Ventnor Resources Limited

Copyright © 2012 RM Research www.rmresearch.com.au

Three phases of RC and diamond drilling at the Thaduna and Green Dragon (situatedapproximately 40 kilometres east of Sandfire Resources Ltd (ASX: SFR) DeGrussadeposit 14.6Mt @ 4.6% Cu, 1.6g/t Au for 1.1Mt Cu Equiv) have been successful inoutlining potentially economic, open pittable copper mineralisation at two prospects.

Initial RC drilling in early 2011 indicated that the Thaduna and Green Dragon Projectswere likely to comprise high-grade (+3% Copper) supergene enriched shoots within theoxide zone to a vertical depth in the order of 80-100 metres.

In late CY 2011, however RC drilling at Thaduna outlined broad intersections ofchalcopyrite mineralisation in three holes including THRC054 which intersected 142metres @ 0.41% copper and terminated in visible chalcopyrite mineralisation. This broad,lower grade envelope contained a number of higher grade intersections including 19metres @ 1.57% from 183 metres downhole. Similarly THRC 114 returned 62 metres @2.19% copper from 125 metres downhole.

THRC058 and THRC059 also terminated at 228 metres and 233 metres respectively (limitof rig capability) with visible chalcopyrite at the end of hole and follow up drilling iscurrently underway.

Preliminary metallurgical testwork indicates that the majority of sulphide mineralisation isassociated with coarse grained chalcopyrite which is likely to be amenable to coarsegrinding and a simple flotation circuit.

RM Research initial projection of a JORC compliant Resource is now likely to be pushedback to 1Q 2013 on the back of results from the phase 1 to 3 drilling programs.

At Thaduna our current interpretation based on published assays, plans and crosssections is for a mineralised body within the top 200 metres, approximately 50 metres inwidth and striking for around 600 metres with an SG of approximately 2.7 giving atonnage range in the order of 15.0Mt @ around 1% for 150,000 tonnes of containedcopper. Green Dragon is projected to come in at around 50,000 tonnes of copper at agrade of approximately 3%.

Our JORC resource projections at Thaduna and Green Dragon have therefore beenupgraded from 50,000 tonnes (RM Research, Ventnor Resources, 8 August 2011) to100,000 – 150,000 tonnes (RM Research, Ventnor Resources, 18 November 2011) to200,000 tonnes of contained copper and on the back of four phases of RC and diamonddrilling.

From now until late April 2012, the Company is drilling a further 7,000 metres which willinclude approximately 4,500 metres of RC and 2,500 of Diamond drilling (morespecifically diamond drilling to extend existing RC drill holes) at Thaduna. This will includefour 300 metre deep holes at Thaduna. A total of 1,000 metres of RC will be undertakenat Green Dragon.

RM Research has therefore upgraded our 12 month price target from A$0.80 to A$1.00and we maintain a Speculative Buy.

Ventnor Resources LimitedIncreased share price target...maiden JORCresource projected in 1Q 2013...drilling continues atThaduna

29 February 2012

ASX Code VRXSpeculative BUY12 mnth target A$1.00

Capital Structure

Sector Materials

Share Price (A$) 0.66

Fully Paid Ordinary Shares (m) 61.8

Opt (ex 25c, exp 15/11/13) (m) 23.2

Opt (ex 25/26c, exp 6-8/14) (m) 2.2

Market Cap (undil) (A$m) 40.8

Share Price Year H-L (A$) 1.02-0.12

Approx Cash (A$m) 5.7

Directors & Management

Paul Boyatzis Non-Exec Chairman

Bruce Maluish Managing Director

Paul Pawlowitsch Non-Exec Director

John Geary Non-Exec Dir/Co Sec

Major Shareholders

Goldbondsuper P/L <Goldbond S/F A/C> 5.3%

NE Renes <ATF Est Late WJ Flint> 4.9%

Mash Super P/L <Maluish Eng S/F A/C> 4.5%

DM Schwann <P Schwan F/T A/C> 4.5%

Analyst

GT Le Page +61 8 9488 0800

Share Price Performance

www.rmresearch.com.au

Copyright © 2012 RM Research Please refer to disclosures located at end of this report.

29 February 2012

INVESTMENT CASEExceptional Targets: Three phases of RC/Diamond drilling at Thaduna and Green Dragonhave confirmed their potential to host high-grade potentially economic copper mineralisationthat may be suitable for either toll treat (to DeGrussa) or a stand-alone operation. RMResearch believes a maiden JORC Resource in excess of 50Kt of contained copper at GreenDragon and 300Kt of contained copper at Thaduna is likely mid CY 2012.

