VRX SILICA LIMITED — Capital/Financing Update 2012

Jul 31, 2012

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1 August 2012

ASX ANNOUNCEMENT

Significant high-grade discovery at Thaduna/Green Dragon Copper Project

ASX: VRX

Highlights:

• New high grade zone of strong bornite mineralisation discovered, central to the Thaduna prospect

• Diamond drilling is continuing, approximately 600 metres

• Completion of JORC compliant Resource by Q3 2012

• This new discovery reinforces the substantial exploration potential of the Thaduna/Green Dragon Copper Project

Australian base metals company Ventnor Resources Limited ( ASX: VRX ) (“Ventnor”) is delighted to announce a significant high-grade zone discovery of strong bornite 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.

Capital Structure

Shares on Issue 62.05 million Unlisted Options 25.4 million Market Cap @ 50c $37 million (Fully Diluted)

Cash on hand $2.9 million (at 30 June 2012)

Corporate Directory

Paul Boyatzis

Non Executive Chairman

Bruce Maluish

High-grades intersected include;

• 5 metres at 7.00% Cu

• includes 2.7 metres at 11.72% Cu and 29.7 g/t silver at a 5% Cu cutoff;

• 9.5 metres at 4.40% Cu;

Managing Director

John Geary

Executive Director

Peter Pawlowitsch

Non Executive Director

• 10 metres at 3.26% Cu;

• 4.6 metres at 5.83% Cu;

• 2.5 metres at 7.36% Cu;

• 13 metres at 3.57% Cu;

• 5 metres at 4.94% Cu;

• 6 metres at 4.78% Cu;

• 10 metres at 3.28% Cu;

• 3 metres at 4.47% Cu.

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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Managing Director Bruce Maluish said this new high-grade discovery of strong bornite mineralisation as the primary sulphide has resulted in higher copper grades.

“The significance of the increasing presence of primary bornite, compared to primary chalcopyrite, lies in the increase in relative copper by weight %. Chalcopyrite, CuFe[2+] S2, is 34.6% Cu compared with Bornite, Cu5Fe[2+] S4, is 63.3% Cu, an increase of 183% in Cu for the same mass of sulphide,” Mr Maluish said.

“The high-grades intersected continue to increase the company’s confidence in this quality copper project”.

To date, 177 RC holes for 25,144m with 29 Diamond Tails for 3,758m, totaling 28,902m have now been drilled at Thaduna over the four phases of drilling that commenced in April 2011.

Approximately 700 samples are in transit or in the laboratory with assays pending.

A series of deeper holes have been completed at Thaduna covering the central portion of the identified mineralisation. These holes have identified a change in the sulphide mineralogy with primary bornite becoming the dominant source of copper mineralisation. Copper sulphide mineralogy intersected prior to this has been either primary chalcopyrite or secondary chalcocite with specks of bornite observed.

A further 6 drill holes have been drilled in the central zone with analyses pending.

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Thaduna and Green Dragon are low sulphur mineralising systems, evidenced by the lack of iron sulphides such as pyrite or pyrrhotite. A change to the primary copper sulphide mineralisation from chalcopyrite to bornite results in an increase in the copper tenor of the mineralisation.

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Bornite in drill hole THRC119 – 260.1 metres downhole

The effect of this increase can be seen in the increase in copper grades reported below, a specific example is THRC160 which returned 4 samples above 5% Cu and averaged 11.72% Cu over 2.7m down hole from 229.7m, two of these four samples both assayed 12.69% Cu and the dominant sulphide was bornite.

