VERITY RESOURCES LIMITED — Capital/Financing Update 2010

Dec 12, 2010

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

Market Cap

DATE: 13 DECEMBER 2010

Cash

NON-RENOUNCABLE RIGHTS ISSUE TO RAISE $2.8M

The Board of Botswana Metals Limited (“Company”) proposes a nonrenouncable rights issue to all shareholders on the following terms (“Rights Issue”):

Issued Capital

Unlisted Options

• One (1) new ordinary fully paid share (“new share”) for every three (3) shares held at the relevant record date, at an issue price of eight cents ($0.08) per new share.

• For every one new share subscribed, two (2) options exercisable at 10 cents each at any time up until 30 June 2013 (“Expiry Date”) will be issued to the subscriber.

Substantial shareholders

• The Rights Issue is expected to raise $2.8M before costs.

• The Company will apply for listing of the options with the Australian Securities Exchange.

Directors

• The issue will be underwritten in part or in full by the Directors or by their associated entities.

• The new shares will rank pari pasu with the existing issued shares of the Company.

The funds raised will be used to fund a continued exploration program of a minimum of 10,000 metres of drilling in 2011 after completion of a VTEM helicopter survey on Airstrip, Mabiele and Dibete discoveries as well as other anomalies indentified at Shashe River East (PL44/2004) and Shashe River West PL48/2004) on the Limpopo Belt to the north of the Magogaphate Shear Zone containing the new discoveries.

An aggressive exploration program will be required over the next 6 to 12 months in order to continue to maintain the Company’s exploration portfolio.

Registered Office

Contact

A disclosure document detailing the proposed terms of the rights issue is expected to be issued to shareholders in mid to late January 2011.

As previously advised, the Company is pleased to confirm that PL110/94 covering the Maibele North and Airstrip anomalies has been extended for a period of 18 months from 1 October 2010.

Media Relations

PL’s 111/94, 54/98 and 14/2003 are still awaiting advice from the Botswana Department of Geological Survey as to the granting of an extension over those tenements.

Pat Volpe Chairman