Manganese Intercepted at Grenfell Project

Historical Manganese Mines drill tested In total 1,840 m of RC drilling completed over 19 holes

Drilling funded by Phase One of Bligh/Yiwang JV

Bligh Resources Limited (“Bligh” or Company”) (ASX: BGH) is pleased to announce completion of the initial Reverse Circulation (RC) drilling program at its Grenfell Project (Figure 1 & Attachment 1). The program tested two historical mining areas, Bellbird Workings (6 RC Holes) (Attachment2) and the Hoskins Mine (13 RC Holes) (Attachment 3). The manganese mineralisation intercepted within the historical underground workings at the Hoskins Mine was the most significant. Drilling results include the following intercepts:

Hole GF002 2 m @18.2% MnO from 33m down hole depth including 1 m @33 % MnO

Hole GF002 4 m @ 16.35% MnO from 35 m down hole depth

Hole GF005 2 m @ 13.91% MnO from 28m down hole depth

Hole GF007 2 m @13.91% MnO from 74 m down hole depth including 1 m @ 23.5% MnO

Hole GF007 3 m @9.73%b MnO from 80 m down hole depth

Hole GF008 2 m@ 10.23% MnO from 107m from down hole including 1 m @ 18.95% MnO

Figure 1 RC Drill Rig Hoskins Manganese Mine

Bligh and Yiwang Ferroalloy are assessing the first pass drill results. The highest assay return was from Hole GF002 which included 1m@ 33%MnO (Figure 2) at the Hoskins Mine. Manganese mineralisation was intercepted within the Hoskins Chert beds. The chert beds are believed be to part of marine sediment package including sandstone, siltstones and basalts. The old workings were tested over strike length of 1.6 km down to a depth of 196m. In general, drilling targeted the manganese mineralisation, from surface to depth of 100m. The historical Bellbird Working returned no significant manganese assay results from six RC drill holes installed.

Grenfell has a rich mining history with historical gold and manganese production. The Hoskins Manganese Mine was the largest producer in NSW between 1915 and 1941 generating 25,700t of manganese.

Bligh Resources Limited

ACN 130 964 162

ASX: BGH ASX Release

24 December 2012 Suite 804 Level 8, 84 Pitt St Sydney New South Wales 2000 Tel: +61 2 9233 4677 Fax: +61 2 9239 0866 Contacts: Robert Benussi Bill Guy Email: info@blighresources.com.au

For the Latest News: www.blighresources.com.au

Directors: Noel Halgreen (Chairman) Robert Benussi Charles Guy Hanjing Xu Peiqi Zhang Jinle Song Liming Niu (Alternate Director for Mr Xu) Zhijie Li (Alternate Director for Mr Zhang) Dinghao Song (Alternate Director for Mr J Song) Company Secretary Adrian Di Carlo Issued Capital: Shares: 57,475,720 Unlisted Opts: 16,000,000 (Escrowed)

Currently Exploring for:

• Manganese • Gold • Copper

Current Projects: • Kumarina • Bootu Creek Two • Grenfell • Manilla • Leonora • Bundarra Gold Project

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The drilling confirmed that manganese mineralisation sits on a structurally controlled hydrothermal system with minor phases of sulphide mineralisation (Hole GF010 pyrite, pyrrhotite, sphalerite).

In total, 558 composite samples were collected for multi element assays (see attachments 4 & 5). Drilling was effective in intercepting the historical workings and the target lithology of the Hoskins Chert. In general the old workings are about 0.5m to 2m wide (Attachment 6) and have been intercepted as far as 80m below surface. Hole GF10 targeted the Induced Polarisation (IP) anomaly which was identified in earlier exploration initiatives. Between 111-137m, it was noted that quartz was hosting pyrite, pyrrhotite, sphalerite and chlorite, and galena mineralisation was intercepted. Mineralisation and alteration returned peak copper values of 306 ppm Cu from 125-126m depth.The highest anomalies returned copper values of 471 ppm Cu from Hole

