massive and semi-massive sulphide zones.

Figure 1. Location of Superior's One Mile Mining Lease in northeast Queensland

The drilling program included:

• three reverse circulation (RC) drill holes and two pre-collared diamond drill holes targeting the southern extension of the mineralised zone where previous drilling indicated an increase in width and grade (Southern Extension Drilling),
• five RC drill holes targeting possible supergene enrichment below the gossans in the main gossan outcrop area (Supergene Drilling) and
• one short RC drill hole targeting the western gossan (Western Gossan Drilling).

Details of all drill holes completed in the recent drilling program are included in Table 1 and a summary of intersections is included in Table 2. The locations of all drill holes completed at One Mile are shown in Figure 2.

Hole Name	Easting*	Northing*	Dip	Azimuth	Depth
	(MGA 55)	(MGA 55)	(°)	(MGA 55)	(m)
SPOM016	261916	7901485	-70	103.5	306.7
SPOM017	262029	7901440	-60	98.5	126
SPOM018	261944	7901370	-60	98.5	126
SPOM019	261958	7901573	-70	98.5	210
SPOM020	262282	7901673	-60	98.5	92
SPOM021	262320	7901740	-75	98.5	102
SPOM022	262319	7901795	-72	98.5	138
SPOM023	261910	7901486	-80	98.5	472.7
SPOM024	262276	7901672	-65	98.5	108
SPOM025	262257	7901599	-67.5	98.5	72
SPOM026	262300	7901926	-60	257	114

Table 1. One Mile drill holes completed in 2012.

* Locations established by hand-held GPS

Table 2. One Mile drill hole intersections.

Hole	From	To	Length	Cu	Au	Zn	Ag	Drill
Name	(m)	(m)	(m)	(%)	(g/t)	(%)	(g/t)	Target
SPOM020	58.0	68.0	10.0	0.06	0.25	0.01	0.4	Supergene
incl	66.0	68.0	2.0	0.23	0.13	0.02	0.5	Supergene
SPOM021	78.0	90.0	12.0	0.02	1.19	<0.01	6.3	Supergene
incl	80.0	82.0	2.0	0.01	6.10	<0.01	18.9	Supergene
SPOM022	80.0	88.0	8.0	0.01	1.14	0.01	8.8	Supergene
incl	84.0	86.0	2.0	<0.01	3.41	<0.01	21.2	Supergene
SPOM024	64.0	80.0	16.0	0.38	0.21	0.16	2.6	Supergene
SPOM025	42.0	60.0	18.0	0.01	0.33	<0.01	0.9	Supergene
SPOM016	283.6	287.3	3.7	0.47	0.40	0.14	4.2	Southern
SPOM023	386.0	388.2	2.2	0.22	0.60	0.15	5.2	Southern
SPOM023	389.7	393.0	3.3	0.54	0.63	2.16	8.3	Southern
SPOM023	395.9	401.1	5.2	0.51	0.64	1.77	7.3	Southern
SPOM023	402.3	403.3	1.0	0.24	0.40	2.24	4.3	Southern
SPOM023	403.7	405.6	1.9	0.46	0.60	0.60	5.2	Southern
SPOM023	406.6	407.3	0.7	0.22	0.30	0.09	3.0	Southern
SPOM023	413.5	415.3	1.8	0.22	0.05	0.03	1.0	Southern

Southern Extension Drilling

The drilling program completed at One Mile in 2011 indicated that the width and grade of the sulphide mineralisation at One Mile increased at depth to the south. The purpose of the 2012 drilling program at the southern end of the One Mile area was to intersect highergrade mineralisation based on the possibility that the increase in width and grade continued in this direction.

Two relatively shallow RC holes (SPOM017 and SPOM018) were initially drilled to intersect the southern lode in the primary zone at shallow depth below the base of oxidation. Both holes intersected strong alteration but with only disseminated sulphides present. The southern of these holes (SPOM018) also intersected alteration in the top of the hole which confirmed a fold in the lode horizon at the southern end which was also interpreted from surface mapping of lode float. This interpreted fold is shown in Figure 2.

Figure 2. One Mile Mining Lease showing the locations of all drill holes and the intersections in hole SPOM023.

Two deeper pre-collared diamond drill holes (SPOM016 and SPOM023) were then drilled 100m south of the most southerly section from the 2011 drilling program and on the same section as hole SPOM017 (Section 1850N). Both holes were drilled from the same drill site but with different dips so as to intersect the lode at different levels. Both these holes intersected massive, semi-massive and disseminated sulphides containing copper, zinc and gold.