Known Geology: Success phases of RC drilling and diamond drilling has increased theunderstanding of geological and structural controls and Thaduna and Green Dragon.

Undervalued: We have a twelve month price range of A$1.00 based on our current JORCInferred and Indicated resource target of approximately 200,000 tonnes of contained copperand comparable copper explorers/developers valuation of A$438/tonne of JORC resources.

Drilling Imminent: Ventnor Resources is gearing up for a fourth phase of infill and follow upRC and diamond drilling that is likely to provide valuable information on shoot geometry inaddition to metallurgical and geotechnical data that will assist with mining and processingevaluation. A preliminary environmental impact assessment (PEIA) has been completed andwater studies are also likely to commence as a precursor to a Scoping Study.

Why Doolgunna-Goodin Dome Region? The 2009 discovery of DeGrussa which nowstands at 14.6Mt @ 4.6% copper and 1.6 g/t gold for approximately 800,000 tonnes of Copper(equiv) provides investors with around A$6.70 Billion reasons to look for more! Enough said!

Directors & Management: The Company is well placed to gain maximum leverage from thisexciting discovery. Managing Director Bruce Maluish has 30 years mining and mineralexploration experience. David Reid has also been appointed Exploration Manager and brings25 years experience in base metals including a stint at the Dikilushi Mine in the DRC.

COMPANY OVERVIEWVentnor ResourcesLimited (“VentnorResources” or “theCompany”) was listed onASX in March 2011 with afocus on copper atThaduna/Green Dragon(Copper), nickel atWarrawanda and NickelHills (Pilbara, WesternAustralia) and basemetals and gold in theGeorgina Basin (MountIsa region, Queensland).Figure 1 sets out theCompany’s tenementportfolio.

Since listing, theCompany has enjoyedremarkable success with

its first two phases of drilling at the flagship Green Dragon/Thaduna Projects which comprisefour Prospecting Licenses covering around 604Ha and two Exploration License covering 17blocks. RM Research considers a maiden JORC resource in the range of 200K tonnes ofcontained copper is likely by mid CY 2012.

RM Research have a 12month target of A$1.25per share

FIGURE 1: VentnorResources projectlocations (source:Ventnor Resources ASXAnnouncement, RIUPresentation, 21st

February 2012).

29 February 2012


EXPLORATION OVERVIEWThaduna and Green Dragon Projects

FIGURE 2: VentnorResources Green Dragonand Thaduna projectlocations relative to otherexplorers/developers inthe Doolgunna region(source: VentnorResources ASXAnnouncement, RIUPresentation, 21st

February 2012).

FIGURE 3: VentnorResources ThadunaProject showingmineralised zones,previous drilling andplanned drill holelocations (source:Ventnor Resources ASXAnnouncement, RIUPresentation, 21st

February 2012).

29 February 2012


The abandoned 700 metre long, 80 metre wide Thaduna Copper Mine (Figure 1, 2) is situatedapproximately 40 kilometres east of Sandfire Resources’ (ASX: SFR) DeGrussa Project(14.6 Mt @ 4.6% Cu, 1.6 g/t Au) and is accessed from the Great Northern Highway by a dirtroad for approximately 35 kilometres, and then by tracks for another 12 kilometres.

Historical Exploration and Mining

Thaduna produced 30,290 tonnes@ 8.7% Cu and has stockpiles of48,400 tonnes @ 2.7% Cu andtailings of 20,500 tonnes @ 2.5%Cu. The nearby Green Dragon(Figure 1, 4) project was operatedas a satellite deposit at the sametime as Thaduna. In addition, theRicci Lee copper mine, 3km south-southwest of the Thaduna Mine,was worked from 1942 to 1970 fora production of 2,912 tonnes of

ore and concentrates containing 287 tonnes of copper. The Rooney Mine, 5 kilometres north-northwest of Thaduna, produced a small tonnage of cupreous ore, approximately 110 tonnes@ 7.7% Cu from small underground workings and a 3-m-deep pit.

Open cut mining and limited underground mining took place from 1955 to 1971.

Reconnaissance exploration during the 1970’s was successful in outlining three copper-anomalous close to the two mines. Successive phases of Diamond drilling in the mid 1960’sand in the late 1980’s/early 1990’s were intersected relatively narrow copper mineralisationbeneath the Thaduna and Green Dragon open pit including a best intercept of 9 metresdownhole @ 5.22% Cu.

