MCS SERVICES LIMITED — Capital/Financing Update 2013

May 5, 2013

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6[th] May 2013

ASX Market Announcements Australian Securities Exchange

Renounceable Rights Issue

Red Gum Resources Limited ( Company, ASX : RGX ) is pleased to announce that it is undertaking a fully underwritten renounceable rights issue of one fully paid ordinary share in the capital of the Company ( Share ) for every two Shares held by eligible shareholders at an issue price of $0.03 cents per Share, to raise up to approximately $1.125 million, together with one free attaching unquoted short dated option for every two Shares issued, exercisable at $0.07 per Option on or before 15 November 2013, and one free attaching quoted long dated option for every two Shares issued, exercisable at $0.10 and expiring on 1 March 2016 ( Options ) ( Rights Issue ).

Up to approximately 37.5 million Shares will be issued pursuant to the Rights Issue. Shares issued under the Rights Issue will rank equally with Shares which the Company currently has on issue. Shareholder approval is not required in relation to the issue of the Shares and Options pursuant to the Rights Issue.

The funds raised are to be applied principally for the Company’s exploration program at Majada, located in Region IV of Chile, including geophysics and an initial round of drilling, and payment of the costs of the issue.

The Rights Issue is fully underwritten, subject to certain terms and conditions, by DJ Carmichael Pty Ltd.

Full details of the Rights Issue, including details of the use of funds, underwriting arrangement and key risks of the Rights Issue, will be set out in a prospectus which is expected to be lodged with ASIC, released to the ASX, and available on the Company’s website at www.redgumresources.com, on 8 May 2013. The prospectus will also contain an entitlement and acceptance form as well as a short facility for Shareholders to apply for shares additional to their entitlement.

Outlined below is a timetable of relevant events and dates relating to the Rights Issue. These dates are indicative only and subject to ASX approval and/or subject to change.

to change.
Event	Date
Lodgement of Prospectus with ASIC	8 May 2013
Lodgement of Prospectus and Appendix 3B with ASX	8 May 2013

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Notice sent to Option holders who are unable to participate	8 May 2013
Notice sent to Shareholders containing Appendix 3B information	10 May 2013
Shares commence trading on an ex rights basis and rights tradingstarts	13 May 2013
Record Date for the Offer	17 May 2013
Prospectus and Entitlement and Acceptance Form despatchedto Shareholders	21 May 2013
Opening Date of Offer	21 May 2013
Rights trading ends	28 May 2013
Securities quoted on a deferred basis	29 May 2013
Closing Date of Offer*	4 June 2013
Advise ASX of any under subscriptions	6 June 2013
Expected date of despatch of holding statements for Securities	12 June 2013
Commencement of trading of Securities on ASX*	13 June 2013

• Subject to the Listing Rules, the Directors reserve the right to extend the Closing Date for the Offer by giving at least 6 Business Days notice to ASX prior to the closing date. As such the date the securities are expected to commence trading on ASX may vary.

An Appendix 3B in respect of the Rights Issue accompanies this announcement.

Yours sincerely

M E Lucas-Smith

Company Secretary, Red Gum Resources Limited

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