Barra Resources Limited : Share Purchase Plan, Letter to Shareholders

24 October 2011
Dear Shareholder,

The Board has decided to extend the Closing Date for the Share Purchase Plan ("SPP") from October
21 out to November 4. All other terms and conditions of the Offer remain the same. A further application form is enclosed.
Even though the SPP is fully underwritten, the Board is very keen for as many shareholders as possible to participate in what the Board believes will be a successful and profitable period for the Company.
The recent volatility of global share markets does generate understandable angst when making investment decisions, and as such the Board is keen to allow shareholders as much time as possible to make their decision.
To reiterate, the funds raised will be applied towards an extensive drilling program at the Company's
100 percent owned Phillips Find Mining Centre. Our plan is to bring this Mining Centre into production next year. Concomitantly, development work will be starting on deepening the decline at our 100 percent owned Burbanks Gold Project. This is to be fully funded by our major shareholder, FMR Investments Pty Ltd. During the development phase, drill cuddys will be established along the decline, allowing a continuous flow of drilling information. This drilling will target previously inaccessible areas. As with Phillips Find, the plan is to have Burbanks back in full production next year. The expected returns from the two proposed operating gold mines will definitely strengthen the Company's balance sheet, with any surplus cash generated from these operations to be applied towards developing further gold opportunities which may become available to the Company in the region.
Regards

Executive Chairman

Ground Floor, 30 Richardson Street, West Perth, Western Australia 6005

Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955