GF013 at 62-64m. The copper is carried with minor sulphides. Assay values for high levels of titanium (Ti), mostly around 1%, were returned for 17 of the 19 RC drill holes, with peak vales up to 1.93% Ti (Attachment 7). The elevated Ti sits mostly within the sediment package associated with the sandstone, siltstone and basalt. The new geological data will add context to the historical mine data. The Bligh/Yiwang JV is now assessing the RC drilling results from the historical manganese mines and future exploration activities will be planned following a full interpretation of results. ENDS Further information:

Robert Benussi +61 (0)410 415 335 – Managing Director, Corporate

Bill Guy: +61 (0)408 345 378 - Managing Director, Exploration

Competent Person- Charles W Guy The information in this announcement that relates to Exploration Results is based on information compiled by Mr Charles William Guy who is a Member of the Australian Institute of Geoscienctists. Charles William Guy has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that 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’. Charles William Guy consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.Charles William Guy is a full time employee of Bligh Resources Limited in the postion of Managing Director- Exploration.

Figure 2. Hole GF002 1 m @33 % MnO

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Attachment 1. Grenfell tenement Location Map

Attachment 2. Drill Hole Location Plan Bellbird Manganese Workings

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Attachment 3. Drill Hole Location Plan Hoskins Manganese Workings

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Attachment 4 Grenfell Drill Hole Highlights Summary Table

ME-

ICP61 Au-ICP21 ME-

XRF26 ME-

XRF26 ME-

XRF26 ME-

XRF26 ME-

XRF26 ME-

XRF26 ME-

XRF26 ME-

XRF26 Averag

e metre

ME-XRF26

ME-XRF26

ME-XRF26

ME-XRF26

ME-XRF26

ME-XRF26

ME-GRA05

Ag Au Al2O3 BaO CaO Cr2O3 Fe2O3 K2O MgO MnO Na2O P2O5 SiO2 SrO TiO2 Total LOI

Hole ID From To ppm ppm % % % % % % % % % % % % % % %

GF002 33 34 <0.5 0.029 5.61 2.75 0.23 <0.01 6.84 0.78 0.22 33 0.19 0.22 39.2 0.13 0.21 100.45 8.34

GF002 34 35 <0.5 0.04 4.02 1.04 0.12 <0.01 5.07 0.34 0.11 13.15 18.216

67 2m 0.1 0.13 69.7 0.06 0.14 99.79 4.68

GF002 Duplicate 34 35 <0.5 0.051 4.6 0.56 0.06 <0.01 5.9 0.24 0.08 8.5

0.05 0.1 75.7 0.02 0.16 100.7 3.88

GF002 35 39 <0.5 0.051 4.43 1.32 0.14 <0.01 5.72 0.28 0.09 16.35 16.35 4m 0.11 0.16 64.2 0.08 0.15 99.65 5.21

GF003 No Significant Results

GF004 No Significant Results

GF005 27 28 <0.5 0.022 6.09 0.35 0.04 <0.01 4.89 1.33 0.25 7.08 0.06 0.11 75.1 0.01 0.26 99.5 3.31

GF005 28 29 <0.5 0.043 4.19 0.74 0.08 <0.01 3.5 0.73 0.15 17.35 12.215 2 m 0.11 0.11 66.2 0.05 0.16 99.82 4.99

GF006 No Significant Results

GF007 74 75 <0.5 0.004 4.73 2.41 0.2 <0.01 6.39 0.47 0.16 23.5 0.11 0.17 53.9 0.06 0.21 100.65 6.23

GF007 75 76 <0.5 0.005 3.14 0.43 0.1 0.01 6.35 0.24 0.08 4.32 13.91 2m 0.03 0.06 82.8 0.02 0.15 100.3 2.16

