MCS SERVICES LIMITED — Board/Management Information 2013

Apr 28, 2013

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29[th] April 2013

Management Changes

& Drilling Commences at Majada Project

 MANAGEMENT CHANGES

Red Gum Resources Limited (ASX: RGX, “Red Gum” or “the “Company”) wishes to advise that Dr Ray Shaw has been appointed Executive Chairman of the Company following the tendering of Dr Paul Pearson’s resignation as Managing Director. In paying tribute to the achievements Dr Pearson has made over the past two years, the Chairman indicated that Paul will continue to play a supporting consulting role with the Company. In keeping with the terms of his contract Dr Pearson’s resignation will take effect in June 2013.

The Board also intends to appoint Mr Michael Easdon as an in-country Manager, based in Santiago Chile. Michael is a Certified Geologist with the American Institute of Professional Geologists. He has over 40 years industry experience including more than 15 years based in Latin America. Fluent in Spanish, he will provide administrative and technical skills to compliment the Company’s on-going activities within the region.

 DRILLING COMMENCES AT MAJADA

Red Gum is pleased to announce that drilling has now commenced at its Copper-Gold Majada Project area. The drilling is targeting geophysical anomalies along a broad kilometre-scale mineralised shear structure that is delineated by shallow, artisanal workings in a known Iron Oxide Copper Gold (IOCG) Belt of northern Chile. A minimum of 1,500 m of diamond core drilling will be undertaken in an area which was recently the subject of geophysical, magnetic and induced polarisation, surveys conducted by the Company.

These surveys have delineated anomalies which are consistent with the development of subsurface sulphide mineralisation beneath copper-gold oxides which have been targeted by historical workings. The Majada Project is close to two significant IOCG discoveries – Manuelito and San Lorenzo. It is proximal to both power and road infra-structure and lies at relatively low altitudes (~600 m) where it is not impacted by adverse weather windows.

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Photograph : Drilling commencing at Majada

Details of Mike Easdon

Mr Mike Easdon has more than 40 years of mineral exploration experience in a wide variety of settings located in North America, Latin America, and Eastern Europe. This experience includes management of exploration for base and precious metals, including IOCG deposits. He has strong skills in economic evaluation and mineral production development as well as extensive corporate acquisitions-oriented experience including expert, independent geological, reports for Canadian, Australian and US Stock Exchanges.

With more than 15 year experience based in Santiago Mike Easdon is very well acquainted with governmental and administrative requirements for foreign entities working within Chile. He holds B.Sc and M.Sc from Mc Gill University and is a Certified Geologist with the American Institute of Professional Geologists.

About the Majada Copper-Gold Project

The Majada Copper-Gold Project is located within the IOCG Belt of northern Chile, approximately 120 kilometres south of La Serena in Region IV.

As outlined in an earlier ASX release dated 27 March 2013, Red Gum has the right to earn a 100% interest in the nine claims, comprising the Project, by making staged, six monthly, option payments totalling 679.5 million Chilean pesos (A$ 1.44 million at current exchange rate) to the owners over a 3 year period from the date of signature. Should Red Gum elect to exercise the final option and acquire the properties at any time during the next 3 years, the owners would also have the right to receive an additional, and once only, payment of 600 million Chilean pesos (A$ 1.27 million at current exchange rate) upon Red Gum achieving commercial production.

The project consists of 587 hectares of third party exploitation mineral claims, distributed in two geographically separated areas; Majada Este and Majada Oeste. In addition, Red Gum has applied for new exploration claims adjoining the Majada Oeste area, totaling an additional 400 hectares. Despite numerous shallow surface workings there is no evidence of pre-existing drilling within the Majada area.

The Majada Este area , comprising five mineral claims totaling 267 hectares, contains a number of oxide pit workings coincident with the surface outcrop of a belt of intensely sheared and altered andesite volcanics, along the contact with a belt of granitic intrusive rocks located to the west. In addition, dump material from a number of small underground adits at topographically lower levels displays strong sulphide mineralisation (including bornite and chalcopyrite).

At Majada Oeste , comprising four claims totaling 320 hectares, a broad N-S brittle-ductile shear zone, developed along the contact between granitic intrusive rocks and andesitic volcanic rocks, controls a number of significant copper-gold pits and diggings. Previous historical exploration by a public mining company in 1999 has now been supplemented by Red Gum’s recently completed magnetic and induced polarisation surveying. Historical surface geochemistry sampling of the oxide mineralisation, which was being exploited in the pits, reported maximum copper values up to 2.53% and maximum gold values up to 4.04 g/t. Red Gum’s geological mapping has defined a NNW-SSE striking, moderately W-dipping shear zone structure over 3.0 kilometres long and +500 metres wide.

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Figure 1: Location of the Majada Project in the Chile IOCG belt

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Figure 2: More Detailed Location of the Majada Copper-Gold Project

About Iron Oxide Copper-Gold (IOCG) Deposits

Iron oxide copper gold (IOCG) ore deposits are highly valuable concentrations of copper and gold (+/-uranium) hosted within voluminous, iron oxide -dominated gangue assemblages (typically magnetite and/or haematite). IOCG deposits are considered to be metasomatic expressions of large crustal-scale alteration events driven by intrusive activity and their gangue mineral assemblages are characterised by distinctive sodic, potassic and calcic phases. Deposits of this style tend to occur in broad linear tectonic belts, such as the Cretaceous belts of Chile and Peru. Examples of IOCG deposits in the Chile and Peru belts include:

• Candelaria, Chile (470 Mt @ 0.95% Cu, 0.22 g/t Au, 3.1 g/t Ag)

• Manto Verde, Chile (+250 Mt @ 0.75% Cu)

• El Espino, Chile (144 Mt @ 0.55% Cu, 0.22 g/t Au)

• Mina Justa, Peru (413 Mt @ 0.79% Cu).

Competent Persons Statement

The information in this document that relates to Exploration Results is based on information compiled by Dr Paul Pearson, who is Fellow of The Australasian Institute of Mining and Metallurgy and Member of the Australian Institute of Geoscientists. Dr Pearson is the Managing Director of Red Gum Resources Limited.

Dr Pearson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Pearson consents to the inclusion in this document of the matters based on his information in the form and context in which it appears and verifies that it is based on and fairly and accurately reflects in the form and context in which it appears, the information in my supporting documentation relating to Exploration Results, Mineral Resources and/or Ore Reserves.

ENDS

For Further information please contact: Dr Ray Shaw, Executive Chairman + 61 8 8223 1680