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ASX Announcement

Hodges Resources Ltd (ASX: HDG or “Hodges” or the Company) is pleased to announce the identification of encouraging multiple coherent gold anomalies, some of which are located along strike from Adamus Resources’ Nzema and Avrebo gold projects. These’s anomalies have been identified following the completion of a systematic soil sampling program at the Company’s Salman South and Mame gold exploration projects in the southern extensions of Ghana’s Ashanti Gold Belt. Encouragingly selected anomalies are interpreted to be located along strike from Adamus Resources’ Nzema and Avrebo gold projects and possibly represent the continuation of mineralised trends.

7 November 2011

Four >50ppb Au soil anomalies measuring >1km in length identified at Salman South project,

Most significant anomaly located directly to the south and along strike from Adamus Resources’ ~2.1MOz Nzema Gold Project,

Additional three anomalies of comparable size and tenor identified either along the same structural trend or along a parallel structure,

Six large (>0.5km) >50ppb Au soil anomalies identified within Mame project,

10% of soil results from the Salman program returned an average of >0.1g/t Au with a peak value of 3.3g/t Au,

4% of soil results from the Mame program returned an average of >0.1g/t Au and peak value of 2.0 g/t Au.

Highly encouraging results from ongoing gold exploration at Salmon South and Mame projects, Ghana.

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All outstanding results from a systematic 3323 point soil sampling program completed over the Salman South and Mame projects have now been received. Sampling covered the full extent of prospecting licences and was designed to test multiple parallel NNE–SSW trending gold-bearing structural zones interpreted to transverse both licences. The gold in soil anomalies appear to correlate with:

1) known areas of historic gold mining, 2) areas which returned elevated gold intersections from limited historic drilling, 3) new structural corridors or 4) areas located along strike from mineralisation documented as occurring marginal to prospecting licences including Adamus Resources Ltd’s Nzema and Avrebo gold projects.

Salman South Project, Ghana

A total of 1299 samples were collected from the Salman South project along a grid array with 200m north-south and 50m east-west spacing (Figure 1). At each sample site 2 kilograms of -4mm dry sieved sample was collected from a 40cm soil depth before being homogenised and split for analysis using a 24hour BLEG bottle roll with an Atomic Absorption Spectroscopy (AAS) gold finish.

Interpretation of final results showed that: 1. 10% of soil results returned an average of >0.1g/t Au with a peak value of 3.3g/t Au, 2. four coherent anomalies inferred to be associated with two regional NNE–SSW trending

structural corridors have been defined, 3. one of these anomalies appears to represent the continuation of Adamus Resources’ ~2.1MOz

Nzema Gold Project mineralisation trend, 4. prior limited historic RC drilling attempting to target this trend, which locally intersected results

including: 1m @ 6.8g/t Au (SSRC004), 3m@ 1.03g/t Au (SSRC03) and 3m @ 1.18g/t Au (SSRC010), is interpreted as being poorly located and completed too far to the west of the anomaly trend.

Mame Project, Ghana

A total of 2024 samples were collected from the Mame projects along a grid array with 200m or less north-south and 50m or less and approximately east-west spacing (Figure 2). At each sample site a 1-2 kilogram -4mm dry sieved sample was collected from a 40-50cm soil depth before being homogenised and split for analysis using a 24hour BLEG bottle roll with an Atomic Absorption Spectroscopy (AAS) gold finish.

Interpretation of final results showed that: 1. 4% of soil result returned an average of >0.1g/t Au with a peak value of 2.0 g/t Au, 2. six coherent anomalies inferred to be associated with two regional NNE – SSW trending

structural corridors or intrusive-wallrock contacts have been defined, 3. selected anomaly trends are interpreted to correlate along strike with Adamus Resources’

Avrebo Gold Project,

Photograph of a typical soil sample point, where the inner hole below the organic

layer has been sampled.

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4. prior shallow RAB drilling, which was located over or adjacent to some of the anomalies

identified within the study, returned encouraging shallow intersections including: 3m @ 10.3g/t Au (MARB20), 10m @1.5g/t Au (MARB70), 11m @1.9g/t Au (MARB100), 14m @ 3.2g/t Au (MARB104).

A program of follow-up infill soil sampling and detailed ground magnetic surveying is currently being undertaken to help refine the geometries of higher ranked anomalies and to assist with the forthcoming selection of targets planned for drill testing during Q4 2011 or Q1 2012. Additionally, ground checking/reconnaissance mapping and further geochemical filtering/correlation studies will be completed once infill data is at hand. Project Background

In May 2010, Hodges Resources Ltd reached an agreement to acquire a 90% interest in the Salman South and Mame Gold projects located in the southern extensions of the Ashanti Gold Belt, southern Ghana.

The Salman South project represents a strategic land holding located approximately 1.5 km south of the Adamus Resources ~2.1Moz Nzema Gold Project. Adamus have identified several discrete gold deposits along the Salman shear zone which is interpreted to continue south through the South Salman tenement to the Gulf of Guinea coast between Asanta and Sawoma.

The Mame project is located 8km south east of Salman south and 2km south of Adamus Resources Avrebo prospect. Recent drilling announcements by Adamus have stated significant gold drill intersections including: 29m @ 3.31g/t Au from surface (AVRC034), 25m @ 2.19g/t Au from 48m (AVRC039) and 11m @ 3.87g/t Au from 14m (AVRC061).

The agreement is contingent on the vendor obtaining approval from the government of the Republic of Ghana to transfer the Prospecting Licenses to the agreed party. Delays have been experienced in this process but these approvals are expected by the end of the year. Further details of the projects and the terms of the agreement can be found in the Hodges press release to the ASX on the 11th May, 2010

Mark Major Managing Director For Further Information Please contact Mark Major should you have any queries on this announcement. Telephone: (+618) 9322 6412 Email: info@hodgesresources.com.au For Media Enquires Please contact Fortbridge on +612 93310655 Luke Dean +61 414 535 433 / Bill Kemmery +61 400 122 449

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Figure 1: Soil Sampling Results – Salman South Prospecting Licence

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Figure 2: Soil Sampling Results - Mame Prospecting Licence

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Disclaimer Samples submitted by Hodges Resources Ltd at the Salman and Mame projects were analysed by a 24hour BLEG cyanide leach roll with an AAS gold finish technique by Intertek Minerals Ltd laboratories in Tarkwa, Ghana. Duplicates, repeats, blanks and known standards were inserted according to standard industry practice.

Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by independent consultant Mr Dylan

Jeffriess, who is a Member of The Australian Institute of Geoscientists, R.P.Geo Mineral Exploration. Mr Jeffriess 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 Jeffriess consents to the inclusion in the report of the matters based on his information in the form and

context in which it appears.

Code: HDG Fully paid Shares: 76,354,029

Unlisted options: 9,100,000 CORPORATE DIRECTORY Company secretary: Julie Hill Stock exchange listing: Australian Securities Exchange Code: HDG

BOARD MEMBERS

Peter Mullens – Chairman Mark Major – Managing Director Nathan McMahon – Non-Exec Director Bryan Dixon – Non-Exec Director Auditors MGI Perth Level 7, The Quadrant 1 William Street Perth WA 6000 Media Enquires Please contact Fortbridge on +612 93310655 Bill Kemmery +61 400 122 449 Luke Dean +61 414 535 433

HEAD OFFICE

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