GF007 80 81 <0.5 0.007 2.73 0.17 0.05 0.01 10.17 0.25 0.08 4.06 0.04 0.06 80.5 0.01 0.15 100.5 1.83

GF007 81 82 <0.5 0.012 3.17 0.84 0.14 0.01 12.74 0.21 0.1 14.05 0.06 0.1 63.3 0.03 0.12 100.3 4.24

GF007 82 83 <0.5 0.021 1.09 1.08 0.13 0.01 8.64 0.16 0.08 11.1 9.7366

67 3m 0.04 0.07 74.8 0.03 0.04 100.55 2.37

GF008 107 108 <0.5 0.024 3.63 1.72 0.17 <0.01 2.78 0.66 0.18 18.95 0.05 0.08 65 0.04 0.17 99.73 4.7

GF008 108 109 <0.5 0.004 11.65 0.18 0.06 0.01 4.83 2.87 0.73 1.51 10.23 2m 0.05 0.1 73.3 0.01 0.56 99.09 3.05

GF009 To GF019 No Significant Results

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Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance quality control (QAQC) measures. Reverse circulation (RC), air core (AC) and rotary air blast (RAB) drilling samples are collected as composite samples of 4 or 2 metres and as 1 metre splits (stated in results) using splitter and sample spear. Weight averages are used to calculate the average grade over intercept interval.

All samples were dispatched to ALS Chemex in Orange NSW. All gold samples were assayed using Au-icP21. Au-icP21 samples are prepared by fusing with a mixture of lead oxide, sodium carbonate, borax, silica and other reagents as required, inquarted with 6 mg of gold-free silver and then cupelled to yield a precious metal bead.The bead is digested in 0.5 ml dilute nitric acid in the microwave oven. 0.5 ml concentrated hydrochloric acid is then added and the bead is further digested in the microwave at a lower setting. The digested solution is cooled, diluted to a total volume of 4 ml with de-mineralized water, and analysed by inductively coupled plasma atomic emission spectrometry against matrix-matched standards.

ME-XRF26X-ray Mutli element Ore grade fluorescence spectrometry (XRF) is the method of choice for the analysis of ore GRADE samples. A prepared sample (0.66 g) is fused with a 12:22 lithium metaborate – lithium tetraborate flux which also includes an oxidizing agent (Lithium Nitrate), and then poured into a platinum mould. The resultant disk is in turn analyzed by XRF spectrometry.

Attachment 5 Drill Hole Summary

Hole ID Depth (m) Dip Location Easting Northing

GF002 60

-60 South

603748 6248492

GF003 84

-60 South

603767 6248479

GF004 106

-60 South

603791 6248472

GF005 72

-60 South

603838 6248660

GF006 97

-60 South

603867 6248645

GF007 109

-60 South

603884 6248636

GF008 145

-60 South

603902 6248623

GF009 169

-60 South

603623 6248293

GF010 145

-90 South

603644 6248277

GF011 91

-60 South

604050 6248977

GF012 91

-60 South

604065 6248969

GF013 109

-60 South

603973 6238981

GF014 91

-60 North

604559 6254402

GF015 49

-60 North

604611 6254466

GF016 54

-60 North

604570 6254417

GF017 77

-60 North

613842 6254266

GF018 49

-60 North

604627 6254456

GF019 45

-60 North

604606 6254349

GF020 197 -75 South 603652 6248261

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Note co-ordinates MGA 94 Zone 55

Attachment 6 Geological Cross –section of historical Manganese Working at Grenfell

Attachment 7 Highlights of Titian (TI) Assays

Hole Number Depth (m) Metres Ti (%)

GF002 47-60 13 1.123

GF003 81-84 3 1.03

GF004 No Significant Mineralisation

GF005 55-72 17 1.38

GF006 72-97 25 1.23

GF007 87-109 22 1.31

GF008 116-145 30 1.07

GF009 56-169 113 1.21

GF010 141-145 4 1.07

GF011 32-77 45 1.15

GF011 79-91 12 1.14

GF012 53-91 38 1.1

GF013 70-109 39 1.16

GF014 52-56 4 1.08

GF014 80-91 11 1.04

GF015 No Significant Mineralisation

GF016 28-32 4 1.14

GF017 0-12 12 1.18

GF017 60-68 8 1.34

GF018 No Significant Mineralisation

GF019 4-24 24 1.14

GF020 188-197 9 1.06

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