Red 5

Shares / Stock Code

RED

Stock Exchange / Sharemarket

ax

Red 5 is moving ahead to develop the Siana Gold Project (SGP) located in the Philippines. RED has a 90% interest in SGP. The title is held under a Mineral Production Sharing Agreement. The company has a strategic land position and other excellent prospects have potential to add significant value to shareholders. Total mineral resources are 2.2Moz. High-grade u/g ore (3Mt at 7.4g/t Au) below the open pit is open in all directions. SGP is a robust project (IRR 49% at US$650/oz Au).

SGP is already a good project that will improve with exploration extending resources beneath the open pit. The Board has adopted the “Accelerated” feasibility study that calls for peak Au output of 129,000oz in year 4. There are 3 options that provide flexibility and opportunity to add to shareholder value. These are doubling the u/g mining rate and recovery of Zn from year 5 and/or mining satellite ore from Mapawa. AngloGold Ashanti is a partner in the Mapawa MPSA and regionally around Siana. Company listed on Australian Stock Market on 16 October, 1996.

The project benefits from excellent infrastructure: concrete highway within 1km; national power grid 138kV line within 1km; two deep-sea ports within 30km; ample water; mine and plant site footprint owned by JV partner; and a development supportive local (former mining) community. Funding will focus exclusively on the Siana project development, with the company's growth potential funded by two AngloGold Ashanti joint ventures.

Red 5's major customers would include the retail, wholesale and international markets. Its competitors consist of other gold mining companies such as Prosperity Resources Limited (PSP). Most oil and metals are sold into the global spot markets, whilst gas, coal and iron ore is typically sold under long term contract arrangements with utilities, large industrial users and steel plants. The Company’s subsidiaries include Asia Gold Limited, Bremer Resources Pty Ltd, Estuary Resources Pty Ltd, Greenstone Resources (WA) Pty Ltd, Oakborough Pty Ltd and Opus Resources Pty Ltd.