VRX SILICA LIMITED — Capital/Financing Update 2012

Jan 23, 2012

24 January 2012

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Ventnor Resources announces best copper intersections yet at Thaduna/Green Dragon copper project

Highlights

Australian base metals company Ventnor Resources ( ASX: VRX ) (“Ventnor”) announces outstanding copper mineralisation assays at the Thaduna prospect from its Phase 3 drilling program at the Thaduna and Green Dragon copper project.

• 37 metres at 2.61% Cu from 111 metres (THRC113)

• including 10 metres at 7.53% Cu from 134 metres downhole;

• 62 metres at 2.19% Cu from 125 metres (THRC114)

• including 32 metres at 3.10% Cu from 127 metres downhole and

• ended in mineralisation, 3.70% Cu at EOH, to be extended by diamond drilling

• Results supporting a conceptual target of deeper primary mineralisation

The Thaduna and Green Dragon Copper Project is located 170 kilometres north of Meekatharra, Western Australia, in the Doolgunna district, and 40 kilometres east of Sandfire’s Degrussa project.

Exploration Update

Following the promising results from earlier RC programs, Ventnor commenced the third phase of its drilling at the Thaduna and Green Dragon copper prospects. The program commenced in October 2011 and was completed December 2011, initially to determine a copper Resource at both copper prospects.

The Phase 3 drill program comprised 134 RC drillholes for 17,910 metres at both prospects and two diamond drillholes for 320 metres to extend RC drillholes at Thaduna. A large portion of the results remain outstanding, as well as the two diamond tails. Further results will be released as the assays are processed, interpreted and sections are produced.

Ventnor’s Managing Director Bruce Maluish said “The last phase of RC and diamond drilling has discovered the primary mineralisation at Thaduna. Deeper holes have increased our understanding of the geology and dimensions of the deposit.”

“These results also contribute significantly to the grade and extent of the mineralisation and increase the potential contained copper inventory,” Mr Maluish said.

The Phase 4 drill program has commenced coring over the weekend and comprises ~9,000 metres of predominantly deeper diamond core drilling down dip and along strike at both prospects with some RC infill drilling above 200m vertical.

Registered Office: Lvl 1 6 Thelma Street West Perth 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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The Phase 4 drilling program as currently proposed at Thaduna will extend 14 existing RC holes with diamond tails, drill 15 new RC pre-collared diamond holes and 17 new RC holes targeting primary mineralisation. The program is designed to achieve two goals:

1. To complete the resource drill out above 200 metres vertical and,

2. To investigate the potential for economic mineralisation below 200 metres vertical along a strike length of 1,000 metres.

Seven RC holes are proposed at Green Dragon as part of the Phase 4 drilling program to complete resource drilling to 200 metres vertical depth.

“The new program is extending many of the previously drilled RC holes into the primary mineralisation and will investigate the potential for deeper mineralisation,” Mr Maluish said.

Hole Id	Northing	Easting	Az	Dip	From	To	DH m	Cu%	Ag ppm
THRC113	7176206	772615	60 Incl. Incl. Incl. Incl.	-60	96 97 111 115 122 134	103 99 148 119 124 144	7 2 37 4 2 10	0.95 1.92 2.61 2.52 1.04 7.53	1.15 3.00 6.38 5.25 2.00 19.90
THRC114	7176278	772576	60 Incl. Incl.	-60	125 127 170	187 159 175	62 32 5	2.19 3.10 1.30	0.09 0.17 0.01 0.01
			Incl.		180	187(EOH)	7	2.94

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.

Thaduna Geology Description

A total of 127 holes for 15,888m have now been completed at Thaduna over the three phases of drilling in 2011. Holes have been completed both underneath and north of the historic Thaduna Pit, see Figure 1. Drilling during the Phase 3 program concentrated north of the Thaduna pit where the targets are shallower and were better suited for the smaller RC rig. Towards the end of the year, a second larger multi-purpose rig was mobilised to site and commenced drilling deeper RC holes at Green Dragon as well as completing two NQ2 diamond tails on THRC054 and THRC057 at Thaduna, reported 22 December 2011.

Registered Office: Lvl 1 6 Thelma Street West Perth 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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Thaduna Location Plan

As recently reported, intersections of broad zones of primary mineralisation have now been made at various positions underneath the Thaduna pit. These holes, as well as the recently received assays reported here, have allowed for the development of a conceptual target for the deeper primary mineralisation that is becoming evident. Below is a generic representation of the style of mineralisation that is currently being targeted.

Registered Office: Lvl 1 6 Thelma Street West Perth 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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The mineralisation is hosted in a varying sedimentary stratigraphy of silts, shales, fine grained sandstones and greywacke. Key units within a lower grade sequence host high grade mineralisation which may also act as marker beds to the stratigraphy. As can be seen from the image above, the surface oxide expression of the mineralisation, largely mined in the historic pit, transitions through the supergene secondary sulphide chalcocite to the primary sulphide chalcopyrite. The near surface expression of the mineralisation is not directly above the underlying primary mineralisation which may be due to remobilisation during weathering and subsequent intermittent supergene deposition.

Registered Office: Lvl 1 6 Thelma Street West Perth 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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The section 1120m above shows a moderate intersection in THRC011, Phase 1 drilling, extending out into broader mineralisation in the recently drilled THRC113 with multiple internal high-grade zones. The mineralisation within these zones contains both primary and secondary sulphides reflecting a transitional position within the proposed model. A deeper diamond tail hole is proposed to intersect the mineralisation and will be drilled early in the Phase 4 program.

Registered Office: Lvl 1 6 Thelma Street West Perth 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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Section 1200m above is at the northern end of the existing Thaduna pit. THRC114 intersected wide predominantly chalcopyrite primary mineralisation. The grades returned are higher than those previously intersected over these widths, with the hole ending with 3.70% Cu at the bottom of the hole. The RC hole was terminated early due to excessive water. THRC114 will be extended with NQ2 diamond core as part of the Phase 4 program. THRC115 intersected a moderately thin mineralised structure and does not reflect the intersection below in THRC114. This upper hole has passed through the remobilised supergene zone which will vary in grade and thickness due to the secondary deposition style and will be inconsistent with the underlying primary mineralisation style. A deeper hole is proposed which will diamond tail through the mineralisation and will be drilled early in the Phase 4 program.

Registered Office: Lvl 1 6 Thelma Street West Perth 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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These two sections demonstrate the significant potential for broad high-grade zones existing below areas which have been previously drilled.

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: 08 6314 6300 whazeldine@purplecom.com.au

Registered Office: Lvl 1 6 Thelma Street West Perth 6005 Email info@ventnorresources.com.au www.ventnorresources.com.au ABN 59 142 014 873

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Registered Office: Lvl 1 6 Thelma Street West Perth 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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Registered Office:
Lvl 1 6 Thelma Street
West Perth 6005
Email info@ventnorresources.com.au
www.ventnorresources.com.au
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ABN 59 142 014 873