Riedel Resources Limited announced that Fortescue Metals Group through FMG Resources Pty Ltd. has entered into a Farm In and Joint Venture Agreement worth up to $1 million over Exploration Licence 45/2763. The company's 100%-owned tenement is 131km2 in area and is located approximately 45km north of Nullagine and 50km south-east of Marble Bar in the Pilbara Region of Western Australia. Key Terms of Agreement: By spending $200,000 on exploration within the Exploration Area within 3 years of the date of signing the Agreement, Fortescue can earn a 51% interest in the Tenement and a Joint Venture with Riedel will be formed; By spending a further $400,000 on exploration within the Joint Venture Area within 3 years of forming the Joint Venture, Fortescue can earn an additional 14% interest in the Tenement, and; By spending a further $400,000 on exploration within the Joint Venture Area within the Additional Earning Period, Fortescue can earn an additional 15% interest in the Tenement.

If all milestones are met by Fortescue within the Initial and Additional Earning Periods, Fortescue will have earned an interest of 80% in the Tenement by the expenditure of $1,000,000 on exploration within the Joint Venture Area, After Fortescue has satisfied its earning obligations, Fortescue and Riedel will contribute to Joint Venture expenditure in proportion to their interest in the Joint Venture, alternatively standard dilution conditions will apply to non-contributing parties.