Deutsche Rohstoff Ag: Corporate Update and Outlook

Deutsche Rohstoff AG: Corporate Update and Outlook
Focus will be placed on larger Projects/Earnings forecast for 2011
confirmed

Heidelberg. The 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:

Thomas Gutschlag
+49 6221 871 000
gutschlag@rohstoff.de


End of Corporate News

Unternehmen: Deutsche Rohstoff AG - ISIN: DE000A0XYG76