MCS SERVICES LIMITED — Board/Management Information 2014

Jan 5, 2014

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6 January 2013

Corporate Update

HIGHLIGHTS

• ￭ The Company plans to focus exclusively on its existing major Copper-Gold mineralisation assets in Chile and new opportunities.

• ￭ Due diligence underway with reputable Latin American mining entity for the proposed sale of Red Gum’s Peruvian concessions.

• ￭ Negotiations for strategic alliance with Rio Perdido Copper Limited progressing actively.

• ￭ Board changes to align with these pending transaction(s).

• ￭ Details of transaction(s) anticipated to be released following due diligence and legal formalisation – currently expected to be completed by 20 January 2014.

• ￭ Voluntary suspension to continue until Company can disclose details of the above transaction(s).

Red Gum Resources Ltd (Company, ASX : RGX) provides the following update on key matters since requesting a trading halt on 23 December 2013 and subsequent voluntary suspension on 27 December 2013.

Corporate Focus

In view of the positive exploration results the Company has achieved since listing in January 2012, and potential opportunities identified by the Company, the Board has decided that the growth platform and funding requirements of the Company are best served by exclusively focusing, in the foreseeable future, on its existing major assets - being copper-gold mineralisation projects within Chile, primarily within Region IV, together with new opportunities. This is on the assumption that the proposed sale of Red Gum’s Peruvian concessions proceeds.

Strategic Alliance

As foreshadowed in Red Gum’s announcement of 30 October 2013, the Company has been in negotiations to form a strategic alliance with Rio Perdido Copper Ltd (“RPC”).

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RPC has strong Chilean based, management and operational teams and options with third parties to access significant exploration concessions and processing facilities. Red Gum remains in active negotiations with RPC and expects to finalise the exact form of the proposed alliance shortly.

Peruvian Asset Sale

As foreshadowed in the announcement made on 4 June 2013, the Company believes that it is better served by selling its Peruvian assets to enable it to focus on developing opportunities in Chile. Due diligence studies are currently underway with a reputable Latin American mining entity for its proposed acquisition of Red Gum’s Peruvian assets. The parties intend to negotiate the terms of, and sign, the final sale and purchase agreement by early February 2014 (subject to satisfaction of various conditions including due diligence).

Board Re-composition

With the above transactions pending the Company expects to appoint at least one new director to the Board in the near term to align with its future focus. At this time Mr Torey Marshall has taken the opportunity to resign as a director of Red Gum to allow him more time to pursue his other activities.

Executive Chairman Dr Ray Shaw expressed his most sincere appreciation for the enormous contributions Torey has made, not only in his nonexecutive director role but also as a founding director in the years leading up to the Company’s listing in January 2012. While Torey’s contributions at a board level will be missed, Torey has emphasised that he will continue to remain a major shareholder and strong advocate for the success of the Company.

Voluntary Suspension

Since the Company is not yet in a position to update the market, the Company intends to remain in suspension pending its ability to make a detailed announcement about its proposed Peruvian asset sale and/or strategic alliance which it expects to do by 20 January 2014.

ENDS

For Further information please contact: Ray Shaw, Executive Chairman

• 61 8 8223 1680