Q3 Operational and Sales Update

Richland Resources Limited

("Richland" or "the Company") (AIM: RLD)

Q3 Operational and Sales Update

Richland Resources Ltd, the gemstones producer and developer, today announces an operational, sales and marketing update. All figures are unaudited.

Highlights

·; US$4.7 million in sales achieved in Q3 2011

·; Total tanzanite production of 573,771 carats for Q3 2011

·; Average grade of 53 carats per tonne achieved

·; Commissioning of tsavorite pilot sampling plant

·; Appointment of KGK Group as Sightholder

Production and Sales

In the third quarter of 2011, the Company achieved tanzanite production totalling 573,771 carats from the processing of 10,768 tonnes of material at an average grade of 53 carats per tonne for the quarter The Company achieved US$4.7 million in sales for the third quarter of 2011.

Tsavorite

The tsavorite processing plant has been commissioned and pilot sampling has commenced during the third quarter. The pilot sampling is scheduled to continue for the remainder of the year and is aimed at establishing a grade and value per carat for the gemstones located within the maiden JORC resource announced in Q1 of this year.

DSE Listing

Preparations for a listing on the Dar es Salaam Stock Exchange ("DSE") before the end of the year are progressing as planned. The listing on the DSE will give both Tanzanians and Company employees the option of investing in the Company's shares.

Sales and Marketing

The Company is pleased to welcome KGK Group ("KGK") as a Sightholder. KGK is also a De Beers Group Diamond Trading Company Sightholder and has a global marketing reach with manufacturing units in all major centers. KGK Gems, part of KGK, has state of the art colour-stone manufacturing units in India, Thailand, Sri Lanka and Tanzania. KGK Gems has technical competence, skill sets and manufacturing facilities to cut and polish the various types of colour stones that it sources.

The Company is sponsoring a special Tanzanite category in the inaugural IU Awards launched by UBM Asia, publisher of Jewellery News Asia and organiser of the Hong Kong Jewellery and Gem Fair, and the International Colored Gemstone Association. The IU Awards encourage the wider use of colour gemstones and excellence in lapidary and jewellery design and will be held in June 2012 in Hong Kong.

Richland Resources and its Tanzanite promotion arm, The Tanzanite Foundation, are working with the Gems and Jewelry Trade Association of China to facilitate direct transactions between major Chinese jewellery companies, the Company, and its Sightholders.

Commenting today, Bernard Olivier, Chief Executive Director, said: "We are excited to welcome KGK Group as a new Sightholder and look forward to a long and successful relationship with them. The Company benefits significantly through the appointment of this well established manufacturer, with strong relationships in China. The continued positive sales figure of US$ 4.7 million for the quarter represents a 24% increase in sales relative to the same period last year, highlighting the company's progress since last year's return to profitability."

END

For more information please contact:

Bernard Olivier

Chief Executive Officer

+61(0) 4089 48182

Willi Boehm

Company Secretary

+61(0) 409 969 955

Nominated Advisor & Broker (AIM)

Ambrian Partners Limited

Samantha Harrison/Jen Boorer

+44 (0) 20 7634 4700

 Joint Broker XCAP Securities PLC

John Grant/Jon Belliss/David Newton

+44 (0) 20 7101 7070

Threadneedle Communications

Laurence Read/Beth Harris

+44 (0)20 7653 9855

+44 (0)7979 955 923

Notes to the Editor:

The intrinsic attraction of tanzanite and the finite nature of a single known resource at the foothills of Mount Kilimanjaro in northern Tanzania are undoubtedly part of tanzanite's allure.

Richland Resources Ltd, through its wholly-owned subsidiary, TanzaniteOne Mining Ltd, is the largest and most scientifically advanced miner and supplier of rough tanzanite, a unique position that affords it the opportunity to support and influence the entire channel, from mine to market, ensuring that maximum stakeholder value is achieved at each stage of the process.

Our leading position in the tanzanite market has ensured Richland Resources Ltd the recognition and respect of its peers and provides the opportunity for expansion into a broader range of PCGs located at various key sites around the world.

The following modified tanzanite grading and classification system is currently being used by the Company:

Further information is available on the Company's website: www.richlandresourcesltd.com

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.