MCS SERVICES LIMITED — Capital/Financing Update 2013

Jun 6, 2013

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7 June 2013

ASX: RGX

Closure of Entitlement Offer

Red Gum Resources Limited ("Red Gum" ASX: RGX) wishes to advise the result of its fully underwritten pro rata renounceable entitlement offer (the "Entitlement Offer"), which closed on Wednesday 5 June.

Of the 37,489,364 ordinary shares available under the Entitlement Offer, the total number subscribed by shareholders after rounding up in accordance with the Prospectus dated 9 May 2013, was 6,223,005 (the “Entitlement Offer Shares”), equating to 16.6% take up of the entitlements on offer. The Company has notified the Underwriter of the resulting overall shortfall of 31,266,365 ordinary shares again after rounding (the "Shortfall Shares") which are being taken up by the Underwriter to the Entitlement Offer, DJ Carmichael Pty Ltd.

As previously advised, the funds from the capital raising will be used for;

• Tenement acquisition costs, exploration and drilling costs; and

• General working capital and costs of the offer.

The dispatch date for the Entitlement Offer Shares, the Shortfall Shares and the New Options is expected to occur on 13 June 2013 in accordance with the Prospectus timetable.

Red Gum Resources Limited Executive Chairman, Dr. Raymond Shaw commented:

“In these difficult times it is very gratifying that Red Gum has been able to raise the funds necessary to enable it to pursue its exploration and operational objectives. I thank our shareholders for their support and particularly the unswerving support of DJ Carmichaels and their sub-underwriters. I welcome new shareholders to the Company and wish to assure all shareholders that we are committed to meeting your expectations, notwithstanding this period of challenging market conditions."

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For further information please contact:

Ray Shaw, Executive Chairman, +61 8 8223 1681

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