VRX SILICA LIMITED — Capital/Financing Update 2012

Dec 11, 2012

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12 December 2012

ASX ANNOUNCEMENT

Spectacular results from deep drilling at Thaduna/Green Dragon Copper Project

Highlights:

ASX: VRX

• Diamond drill tail THRC 220 delivers high grade results:

• 15 metres at 5.49% copper

  • including 9.16 metres at 8.57% copper from 497 metres down hole

• Results include single highest grade assay received to date

• Confirmation of continuity of high-grade shoot

Capital Structure

Shares on Issue 69.6 million Unlisted Options 25.1 million Market Cap @ 50 ¢ $42 million (Fully Diluted) Cash on hand $4.6 million (at 30 September 2012)

• Further deep drilling planned for Thaduna Q1 2013

Australian base metals company Ventnor Resources Limited ( ASX: VRX ) (“Ventnor” or ‘”the Company”) has received drill results confirming the highest grade intersection to-date at its flagship Thaduna/Green Dragon Copper Project in Western Australia.

The results support the visual indications reported from the deep drilling program last month, and confirm an intersection of strong bornite mineralisation over 11 metres.

Corporate Directory

Paul Boyatzis

Non-Executive Chairman

Bruce Maluish

Managing Director

John Geary

Executive Director

An ongoing program of deep drilling is continuing at the project, which is aimed at producing a copper resource below the current open pit models.

Peter Pawlowitsch

Non-Executive Director

The Thaduna / Green Dragon project is located in the renowned Doolgunna district, 170km north of Meekatharra and 40km east of Sandfire’s DeGrussa project.

Managing Director Bruce Maluish said the latest assay results confirm the best diamond core intersections from the project, including the single highest grade received to date.

“This intersection confirms that we now have continuous copper mineralisation from surface to approximately 440 vertical metres below surface, and supports our understanding of the mineralisation profile and structural controls of this typical hydrothermal copper mineralised system,” Mr Maluish said.

Company Projects

Thaduna/Green Dragon Copper Project in the Doolgunna district, WA

Kumarina exploration project north of Meekatharra, WA

Warrawanda/Nickel Hills Nickel Project south of Newman, WA

Georgina Basin IOCG Project in western Queensland

“We don’t believe this is an isolated intersection and expect this style of mineralisation to continue down plunge.”

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“Drilling is still underway into this zone and these drill results will underpin a resource below the expected open cut pit, to be accessed by underground mining,” said Mr Maluish.

Drilling will be suspended for the Christmas break in mid-December 2012 and recommence mid-January 2013 when a further six holes have been planned to be drilled into the high grade shoot.

Detailed Information

Drilling to date at Thaduna has comprised 221 RC holes for 29,041 metres with 62 Diamond Tails for 12,348 metres, totaling 30,044 metres.

On 14 November 2012 the Company announced that strong bornite mineralisation over 11 metres, from 497.8 metres had been intersected in THRC220, which was drilled to test the Thaduna Deeps 2 target. The assay results have now been received and confirm the high grade potential of the Thaduna fault at depth.

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The long-section above clearly shows the significance of the intersection in THRC220. Not only is the intersection over 130 metres vertically below the indicated Resource limits, it contains the single highest grade assay to date at the project, namely 0.74m @ 17.15%Cu and 46.8g/t Ag from 499.5m-500.24m , and is the highest grade +1% intersection drilled at Thaduna: 9.16m @ 8.57%Cu and 27.2g/t Ag . In terms of copper metal THRC220 returned ~90Cu % x metres, which is significantly higher than was indicated from the drilling up dip. The high grades associated with THRC220 are due to a predominance of bornite mineralisation combined with chalcocite overprinting, or rimming of the bornite, as illustrated in the following photograph.

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Chalcocite overprinting bornite in THRC220 at 499.5 metres down hole.

The presence of chalcocite at this depth is very significant in that the chalcocite/bornite association is the evidence that supports the hydrothermal mineralising system at Thaduna, see below.

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The copper deposit at Thaduna is typical of sediment-hosted copper deposits in that the copper and iron sulfide minerals, chalcocite, bornite, chalcopyrite and pyrite are arranged in a systematic pattern upwards and outwards from the centre of the deposit. This zonation reflects the degree to which the host rock (here the Thaduna Fault black shale) affected the chemistry of the fluid that introduced the copper. Iron-poor minerals like chalcocite and bornite characterise the areas of strongest mineralisation. The extent of the drill coverage at Thaduna is now sufficient that the full picture of sulfide zonation has been revealed.

