Future Metals NL — Capital/Financing Update 2012

Jun 5, 2012

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6 June 2012

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

By E-Lodgement

Puntland - Shabeel North Spuds

Red Emperor Resources NL (ASX: RMP | AIM: RMP) is pleased to announce the commencement of drilling operations on the Shabeel North well in Puntland, Somalia. The well, the second in the current drilling campaign, is being operated by Joint Venture partner, Horn Petroleum Corp. (TSXV: HRN).

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 JOINT COMPANY SECRETARY

REGISTERED OFFICE

Red Emperor holds a 20% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements (“PSA’s”) along with Horn and Range Resources Limited (ASX: RRS | AIM: RRL). The planned target depth of the Shabeel North well is 2,400 meters and drilling is expected to take 45 to 60 days to complete.

The Shabeel North well is targeting Upper Cretaceous Jesomma sands, which had good oil and gas shows in the Shabeel-1 well 3.5 kilometers to the south. Petrophysical analysis of downhole electrical logs in the Shabeel-1 well indicated a potential pay zone in the Jesomma of up to 12 to 20 meters with an average porosity of 18 to 20%. It is planned to bring the rig back to the Shabeel-1 location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed.

Red Emperor Managing Director, Greg Bandy said, “ This is another very significant milestone in what has so far been a very positive drilling campaign. The fact that Shabeel-1 showed a strong presence of reservoir rock and hydrocarbons as well as a potential net commercial oil pay, gives a very good indication that this well will do the same. The operator is expecting similar or better reservoir thickness and quality as Shabeel North is deeper into the basin’s depositional fairway. Successful results in this well would go a long way to proving a commercial petroleum system in the Dharoor basin .”

For and on behalf of the Board

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Greg Bandy Executive Director

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

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

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Background

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

• In Puntland, Red Emperor holds a 20% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements (“PSA’s”) along with Horn Petroleum Corp. (TSXV: HRN) and Range Resources Limited (ASX: RRS | AIM: RRL). These two exploration areas cover over 36,000km[2] . Horn, the operator and 60% interest holder, has completed drilling the first well (Shabeel-1) in a two well program and has now spudded the second well (Shabeel North). Target depth for Shabeel North is 2,400m with the primary target being Upper Cretaceous Jesomma sands, which had good oil and gas shows and 12 – 20m of potential net pay in the Shabeel-1 well 3.5 kilometers to the south. Shabeel-1 will be flow tested following completion of Shabeel North.

• In the Republic of Georgia, Red Emperor has a 20% working interest in onshore blocks VIa and VIb, covering approx. 6,500km[2] . Joint Venture partner Range Resources Limited (ASX: RRS | AIM: RRL) previously funded a 410km 2D seismic program with independent consultants RPS Energy identifying 68 potential structures containing an estimated 2.045 billion barrels of undiscovered oil-in-place (on a mean 100% basis) with the first (Mukhiani-1) of two conventional exploration wells having spudded in July 2011. The Company is now focussing on a revised development strategy that will focus on lowcost, shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori (“Tkibuli”) coal deposit, which straddles the central sections of the Company’s two blocks.

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