Significant results include:

• 21 metres at 1.74% Cu from 171 metres (THRC164)

• including 10 metres at 3.26% Cu from 171 metres downhole;

• 8.1 metres at 3.44% Cu from 225.9 metres (THRC161)

• including 4.6 metres at 5.83% Cu from 225.9 metres downhole;

• 8.3 metres at 4.36% Cu from 225.7 metres (THRC160)

• including 5 metres at 7.00% Cu from 228 metres downhole which

• includes 2.7 metres at 11.72% Cu and 29.7 g/t silver from 229.7 metres downhole at a 5% Cu cutoff;

• 14.4 metres at 4.22% Cu from 313 metres (THRC159)

• including 9.5 metres at 4.40% Cu from 313 metres downhole and

• 2.5 metres at 7.36% Cu from 325 metres down hole and

• 13 metres at 3.57% Cu from 334.3 metres down hole;

• 5 metres at 4.94% Cu from 312 metres (THRC158)

• 3.5 metres at 3.87% Cu from 362.6 metres (THRC149)

• 7 metres at 4.22% Cu from 94 metres (THRC112)

• including 6 metres at 4.78% Cu from 94 metres downhole;

• 12 metres at 2.78% Cu from 83 metres (THRC067)

• including 10 metres at 3.28% Cu from 83 metres downhole;

• 12 metres at 1.53% Cu from 114 metres (THRC037)

• Including 3 metres at 4.47% Cu from 121 metres downhole

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The long section below models in each drill hole the combined intersections down hole in true width generated from cross sections. The average combined intersection grade is then multiplied by the true width to generate a grade accumulation, Cu% x metre, with the position determined by the mid-point of all intersections, which is then projected onto a vertical plane. The grade accumulation is a relative measure of amount of copper metal that has been intersected by the drill hole. These points are used to generate a 2D grid using an inverse distance squared interpolation with the 3[rd] dimension being represented by the grade accumulation. This metal topography is then contoured for the image below. The contours show the mineralisation is plunging to the north with a significantly high grade shoot in the central areas highlighted in the inset.

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The inset below focuses on the high grade shoot at depth where strong bornite mineralisation is reflected in high grade assay results. Widths and grades such as these are potentially economic for underground mining and present an exploration target for high grade mineralisation.

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The image below shows the plan view of drilling completed to date at Thaduna and drill holes remaining in the Phase 4 drill program. Approximately 600 metres of diamond drilling remains to be completed.

The JORC compliant Resource estimate based on the drilling to the end of Phase 4 is estimated to be completed by September 2012.

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Thaduna Drilling to Date

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Section 800m above shows consistent mineralisation from surface down to 300m vertically below the surface. The drill core at depth in THRC149 intersected strong bornite mineralisation with a wider intersection above in THRC174, HPXRF result. Of note are the wide multiple mineralised structures near surface which coalesce into single structures below. This pattern is repeated in various structural positions, such as Section 1000m below.

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Section 1000m, above, THRC159 intersected a significant package of multiple bornite rich high grade structures from 250-300m vertically below the surface. The diamond tail of THRC137 will be extended to test the up-dip potential of this package. Near surface mineralisation also returned multiple high grade structures. The new geological information gained from sections such as this allow for targeting additional high grade structural positions potentially exploited from an underground mine.

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Section 1160m, above, demonstrates the north plunging nature of the Thaduna mineralisation. THRC115 drills over the top of the very strong mineralisation intersected in THRC114. At ~300m below the surface THRC147 intersected good bornite mineralisation hosted in narrow black shale.

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Section 1520m , above, is through the northern most shoot, north of the existing Thaduna pit. Mineralisation is consistently intersected from the surface to 200m vertical. The structure to the north of the existing pit is more regular and slightly steeper in dip.

The table below lists the intersections presented on sections. At the bottom of the table are additional intersections which are highlighted on both plan and long section.