Limited metallurgical testwork on the waste and tailings dumps in 1993 showed relatively poorflotation tests but encouraging heap leach results with more than 80% of the Cu recoverableover a 70-100 day leach cycle.

Geology and Mineralisation

FIGURE 4: Green Dragonopen cut mine (source:Ventnor ResourcesProspectus, 25 November2010).

Exploration in the 1970’soutlined three copperanomalies close to themines

FIGURE 5: Thaduna andGreen Dragon Projects,regional geological setting(source: VentnorResources Prospectus,25 November 2010).

29 February 2012


Mineralisation at Thaduna/Green Dragon comprises high-grade, shear hosted shoots andlower-grade disseminated mineralisation over 140 metres wide in places. Mineralisation ishosted within a package of silts/shales and greywacke which broadly contain primarychalcopyrite as blebs, clast fill and vein fracture fill. Higher grade mineralisation is associatedwith black shales surrounded by lower grade sediments.

Strong alteration zones of chlorite (after hematite) introduced by hydrothermal fluids envelopethe mineralisation. The mineralisation is totally oxidised to a depth of around 50 metres.Secondary copper minerals include chrysocolla, malachite, azurite and cuprite with asupergene zone to 90 metres vertical depth containing chalcocite and lesser covellite.Chalcopyrite and bornite are the dominant copper bearing minerals in the primary zone(Figure 7). Supergene mineralisation is found to a vertical depth of 53 metres.

FIGURE 6: TRH 057 @259 metres downhole –blebby, vein anddisseminated chalcopyritewithin black shale (source:Ventnor Resources, ASXannouncement, 22nd

December 2011).

FIGURE 7: Green Dragonand Thaduna Mineshowing supergeneenrichment model(source: VentnorResources ASXAnnouncement, RIUPresentation, 21st

February 2012).

FIGURE 8: Green Dragonand Thaduna Minelocation local geology andstructure (source:Ventnor Resources ASXAnnouncement, RIUPresentation, 21st

February 2012).

29 February 2012


Structural Controls

The controlling structures (Figure 4, 8) appear to be two graphitic shears trending 90° and 60°which are mineralised with cuprite-chalcocite-malachite at their intersection and form a 50metre long shoot striking broadly east-west. Two other sub-parallel shoots returned elevatedcopper from drilling with widths ranging from 0.5-5.2 metres.

Recent ExplorationPrevious drilling in early CY 2011 by Ventnor Resources indicated that mineralisation at bothThaduna and Green Dragon was confined to a 3-5 metre wide mineralised zones surroundedby a 10-15 metre lower grade envelope. It was previously believed that mineralisationterminated at this footwall contact, however recent phases of drilling over late CY 2011indicated that significant widths of mineralisation occur well beyond this footwall contact. Forexample, THRC054 returned 142 metres downhole @ 0.41% copper from 90.0 metres. Thisincluded several higher grade zones including 19.0 metres @ 1.57% copper from 183 metresdownhole (Table 1).

The Company was aiming to complete a JORC resource at both Thaduna and Green Dragonin October 2011 however the intersection of these broad zones of mineralisation as detailed inASX releases on 18 November and 6 December 2011 (RM Research, Ventnor Resources,and 18 November 2011) saw an extended RC program eventuate.

Thaduna Project

Hole Id Northing Easting Az Dip From To DH m Cu% Ag ppm

THRC054 7175966 772754 60 -60 90 232 142 0.41 1.8

136 138 2 1.18 0.9

145 176 31 0.45 1.2

183 202 19 1.57 8.2

184 192 8 3.14 16.8

205 224 19 0.33 1.4

THRC 058 7175981 772699 60 -60 159 228 69 0.61 0.3

170 180 10 0.82 1

178 180 2 3.27 0.8

200 221 21 1.43 2.3

204 206 2 2.8 0.8

208 220 12 1.77 3.2

225 228 3 0.32 0.9

THRC068 7176243 772594 60 -60 134 145 11 1.91 2.7

134 157 23 1.03 1.3

135 140 5 3.77 5.8

218 219 1 1.05

THRC113 7176206 772615 60 -60 96 103 7 0.95 1.15

Incl. 97 99 2 1.92 3

111 148 37 2.61 6.38

Incl. 115 119 4 2.52 5.25

Incl. 122 124 2 1.04 2

Incl. 134 144 10 7.53 19.9

THRC114 7176278 772576 60 -60 125 187 62 2.19 0.09

Incl. 127 159 32 3.1 0.17

Incl. 170 175 5 1.3 0.01

Incl. 180 187(EOH) 7 2.94 0.01

Mineralisation can be inexcess of 140 metres inwidth in places

TABLE 1: Thaduna Mineselected RC drillintersections (source:Ventnor Resources ASXAnnouncement, 27th

January 2012).

