Future Metals NL

Earnings Release • Apr 14, 2015

National Storage Mechanism | Additional information

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RED EMPEROR RESOURCES NL - Update in relation to Georgian project

PR Newswire

London, April 14

14 April 2015Red Emperor Resources NLRed Emperor Resources NL (ASX/AIM: RMP) announces the following update withrespect to its Georgian Project.Despite Red Emperor again being advised last quarter by the operator, StraitOil & Gas ("Strait"), that an agreed drilling program and a valid drillinglicence was in place with the Georgian Oil and Gas Ministry, drilling activityis yet to commence in Block VIb. Whilst a drill rig and all required servicesremain available, Strait's major shareholder, Range Resources Limited("Range"), who are obligated to fund the drilling program and the costs to theend of Phase III of the Production Sharing Contract ("PSC") on behalf of theJoint Venture, has been focused on the disposal of the asset as opposed tocontinued further investment.Red Emperor understands that representatives of Strait will be negotiating toextend the PSC that covers Block VIb, which was due to expire in March 2015,however there is no certainty that such an outcome can or will be achieved.While Red Emperor is hopeful that it will, in the meantime the Companycontinues to stand by its position with respect to Range's obligations to drilla second well and cover the costs of Phase III on Block VIb, which formed partof the "drilling program" contemplated in its 2011 Subscription Agreement (the"Agreement"). Red Emperor has met its financial commitment with respect to theAgreement and is disappointed that drilling activity is yet to commence. Thecompany will continue to protect its interests with respect to both blocks andthe value they represent.For further information please visit www.redemperorresources.com or contact:Red EmperorGreg Bandy +61 8 9212 0102Grant Thornton UK LLPPhilip Secrett/Jen Clarke/Jamie Barklem +44 20 7383 5100