VRX SILICA LIMITED — Capital/Financing Update 2012

Oct 24, 2012

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25 October 2012

ASX ANNOUNCEMENT

Ventnor Continues to Demonstrate Continuity of High-Grade Copper Mineralisation at Thaduna/Green Dragon Copper Project

ASX: VRX

Highlights:

• Exceptional results continue in high-grade shoot under Thaduna pit

• Deep hole drilling planned for Thaduna Q4 2012

• Maiden Resource estimate being finalised

Australian base metals company Ventnor Resources Limited ( ASX: VRX ) (“Ventnor” or ‘”the Company”) has even more significant results from the previously announced high-grade zone of copper mineralisation at its flagship Thaduna/Green Dragon Copper Project, located 170km north of Meekatharra, Western Australia, in the Doolgunna district, and 40km east of Sandfire’s DeGrussa project.

New high grades intersected at Thaduna include zones which were photographed and included in the last announcement dated 27 September 2012.

Capital Structure

Shares on Issue 69.6 million Unlisted Options 25.1 million Market Cap @ 60 ¢ $50 million (Fully Diluted) Cash on hand $4.6 million (at 30 September 2012)

Corporate Directory

Paul Boyatzis

Non-Executive Chairman

Bruce Maluish

Results include:

 10 metres at 6.65% Cu (photograph in last announcement)

• 7 metres at 4.07% Cu

• 7 metres at 3.04% Cu

Managing Director

John Geary

Executive Director

Peter Pawlowitsch

Non-Executive Director

The information included in this release updates a previous announcement (27 September 2012) and includes new information from recent assays from Thaduna.

Managing Director Bruce Maluish commented that field observations of bornite in diamond core continue to produce plus 5% copper intersections.

“These are the type of intersections that we are following up to investigate the underground mining potential and we will continue to drill deeper while we keep getting these high grade and sulphide rich zones,” Mr Maluish said.

“We are also committing to two deeper step-out holes. One will be targeting the projected down plunge high grade zone at 500 metres vertical depth and the other will investigate a recently identified EM anomaly at 450 metres vertical depth,” he 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 western Queensland

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“The maiden JORC compliant resource estimate being undertaken by consultants Cube Consulting for the Thaduna/Green Dragon project is nearing completion with final reporting underway and an announcement is imminent. The modeling shows good continuity between sections and down dip with essentially tabular orebodies,” he said.

“We also have results pending on an extensive metallurgical testwork program to follow up on initial float testwork and QemScan studies” said Mr Maluish.

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The photo above is from THRC207 within a 10 metre sulphide zone from 283 metres to 293 metres down hole with assay grades as high as 15.90 % copper (Cu) and 108 g/t silver (Ag).

Sulphides pictured are semi-massive chalcopyrite and bornite within a quartz-rich graphitic shale.

Detailed Information

Drilling to date at Thaduna comprises 218 RC holes for 29,083 metres with 55 Diamond Tails for 9,430 metres, totaling 38,513 metres.

On 27 September 2012 it was announced that significant mineralisation had been intersected in the diamond tail of THRC207 over 10 metres. It was also announced that a Geophysical survey team had been mobilised to site to undertake a Down Hole Electromagnetic (DHEM) survey on these and other holes as well as a Fixed Loop Electromagnetic (FLEM) survey in the central Thaduna area.

The laboratory assays for THRC207 confirm the visual estimates that this is an exceptional intersection. The assays returned 10 metres @ 6.65% Cu, 35.4 g/t Ag, above a 0.2% Cu cut off, including 9.4 metres @ 7.07% Cu, 37.7g/t Ag, above a 1% Cu cut off, with individual

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sample grades as high as 15.90% Cu and 108g/t Ag. This intersection in THRC207 shows a significant change in the silver grade compared to that which has been seen to date. Typically the mineralisation at Thaduna returns 2.5-3.0 g/t Ag per 1% Cu. The silver assays from the +1% Cu intersection THRC207 average 5.3 g/t Ag per 1% Cu, significantly more than typically seen. This hole is presented in Section 920m on the following image.

Resource Estimation

In August 2012 Cube Consulting were engaged to undertake an independent estimation of the maiden JORC compliant Resource for the Thaduna and Green Dragon Copper deposits. The Resource models will be created using 208 RC and diamond drill holes at Thaduna and 93 RC holes at Green Dragon. A wireframe constrained interpolated model will be used to report an Indicated and Inferred Resource. The interpreted structures at both Thaduna and Green Dragon show very good continuity between drill sections and good assay correlation between individual drill holes. The mineralised structures have been interpreted as deep as 360 metres vertically at Thaduna and 220 metres vertically at Green Dragon. The interpreted structures are typically tabular, steeply dipping at Thaduna and moderately dipping at Green Dragon, with significant thickening zones with increases in both grade and width. In addition to this Resource model will be an Indicated Resource based on the stockpiles and tailings that remain from the historic mining.

Geophysics

The modeling of the Geophysical survey has also been received. The DHEM survey undertaken in THRC207 showed a strong in-hole response and the most significant off-hole conductor seen to date. 3D modeling of this and surrounding surveyed holes has indicated a strong DHEM conductor extending below the high grade intersection in THRC207 at depth.

This conductor is shown on Section 920m and is to be targeted by a 520 metre deep diamond drill hole.

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THRC207 DHEM – “A” Component
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Thaduna Section 920m
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Thaduna Deeps Program

The long section below showing the grade accumulation, Cu% x metre, of all intersections in each hole has been updated with all recent assays. These holes have confirmed the presence of a broad, north plunging shoot, with a strike extent of over 400 metres. The outline of the DHEM conductor plate generated during the recent geophysical survey is shown in red. Two targets have been chosen to be tested with diamond drilling and if successful will further the understanding the mineralisation at Thaduna.

