VRX SILICA LIMITED — Capital/Financing Update 2012

Mar 12, 2012

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13 March 2012

Ventnor awarded Queensland Government drilling grant

Australian base metals company, Ventnor Resources ( ASX: VRX ) (“Ventnor” or “the Company”) is pleased to announce it has been awarded a drilling grant by the Queensland State Government as part of the Greenfields 2020 Collaborative Drilling Initiative (CDI) . Ventnor has been awarded $125,000 to progress the Georgina Project, located 200km south west of Mount Isa, Queensland.

The company intends to use the funding to drill a single 1,200m rotary mud pre-collar and NQ diamond tail to test an extensive, co-incident, magnetic and gravity anomaly that is consistent with the possibility of an IOCG deposit buried beneath later sedimentary cover.

The magnitude of the anomalies are larger than those observed at the Olympic Dam or Carrapateena deposits in South Australia.

Ventnor Resources Managing Director Bruce Maluish said, “the grant of $125,000 will be used to partially fund an orientation hole at our Georgina Project. We expect the drilling to be undertaken this year”.

“We welcome the support from the State government as it gives companies like us an extra incentive to drill in under explored areas.”

The drill target is on the edge of a magnetic anomaly with an associated gravity anomaly, which sits at ~600m below the surface and is covered by post-Proterozoic sediments. This position is thought to be highly prospective for iron oxide-copper-gold (IOCG) deposits.

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Oblique view showing the magnetic and gravity models with the proposed hole, GBDD01

Level 1, 6 Thelma Street West Perth WA 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au

ABN 59 142 014 873

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North looking section showing geophysical target and geophysical profile below (3 times vertical scale exaggeration)

Prior to the commencement of drilling a program of ground based gravity and magnetic geophysical data collection will be undertaken with subsequent 3-D inversion modeling to further refine the targeting of the CDI hole.

The Collaborative Drilling Initiative is designed to encourage the testing by drilling of new exploration concepts with economic and technical merit that expand exploration into greenfield and under-explored areas of Queensland.

Proposals were assessed by a panel on the basis of geoscientific and exploration targeting merit.

Ventnor’s exploration focus in 2012 will be on copper mineralisation at its flagship Thaduna and Green Dragon projects located close to Sandfire Resource’s Degrussa Deposit.

Georgina Project

Ventnor’s tenements have no outcrop of prospective rocks of the Mount Isa Inlier; the Proterozoic sequences are covered by significant thicknesses of post-Proterozoic sedimentary basins. The Proterozoic sequences would be a southern extension of the Western fold Belt that is known to host economic mineralisation. Discoveries of buried IOCG deposits under sedimentary cover, such as at Olympic Dam and Prominent Hill in South Australia, are only possible through the use of advanced geophysical methods to identify prospective targets.

Recent geophysical studies demonstrate that the existence of magnetic and gravity anomalies in the Urandangie are consistent with deeply buried IOCG deposits, however there has been no previous exploration for these deposit types, except for some conceptual targeting carried out by Summit Resources adjacent to this EPM application area and further south by Krucible Resources.

Level 1, 6 Thelma Street West Perth WA 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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Iron-oxide copper-gold deposits are associated with iron-rich hydrothermal alteration systems spatially and temporally related to felsic plutons. They are localised in dilation zones active during pluton emplacement and cooling.

The Mount Isa Inlier is well endowed with IOCG deposits, including Ernest Henry, Osborne, Selwyn, Mount Roseby, Eloise, and Mount Dore. All known examples in the Mount Isa Inlier are confined to the Eastern Fold Belt, associated with the late orogenic, circa 1,500 Ma, Williams-Naraku Batholith suites, and the Wonga domain, related to syn-extensional, 1,740 Ma plutonism. The Wonga and Williams-Naraku pluton suites are the more silicic members of bimodal igneous associations that were the products of high temperature, hydrous magmas of crustal derivation. They were emplaced at depths in excess of 5 km.

A typical IOCG deposit has the following geophysical signature:

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• A substantial gravity anomaly, taken to be representative of accumulation of iron oxide minerals within the crust, which is seen as being associated with classic Olympic Damstyle IOCG mineralisation. The 'edges' of a gravity body are considered more prospective as this theoretically represents the mineralised margins of an intrusive body.

• High magnetism within the crust, representing an accumulation of substantial iron oxide minerals within proximity to the targeted IOCG mineralising events.

• Proximity to apparent crustal-scale linear features in geophysical data, which are taken to represent the fundamental crustal architectural faults up which mineralising intrusions and fluids would preferentially travel.

The deposits are characterised by spatially related low-gravity signatures and positive magnetic anomalies caused by magnetite bearing alteration, localised around structures active during pluton emplacement and cooling.

Wallrock alteration in these deposits may include:

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• Magnetite-carbonate dilational infill accompanied by potassic alteration of aluminous hosts,

• Silicification,

• Hematite overprinting magnetite, or

• Magnetite-poor and pyrrhotite-rich typically associated with country rock packages containing carbonaceous metasediments.

Chalcopyrite typically exhibits as the main copper phase, with a strong correlation of gold and copper grades. The deposits may also contain anomalous to by-product-grade cobalt, plus variable enrichment in bismuth, uranium, molybdenum, nickel, manganese and barium, fluorine, phosphorus and boron.

Level 1, 6 Thelma Street West Perth WA 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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Schematic geological model of IOCG Cu-Au deposits

Level 1, 6 Thelma Street West Perth WA 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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The targets on the Ventnor tenement generated from the existing geophysical data show both gravity and magnetic high, but have much larger gravity anomalies than those observed from the Olympic Dam or Carrapateena deposits in South Australia.

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Plan view showing the magnetic and gravity anomaly’s with the proposed hole, GBDD01

For further information please contact:

Bruce Maluish Warrick Hazeldine/ Karen Oswald Managing Director Purple Communications Ventnor Resources Tel: 08 6314 6300 Tel: 0418 940 417 whazeldine@purplecom.com.au Email: brucem@ventnorresources.com.au www.ventnorresources.com.au

Level 1, 6 Thelma Street West Perth WA 6005 Email info@ventnorresources.com.au

www.ventnorresources.com.au ABN 59 142 014 873

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ABOUT VENTNOR

Ventnor Resources is a base-metals focused explorer.

Ventnor has 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. 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.

Significant Tenement Holdings

Ventnor has a number of granted tenements and tenement applications. In Western Australia, the Thaduna/Green Dragon granted tenements and applications total 4,216 ha; at Warrawanda/Nickel Hills the area is 11,216 ha. Queensland applications total 2,034 sq km.

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. A program of 13 orientation holes at Warrawanda has been completed and results announced.

Proven Management

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

PROJECT LOCATIONS

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Level 1, 6 Thelma Street West Perth WA 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au

ABN 59 142 014 873