21 November 2011

Unaly Hill Project Maiden Inferred Resource (E57 / 420)

Western Australia

Highlights

• Significant vanadium Inferred Resource with over 86 million tonnes of 0.42% V2O5

at a 0,30% cut-off grade

• Confirmation of similar mineralization type to Quest Minerals Limited’s (QNL)

Victory Bore Deposit

• Two significant high-grade zones

• The deposit remains open along strike and depth with strong potential to increase

the estimated resource

• Conceptual study scheduled

Unaly Hill Vanadiferous Magnetite Project

Black Ridge Mining NL (ASX: BRD) is pleased to announce a maiden Inferred Mineral Resource,

compiled in accordance with the 2004 JORC code, at the Company’s Unaly Hill Vanadiferous Magnetite

Project located in Western Australia’s Mid-West region (Figure 1).

Drilling completed in 2010 targeted titaniferous magnetite mineralisation and a maiden Inferred

Mineral Resource has revealed significant high grade vanadium mineralisation in association with

magnetite iron mineralisation. The Mineral Resource for the vanadium mineralisation is 86 Mt @

0.42% V2O5 (Table 1). The Mineral Resource is based on a +0.30% V2O5 cut-off.

Inferred Mineral Resource for V2O5 % ( Oct 2011)

Million tonnes V2O5 % Content (Kt) V2O5 Fe2O3 % Fe % TiO2 % SiO2%

86.2 0.42 36,533 24.79 23.57 4.51 30.1

Table 1 Unaly Hill vanadium Inferred Mineral Resource tonnage and grade report

For

per

sona

l use

onl

y

The Unaly Hill project area is located approximately 48 km south of Sandstone and around 30km ESE

of Atlantic Ltd’s Windimurra vanadium project which is due to commence mining shortly. The Unaly

Hill project covers an area of approximately 110 km2 and hosts extensive titaniferous magnetite

mineralisation. Recent drilling and studies have highlighted excellent vanadium grades associated with

the gabbro-hosted magnetite iron mineralisation. There are two main magnetite horizons, with overall

strike length of 6 kilometres and widths of 25 to 40 metres and specific gravity of 3.5.

Figure 1 Location and geological setting of the Unaly Hill Project

For

per

sona

l use

onl

y

Background on Vanadium

Black Ridge took the decision to move into vanadium because it was attracted both by the commodity

itself its demand prospects, relative rarity and uniqueness.

Vanadium is attracting the attention of more and more investors, analysts and the mining industry in

general. Vanadium is the 23rd element on the periodic table and is a soft silver-grey ductile transition

metal. It is primarily produced in Russia and China from steel smelter slag and in a few other countries

around the world as a flue dust of heavy oil or a byproduct of uranium mining.

Most vanadium, approximately 85%, is used as an alloy called ferrovanadium as an additive to improve

steels. But recently its vanadium's status as a strategic metal and its green energy applications that

have people, including President Obama, talking.

In February at a Presidential roundtable discussion at Cleveland State University, President Obama

commented on the efforts of Painesville, Ohio's power system and its partners in building a massive

energy storage system for the city, funded by the U.S. Department of Energy's Smart Grid Program,

using vanadium redox flow battery technology.

Vanadium redox flow batteries are distinguished from fuel cells by the fact that the chemical reaction

involved is reversible meaning that they can be recharged without replacing the electroactive material.

A lithium battery only lasts 3-5 years before it has to be replaced. A vanadium battery can be charged

and discharged over 35,000 times, giving it a lifespan of over 35 years.

Vanadium redox flow batteries can also charge and discharge simultaneously, can release energy

instantly. These special characteristics make the vanadium redox flow battery uniquely applicable for

energy storage applications including transportation and utilities.

It is expected that the vanadium redox flow batteries would help President Obama to achieve his goal,

outlined in his most recent State of the Union address, to generate 80% of the nation’s electricity from

renewable sources by the year 2035.

In other words, it’s the new holy grail of battery materials.

For

per

sona

l use

onl

y

Vanadium is becoming one of the most sought after metals in the world. China recently announced

that the development of the country's vanadium industry will be a top priority in the next five years.

Approximately 48% of the world's vanadium supply comes from China. China has gone from being the

world's largest exporter of vanadium to the world's largest consumer. As China's urbanization

expansion continues, the country's demand for vanadium for steel use alone is expected to remain

strong for the next 10 to 20 years.

Furthermore vanadium demand for batteries is expected to grow by 30% in the next three years. And

supply is already struggling to keep up. In fact demand is expected to outpace it by next year.

This is because up to 90% of the vanadium on the market isn’t suitable for batteries. It comes from

ferrovanadium and only a few companies have access to it. Ferrovanadium is a highly valuable

downstream product which sells for more than double the price of vanadium pentoxide.

Lithium and rare earths are the same way. Only certain types are suitable for use.

Independent metal experts Roskill noted recently that the longer-term price for ferrovanadium is

forecast to rise from the current price of US$35/kg to US$75/kg by 2015.

Ferrovanadium sells for double the price of vanadium pentoxide, confirming the significant potential to

enhance Unaly Hill project economics.

Geology and Historical Exploration

The Unaly Hill vanadium mineralisation occurs within a titaniferous magnetite sequence hosted by the

Atley Intrusion. A major 25km long aeromagnetic anomaly is believed to cover this vanadiferous

magnetite horizon. A greenstone series about 1 km wide with outcrops occurring over 4 km of strike

length are situated immediately to the east of the Atley Intrusion (Figure 2). The vanadiferous

magnetite gabbros are weathered to 40m with fresh gabbro passing through 5m of saprorock.

