SUREFIRE RESOURCES NL — Capital/Financing Update 2011

May 17, 2011

18 May 2011

[insert address]

Dear Shareholder

NON-RENOUNCEABLE ENTITLEMENT ISSUE

Black Ridge Mining NL (Company) has announced to ASX Limited (ASX) a pro-rata non-renounceable entitlements issue on the basis of one (1) New Share for every four (4) Shares held by shareholders at 5.00pm on the record date of 25 May 2011.

It is proposed that one (1) free attaching Option will be issued for each New Share issued. The free attaching Options will be exercisable at 1.5 cents each and expire approximately 18 months from date of issue. If a free attaching Option is exercised within four (4) months from the date of grant, the free attaching Optionholder is entitled to receive a secondary option (Entitlement Issue).

The Entitlement Issue will result in the issue of 150,894,590 new shares in the Company and 150,894,590 new options.

The Entitlement Issue is fully underwritten by Natwest Securities Limited (Underwriter).

The prospectus relating to the Offer has been lodged with the Australian Securities and Investments Commission and ASX and is available on the ASX website at www.asx.com.au for inspection. The timetable and important dates of the Offer* are set out below:

Lodgement of Prospectus and Appendix 3B with ASIC and despatch ofletter to Optionholders	16 May 2011
Notice sent to Shareholders	18 May 2011
Ex Date	19 May 2011
Record Date for determining Shareholder entitlements	25 May 2011
Prospectus despatched to Shareholders and announcement that dispatchhas been completed	31 May 2011
Closing Date of Offer	15 June 2011
New Securities are quoted on ASX on a deferred settlement basis	16 June 2011
Company notifies ASX and Underwriter of under-subscriptions	20 June 2011
Despatch date/Shares and Options entered into shareholders securityholdings	23 June 2011

* These dates are indicative only and subject to change. The Company reserves the right, subject to the Corporations Act, the ASX Listing Rules and other applicable laws, to vary the dates of the Offer, including extending the Closing Date or accepting late applications, either generally or in particular cases, without notifying you. You are encouraged to submit your application as soon as possible. Any extension of the

Closing Date will have a consequential effect on the date of the issue of the securities. The Offer does not require the approval of shareholders.

The purpose of the Offer is to raise approximately $1,508,946.

Funds raised from the offer will be allocated to the Company's existing exploration programme at the Unaly Hill magnetite and vanadium project in the Midwest of Western Australia and to provide additional working capital to fund costs associated with the Company's continued investigation of new project opportunities both in Australia and overseas including the Durminskoe gold and silver project in Far East Russia

The capital structure of the Company on completion of the Offer will be as follows:

Shares

	Number
Existing Shares on issue and agreed to be issued at date ofProspectus	603,578,361
Shares offered pursuant to the Offer	150,894,590
Total Shares on issue after completion of the Offer	754,472,951

Options

	Number
Unquoted exercisable at $0.10 on or before 31 December 2011	10,500,000
Free Attaching Options offered pursuant to the Offer	150,894,590
Total Options on issue after completion of the Offer	161,394,590

In calculating entitlements under the Entitlement Issue, fractions will be rounded up to the nearest whole number.

Full details of the Entitlement Issue will be contained in the Prospectus that will be mailed to all shareholders who are registered on the Record Date. Shareholders eligible to participate should read the Prospectus carefully.

Yours faithfully,

David Semmens Company Secretary