29 February 2012


2011-2012 Exploration ProgramOver 2011-2012, the Company has completed 127holes (15,888 metres) over three drill campaigns.Drilling during the Phase 3 program concentratednorth of the Thaduna pit where the targets areshallower and were better suited for the smaller RCrig. In late CY 2011, two NQ2 diamond tails onTHRC054 and THRC057 at Thaduna were completed.Figures 9-13 represent cross sections published over2011-2012 however we anticipate the inclusion ofrecent drill data (in particular THRC054 whichintersected 142 metres @ 0.4% copper) will reveallarge zones of lower grade mineralisation interspersedwith higher-grade copper mineralisation such as 37metres @ 2.61% copper from 11 metres downhole(THRC 113) and 62 metres @ 2.19% copper from 125metres downhole (THRC 114) (Ventnor Resources,ASX Announcement, 24th January 2012). High-gradeprimary mineralisation remains open down dip.

FIGURES 9-13: ThadunaMine selected crosssections from 7175880mN(source: VentnorResources ASXAnnouncement, AGMPresentation, 18th

December 2011).

Drilling by VentnorResources over 2011-2012 have demonstratedthe presence of multiplelodes at Thaduna

29 February 2012


MetallurgyPreliminary mineralogical investigations (from THRC 058) at ALS Ammtec reveal that themajority of copper is associated pure coarse grained chalcopyrite, i.e. 98.4%, with minorbornite and covellite. While only limited sampling has been undertaken, the style ofmineralisation is likely to support a relatively coarse grind of around 100µm and a high copperflotation concentrate grade from a relatively simple copper flotation circuit

As stated above and in our last report (RM Research, Ventnor Resources, 18 November2011), the significance of these results is that Thaduna now appears to have a significantprimary source underlying a copper oxide cap. There was a widely held belief that bothThaduna and Green Dragon had more limited potential <150,000 tonnes of contained copper)however the last (phase 3) program has continued to confirm the presence of multiple higher-grade lodes within a broader lower grade envelope with primary mineralisation remainingopen at depth.

Proposed DrillingFrom now until late April 2012, the Company is drilling a further 7,000 metres which willinclude approximately 4,500 metres of RC and 2,500 of Diamond drilling (more specificallydiamond drilling to extend existing RC drill holes) at Thaduna. This will include four 300 metredeep holes at Thaduna.

Green Dragon Project

The 330 metre long, 70 metre wide Green Dragon Prospect is located just 5 kilometres northof Thaduna.

Preliminarymetallurgical testwork isfavourable

FIGURE 14: GreenDragon Mine planshowing recent drilltraverses undertaken byVentnor Resourcestogether with planneddrillhole locations (source:Ventnor Resources ASXAnnouncement, RIUPresentation 21 February2012).

Proactive Investorsbelieve Green Dragon ison track for a JORCresource in excess of50,000 tonnes ofcontained copper...

29 February 2012


Three phases of drilling (Figure 11, Figures 12-14, Table 2) comprising 76 holes for 10,481metres have to date tested a strike length of approximately 500 metres and a depth of 200metres at the Green Dragon Project.

The phase 3 drilling(134 RC holes formetres) at GreenDragon continued toreturn encouragingintersections as setout below (also referTable 2) including;

GDRC39 with 10metres @ 6.82%Cu from 34metres, including6 metres @10.96% Cu from37 metresdownhole;

GDRC187 metres@ 4.43% Cu from75 metres

(GDRC18),including 5 metres@ 6.07% Cu from80 metresdownhole;

GDRC with 19metres @ 3.33%Cu from 63metres including12 metres @5.07% Cu from 64metres downhole;

RM Research isanticipating a maidenresource in the orderof 2.50 million tonnes@ >3% Cu forapproximately 50Kt ofcontained copper.Drilling over the last12 months has

consistentlyintersected high-gradecopper mineralisation(2-12% Cu-Table 2,Figure 15-17) with infilldrilling demonstratinggenerally goodcontinuity betweensections.

