Future Metals NL — Capital/Financing Update 2011

Dec 15, 2011

16 December 2011

==> picture [293 x 54] intentionally omitted <==

Manager of Company Announcements ASX Limited Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000

By E-Lodgement

Placement

Red Emperor Resources NL (ASX | AIM: RMP), the oil and gas exploration company with interests in Puntland and Georgia, is pleased to announce a placing, through Fox-Davies Capital Limited in the UK and Max Capital Pty Ltd in Australia, of 37,178,123 new ordinary shares at $0.17 (11 pence) per share (the "Placing Shares"), raising approximately $6.32m before expenses (the "Placing"). The funds raised under the Placing will be used for working capital and to progress the Company’s exploration drilling activities in Puntland and Georgia.

Red Emperor’s Executive Director, Greg Bandy, said:

"This is a very exciting time for our Company as we are funded to drill major transformational prospects in Puntand and a second well in Georgia, both expected to spud in January. The additional funds raised in the placing will allow Red Emperor to commit to a second well in Puntland, should we choose to do so, as well as provide us certainty about our future beyond these two major wells.

BOARD & MANAGEMENT Mr Greg Bandy EXECUTIVE DIRECTOR

Mr Jason Bontempo NON-EXECUTIVE DIRECTOR

Mr Stephen Brockhurst NON-EXECUTIVE DIRECTOR

Ms Rebecca Sandford Ms Shannon Robinson COMPANY SECRETARY

REGISTERED OFFICE

Ground Floor 1 Havelock Street West Perth WA 6005

POSTAL ADDRESS PO Box 1440 West Perth WA 6872

CONTACT DETAILS Tel: +61 8 9488 5220 Fax: +61 8 9324 2400

WEBSITE

This announcement has the effect of lifting the trading halt.

For and on behalf of the Board

Greg Bandy Executive Director

www.redemperorresources.com

SHARE REGISTRY Computershare Level 2 45 St Georges Terrace Perth WA 6000 Tel: 1300 555 159

NOMINATED ADVISER Cairn Financial Advisers LLP 61 Cheapside London EC2V 6AX Tel: +44 (0) 207 148 7900 Fax: +44 (0) 207 148 7909

ASX CODE RMP

AIM CODE RMP

==> picture [90 x 53] intentionally omitted <==

Background

Red Emperor Resources NL (ASX | AIM: RMP) is a natural resources exploration company with interests in the frontier state of Puntland, Somalia, the Republic of Georgia and Western Australia.

• In Puntland, Red Emperor holds a 20% working interest in two licences encompassing the highly prospective Dharoor and Nugaal valleys. These two exploration areas cover over 36,000km2 and have independently been assessed to potentially contain a combined 19 billion barrels of oil in-place. Red Emperor's joint venture partner and PSA operator Africa Oil Corp. (TSXV: AOI) has signed a contract with drilling company Sakson Drilling and Oil Services as well as all related third party contracts. Site works are now complete and the first well is expected to be drilled in early January, 2012.

• In the Republic of Georgia, Red Emperor has a 20% working interest in onshore blocks VIa and VIb, covering approx. 6,500km2. Joint Venture partner Range Resources Limited (ASX: RRS | AIM: RRL) last year funded a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of oil-inplace (on a mean 100% basis). Work has commenced on the preparation of the well site and surrounds in readiness for the drilling of the second exploration well on the Kursebi 2 prospect. Spudding of the second well is targeted for early January 2012

• The Company also has a right to earn 25% interest in the Jillewarra Project, a copper and gold project in Western Australia. This interest is free carried through until bankable feasibility study.

Ground Floor, 1 Havelock Street, West Perth WA 6005 | Tel: +61 8 9488 5220 | Fax; +61 8 9324 2400 | www.redemperorresources.com ABN 99 124 734 961