Corporate Update and Outlook

Management and Supervisory Board have decided to further focus the activities of Deutsche Rohstoff AG (DRAG) to accelerate the growth of the company. All resources will be concentrated on projects or subsidiaries, that have the potential to achieve a value of more than EUR 100 million within the next two to three years. The Management estimates that the following projects currently meet these criteria: Wolfram Camp/Bamford Hill, Tekton Energy, Rhein Petroleum and Tin International. The rare earth deposit Storkwitz could attain this status in the midterm. For all other projects various options are being examined, including divestment.

Focus will be placed on larger Projects/Earnings forecast for 2011 confirmed

Heidelberg. Management and Supervisory Board have decided to further focus the activities of Deutsche Rohstoff AG (DRAG) to accelerate the growth of the company. All resources will be concentrated on projects or subsidiaries, that have the potential to achieve a value of more than EUR 100 million within the next two to three years. The Management estimates that the following projects currently meet these criteria: Wolfram Camp/Bamford Hill, Tekton Energy, Rhein Petroleum and Tin International. The rare earth deposit Storkwitz could attain this status in the midterm. For all other projects various options are being examined, including divestment.

During next year all investments will be focused on Wolfram Camp, Tekton Energy and Rhein Petroleum. Tin International has already been financed independently and will generate additional funds with the planned initial public offering in Australia next year.

The Board of the company has confirmed the profit estimate for the current year. A net group profit of at least EUR 10 million is expected (half-year: EUR 7.8 million). For the year 2012 a significant increase in revenues and earnings will be targeted.

The following sections give an overview of the current state of the individual business areas and projects:

I. Gold and Silver

Deutsche Rohstoff Australia, Georgetown Goldmine (participation quota 100%):

At the end of August the processing of oxide ores from the third deposit “Jubilee Plunger” commenced after the mining of oxide ore from “Electric Light” and “Red Dam” was completed. The processing plant is still working at a very satisfactory level. The recovery rate by t end of September was up to 84.9%, at a plant availability of 94.2%. From 1 January to 30 September 2011 production in Georgetown totalled 11,892 ounces of gold and 6,415 ounces of silver. By the end of September 11,554 ounces of gold and 6,415 ounces of silver were sold, corresponding to a turnover of AUD 17.05 million. From January to September, the average selling price per ounce of gold was AUD 1,456. The profit of Deutsche Rohstoff Australia until the end of September amounted to AUD 7.1 million (first half: AUD 4.9 million, unaudited). Based on existing stockpiles, there is still gold ore available for processing until mid-December. Revenues for full year 2011 are estimated to reach nearly AUD 20 Million.

The conversion of the plant for the production of sulfidic gold concentrates and the commencement of mining sulphide ores in the Red Dam and Electric Light is scheduled for the course of 2012. Since the plant is the only gold processing plant within a radius of 500 kilometres and has been running without any significant downtime, including that the deposit Electric Light still has significant (sulfidic) exploration potential, some neighbouring companies have expressed interest in an acquisition. DRAG is evaluating these offers, especially in light of the above-mentioned focus.

II. Oil and Gas

Rhein Petroleum GmbH (25%):

In the third quarter, DRAG achieved three milestones that were defined in the context of the partial sale to Tulip Oil. These milestones contained the renewal of the licenses Heidelberg-Weinheim and the Middle Upper Rhine, as well as the reissue of the exploration licence Graben-Neudorf north of Karlsruhe. For reaching these milestones DRAG received additional payments of EUR 2.7 million.

As planned in the third quarter, Rhein Petroleum (RP) commenced with the largest 3D seismic survey which has ever been conducted in southern Germany. It covers approximately 650 km2 in southern Hesse, northern Baden, and in Bavarian Lower Allgäu and covers both old fields with known oil reserves and new structures that have the potential for discoveries similar to Speyer. The discovery in Speyer amounts regarding to the operating cpmpanies to 50 mio. barrel of oil. Currently, two squads with about 200 employees are in the line of duty on behalf of RP. Latest information is also available on www.rheinpetroleum.de. The completion of the survey is scheduled for April 2012. The data is then analysed, targets for drilling will be set and a drilling program will be designed.

