Future Metals NL — Capital/Financing Update 2012

May 21, 2012

21 May 2012

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

By E‐Lodgement

Shabeel North – Exercise of Option to Participate

Red Emperor Resources NL (ASX: RMP | AIM: RMP) is pleased to announce that it has, today, exercised its option to participate in the drilling of the Shabeel North well, schedule to be spud in the first week of June.

As a result of this election to participate, Red Emperor maintains its 20% Participating Interest in each of the Dharoor Valley and Nugaal Valley PSA’s.

Red Emperor has always had an option, not an obligation, to participate in Shabeel North and has now received Final Well Logs in relation to the recently drilled Shabeel‐1 well. After reviewing these logs and in light of the significant discovery made by the Joint Venture in the Jesomma sands of Shabeel‐1, the board has no hesitation in participating in Shabeel North and has advised Africa Oil Corp. accordingly.

Red Emperor has been paying preliminary costs associated with the preparation of drilling Shabeel North and these costs can now be applied towards its cash call commitments.

On 17 May 2012, Red Emperor announced the discovery of a 12 – 20m zone of significant hydrocarbon pay in the Upper Cretaceous Jesomma Formation of the Shabeel‐1 well. This discovery will be flow tested after drilling the Shabeel North well as the perforating equipment required to test this zone is currently being shipped to site.

The rig is currently moving to the Shabeel North location, 3.5km north of Shabeel‐1, with spudding scheduled for the first week of June 2012. The primary objective of this well will be to evaluate the Upper Cretaceous Jesomma Sands that have been oil‐bearing at the Shabeel‐1 location.

Greg Bandy, Managing Director of Red Emperor, commented, “We are delighted to announce that we are participating in the second Puntland exploration well and as a result maintaining our 20% interest in this historical Joint Venture. We were very encouraged by the results of the Shabeel‐1 well that have confirmed oil‐bearing sands in two zones. This discovery has very positive implications for the prospectivity of the basin. We look forward to the results of the Shabeel North well and to testing the Jesomma sands to confirm the potential of the block.”

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 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

For and on behalf of the Board

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AIM CODE RMP

Greg Bandy Executive Director

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Background

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

• 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 36,000km[2] . The operator and 60% interest holder, Horn Petroleum Corp. (TSXV: HRN) has completed the first well (Shabeel‐1) in a two well program and is now moving the rig to the second well (Shabeel North). The two wells are targeting 300mmbls and 375mmbbls of best estimate Prospective Resources (100% basis). All site construction and preparation work has been completed on the second well and is now in readiness to accept the rig and begin drilling.

• 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 low‐ cost, 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