Diamond Drilling to commence at Blind Calf

ASX Release 9 January 2012

Kidman Resources Limited (ASX: KDR) is an Australian listed company focused on the exploration and development of its Base Metal and Rare Earths discoveries in New South Wales and the Northern Territory.

ASX Codes:

KDR - Ordinary Shares

KDRO - Listed Options

Market Cap:

$11.75m @ $0.24 per share

(9/01/2012)

Projects:

Crowl Creek (100%) -

Copper/Silver/Gold /Lead/Zinc

- Lachlan Fold Belt, Central NSW

Hale River (100%) - Rare Earths

- Alice Springs NT

Investment Highlights:

- 23m @7.07% Cu from 24m at Blind

Calf NSW prospect

- Multiple Copper lodes identified at

Blind Calf prospect open at depth

- Follow up drilling program to test vertical continuity and near surface potential

- Hale River rock chip sampling yielded up to 1.66% REO

- Drilling to commence at Hale River to test REO

Issued Capital:

48,960,884 ordinary shares

10,598,752 listed options (20c Nov

2013)

Directors:

Garrick Higgins - Non Exec Chairman Shane Mele - Executive Director Andrew McIlwain - Non Exec Director

Company Secretary:

Melanie Leydin

Principal Place of Business

Suite 3, Level 4

12-20 Flinders Lane

Melbourne VIC 3000

Phone: [phone]

Fax: [phone]

email: [e-mail]

Web: www.kidmanresources.com.au

DIAMOND DRILLING TO COMMENCE AT BLIND CALF Kidman Resources Limited ("Kidman" or the "Company") is pleased to confirm that preparation for diamond drilling at Blind Calf is complete. A diamond rig has been booked, and subject to final NSW DPI approval, drilling is expected to commence in the next two weeks.

On 7 November 2011 Kidman announced to the ASX that it had received strong results from its first Induced Polarisation ("IP") survey over a 1.5 km x 1 km area at Blind Calf.
The 3D IP inversion model identified strong chargeability zones at depth, located directly beneath Kidman's previous high-grade Copper intercepts. The previous intercepts include 23m @ 7.07% Cu from 24m.
Significantly, the IP survey indicates priority targets lying
100m below the previously drilled zone, extending to a depth of 500m, which was the limit of the IP survey. IP survey techniques have been used successfully at other major Cobar deposits such as at Peak, CSA and Elura.
Analysis of the IP results has now been completed, and the priority drill targets have been confirmed. The initial diamond drill program will include 3 drillholes to a depth of approximately 600m. The diamond drillholes will provide substantially more insight into the commercial potential of the Company's discoveries at Blind Calf, which to date have only been tested to approximately 120m.
The main IP anomalies are shown in figures 1 and 2 below.
A diamond drill rig has been booked and is available to commence drilling once final DPI approvals are confirmed. The Company expects to obtain the approvals and commence drilling within 2 weeks.
This initial phase of diamond drilling will test the major IP anomaly that extends beneath the Dunbars and Blind Calf Lodes. A schematic cross-section showing the proposed drilling is displayed in figure 3 below.

Figure 1. 3D IP Inversion Model (green) - Previous drilling at Blind Calf and "new" IP targets

There were 4 IP anomalies discovered from the November IP survey. These targets have been identified over a 1.5km strike length with the largest target (dashed yellow circle above) identified beneath previous high-grade copper intercepts. This will be the primary target for the upcoming diamond drill program.

Figure 2. 3D IP Inversion Model (green) Long-section - Proposed Drilling (yellow dots)

The proposed drill program will consist of 3 diamond drillholes (shown above) for a total of 1600m. The first drillhole will target the centre of the strongest IP anomaly. The upper target will be intersected via the shallow extension of a previous RC drillhole (KC44, see figure 3). The IP surveys depth of penetration was limited to 500m, but the anomalies appear to remain strong beyond this depth, and therefore remain open. The northern target was not totally covered by the IP survey and
remains open to the north. If the drilling successfully identifies copper mineralisation the IP survey will be extended in this area.

Figure 3. Blind Calf Cross-Section - Proposed drilling and IP Target

The drillholes will be drilled from east to west and be collared from previous drillsites that can be easily accessed via existing tracks. The drilling operation will operate on a 24hr basis and be completed over a 6 week period.
For more information about Kidman Resources please contact; Shane Mele (Executive Director)
Martin Donohue (Business Development)
Phone: [phone]
Email: [e-mail]

The information in this release that relates to exploration results and geological interpretation has been compiled by Mr Shane Mele BSc, (Hons) M.Econ.Geol., MAusIMM. Mr Mele is a Member of the Australian Institute of Mining and Metallurgy and he has sufficient experience with the style of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2004 Edition of the "Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) for reporting the exploration results. Mr Mele consents to the inclusion in this report of the contained technical information in the form and context in which it appears.