Rox Resources Limited : Letter to Shareholders – 24 January 2014

23 January 2014
Dear Shareholder,
Last year was a very significant year of progress for your Company, with the discovery of the Camelwood nickel sulphide deposit in Western Australia, and the Teena zinc-lead deposit in the Northern Territory. These discoveries place Rox in a position to look forward to 2014 with optimism.
The Company would not have been able to achieve the success of 2013 without the support shown by shareholders with your strong participation in the Share Purchase Plans undertaken in late 2012 and 2013.
There is no doubt that the environment for small cap resources companies has been extremely tough, especially in the latter half of 2013. However we are starting to see positive signs of an improvement in sentiment, with commodity prices recovering and interest in small cap stocks returning. With this background we have pleasure in providing you with an update of our plans for this year.
At Camelwood, some very clever interpretation of RAB and aircore drilling data by our geologists in late
2012 resulted in the discovery of nickel sulphides at the first target drilled with deeper reverse circulation (RC). Within 10 months of diligent and exacting work the Company had produced a maiden mineral resource of 1.6Mt @ 2.2% Ni, which includes a high grade core of 520,000t @ 3.1% Ni.
Regional exploration in 2013 identified more targets, and again RC drilling resulted in the discovery of the Cannonball and Musket nickel sulphide prospects with strong initial drill results, including 3m @ 3.1% Ni and 5m @ 2.3% Ni from relatively shallow depths. Follow-up RC drilling is planned to commence in late January 2014 to further define the extent of the nickel sulphide mineralisation.
The Fisher East nickel project (encompassing the Camelwood, Cannonball and Musket nickel sulphide occurrences along a 3km strike length of prospective ultramafic rock) is shaping up to be a regional nickel sulphide play, similar to other areas in Western Australia (for example, Kambalda, Forrestania, Leinster- Agnew-Cosmos), and the prospects of finding further nickel deposits in addition to the three discovered in
2013 are high. Given the prospectivity of the project area the Company has planned a series of exploration drilling programs (RC, diamond and aircore) this year to further evaluate the area's potential.
At the Teena prospect, near McArthur River in the Northern Territory, our earn-in partner Teck Australia Pty Ltd ("Teck"), drilled thick widths of high-grade zinc-lead mineralisation during the 2013 field season, and have identified what appears to be a significant zinc-lead deposit just 10km west of the world class McArthur River deposit (mined by Glencore/Xstrata and containing over 200 Mt @ 13.4% Zn+Pb). Teck have highlighted the strong potential of this project in their recent company presentations, with drill results such as 20.1m @ 15.0% Zn+Pb (TNDD010) and 16.2m @ 17.2% Zn+Pb (TNDD009) defining strong mineralisation over a 1.3km strike length.
For the 2014 field season Teck are planning further drilling to better define and delineate the extent of the high-grade zinc-lead mineralisation, and shareholders can expect further details of that drilling as it comes to hand. During 2013 Teck reached the expenditure required to earn a 51% interest in the project and have elected to proceed to earn an additional 19% interest (giving 70% total) by expenditure of a further $10 million. As such Rox does not expect to be required to contribute to expenditure during 2014.

Rox Resources Limited ABN 53 107 202 602 RRL1305D-IM Level 1, 30 Richardson Street, West Perth WA 6005

Telephone: [phone] Facsimile: [phone]

Email: [e-mail]
In late 2012 the Company identified the Bonya copper project in the Northern Territory as an area with potential to host copper sulphide mineralisation similar to the nearby Jervois copper deposits (13.5Mt @
1.3% Cu, 25 g/t Ag, KGL Resources AXS announcement) and entered into a farm-in agreement to earn up to
a 70% interest.
During initial exploration the Company identified a number of copper oxide occurrences and followed this up late in 2013 with an airborne EM survey (VTEM) to identify prospective conductive mineralised targets. Preliminary results indicate the survey has been successful and a final interpretation should be released soon. The Company will undertake follow-up field reconnaissance and drilling of targets identified.
The Company has held the Marqua phosphate project for a number of years, but given the Company's
priorities at Fisher East and Bonya, is seeking a JV partner or a buyer for the project.
We have a busy work program planned for the next six months and we feel your Company is excellently placed to make further significant mineral discoveries during the year, especially at Fisher East (nickel) and Teena (zinc-lead). Bonya, although at a much earlier exploration stage, is also an exciting copper prospect.

Thank you for your support during 2013 and we look forward to sharing a successful and rewarding 2014. Kind Regards,

Your team at Rox Resources

Jeff Gresham - Chairman
Ian Mulholland - Managing Director Brett Dickson - Finance Director Will Belbin - Exploration Manager

Competent Person Statements:

The information in this report that relates to nickel Exploration Results for the Mt Fisher Project is based on information compiled by Mr Ian Mulholland BSc (Hons), MSc, FAusIMM, FAIG, FSEG, MAICD, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Mulholland has sufficient experience which is rel evant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualif y as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resou rces and Ore Reserves". Mr Mulholland is a full time employee and Managing Director of the Company and consents to the inclu sion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to nickel Mineral Resources for the Mt Fisher project was reported to the ASX on 3

October 2013. Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 3 October 2013, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 3 October 2013 continue to apply and have not materially changed.

The information in this report that relates to Exploration Results and Mineral Resources for the Reward Zinc-Lead, Bonya Copper and Marqua Phosphate projects and for the gold Mineral Resource defined at Mt Fisher, was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported, and is based on information compiled by Mr Ian Mulholland BSc (Hons), MSc, FAusIMM, FAIG, FSEG, MAICD, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Mulholland 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 Reserves". Mr Mulholland

is a full time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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