MCS SERVICES LIMITED — Capital/Financing Update 2012

Jul 12, 2012

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13 July 2012

Exploration Advances at Cerro Huancash, Peru

Red Gum Resources Limited (ASX: RGX, “Red Gum” or “the “Company”) is pleased to provide investors with an update on exploration activities at its Cerro Huancash Project in central Peru.

HIGHLIGHTS

• Surface access agreement previously signed with local community on 1[st] June, 2012;

• 90 line kilometre ground magnetic survey now 75% completedata acquisition expected to be finished by next week;

• Geological mapping and rock geochemical sampling well advanced and expected to finish early next week;

• Surface mineralisation observed and sampled as part of the ground program

Managing Director Paul Pearson commented , “Surface exploration at Cerro Huancash in central Peru is well advanced and we expect the results of the geophysical and geochemical surveys to be rolling in over the coming weeks. We are very pleased to report that our field team has located numerous mineralized showings along the main mineralized trend that runs along the axis of the property, attesting to the excellent mineral potential that we see there.

The Company will keep investors updated as results become available. Cerro Huancash is emerging as an exciting project within the prolific central Peru Polymetallic Belt, which is host to world-class porphyry, skarn and replacement deposits.”

ENDS

For Further information please contact:

Paul Pearson, Managing Director + 61 8 8223 1680 Victoria Thomas, Six Degrees Investor Relations + 61 0431 151 676

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About the Cerro Huancash Project

The Cerro Huancash Project consists of one exploration claim covering an area of 575.6 hectares. It is located approximately 45 km west of smelting facilities at La Oroya and 20 km north-northwest of Glencore’s Casapalca Zinc-Lead-Silver Mine. Cerro Huancash is readily accessible on a year round basis from the capital Lima, located 100 km to the southwest, via the Central Highway.

Previous exploration in the Cerro Huancash area revealed frequent occurrences of iron-stained gossans and mineralised float containing banded zinc sulphides over 8 km of strike length. The Cerro Huancash claim covers over 3 km of this highly prospective belt and given its close proximity to major mining operations at Morococha and Casapalca, this mineralised trend has been heavily targeted by companies.

Based on previous work done by Teck Cominco and Pasminco, the trend contains very strong zinc, copper, lead, silver and gold anomalies, predominantly along the faulted contact between Tertiary volcanics and Cretaceous lime stones of the Jumasha Formation (a unit which hosts large ore deposits in the region including the giant Antamina Copper-Zinc deposit with reported mineable reserves 745 million tonnes @1.06% Copper, 0.67% Zinc, 0.64% Lead, 11.7 g/t Silver and 0.026% Molybdenum).

As disclosed in the Independent Expert's Report included within the Company's IPO Prospectus issued in November 2011, historical surface geochemical sampling by Pasminco reported up to 15.8% Zinc, 9.8% Lead and 459 ppm Silver to the west of the central side of the Cerro Huancash claim. Only four samples were taken towards the southern end of and within the claim area and reported up to 2,779 ppm Zinc, 1,957 ppm Lead and 11 ppm Silver. Teck Cominco in 2001 reportedly drilled at least four diamond drill holes along the trend to the north of the concession, intersecting intervals of high grade ZincLead-Copper-Silver sulphides hosted within skarn–altered limestones.

More recently, Pan American Silver has reportedly conducted drilling of the mineralised trend immediately to the north of the Cerro Huancash claim. Red Gum is also aware that Pan American Silver recently completed a transaction with a private company, Southern Peaks Mining, involving the ‘Ariana’ tenements, which are adjacent to Cerro Huancash. The Company believes that this transaction has positive implications for the prospectivity of the area exclusively controlled by Red Gum.