Thaduna Deeps 1 – This target is generated from the DHEM modeling and will be tested by a 520 metre deep diamond hole with a target 450 metres vertically below the surface. The DHEM off-hole conductor from THRC207 dips with the Thaduna fault but plunges steeply to the south, against the interpreted shoot which plunges moderately to the north.

Thaduna Deeps 2 – This target is the down plunge continuation of the existing identified Thaduna mineralised shoot. This target will be tested by a 580 metre deep diamond drill hole with a target 500 metres vertically below the surface and 350 metres down plunge from the existing drilling.

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Below is the current drill status plan at Thaduna showing the holes that have been completed and the diamond tails that are currently planned. In addition to the holes shown on the Section 920m an additional four holes are shown which, apart from THRC177, have not been reported. These four holes have intersected significant sulphides and assist in the projection of the Thaduna plunge which has been used to select the Thaduna Deeps 2 Target. Also shown on the plan is the collar position of the Thaduna Deeps 1 Target.

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Drill Hole Location Plan - Thaduna

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Metallurgical testwork program

Consultant ALS Ammtec has commenced a comprehensive metallurgical testwork program.

A series of 48 samples comprising reverse circulation and diamond drill core have been selected from varying depths and mineralisation styles across the Thaduna/Green Dragon Copper Project. The testwork includes:

• Determination of comminution and beneficiation parameters for crushing/milling flowsheet design. This work is now complete.

• Assessment of multiple flotation regimes to produce a saleable copper concentrate at optimal grades and recoveries.

• Assessment of suitability to heap leaching crushed run of mine material.

Detailed mineralogy via QEMSCAN of feed, concentrate and reject streams is scheduled to commence in November.

Other Project Work

In addition to the drilling and Resource estimation work there have been a number of additional activities undertaken on the Thaduna Green Dragon Project to progress the eventual mining permit applications.

These include;

• Sterilisation drilling of the potential Plant site

• Lodging Mining Lease applications

• Lodging Miscellaneous Licence applications for roads

• Commencing Native Title negotiations

• Conducting summer and winter Flora and Fauna surveys

• Completing water quality surveys

• Finalising independent Geotechnical studies

• Undertaking metallurgical sampling and testwork.

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Results included in the section at Thaduna are tabulated below.

Hole Id	Easting	Northing	Az	Dip	From	To	DH m	Cu%	Ag ppm	Type
THRC111 772713 7176032 62 59 - 79.0 97.0 18.0 0.48 0.2 (New Intersections) Incl. 93.0 95.0 2.0 1.46 1.5										RC	Section 920m
THRC126 772644 7175998 61 60 - 211.0 213.0 2.0 1.05 0.5 215.3 218.5 3.2 1.02 0.3 (New Intersections) Incl. 217.0 218.5 1.5 1.64 NSR										NQ2
THRC148 772548 7175940 91 61 - 372.0 384.1 12.1 0.73 2.1 Incl. 375.4 380.0 4.6 1.36 4.5 397.0 399.0 2.0 1.26 8.0 402.0 410.0 8.0 0.38 1.3										NQ2
THRC158 772618 7176038 35 60 - 249.5 251.0 1.5 0.26 NSR 269.0 272.0 3.0 2.87 NSR 277.0 286.0 9.0 0.74 NSR Incl. 281.3 283.0 1.7 2.12 NSR 291.5 298.0 6.5 0.82 NSR Incl. 294.0 295.0 1.0 1.91 NSR 304.0 307.0 3.0 1.15 NSR Incl. 304.7 306.0 1.3 1.85 NSR 312.0 317.0 5.0 4.94 13.3 330.8 335.0 4.2 0.70 1.3 Incl. 331.3 332.3 1.0 1.52 5.1										NQ2
THRC169 772680 7176020 35 55 - 134.0 139.0 5.0 3.41 9.4 (New Intersections) Incl. 135.0 138.0 3.0 5.47 15.3										RC
THRC207 772655 7175963 35 60 - 226.0 232.0 6.0 1.16 0.7 Incl. 227.0 229.0 2.0 3.00 2.0 238.0 240.0 2.0 0.42 NSR 284.0 294.0 10.0 6.65 35.4 Incl. 284.0 293.4 9.4 7.07 37.7 (New Intersections) +5% 286.0 293.4 7.4 8.71 47.4										NQ2
THRC204 772461 7176081 35 60 - 322.0 329.0 7.0 4.07 11.2 (New Intersections) Incl. 322.8 325.4 2.6 9.67 27.7										NQ2
THRC177 772421 7176150 35 60 - 328.0 336.0 8.0 4.12 11.2 Incl. 331.0 336.0 5.0 6.28 17.8										NQ2
THRC179 772506 7176211 35 60 - 236.0 243.0 7.0 3.04 1.2 Incl. 237.1 242.0 4.9 4.16 1.7 (New Intersections) 245.9 247.0 1.1 0.81 NSR										NQ2
THRC194 772484 7176156 35 60 - 299.0 304.0 5.0 3.76 6.6 (New Intersections) 308.0 311.0 3.0 0.31 NSR										NQ2

NSR – No Significant Result

Intersections are based on greater than 0.2% Cu with a minimum of 2 consecutive samples down hole with a maximum of 2 metres of internal dilution. All intersections are down hole lengths. Included intersections in bold are based on greater than 1.0% Cu with a minimum of 2 consecutive samples down hole and a maximum of 2 metres of internal dilution. Assays for Cu and Ag are determined by a four acid digest with either an ICP-OES or ICP-AA finish. Coordinates are MGA Zone50J GDA. “Type” indicates either a Reverse Circulation (RC) intersection or NQ2-sized diamond core sample.

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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/Karen Oswald Purple Communications Tel: 0423 602 353 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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