Hole Id Northing Easting Az Dip From To DH m Cu % Ag g/t

GDRC0037181052 774899 179 -61 43 51 8 0.53 0.9

And 79 90 11 1.76 1.4Incl. 79 81 2 3.15 0.8Incl. 85 90 5 2.25 2.8

GDRC0047181050 774939 178 -60 12 16 3 0.38 NSR

And 53 70 17 0.93 1.1Incl. 61 64 3 1.81 0.2Incl. 67 69 2 1.58 0.1And 84 92 8 0.60 0.4

GDRC0187181053 774901 183 -50 13 17 4 0.25 NSR

And 46 50 4 0.32 NSRAnd 78 85 7 4.43 5.3Incl. 80 85 5 6.07 7.4

GDRC0197181067 774902 183 -60 12 17 5 0.37 NSR

And 57 61 4 1.51 2.3Incl. 58 60 2 2.52 3.5And 97 99 2 0.30 NSRAnd 132 134 2 0.35 NSR

GDRC020

7181051 774941 181 -51 12 19 7 0.25 0.2And 48 54 6 0.79 1.1Incl. 51 53 2 1.40 2.6And 58 60 2 0.32 0.6And 63 82 19 3.33 4.4Incl. 64 76 12 5.07 6.7And 87 90 3 0.26 NSR

GDRC0217181067 774940 179 -61 39 41 2 0.25 NSR

And 70 73 3 0.50 0.4And 83 85 2 0.22 NSRAnd 99 109 10 1.48 2.2Incl. 102 105 3 3.38 5.0

GDRC024 7181084 774903 185 -61 25 27 2 0.22 NSRAnd 72 78 6 1.33 2.2Incl. 73 75 2 3.50 6.0

GDRC025

7181081 774940 174 -60 51 53 2 0.43 NSRAnd 82 85 3 0.33 NSRAnd 88 95 7 4.33 9.3Incl. 88 93 5 5.93 13.0And 102 104 2 0.40 NSRAnd 111 119 8 1.33 0.3Incl. 112 117 5 1.94 0.4And 139 141 2 0.38 1.0

GDRC029

774900 7181125 178 -61 102 107 5 0.74 1.4Incl. 104 106 2 1.37 2.5And 121 123 2 0.46 0.0And 129 132 3 0.22 0.3And 135 137 2 0.21 NSRAnd 150 162 12 0.56 0.8

GDRC030

774940 7181122 183 -61 83 88 5 0.33 0.2And 122 131 9 1.96 3.4Incl. 122 125 3 4.39 9.3Incl. 128 130 2 1.65 1.0And 135 140 5 2.34 1.2Incl. 136 139 3 3.57 2.0And 144 150 6 2.03 1.3Incl. 146 149 3 3.73 2.7And 161 165 4 0.32 NSR

GDRC039 774900 7180990 277 -90 34 44 10 6.82 14.3Incl. 37 43 6 10.96 23.3

GDRC058774901 7181163 180 -60 166 168 2 0.48 0.5

And 171 196 25 1.42 1.0Incl. 171 179 8 2.80 2.4Incl. 187 189 2 2.22 1.0

GDRC061 774939 7180985 260 -90 46 48 2 0.34 0.5And 52 54 2 1.26 2.0And 61 63 2 0.53 0.5

GDRC062 774939 7180966 247 -90 0 29 29 2.22 0.2Incl. 0 9 9 4.00 0.2Incl. 12 26 14 1.77 NSR

GDRC063 774899 7180964 243 -88 0 7 7 0.28 0.3And 11 14 3 0.23 NSR

GDRC069774900 7181200 180 -61 189 191 2 0.74 0.1

And 196 205 9 2.42 0.8Incl. 197 204 7 2.98 1.0And 209 212 3 0.61 0.1

GDRC070774901 7181242 174 -60 200 202 2 0.79 2.0

And 229 234 5 1.77 1.0Incl. 230 232 2 3.47 2.5And 251 253 2 0.42 0.5

GDRC072 774941 7181165 178 -61 113 115 2 0.31 NSRAnd 173 181 8 0.75 0.1Incl. 177 180 3 1.55 0.3

GDRC075 774937 7180972 067 -88 0 5 5 0.50 0.2And 36 41 5 0.79 1.0Incl. 38 40 2 1.29 1.5

GDRC076 774900 7180972 072 -89 0 17 17 1.56 0.2Incl. 3 15 12 1.99 0.3

TABLE 2: Green Dragonsignificant copperintersections from Phase1-3 RC drill programs(source: VentnorResources ASXAnnouncement, 20February 2012).

