MCS SERVICES LIMITED — Capital/Financing Update 2014

Feb 2, 2014

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3 February 2014

CORPORATE UPDATE – CREDIT FACILITY

Red Gum Resources Limited is pleased to announce that it expects today to enter into a legally binding agreement for a credit facility with Rio Perdido Copper Limited ( RPC ), supported by Sanston Securities Australia Pty Ltd ( Sanston ) and Empire Securities Group Pty Ltd.

The credit facility is for $260,000 repayable after 180 days, at 10% pa interest. It is intended to provide the Company with short term working capital, and fund due diligence involving the proposed strategic alliance with RPC. The Company will also provide a negative pledge with respect to its Chilean concessions, under which the Company will be required to obtain RPC's prior written consent to any material sale, assignment, transfer, or other dealing with its assets in Chile, until repayment of the loan funds.

Executive Chairman of Red Gum Resources Limited, Dr Ray Shaw, said that the provision of this facility demonstrates RPC's commitment to the proposed strategic alliance with RGX. This is notwithstanding that it is taking longer than the parties originally contemplated to finalise the negotiations for that alliance, for commercial reasons outside the control of the parties.

It is intended that the strategic alliance with RPC will include a longer term funding solution. As previously disclosed, the Company intends to appoint a suitably qualified director, nominated by Sanston, to the Board. Sanston is strongly supportive of Red Gum’s proposed alliance with RPC.

Both the Company and RPC are focused on finalising the terms of the strategic alliance. In the interim, the Company remains concerned about confidentiality and the need to ensure that its securities are not traded in an uninformed market.

Accordingly, the Company intends to remain in suspension pending its ability to make a detailed announcement about the proposed strategic alliance, which it expects to do by 11 February 2014.

ENDS

For further information please contact: Dr Ray Shaw, Executive Chairman

• 61 8 8223 1680