Victory West's update on South East Asia Energy acquisition

As announced on 9 September 2011, Victory West Metals Limited has identified an opportunity to expand its portfolio of world class resource projects through the signing of a Heads of Agreement to acquire 100% of South East Asia Energy Resources Pte Ltd (?SEAE?).

SEAE is highly experienced in the identification of high quality mineral assets in both Indonesia and Australia, and the parties have a well connected team of local based and ex-patriot engineers and geologists who work with local and regional mine concession owners on a regular basis.

SEAE has the ability to secure a majority equity stake in a number of Indonesian coal projects.

The BEK Project (PT Bumi Energy Kaltim), located in East Kalimantan, is currently the flagship project for SEAE. In this regard, VWM is pleased to attach the following update announcement received from SEAE regarding its recent activities on the BEK thermal coal project.

The proposed acquisition of SEAE is subject to specified conditions including legal and technical due diligence, shareholder approval and Australian regulatory approvals as required which are currently ongoing. (ends)