The 2011-2012 has so farturned up additionalmineralised horizons ofpotentially economiccopper grades

29 February 2012


A fourth phase of twelve RC holes(approximately 1,300 metres) will testmineralisation to the north, additionalnear surface mineralisation and for apossible second shoot that isinterpreted to splay from the main lode.

Two diamond holes (approximately 340metres) will generate metallurgical andgeotechnical data and provide furtherimportant structural information onshoot geometry.

Mineralisation remains open downplunge and we believe there is potentialfor a mineable resource undergroundhowever the immediate potential isclearly an open pit to a depth of 150-200 metres at a strip ratio between10:1 and 12:1. A total of 1,000 metresof RC will be undertaken at GreenDragon between now and late April2012.

FIGURE 15: GreenDragon Mine crosssection on 774860mN(source: VentnorResources ASXAnnouncement, 20February 2011).


29 February 2012


PEER ANALYSIS AND ESTIMATE OF VALUERM Research has upgraded the resource target (Thaduna and Green Dragon) to a minimumof 200,000 tonnes of contained copper from our last report (RM Research, VentnorResources, 18/11/11).


FIGURE 18: EV/Tonnecontained copper forselected ASX listedexplorers/developers(source: RM Researchinternal modelling,February 2012).

Average EV/T Cu Equiv of A$438

29 February 2012


Company EV/T Cu equiv ($) ResourceTonnage (Mt) Cu Equiv (Mt) EV ($m)

Discovery Metals Ltd $961.6 37.80 0.58 $ 819.5

Rex Minerals Ltd $91.1 217.00 1.81 $ 168.2

Hillgrove Resources Ltd $714.6 32.20 0.30 $ 215.3

Havilah Resources Ltd $47.5 86.90 1.18 $ 60.9

Exxco Resources Ltd $282.7 61.00 0.62 $ 178.2

Sandfire Resources Ltd $1,394.2 14.60 0.83 $ 1,274.6

Cudeco Limited $494.9 118.50 1.07 $ 561.0

*Ventnor Resources Ltd $178.5 20.00 0.20 $ 48.1

Intrepid Mines Ltd $42.5 1700.00 12.27 $ 542.7

Altona Mining Ltd $230.8 8.43 0.82 $ 191.5

*Assumes maiden JORC Resource of 200Kt of contained copper by mid CY 2012.

Furthermore, the recent results would indicate that the discount we were applying due to thesmaller potential of Thaduna/Green Dragon was probably not warranted based on recentresults.

We derive a peer group average (Figure 18, Table 3) enterprise value per resource tonne ofcontained copper of A$438/tonne, with the higher grade deposits such as SandfireResources and Discovery Metals attracting a premium. Lower grad/larger tonnage depositssuch as Intrepid Mines Tuju Bukit deposit (1,700Mt @ 0.41% Cu) have been discounted bythe market.

On this basis, and upon initiation of a scoping study, applying our average EV metric ofaround $438, we derive an enterprise value of around A$87 million or around A$1.00 pershare representing an approximate premium to the current share price of 52% by the end ofCY 2012. Given the deposit remains open at depth and along strike, we believe the maidenJORC resource may surprise on the upside.

TABLE 3: ASX listedcopperexplorers/developers(source: RM Researchinternal modelling,February 2012).

RM Research believesthat the maiden JORCresource should come inaround 200Kt ofcontained copper basedon this third phase ofdrilling

Our EV/Cu tonnecalculations indicate thatVentnor Resources hasa 12 month target ofA$1.00 per share

29 February 2012


OTHER PROJECTSWarrawanda Nickel Project (Pilbara, Western Australia): The project is locatedapproximately 40km south of Newman and is prospective for nickel-cobalt laterites, chromeand nickel sulphide mineralisation (Mt Keith style) and comprises an apparent 17km of lightlytested ultramafic rocks (Figure 19).

The Warrawanda SouthGreenstone Belt, which hosts theWarrawanda Project, is a 30-km-long, 200-800m-wide, easterlytrending ultramafic body with inexcess of 70 drill intersections>0.2% Ni in laterite.

Results from a recent 2,494 metreRC drill program targeting EM andmagnetic anomalies over theWarrawanda and Nickel Hillsprospects identified a 15km longultramafic body up to 400 metresin width with associated low gradenickel values (>0.20%). Thisincluded elevated grades up to0.58% nickel over 4 metres

downhole. The associated cobalt and iron is interpreted to be consistent with Indian stylenickel-cobalt mineralisation. is anticipated shortly. The program was targeting large-tonnage,low-grade disseminated sulphide Ni deposits.

