MCS SERVICES LIMITED — Capital/Financing Update 2014

Jan 27, 2014

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28 January 2014

CORPORATE UPDATE

Red Gum Resources Limited is pleased to announce that it is currently negotiating a funding agreement with Sanston Securities Australia Pty Ltd ( Sanston ).

It is intended that this funding agreement will provide working capital and fund due diligence involving the proposed strategic alliance with Rio Perdido Copper Limited, which the Company anticipates will be finalised shortly.

Executive Chairman of Red Gum Resources Limited Dr Ray Shaw, noted that while the negotiations are reasonably advanced, the Company has not yet finalised the terms of the funding agreement with Sanston. Dr Shaw said that the Company expects that a finalised agreement will provide not only funding during a critical phase of the Company’s operations, but will also underpin progress in our current negotiations with Rio Perdido Copper Limited, as we now look to realise the full benefits of Red Gum’s Chilean focused copper-gold growth platform.

Once the funding agreement is completed 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 Rio Perdido Copper Limited.

It is anticipated that the funding agreement with Sanston will be completed by the end of this current week. 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 and funding transaction, which it expects to do by 3 February 2014.

ENDS

For further information please contact:

Dr Ray Shaw, Executive Chairman

• 61 8 8223 1680