The upper hole (SPOM016) intersected a sulphide zone over a 3.7m interval averaging 0.47% Cu and 0.4g/t Au. Further disseminated sulphides extended down the hole but did not contain significant copper and gold.

The lower hole (SPOM023), drilled to intersect the lode about 130m vertically below hole SPOM016, intersected a wide intense sulphide bearing alteration zone which extended from 347m to the bottom of the hole at 472.7m.

As shown in Table 2, the hole intersected a number of copper and zinc bearing intervals between 386.0m and 415.3m. Two of these intervals contained higher-grades including 3.3m from 389.7m to 393.0m containing 0.54% Cu, 0.63g/t Au, 2.16% Zn and 8.3g/t Ag and 5.2m from 395.9m to 401.1m containing 0.51% Cu, 0.64g/t Au, 1.77% Zn and 7.3g/t Ag.

The main sulphide section of the hole from 386.0m to 407.3m contained massive, semimassive and disseminated sulphides with an average grade over the 21.3m of 0.31% Cu, 0.43g/t Au, 0.98% Zn and 4.9g/t Ag. This is of similar grade to the intersection in hole SPOM004 to the north but the zone is wider.

The mineralisation style is similar to that intersected in previous holes and consists of coarse grained pyrite (approximate 5mm grain size) with variable chalcopyrite (CuFeS2) and sphalerite (ZnS) largely occurring in the interstices between the pyrite crystals (Photographs 1 and 2).

Further narrow massive and semi-massive sulphides occurred below this interval, including considerable pyrhotite and pyrite in a breccia between 417m and 423m, but with a lower chalcopyrite content. The sulphide content within the alteration zone decreased below 450m.

A long section through the One Mile mineralisation is shown in Figure 3. Hole SPOM023 is a substantial step-out drill hole and the intersection extends the sulphide body down-plunge from hole SPOM004 by about 160m and confirms the potential of the southern part of the area for a substantial sulphide body.

The intersection in hole SPOM023 lies 400m from the southern boundary and 200m from the western boundary of the One Mile Mining Lease. There is therefore sufficient room for a further drilling program but granting of EPM18987 will be necessary for completion of a substantial extension of drilling.

Figure 3. Long section through the One Mile Mining Lease showing drill hole intersection points, the possible plunge of the sulphide body and the increasing width and grade of the sulphide body at depth to the south.

Photograph 1. Close-up photograph of halved NQ drill core from drill hole SPOM023 showing chalcopyrite (CuFeS2) (yellow) in massive pyrite (FeS2) (silver-grey).

ASX Release - 22 June 2012 - Page 7 of 9

Photograph 2. Close-up photograph of halved NQ drill core from drill hole SPOM023 showing sphalerite (ZnS) (brown) in massive pyrite (FeS2) (silver-grey).

Supergene Drilling

High-grade supergene copper often occurs in the transition zone located at the top of the sulphide zone and beneath the main gossan zone in outcropping massive sulphides deposits (eg Balcooma, Reward). Five RC holes (SPOM020, SPOM021, SPOM022, SPOM024 and SPOM025) were drilled to target this potential supergene copper zone at One Mile. None of the five drill holes intersected high-grade copper indicating that the expected enrichment of copper did not occur in the supergene zone.

The likely reason for this at One Mile is that the large amount of acid generated from the oxidation of the massive and semi-massive pyrite was sufficient to strip copper and zinc from the transition zone. This is evident from the very low copper and zinc grades in the massive pyrite zone intersected below the gossan particularly in holes SPOM021 and SPOM022.

Supergene enrichment of gold and silver on the other hand has occurred with both gold and silver intersections in the transition zones. The best of these intersections occurred in holes SPOM021 (80m to 82m – 2m @ 6.1g/t Au and 18.9g/t Ag) and SPOM022 (84m to 86m – 2m @ 3.41g/t Au and 21.2g/t Ag). The best copper intersection was in hole SPOM024 (64m to 80m – 16m @ 0.38% Cu) but no high-grade copper was intersected.

Western Gossan Drilling

The western gossan lode is a prominent linear gossan zone lying immediately to the west of the main gossan zone. It had been targeted previously by two drill holes drilled from the western side of the gossan outcrop. Neither of these holes intersected sulphides. A short hole (SPOM026) was drilled in the current program from the eastern side of the gossan zone. This hole did not intersect significant sulphides.

Ken Harvey Managing Director

Contact: Mr Ken Harvey Ph (07) 3839 5099

Further Information: www.superiorresources.com.au

The information in this report that relates to Exploration Results is based on information compiled by Mr Ken Harvey, a full-time employee of the Company, who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Harvey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 Harvey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.