Nickel Hills Project (Pilbara, Western Australia): Situated just 8 kilometres north ofWarrawanda, the project comprises two Exploration Licenses covering around 82km2.Pacminex explored Nickel Hills in the early 1970s and three copper anomalies were identified(Figure 20). This included limited drilling over the ultramafic intrusion contact. One hole was

reported to containthe nickelsulphides violarite,millerite andheazelwoodite.

The WarrawandaNorth GreenstoneBelt which hoststhe Nickel HillsProject consists ofan east-trendingBIF, shale,

schistose amphibolite and serpentinite. The tenements are mostly underlain by ultramaficlithologies. Drilling in the 1970s Pacminex reported nickel sulphide intercepts. The target is anultramafic-mafic contact interpreted to be the base of a thick ultramafic volcanic flow. SRKhave also confirmed the presence of gossanous sulphide float at surface. It is likely that theCompany will commence exploration over previously identified high- grade zones in thecoming quarter.

Georgina Basin (Mount Isa Region, Queensland): The Project is situated approximately200 kilometres southwest of Mount Isa, a world class Ag-Pb-Zn, iron-oxide copper-gold(“IOCGU”) and massive sulphide province. Ventnor Resources’ tenements have no outcropof prospective rocks of the Mount Isa Inlier with the Proterozoic sequences covered by post-Proterozoic sedimentary basins. Geophysical surveys in 2008 highlighted several magneticand gravity features broadly consistent with a concealed IOCG model and the Company hasrecently applied for co-funded drilling from the Queensland Government.

FIGURE 19: Nickel Hillsand WarrawandaProjects, regional geologyand location (source:Ventnor ResourcesProspectus, 25 November2010).

Previous exploration atWarrawanda and NickelHills has identified largelow grade MT Keith stylenickel mineralisation

FIGURE 20: Nickel HillsProjects air photo showingnickel exploration targets(source: VentnorResources Prospectus,25 November 2010).

Pacminex reportednickel-sulphideintersections in the1970’s

29 February 2012


RISK ANALYSIS Follow-up drilling may not demonstrate sufficient continuity down-dip, up-dip and along

strike to allow the calculation of a JORC Inferred Resource. Complex shoot geometry mayrequire additional drilling and add to the discovery costs of copper resources.

The relatively small tenement holdings may cap the resource upside of Thaduna andGreen Dragon with upside more limited to down plunge extensions which may requirehigher stripping ratios (and therefore higher mining costs) or more capital intensiveunderground mining methods.

The Company is primarily exposed to copper (and to a lesser extent at this stage, nickel)which has weakened from highs of just over US$10,000/tonne in February 2011, howevercopper has inched higher to US$8,500 on the back of improving economic conditions.

Further declines in equity markets may continue to put pressure on junior resourcecompanies as investors switch out of “risk” into perceived safe haven investments such ascash, gold and counter cyclical equities. Our medium term view is that the risk premiumhas been eroded for many junior resource companies and we see near term upside.

A strengthening Australian dollar (as funds flow back into riskier currencies) may makethe price of copper in local (Australian) currency terms less attractive. This could havenegative influences on Australian copper miners however it is more relevant to producingcompanies.

Copper has beenimproving as confidenceslowly recovers

29 February 2012


DIRECTORS AND MANAGEMENTPaul Boyatzis B Bus, ASA, MSDIA, CPA NON-EXEC CHAIRMANMr Boyatzis has over 25 years experience in the investment and equity markets. He hasassisted many listed mining companies to raise funds through the IPO process and secondarymarket. He is also currently Chairman of a London based company and was instrumental inassisting that company to raise funds from a number of London based fund managers. MrBoyatzis is a member of the Securities and Derivatives Industry Association and a member ofthe Certified Practising Accountants of Australia.

Bruce Maluish, BSc (Surv), Dip Met Min MANAGING DIRECTOR

Bruce Maluish has more than 30 years’ experience in the mining industry with numerous rolesas Managing Director and General Manager with companies such as the Monarch Group ofCompanies, Matilda Minerals, Abelle, Hill 50 and Forsyth Mining, while mining a variety ofcommodities such as gold, nickel and mineral sands from both open pits and underground.His experience includes the set up and marketing of IPOs, from commencement of explorationto full production, to the identification, development and expansion of projects includingmergers and acquisitions. His qualifications include credentials in Surveying, Mining, ProjectPlanning and Finance.

