MCS SERVICES LIMITED — Capital/Financing Update 2013

Jun 3, 2013

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04 June 2013

Renewed Third Party Interest in Peruvian Copper Play

Red Gum Resources Limited (ASX : RGX, “the Company”) wishes to advise that, following recent representations, it continues to actively pursue third party involvement in progressing its exploration program for the Cerro Huancash project in central Peru.

Key Points

• Cerro Huancash directly adjoins Southern Peak Mining’s Ariana Norte Project.

• Southern Peak Mining has previously made public 19.74 Mt of Resources grading 1.65% Cu, 2.06% Zn, 31 g/t Ag, and 0.79 g/t Au. More recently some 43,000 metres of infill drilling have been completed at Ariana Norte by SPM.

• IP survey identified strong chargeability anomalies inferred to be sulphidic metal systems, extending from surface to +250 metres depth.

• IP Chargeable zones directly mapped over +850 metres of strike length and still open to north and south which supports interpretation of extensive sulphide system beneath the “Ariana Corridor”.

• 3rd party interpretation suggests a concealed porphyry stockwork, which provides additional significant upside if mineralised.

• Surface exploration indicates high zinc, lead, copper, silver and gold concentrations are present in skarn and marble outcrops; up to 19% Zinc, up to 17.8% Lead and up to 2,460 g/tonne Silver (with 12 samples reporting more than 100g/tonne of Silver).

This project is located adjacent to the Southern Peaks Mining Project which has recently been the subject of extensive exploration and development activities.

Cerro Huancash has never been drilled, however during 2012 the RGX conducted field geochemical sampling, a magnetic and IP survey the results of which confirmed surface mapping that the Ariana Corridor, the focus of Southern Peak’s activities, continues southwards and traverses the Cerro Huancash project area. Although at an early stage in discussions, RGX does have

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an open policy for progressing exploration (drilling) evaluation of this project and will pursue third party opportunities if attractive terms are presented.

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Figure 1 : Location of Cerro Huancash and significant projects and discoveries within Central Peru

ENDS

For Further information please contact:

Paul Pearson, Managing Director

• 61 8 8223 1680

Ray Shaw, Executive Chairman

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Figure 2 : General and detailed location of IP lines, Cerro Huancash. The area shown in light blue is Red Gum’s claim.

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Figure 3 : Example Chargeability Inversion Section, Line 62000

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Figure 4 : Example Chargeability Inversion Section, Line 54000

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About the Cerro Huancash Project

Red Gum’s 100% owned Cerro Huancash Project consists of an 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 base metal sulphides over 8 km of strike length. Red Gum’s 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 exploration companies.

Geochemical assays of surface samples collected by Red Gum from Cerro Huancash reported high grades of precious and base metals, confirming historical surface metal grades previously reported (ASX announcement dated 19 September 2012). In addition, the Company’s recently completed ground magnetic survey identified a number of strong magnetic anomalies potentially associated with economic skarn and replacement-style base/precious metal mineralisation.

In recent years, Southern Peaks Mining (a private company), has completed extensive drilling immediately north on their 'Ariana' property. Given that Southern Peaks has recently made known in the public domain that significant mineralised resources exist at their Ariana Norte and Ariana Sur prospects, Red Gum has placed a high priority on further exploration at Cerro Huancash.

Overview of Induced Polarisation Program

The Induced Polarisation survey was carried out by the Peruvian subsidiary of FGG, a leading Australian-based geophysical contractor with international operations and offices in five countries.

The IP pole-dipole survey consisted of 10.1 line kilometres of 100 metre ‘a’ dipole spacing, n=1 to 10, in 8 lines. GPS readings for each station were acquired using a hand-held GPS receiver. Fugro utilised an Iris Instruments ElectroPro IP receiver for data collection, and an Elliot, Huntec or Edimel transmitter with compatible motor generator for signal generation.

Inversion sections for each line have been generated using the Res2Dinv software, and these can be interpreted in a more direct way as geological sections.

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.

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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.