Bannerman Resources Limited Commences Share Purchase Plan

NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION INTO THE UNITED STATES

PERTH, AUSTRALIA -- (Marketwire - Jan. 4, 2012) - Bannerman Resources Limited (TSX:BAN) (ASX:BMN) (NSX:BMN) ("Bannerman" or the "Company") confirms that following the recent completion of its A$8.2 million share placement financing, it has commenced a Share Purchase Plan ("SPP") under Australian law to provide eligible qualifying shareholders with the opportunity to subscribe for new Bannerman shares at the same price as the share placement, to raise maximum gross proceeds of A$4 million.

The SPP will provide eligible shareholders with an opportunity to subscribe for up to A$15,000 (C$15,533) worth of new Bannerman ordinary shares at A$0.225 (C$0.233) per share without incurring brokerage and other transaction costs. The total which may be raised under the SPP is capped at A$4 million. If the total value of applications is more than A$4 million, Bannerman reserves the right to scale back applications. The SPP supplements the recent A$8.2 million share placement conducted at A$0.225 per share.

The SPP is open to shareholders who were registered holders of fully paid ordinary shares in Bannerman (or persons expressly noted on the register as a beneficiary of shares held by a trustee or nominee) at 5:00pm (Perth time) or 4:00am (Toronto time) on the record date of December 13, 2011 with a registered address in Australia, New Zealand or Canada, or who are otherwise eligible to participate under the SPP terms and conditions.

The SPP opens on January 5, 2012 and is scheduled to close at 5:00pm Perth time (4:00am Toronto time) on Tuesday, January 31, 2012 unless extended. A copy of the SPP information booklet dispatched today to eligible shareholders is available as an attachment to this release on SEDAR at www.sedar.com and on the Company's website at www.bannermanresources.com.

The indicative timetable for the SPP is as follows:

Event Date Notes
Record Date December 13, 2011
5:00pm (Perth time)
4:00am (Toronto time) Date for determining eligible shareholders' entitlement to participate in the SPP.
Date of Dispatch of SPP documents January 4, 2012 Bannerman mailed to all eligible shareholders a SPP information booklet, which contains an invitation letter and a copy of the terms and conditions of the SPP.
SPP Opening Date January 5, 2012 SPP opens.
SPP Closing Date January 31, 2012
5:00pm (Perth time)
4:00am (Toronto time) SPP closes.
Allotment Date February 6, 2012 Shares to be issued under the SPP are allotted.
Quotation Date February 6, 2012 Shares issued under the SPP are tradable on ASX, TSX and NSX.

The timetable is indicative only and Bannerman may, at its discretion, vary any of the above dates by sending a revised timetable to ASX.

In accordance with Australian law, approval from Bannerman shareholders is not required for the issue of shares under the SPP.

Shareholders are encouraged to read the terms and conditions carefully and if in any doubt about whether or not to accept the offer, to consult a professional adviser.

Proceeds from the recent share placement and the SPP will, as set out in the SPP information booklet, be used to complete the Definitive Feasibility Study on Bannerman's 80%-owned flagship Etango Uranium Project in Namibia by the end of March 2012 and for associated confirmatory pilot plant testwork, regional exploration and drilling activities, a reduction of A$2 million in the existing convertible note and general working capital requirements.


Further Information for Canadian Shareholders

The SPP is open to Canadian shareholders who were registered holders of fully paid ordinary shares in Bannerman (or beneficiaries of Canadian registered shares held in the name of a nominee) on the record date. Eligible Canadian shareholders may participate in the SPP by subscribing for shares at C$0.233 per share, the Canadian dollar equivalent of the A$0.225 per share issue price at the exchange rate at the time of completion of the share placement. Shareholders whose Bannerman shares are listed in the Canadian share register will need to contact their broker, securities dealer or other intermediary from whom they receive the SPP documents to organise an application to subscribe for shares under the SPP.


About Bannerman

Bannerman Resources Limited is an emerging uranium development company with interests in two properties in Namibia, a southern African country considered to be a premier uranium mining jurisdiction. Bannerman's principal asset is its 80%-owned Etango Project situated southwest of Rio Tinto's Rössing uranium mine and to the west of Paladin Energy's Langer-Heinrich mine. Etango is one of the world's largest undeveloped uranium deposits. Bannerman is focused on the feasibility assessment and development of a large open pit uranium operation at Etango. More information is available on Bannerman's website at www.bannermanresources.com.


This announcement does not constitute an offer of securities for sale in the United States or to "US persons" (as defined in Regulation S under the US Securities Act of 1933, as amended (the "Securities Act"))("U.S. Person") and may not be sent or disseminated in, directly or indirectly, the United States or to any U.S. Person or any person acting for the account or benefit of any U.S. Person in any place. Bannerman shares have not been and will not be registered under the Securities Act or the securities laws of any state of the United States and may not be offered, sold or otherwise transferred in the United States or to or for the account or benefit of any U.S. Person except in compliance with the registration requirements of the Securities Act and any other applicable state securities laws or in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and applicable state securities laws.

The Company has not completed feasibility studies on its projects. Accordingly, there is no certainty that such projects will be economically successful. Mineral resources that are not ore reserves do not have demonstrated economic viability.

Certain disclosures in this release, including management's assessment of Bannerman Resources Limited's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Bannerman's operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause Bannerman's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in uranium prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in Bannerman's various statutory reports, including its Annual Information Form available on the SEDAR website, sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. Bannerman expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

ABN 34 113 017 128



Contact Information

Bannerman Resources Limited
Len Jubber
Chief Executive Officer
Perth, Western Australia
Tel: +61 (0)8 9381 1436

Bannerman Resources Limited
Peter Kerr
Chief Financial Officer
Perth, Western Australia
Tel: +61 (0)8 9381 1436

Bannerman Resources Limited
Tim Haughan
Investor Relations Manager
Perth, Western Australia
Tel: +61 (0)8 9381 1436
thaughan@bannermanresources.com.au

Spyros Karellas
Investor Relations
Toronto, Ontario, Canada
Tel: +1 416 800 8921
spyros@pinnaclecapitalmarkets.ca