Peter Pawlowitsch, B.Com, MBA, CPA NON-EXEC DIRECTOR

Peter Pawlowitsch holds a Bachelor of Commerce from the University of Western Australia, isa member of the Certified Practising Accountants of Australia and holds a Masters ofBusiness Administration (Curtin University). He has more than ten years’ experience inaccounting, and more recently in business management and the evaluation of mining projects.As an Executive Director of Comdek Ltd (now Resource Generation Ltd) and Maverick EnergyLtd (now Triangle Energy Ltd), he was instrumental in formulating a change in strategicdirection of both companies.

John Geary B. Bus, Grad. Dip Acctg, Grad Dip Adv. NON-EXEC DIRECTOR & CO SEC

John Geary has forty years’ experience in the mineral exploration industry in Australia andoverseas. His experience includes prospecting and the evaluation, acquisition, maintenanceand compliance requirements associated with mining tenements. He has been activelyengaged in the planning and implementation of many exploration programmes and hisexperience as a contract driller has enabled him to recognise and identify potential resourcevalue. Hs experience and qualifications have been invaluable in the promotion, prospectuspreparation and listing of a number of exploration companies (IPOs) on ASX. He has held theposition of Executive Director and Company Secretary for a number of ASX-listed explorationcompanies in recent years.

CONCLUSIONThe last two phases of RC and diamond drilling have continued to re-affirm the view of RMResearch that the intersection of multiple shoots of both secondary (supergene enriched) andprimary sulphide mineralisation at Thaduna is likely to increase our maiden JORC resourceprojection from our initial 50-100K tonnes (August 2011) to approximately 150,000 tonnes.Green Dragon is likely to remain a higher-grade (3% Copper) supergene enriched copperorebody with a target in the range of 50,000 tonnes of contained copper. Along with SipaResources (ASX: SRI), and Sandfire Resources (ASX: SFR) RM Research anticipatescontinuing investor appetite in this new copper province. Our 12 month share price target isA$1.00 based on an Enterprise Value/Tonne of contained copper of around A$438/tonne. Weanticipate that the news flow may slow over the coming months as detailed diamond drillingwill take place in order to resolve what may be complex shoot geometry. In our view, aresource approaching this size with favourable metallurgical characteristics has a goodchance of justifying a stand-alone operation and we expect Scoping/Pre-Feasibility studies tofollow suit.

Bruce has in excess of 30years experience inexploration and mining

We anticipate a maidenresource in mid CY 2012well in excess of 200,000tonnes of containedcopper

29 February 2012


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RM Research Recommendation CategoriesCare has been taken to define the level of risk to return associated with a particular company.Our recommendation ranking system is as follows:

Buy Companies with ‘Buy’ recommendations have been cash flow positive for some time and have a moderate tolow risk profile. We expect these to outperform the broader market.

Speculative Buy We forecast strong earnings growth or value creation that may achieve a return well above that of thebroader market. These companies also carry a higher than normal level of risk.

Hold A sound well managed company that may achieve market performance or less, perhaps due to anovervalued share price, broader sector issues, or internal challenges.

Sell Risk is high and upside low or very difficult to determine. We expect a strong underperformance relative tothe market and see better opportunities elsewhere.

Disclaimer / DisclosureThis report was produced by RM Research Pty Ltd, which is a Corporate Authorised Representative of RM Capital Pty Ltd (Licence no. 221938). RM Research will receivepayment of A$27,000 for the compilation and distribution of three research reports. RM Research Pty Ltd has made every effort to ensure that the information and materialcontained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of theinformation and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, RM Research Pty Ltddoes not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is forinformation purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities. The securities recommended by RM Researchcarry no guarantee with respect to return of capital or the market value of those securities. There are general risks associated with any investment in securities. Investorsshould be aware that these risks might result in loss of income and capital invested. Neither RM Research nor any of its associates guarantees the repayment of capital.WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particularinvestor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this documentwithout obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financialsituation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any)before making any decision.DISCLOSURE: RM Research Pty Ltd and/or its directors, associates, employees or representatives may not effect a transaction upon its or their own account in theinvestments referred to in this report or any related investment until the expiry of 24 hours after the report has been published. Additionally, RM Research Pty Ltd may have,within the previous twelve months, provided advice or financial services to the companies mentioned in this report. As at the date of this report, the directors, associates,employees, representatives or Authorised Representatives of RM Research Pty Ltd and RM Capital Pty Ltd may hold shares in Ventnor Resources Limited.

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