VERITY RESOURCES LIMITED — Capital/Financing Update 2011

Jan 9, 2011

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

Market Cap

Cash

DATE: 10 JANUARY 2011

DIBETE DISCOVERY: FINAL RESULTS ON DRILL HOLE DBRC014: INTERSECTION OF 38m @ 1.72% Cu and 119.5 g/t Ag from a depth of 16m.

Issued Capital

Unlisted Options

HIGHLIGHTS:

Latest drill results:

Substantial shareholders

• The above results of hole DBRC014 includes 3m @ 9.16% Cu and 894 g/t Ag in the 38 m @ 1.72% copper and 119.5 g/t silver intersection and confirms a supergene style of mineralisation in a weathered zone over an inferred 200m strike length. Mineralisation on line 6100 E, which contains DBRC014, is open to the north, west and east and was intercepted at a depth of 16m from surface.

• Hole DBRC014 is along strike from DBRD006 and DBRC013 on drill line Section 6100E, with best results detailed below. DBRC004 and DBRC005 both encountered mineralisation some 300 meters to the east on Section 6400E. Continuity between these areas has not yet been confirmed.

Directors

Registered Office

Update on PL111/94 and PL 54/98: New Dibete discovery area:

• The Company has been requested for further information on its exploration plans on the Dibete discovery under its application for an extension to the Department of Geological Survey (“DGS”), Botswana.

Contact

• The information required will be lodged before 3 February 2011, being the date specified by the DGS.

Media Relations

• The extension is being sought by the Company for its new Dibete discovery which over laps PL 111/94 and PL 54/98.

• The new discovery at Airstrip Copper (PL110/94) was approved for an extension by the DGS in December 2010 is just 7km north of the Dibete discovery.

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SECTION 6100 E SIGNIFICANT RESULTS:

DBRD006 18 metres @ 1.78% Cu and 28.9 g/t Ag Including 5 m @ 4.19% Cu and 92.5 g/t Ag Including 9m @ 2.75% and 54.7 g/t Ag DBRC013 18 metres @ 1.99% Cu and 98.4 g/t Ag. Including 10 metres @ 3.11% Cu and 163.0 g/t Ag. DBRC014# 38 metres @ 1.72% Cu and 119.5 g/t Ag. Including 10 metres @ 2.33% Cu and 126.5 g/t Ag. Including 8 metres at 3.86% Cu and 364.1 g/t Ag. Including 3 metres at 9.16 % Cu and 894 g/t Ag.

SECTION 6400E: SIGNIFICANT RESULTS:

DBRD004 9 metres @ 0.92% Cu and 17.2 g/t Ag. Including 4 metres @ 1.28% Cu and 25.4 g/t Ag. DBRD005 3m @ 0.69% Cu and 8 g/t Ag and 6m @ 0.52% Cu and 1m @ 0.43% Cu and and 1m @ 0.52% Cu and 4.2 g/t Ag.

Note:

• *** indicates previously reported results,**

• # indicates hole DBRC014, previously reported to 36m depth and ending in mineralisation now completed to depth with updated results, and

• Grades of copper were calculated on the basis of using a 0.3% Cu cut off grade.

DETAILS:

The Board of Botswana Metals Limited “(BML”) is pleased to announce that it has received additional laboratory results for DBRC014 hole at its Dibete prospect.

The mineralisation intersected is probably partially secondary sulphides near the base of the hole as some sulphur is reported in the analyses.

The results confirm continuity and thickness of the supergene blanket of copper and silver along the local grid line 6100E, over a distance now inferred at approximately 200 metres.

The thickness of supergene mineralisation was not expected but suggests that the thickness present at Dibete is significant. Whether the mineralisation is predominantly associated with the mapped shear zones and EM axes or is more widespread is unknown at present but will be assessed with further drilling during the March Quarter.

The interpreted extent of this supergene Cu-Ag mineralisation as shown in Figure 2 and is based on both drill data and the location of old copper workings.

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Figure 1 Supergene blanket interpreted from drilling results shown in brown overlay on IP section with interpreted general base of weathering.

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Table 1 below details all significant drill hole results currently received by the Company. Results from some holes are still outstanding and will be reported when received and interpreted. All intersections were calculated using a 0.3% copper cut off grade.