Tekton Energy (60%):

In October, a first project was acquired in the US state of Colorado as reported (see press release of 12 October 2011). The area is situated within the boundaries of one of the largest known oil and gas fields in North America. In the meantime, the preparations have begun for the first wells to be drilled in the first quarter of 2012. Detailed information on the drilling program will be published in early 2012.

III. High-tech metals

Tungsten, Molybdenum/Wolfram Camp (new 100%, previously 85%):

Deutsche Rohstoff AG has acquired the remaining 15% of the Wolfram Camp Mine and also secured the historical Wolfram deposit at Bamford Hill (see press release of 11 November 2011). DRAG now holds 100% of Wolfram Camp and Bamford Hill. With this purchase, Deutsche Rohstoff AG secures the full freedom of action in regard to Wolfram Camp Mine, which will provide about 2% of the world’s supply of tungsten concentrates. In addition, there is now access to Bamford Hill, which geologists consider the possible parallel structure to the Wolfram Camp deposit. In a favourable course of exploration, Bamford Hill could increase the total resource from the current 1.42 million tonnes @ 0,60% WO3 + 0,12% Mo significantly. But also the Wolfram Camp deposit itself has significant exploration potential.

Preparations in Wolfram Camp to commence concentrate production are progressing as planned. Initial Mining began in October, the remedial work on the tailings storage facility is completed and processing plant is being tested at present. The first concentrate was produced recently (see press release of 2 December 2011). The price of tungsten concentrate remains stable at a high level. Deutsche Rohstoff AG assumes that Wolfram Camp will already generate a positive result for the group during the first half of 2012.

Tin/ Tin International (68%):

The in newly founded subsiadiary Tin International Ltd. based in Brisbane (see press release of 6 October 2011) and its subsidiary Sachsenzinn GmbH in Chemnitz, have started a confirmatory drill program for the two Erzgebirge tin deposits in Geyer and Gottesberg. According to GDR classification, the two deposits combined account for more than 180,000 tons of tin, which is the largest known and undeveloped tin deposit worldwide. Due to good cooperation with the authorities and the local population, drilling can already begin in the next few days. Both deposits will be drilled at the same time, several drill rigs will be in use at once. After completion of drilling, probably in February 2012, an independent Australian expert will turn the historic resource into an internationally accepted JORC-standard resource. An IPO (initial public offering) of Tin International at the Australian ASX is planned for 2012.

Rare Earths/Storkwitz (100%):

To pursue development of the only Central European occurrences of rare earth elements in Storkwitz (Saxony), DRAG has recently founded the “Seltenerden Storkwitz AG”. Together with investors, funds shall be raised in the near term within the frame of a capital increase to upgrade the historic resource to a JORC-compliant resource.

Zinc-Lead/Devonian Metals (47,2%):

This year’s drilling campaign (20 holes, 3000 metres) commenced on 3 September. The main objective was a previously not investigated area, which should prove an extension of the mineralization area between the so-called 36-zone up to 12-zone. The program was completed by mid-October as scheduled, the drilling results are expected in the course of December. From this and last year’s drilling an upgrade of the resource to the Canadian standard NI 43-101 will follow in the first quarter of 2012. Devonian Metals expects a significant increase of the previous resource estimate. In the first quarter, a coordination with the partner Glencore will take place in order to discuss the future of the project.

Nickel/Kiefernberg (100%):

In June 2011 an option agreement was signed to sell the license to the Australian company Proto Resources against a non-refundable option premium of EUR 40,000. Meanwhile, after a detailed examination Proto has decided to take over the project.

Heidelberg, December 12, 2011

Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on gold, oil & gas and so called high tech metals such as tin, tungsten, and rare earth metals. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. A first production started in January 2011. For more information please visit www.rohstoff.de.

Contact:

Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24, 69117 Heidelberg
Tel. (06221) 87 100-0
Fax (06221) 87 100-22
info@rohstoff.de
www.rohstoff.de

Horst Koppelstätter
Koppelstätter Kommunikation GmbH
Friedrichstraße 2, 76530 Baden-Baden
Tel. (07221) 97372 11
Fax (07221) 97372 22
hok@koppelstaetter-kommunikation.de

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