MCS SERVICES LIMITED — Capital/Financing Update 2014

Apr 8, 2014

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9 April 2014

ASX: RGX

ASX Market Announcements Australian Securities Exchange Limited 20 Bridge Street Sydney NSW 2000

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 Monday 7 April 2014.

Of the maximum of 194,007,468 ordinary shares available under the Entitlement Offer, the total number subscribed by shareholders, after rounding up in accordance with the Prospectus dated 10 March 2014, was 155,205,975 (the “Entitlement Offer Shares”), equating to 80% take up of the entitlements on offer. The Company has notified the Underwriter of the resulting overall shortfall of 38,801,493 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;

• Working capital including extracting value from existing assets; and

• Identification of new corporate opportunities and the costs of the Entitlement Offer.

The issue date for the Entitlement Offer Shares, the Shortfall Shares and the New Options is expected to be 14 April 2014, in accordance with the Prospectus timetable.

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

“In these difficult times it is very gratifying that Red Gum has been able to raise the funds required to pursue its objectives. I thank our shareholders for their support, and particularly acknowledge the unswerving support of DJ Carmichael and their sub-underwriters. I wish to assure all shareholders that we are committed to preserving capital and rebuilding shareholder value. As previously advised, the Company has already instigated a number of cost cutting measures aimed at minimising cash outflows during this transitional period. With the funds raised under the Entitlement Offer, the Company is now well positioned to take advantage of new opportunities."

*** Ends***

For further information please contact:

Ray Shaw, Executive Chairman, +61 8 8223 1681

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