	Easting	Northing	RC depth	From	To		Cu
Hole No						Interval m		Ag g/t
	WGS 84	WGS 84	m	m	m		%
DBRD 004	638490	7593976	50	3	4	1 m@	0.4	-
				27	36	9 m@	0.92	17.2
				27	31	Including 4 m @	1.28	25.4
				34	35	1 m@	1.76	4.2
DBRD 005	638534	7593894	51	8	11	3 m@	0.69	8
				8	9	Including 1 m @	1.361	14.9
				22	28	6 m@	0.52	-
				23	24	Including 1 m @	1.06	-
				31	35	4 m@	0.7	4.1
				32	34	Including 2 m @	0.91	6.1
				41	42	1 m@	0.43	-
				46	47	1 m@	0.52	4.2
DBRD 006	638190	7593904	49.7	24	42	18 m@	1.78	28.9
				26	35	Including 9 m @	2.75	54.7
				26	31	Including 5 m @	4.19	92.5
				32	35	Including 3 m @	1.03	7.6
				37	39	Including 2 m @	2.24	-
DBRC 013	638261	7593767	130	32	50	18 m@	1.99	98.4
				37	47	Including10 m@	3.11	163
						Including 2 m @	10.75	543
DBRC 014	638214	7593858	110	16	54	38 m@	1.72	119.5
				16	37	Including21 m@	1.32	67.7
				27	37	Including10 m@	2.33	126.5
				44	52	Including8 m@	3.86	364.1
				48	51	Including3 m@	9.16	894

Table 1 Significant RC Cuttings Results

Figure 2 shows the location of the Phase 1 drill holes and holes DBRC 013 and DBRC 014 in relation to the shear zones interpreted on Google Earth.

The mapped shear zones are subparallel to known major shears at Airstrip Copper that have extensive alteration or oxidation associated with them. If the shear zones mapped at Dibete are real, then there may be a series of deeper keels of high grade secondary mineralisation below a more widespread but thinner supergene blanket of mineralisation. Mineralisation in holes DBRD 004 and DBRD 005 may be outside the influence of the sheared zone interpreted in this vicinity.

These possibilities will be tested by drilling during the March Quarter.

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Figure 2 Google Earth image with supergene copper target and selected drill holes

The supergene copper – silver target zone is shown as a hatched brown overlay and includes all the known workings and drill hole intersections of supergene copper. The target zone is predominantly contained within the copper in soil anomaly which is outlined in the copper coloured line. The target zone shown above is approximately 850 metres along strike and open to the east and north, and possibly to the west also.

The relationship of the known workings to the ground EM axes and to the shear zones suggests that both may have a role in controlling the supergene mineralisation.

The phase one drilling pre-collars were drilled by RC (reverse circulation) through zones not anticipated to contain significant mineralisation which were then completed with diamond drilling through the interpreted target zone to final hole depth. Phase two holes were drilled by RC only.

Figures 3-5 show the locations of the drill holes with intersection data and an east-west section with the mineralisation plotted on drill traces. All holes were drilled at dip 60 degrees, azimuth 325 degrees true.

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Figure 3: Plan of drill holes at Dibete Prospect showing intersection data.

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Figure 4: Details of intersections on lines 6100E and 6400E.

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Figure 5 Long section east-west through the Dibete prospect with all drill holes and mineralisation projected onto a single plane.

A third phase of drilling to deter m ine the areal extent of the supergene copp e r-silver mineralisation, will commence in the first quarter of 2011. Initial planning is for a program of 84 holes, subject to progressive results determined in the field.

The market will be kept informed as additional laboratory results and analyses are received.

Pat Volpe Chairman

The information in this report that r e lates to Exploration Results is based on infor m ation compiled by Mr Peter Temby, a consultant employed by A npet Exploration Pty Ltd and a member of The Australian Institute of Geoscientists.

Mr Temby has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activities w hich he is undertaking to qualify as a Compet e nt Person as defined in the 2004 Edition of the Australasian Cod e for Reporting of Exploration Results, Mineral R esources and Ore Reserves. Mr Temby consents to the inclusion i n this report of matters based on his information in the form and context in which it appears.

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Drill Hole Data Dibete