CRITICAL RESOURCES LIMITED — Capital/Financing Update 2012

ASX Release 2[nd] April 2012

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Gold Mine Discoveries Continue

Unrecorded gold shaft dedicated – 1 km extension to Frasers Find being confirmed

Sovereign Gold Company Limited ACN 145 184 667

Level 2, 131 Macquarie Street Sydney NSW 2000 Tel: +61 2 9251 7177 Fax: +61 2 9251 7500

Contact Michael Leu CEO

email: [email protected]

Latest News

www.sovereigngold.com.au

Directors / Officers John Dawkins AO Michael Leu Peter Meers Jacob Rebek Qinjing Qiu

ASX Symbol: SOC

Sovereign Gold Company is exploring for large Intrusion-Related Gold Systems in New South Wales.

Sovereign Gold’s project area covers over 2,650 square kilometres.

The principal project is located around the township of Uralla, 21km southwest of Armidale, New South Wales, Australia, with superb infrastructure logistics. It is close to major roads, rail, airport, labour source, university, power, and engineering.

Available production records indicate that the Rocky River-Uralla Goldfield yielded 5,193 kg (approximately 167,000 ounces) of gold mostly from Tertiary deep leads during the period 1858-1967.

Sovereign Gold’s exploration objective is to locate the hard rock ore sources.

Sovereign Gold Company Limited (Sovereign Gold) (ASX: SOC) has located a previously unrecorded gold mine shaft 1 km southwest from Frasers Find on EL 6483 in the Rocky River–Uralla Goldfield.

Historical Note:

Bravery in Syria, Australians decorated

Brave Uralla Goldfields Digger

Machine-gun silenced

This shaft has been dedicated as the Diggers Shaft in honour of one of the last prospectors – Maurice Victor Charles Melvaine (D.C.M.) who passed away in 2010 aged at 90 years (see Historical Note).

PRIVATE Maurice Victor Charles MELVAINE was awarded the Distinguished Conduct Medal (D.C.M.) for conspicuous gallantry and devotion to duty on June 27 1941 during an attack on Jebel Mazar, Syria.

The Diggers Shaft’s significance was not fully understood until after the discovery of Frasers Find, interpretation of airborne magnetic data and review of historical documents about the goldfield.

An enemy machine-gun opened fire on his company. Private Melvaine, without hesitation, made straight for the gun, which continued to fire on him, until he was within a few yards.

Samples of sheeted veins collected from waste piles beside Diggers Shaft assayed up to 2.39 grams per tonne gold, 3.76 ounces per tonne silver and 0.85% lead per tonne.

He killed the gun crew and captured the gun, thus allowing the advance to continue.

No records of this shaft exist other than in A Prospector’s Review of the Rocky River Goldfield at Uralla – an unpublished memoir written by Melvaine:

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“One of these reefs is a heavily mineralised true fissure reef which persists even though it has faulted in several places. It crosses Wilson’s Creek near the Goldsworth Boundary fence.”

SMH, 3 December 1941, p13

Melvaine describes a shaft on the eastern side of the creek (Frasers Find) and also on the western side,

“On the western side of the creek another shaft is reputed to have returned assays of 4oz gold and 40oz silver to the ton in a stockwork several feet wide but I suspect unreliable picked samples were assayed. This reef may reappear at Reedy Gully about four miles away to the north, the mineral in the Reedy Gully reef is very similar to the Wilson’s Creek reef and probably aligned in the distant past.”

Melvaine’s maps found in the Mitchell Library show that the shaft he described on the western side is in fact the Diggers Shaft.

His map has also led Sovereign Gold to the Reedy Gully reef - another new discovery – workings have been located and undergoing exploration.

It is clear the old timers had worked out that the gold lodes were associated with long linear fissures.

Sovereign Gold’s geophysical and geochemical data has proven long linear structures are channelling gold-bearing fluids. It is highly probable that the 250 metre long southwest aligned series of workings at Frasers Find occupy the same structure hosting the Diggers Shaft.

ASX Release 2[nd] April 2012 - Page 2

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The mineralisation at Frasers Find and the Diggers Shaft has the same unique geochemical fingerprint. Comparison of the multielement geochemistry indicates both mineralised sites were impregnated by the same fluid source. Further, the suite of anomalous elements (Bi, Mo, Te, Sn) shows fluids derived from a granitic intrusive source, as predicted by Intrusion-Related Gold Systems.

This long mineralised structure has the potential to host deep tapping gold lodes in altered granite and is a priority target for the drilling campaign commencing late April.

The Diggers Shaft, assays of sheeted veins and disseminated mineralisation (ALS Certificate of Analysis BR11017325)

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Australian War Memorial, Honours and Awards retrieved from www.awm.gov.au/collection/records/awm192/awm192-3190020.pdf on 29 March 2012

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FRASERS FIND
DIGGERS
SHAFT
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It is highly probable that the 250 metre long southwest aligned series of workings at Frasers Find occupy the same structure hosting the Diggers Shaft. This large target is a priority for the drilling campaign commencing late April.

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Sample S217: Ferruginous, vuggy, close-spaced (1-2 centimetre spacing) comb quartz veins (epizonal character) up to 20mm wide. Assayed 2.0 g/t gold, 3.54 ounces/t silver and 0.78% lead/t.

The Diggers Shaft roofed-over.

Qualifying Statement

The information in this Report that relates to Exploration Information is based on information compiled by Michael Leu who is a member of the Australian Institute of Geoscientists.

Mr Leu is a qualified geologist and is a director of Sovereign Gold Company Limited.

Mr Leu 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 Resources. Mr Leu consents to the inclusion in this announcement of the Exploration Information in the form and context in which it appears.

ASX Release 2[nd] April 2012 - Page 4

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Diggers Shaft
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Location of Diggers Shaft (GDA 94 348917E 6611435N) and other principal auriferous hard rock mines. The striking structural and magmatic control to mineralisation indicates the existence of a large Intrusion-Related Gold System. Many gold lodes plot on the north-east trending magnetic linear. Note also the NNE trending series of mines along contact of the small plutons (Khatoun Tonalite and Manuka Farm Porphyritic Microtonalite) and the Sandon Beds.

ASX Release 2[nd] April 2012 - Page 5

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Sovereign Gold Tenements