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Hole Id	Northing	Easting	Az	Dip	From	To	DH m	Cu%	Ag ppm	Type
THRC007 7175952 772759.3 94 -59 47.0 55.0 8.0 0.36 0.3 (previously reported) 61.0 63.0 2.0 0.25 NSR 74.0 78.0 4.0 0.22 1.3 83.0 96.0 13.0 0.73 2.0 Incl. 93.0 96.0 3.0 2.02 6.2										RC	Section 800m
THRC035 7175953 772768.2 91 -61 61.0 63.0 2.0 1.23 8.5 (previously reported) 83.0 97.0 14.0 0.92 NSR Incl. 83.0 85.0 2.0 1.59 1.5 Incl. 91.0 96.0 5.0 1.49 3.0										RC
THRC119 7175926 772685.8 60 -60 166.0 168.0 2.0 2.64 2.4 (previously reported) 246.0 265.0 19.0 1.85 8.0 Incl. 250.6 255.9 5.3 1.39 4.7 Incl. 258.0 264.6 6.6 3.93 19.2										RC
										NQ2
THRC130 7175989 772871.8 250 -60 81.0 90.0 9.0 1.07 NSR Incl. 81.0 83.0 2.0 2.93 NSR Incl. 86.0 88.0 2.0 1.25 NSR 98.0 100.0 2.0 0.23 NSR 104.0 110.0 6.0 1.63 2.3 Incl. 104.0 107.0 3.0 2.73 4.7										RC
THRC142 7175860 772722.9 35 -50 239.0 250.4 11.4 0.81 2.3 Incl. 242.0 243.0 1.0 1.59 5.9 Incl. 247.4 250.4 3.1 1.49 5.7										NQ2
THRC149 7175810 772618.6 35 -60 362.6 366.1 3.5 3.87 12.4 Incl. 362.6 365.7 3.0 4.39 14.3										NQ2
THRC174 7175857 772724.4 35 -60 222.0 227.0 5.0 0.28 HPXRF 240.0 247.0 7.0 0.61 HPXRF										RC
THRC009 7176104 772672.9 92 -60 105.0 112.0 7.0 4.26 11.2 (previouslyreported) Incl. 106.0 111.0 5.0 5.70 15.2										RC	Section 1000m
THRC018 7176114 772675.7 64 -55 49.0 58.0 9.0 0.60 0.3 (previously reported) 75.0 91.0 16.0 2.72 6.6 Incl. 75.0 82.0 7.0 5.68 13.7 101.0 108.0 7.0 0.74 0.7 Incl. 101.0 103.0 2.0 1.41 1.3										RC
THRC037 7176106 772660.4 84 -60 101.0 103.0 2.0 0.25 0.6 (previously reported) 114.0 126.0 12.0 1.53 2.7 Incl. 116.0 118.0 2.0 1.32 1.6 Incl. 121.0 124.0 3.0 4.47 9.7										RC
THRC112 7176105 772674.1 64 -61 67.0 69.0 2.0 0.67 NSR 72.0 74.0 2.0 0.34 NSR 94.0 101.0 7.0 4.22 11.3 Incl. 94.0 100.0 6.0 4.78 12.7 129.0 131.0 2.0 0.23 0.6										RC
THRC137 7176084 772639.1 50 -60 166.0 169.4 3.3 2.98 5.8 (previouslyreported) Incl. 168.0 169.4 1.3 6.68 14.4										NQ2
THRC170 7176051 772658.9 35 -50 129.0 131.0 2.0 0.29 HPXRF 134.0 142.0 8.0 1.14 HPXRF Incl. 136.0 140.0 4.0 1.85 HPXRF										RC
THRC159 7176066 772604.6 35 -60 246.0 256.0 10.0 1.16 1.3 Incl. 246.9 251.9 4.9 2.00 2.4 262.0 280.0 18.0 2.35 4.7 Incl. 263.0 278.0 15.0 2.74 5.6 295.4 297.0 1.6 0.37 NSR 313.0 327.4 14.4 4.22 13.5 Incl. 313.0 322.5 9.5 4.40 15.4 Incl. 325.0 327.4 2.5 7.36 19.9 334.3 347.3 13.0 3.57 6.6 Incl. 334.3 346.0 11.8 3.93 7.3										NQ2