The Youanmi Shear Zone transects the Project area through its centre and could be traced for more

than 25km. It forms a prominent ridge along which substantial quantity of quartz have been injected.

Although most of the strike of the shear zone is unproductive, there are numerous small-scale workings

along its flanks. This vein structure has not yet been systematically prospected for gold and still

represents a target.

For

per

sona

l use

onl

y

Figure 2 Geological map of the Atley Igneous Complex showing the Black Ridge tenement

For

per

sona

l use

onl

y

The Atley Igneous Complex appears to be heavily dismembered along the Youanmi Shear Zone but due

to poor exposure and shearing, it is not possible to determine the contact relations with supracrustal

rocks. However from the aeromagnetic data some evidence of less-transposed concentric layering is

apparent (Figure 2).

Aeromagnetic data interpretation of the Unaly Hill Project and the Victory Bore deposit to the north

indicates that the vanadiferous magnetite horizons persist throughout most of the Atley Igneous

Complex. Their presence was also confirmed by drilling.

Mineral Resource Estimate

The Mineral Resource estimate (Table 1) was prepared by Mr Vladilslav Trashliev of Gemcom, an

independent geological consultant, based on data collated and interpreted by BRM staff. The

Competent Person responsible for the Independent Audit of the Mineral Resource is Mr Andrew

Bewsher from BM Geological Services PL. The Mineral Resource was estimated in accordance with the

guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and

Ore Reserves (JORC Code 2004).

The Mineral Resource estimate is based on the results of 16 Reverse Circulation (RC) drillholes and two

diamond (DD) drillholes, drilled across three locations and along seven traverse lines. The data was

incorporated into GEMS 6.3 database. The database consists of a total of 18 collar records, totalling

2861 metres, 855 samples and 4262 assay records.

A geological interpretation is first made on both cross-sections and plan views to ensure a good

understanding of the structures and mineralized zones. The geological logging clearly demonstrates a

westerly dip of the host rocks at around 70°-75°. This is in disparity with the previously assumed

vertical dip.

A shell of 0, 2 % V2O5 cut-off and maximum 3m waste, was then drawn and considered as a wireframe

predefining the geometry of the different orezones being linked as 3D solids using GEMS 6.3 software.

For the current Resource estimation conservative specific gravity of 3.5 has been retained.

For

per

sona

l use

onl

y

Three vanadiferous solids were geologically modelled. The geological model covers a combine area 2.9

km long by 15 to 40m wide and with maximum vertical extension of 240m deep (Figure 3). The

geological model is open in all directions.

The method used to estimate the Resources is by the inverse squared distance inside the mineralised

envelope. The interpolation applied was to the power of 2 with minimum 4 and maximum 18 samples.

The interpolation uses 3m composited intervals created from the original samples. The 3m composite

grades show normal distribution for the Fe, Fe2O3 and the silica. However for the TiO2 and the V2O5 it is

approaching lognormal. Nevertheless there is no tailing in the high grade subclass thus it is not

relevant to apply capping of the high-grade values.

Figure 3 Isometric view through the Unaly Hill Project showing the principal mineralised zones defined

by a grade shell of 0.20% V2O5.

Vanadium Resources

Gabbro-hosted magnetite deposits are a significant source of vanadium. Within the Mid-West region

of Western Australia there are a number of other similar gabbro-hosted layered vanadium rich

resources and deposits including the Windimurra Vanadium Project of Atlantic Ltd with a resource of

210Mt @ 0.47% V205, at a 0.28% cut-off and Quest Minerals Ltd's Victory Bore Deposit of 151Mt @

0.44% V205, at a 20% Fe cut-off.

For

per

sona

l use

onl

y

Future Work Program

In light of the discovery of significant vanadium mineralisation at the project, the Company is now

investigating opportunities to maximize on its return before any additional exploration takes place,

given that the project tonnages are already substantial. Additional marketing work is to be earned by

the commencement of discussions with third parties to gauge the demand of the potential

ferrovanadium product. These discussions will include possible offtake and joint venture opportunities.

David Semmens

Company Secretary

QUALIFYING STATEMENTS

JORC compliance

The information in this report that relates to the drilling data and geological interpretations is based on

information compiled by Mr V Trashliev who is a member of the South African Council for Natural

Scientific Professions (“SACNASP”). Mr Trashliev is responsible for the Mineral Resource modelling and

reporting and is an employee of Gemcom Pty Ltd. The Competent Person responsible for the

Independent Audit of the Mineral Resource is Mr Andrew Bewsher from BM Geological Services Pty

Ltd and is a member of the Australian Institute of Geoscientists (MAIG). Both persons have sufficient

experience that is relevant to the style of mineralisation and type of deposit under consideration and

to the activity that they are undertaking to qualify as a Competent Persons as defined in the 2004

Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore

Reserves” and do consent to the inclusion in the report of the matters based on information in the

form and context in which it appears.

Forward-looking statements

This release may include forward-looking statements. These forward-looking statements are based on

Black Ridge Mining NL expectations concerning future events. Forward-looking statements are subject

to risks, uncertainties and other factors, many of which are outside the control of Black Ridge Mining

NL and the Company makes no undertaking to subsequently update or revise the forward-looking

statements made in this release to reflect events or circumstances after the date of this release.

For

per

sona

l use

onl

y