The original mineral zonation is later overprinted at shallow depth by secondary minerals. At the top of the system, primary chalcopyrite is oxidised and replaced by copper carbonates/oxides (malachite/azurite) and below these, as secondary sulfides (chalcocite). These secondary copper minerals define discrete shallow oxide and secondary sulfide (“supergene”) zones. Below the base of oxidation, chalcopyrite is the dominant copper sulfide mineral. With greater depth, this is progressively overprinted by bornite and still deeper, the replacement of the primary bornite by chalcocite is observed (e.g. in THRC220). The net effect of this is an increase in grade with depth because chalcocite (79.8 wt% Cu) contains more copper than bornite (63.3 wt% Cu), and in turn, bornite contains more copper than chalcopyrite (34.6 wt% Cu). This is evidenced by the sharp increase in grades returned by the recent drilling.

It is interpreted that THRC220 has intersected the core of the system, and by combining the local structure and sulphide zonation together, vectors towards the source of the copper mineralisation can be determined. It would also be expected that the copper sulphide mineralogy seen in THRC220 will be reflected broadly along strike and down dip at depth.

Thaduna Resource Update

The recently reported Thaduna resource has been classified as Indicated down to ~300m vertically. Drilling since the cutoff date for the resource has generated an additional 15 infill and extensional intersections that will be used to generate an updated resource model for the Thaduna deposit in Q1 2013.

The resource will include holes such as THRC220 and extend the resource below 450 metres vertical. Tabled below, and shown on the long-section and plan, are three recent intersections that will be included in the resource update which also indicate multiple zones at depth.

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Hole Id	**Easting **	Northing	Az	Dip	From	To	DH m	Cu%	Ag ppm	Type
THRC127 772664 7175961 061 -59 279.0 288.0 9.00 2.48 9.1 Incl. 279.5 282.1 2.60 2.21 9.6 Incl. 285.0 288.0 3.00 4.74 17.0 291.0 300.0 9.00 0.87 1.3 Incl. 292.0 294.0 2.00 2.45 4.5										NQ2
THRC211 772582 7176016 042 -60 294.0 305.0 11.00 1.61 0.3 Incl. 295.0 304.0 9.00 1.90 0.4 319.0 340.0 21.00 2.20 2.9 Incl. 320.0 323.0 3.00 3.46 8.6 Incl. 325.0 338.0 13.00 2.53 2.7 344.0 350.0 6.00 1.77 0.6 Incl. 345.3 347.0 1.70 5.71 0.4										NQ2
THRC214 772691 7175841 050 -60 314 327 13.00 2.07 0.3 Incl. 318 323 5.00 4.76 0.8										NQ2
THRC220 772296 7176167 035 -65 497 512 15.00 5.49 17.4 Incl 497.84 507 9.16 8.57 27.2 Incl. +5% 497.84 54.65 6.81 10.78 34.2 514 518 4.00 0.26 12.0 522 527 5.00 3.08 15.1 Incl 522 526 4.00 3.80 11.5										NQ2

Below is the current drill status plan at Thaduna showing the holes that have been completed and the Thaduna deep diamond holes that are now planned.

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Thaduna Drill Hole Location Plan
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On the following page is the Section 1280m, on to which projects THRC220. The section looks north and shows the high grade drill hole THRC220 at depth, with two near surface holes which intersected little value. This is due to the north plunging high grade shoot and it is expected there will be additional mineralisation proximal to THRC220, but it is not expected to extend to the surface.

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Thaduna Section 1280m
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Competent Person’s Statement

The information in this release that relates to Exploration Results is based on information compiled by Mr David Reid who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Reid is an employee of Ventnor Resources Limited. Mr Reid 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 Reid consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears.

For further information please contact:

Bruce Maluish, Managing Director brucem@ventnorresources.com.au

www.ventnorresources.com.au

Media: Warrick Hazeldine Cannings Purple Communications Tel: +61 8 6314 6300 whazeldine@canningspurplecom.com.au

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ABOUT VENTNOR

Ventnor Resources is a base-metals focused explorer with copper targets at the historic Thaduna/Green Dragon project, 170 km north of Meekatharra in Western Australia. Also in Western Australia, 40 km south of Newman, are the Warrawanda and Nickel Hills nickel projects and the extensive Kumarina exploration project 200 km north of Meekatharra. In Western Queensland, the Georgina Basin project lies within the Mt Isa Inlier which is well endowed with Iron Oxide Copper Gold (“IOCG”) systems and sulphide base-metal deposits. Ventnor also has holdings in the NT.

Known Copper and Nickel Mineralisation

The Thaduna/Green Dragon copper project has historic mine production; copper mineralisation has been confirmed with three phases of exploration drilling, with a fourth phase underway. The prospectivity of the Warrawanda and Nickel Hills nickel projects was increased when nickel copper gossans were identified in recent years. Further work is planned for late 2012.

Proven Management

The Ventnor directors have extensive experience in the management of publicly listed mining and exploration companies.

PROJECT LOCATIONS

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