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Hole Id	Northing	Easting	Az	Dip	From	To	DH m	Cu%	Ag ppm	Type
THRC114 7176278 772575.8 67 -60 125.0 186.6 61.6 2.18 0.1 (previously reported) Incl. 127.0 159.0 32.0 3.10 0.2 Incl. 170.0 175.0 5.0 1.30 NSR Incl. 180.0 186.6 6.6 2.90 NSR										RC	Section 1000m
THRC115 7176291 772594.6 63 -60 24.0 26.0 2.0 2.06 NSR										RC
THRC147 7176216 772380.5 35 -60 359.0 362.0 3.0 3.11 2.3										NQ2
THRC164 7176227 772557.4 35 -60 171.0 192.0 21.0 1.74 HPXRF Incl. 171.0 181.0 10.0 3.26 HPXRF 198.0 206.0 8.0 0.27 HPXRF										RC
THRC065 7176596 772486 60 -60 2.0 19.0 17.0 1.24 0.1 Incl. 2.0 4.0 2.0 4.20 NSR Incl. 10.0 12.0 2.0 1.41 0.5 Incl. 15.0 17.0 2.0 2.30 NSR										RC	Section 1520m
THRC067 7176569 772441.9 59 -60 83.0 95.0 12.0 2.78 6.9 Incl. 83.0 93.0 10.0 3.28 8.3										RC
THRC089 7176551 772410.7 60 -61 126.0 130.0 4.0 0.37 NSR 139.0 142.0 3.0 0.83 1.7										RC
THRC101 7176571 772359.4 60 -59 206.0 216.0 10.0 1.07 0.5 Incl. 208.0 212.0 4.0 1.93 1.3 228.0 232.5 4.5 0.41 0.2										RC
THRC141 7176503 772401.3 40 -60 163.0 168.0 5.0 1.53 0.6 Incl. 164.0 168.0 4.0 1.86 0.8										RC
THRC148 7175940 772548 35 -60 372.0 384.1 12.1 0.85 2.2 Incl. 375.4 380.0 4.6 1.59 4.8 397.0 399.0 2.0 1.40 8.0 402.0 410.0 8.0 0.42 1.1										NQ2
THRC158 291.5 298.0 6.5 0.82 Incl. 293.0 295.0 2.0 1.50 304.0 307.0 3.0 1.15 304.7 307.0 2.3 1.42 312.0 317.0 5.0 4.94 13.3 330.8 335.0 4.2 0.70 1.3										NQ2
THRC160 225.7 234.0 8.3 4.36 10.5 Incl. 228.0 233.0 5.0 7.00 17.6 +5% cut off Incl. 229.7 232.3 2.7 11.72 29.7 267.0 268.6 1.6 1.66 NSR										NQ2
THRC161 772565.6 7176135 35 -60 225.9 234.0 8.1 3.44 8.6 Incl. 225.9 230.5 4.6 5.83 14.9 242.0 245.0 3.0 0.61 1.3										NQ2

NSR – No Significant Result HPXRF – Handheld Portable XRF preliminary result

Intersections are based on greater than 0.2% Cu, minimum of 2 metres downhole length, maximum of 2 metres of internal dilution. All intersections are downhole lengths. Included intersections in bold are based on greater than 1.0% Cu, minimum 2 metres downhole length, 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.

Intersections labeled “HPXRF” are preliminary results made available by the use of a Niton XL3t 950+ Hand Portable X-ray Fluorescence analyser. RC samples are allowed to dry in ambient conditions and are analysed through the calico bag. The HPXRF is calibrated prior to use with a 20 second reading taken. If a measurement is higher that 1000ppm Cu, then a second measurement is made and the average used for determination. Samples higher than 1000ppm Cu, and 4 samples either side, are selected for further laboratory analysis. To date there has been over 8,000 laboratory analyses of HPXRF measurements with the laboratory analysis invariably returning a higher grade than that measured by the HPXRF. The intersections labeled “HPXRF” can therefore be seen to be a moderately conservative estimate of the final laboratory analysis.

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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.

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 4[th] 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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