MCS SERVICES LIMITED — Regulatory Filings 2012

Feb 2, 2012

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3 February 2012

New Geochemical Sampling Highlights Gold and Silver Potential of La Negra

Red Gum Resources Limited (ASX: RGX, “Red Gum” or “the “Company”) is pleased to announce that recently completed surface geochemical sampling has confirmed positive gold and silver values from the hydrothermal breccias present within the Company’s La Negra Project in northern Chile.

HIGHLIGHTS

• 600 x 200 metre gold-silver soil geochemistry anomaly defined in the north of the multi-element target area

• Strong gold and silver anomalies in adjacent outcrops of hydrothermal breccias

• Surface rock chip values up to 4.39 g/t gold and 105 g/t silver

• Continuous channel sampling yielded up to 28 metres @ 0.42 g/t gold and 8.5 g/t silver (including 8 metres @ 0.97 g/t gold and 17.1 g/t silver)

• Drilling program currently underway to test the breccias at depth where the majority of a multi element metal system (Cu-Au-Ag-Pb-Zn) could be present

Managing Director Paul Pearson commented , “The strong gold and silver indications received in assay results this week will play a significant role in the economic potential of La Negra. The strength and coherency of the precious metals surface geochemistry anomaly over the northern sector of the hydrothermal breccias is impressive and we are hopeful that encouraging gold and silver values will be intersected at depth during the current drilling program. The Company will continue to update shareholders as the campaign progresses.”

Current Work Program

Red Gum has recently confirmed strongly elevated gold and silver values in outcrops of the breccia, in two separate sampling exercises (see Maps 1 and 2 below):

As announced in the ASX release of 27[th] January, Red Gum had engaged Promet101 Consulting to carry out a metallurgical evaluation program.

As part of this study ten samples have been taken along the outcrop of the main hydrothermal breccia, four of which recorded values in excess of 0.10 g/t gold ( up to 4.39 g/t gold ) . Strong lead, zinc and copper values were also recorded in some samples, however Promet101 did not assay for silver in this round of samples.

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Assay results are tabulated below and gold values are plotted in Map 2:

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The Company has carried out continuous channel samples across the northern section of the breccia, averaging four metres in length. Results of these samples have been analysed individually and composited intervals along separate sections are tabulated below and located in Map 2:

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The potential quantity and grade of the exploration target is conceptual in nature. To date there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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Background

Previous surface geochemistry undertaken at La Negra by former explorers defined a strong northerly trending (“principal”) zinc-lead anomaly, 1200 metre long x 400 metre wide, broadly corresponding with outcropping tourmalinebearing hydrothermal breccias that hosts old workings at its northern end in the vicinity of Line 2000. Strong gold and silver values are concentrated in the soils of the northern half of this larger soil anomaly.

Red Gum’s rock sampling results outlined above, continue to support the results of outcrop geochemical sampling previously completed by New World Resources. That historical work also identified consistently elevated surface gold and silver values within the breccia, including values up to 3.3 g/t gold and 50.3 g/t silver.

Results to date indicate that gold and silver appear to be associated with limonitic zones within the breccias, most likely derived from the oxidation of sulphides including pyrite. Significantly, the best gold and silver surface values are concentrated along the most topographically elevated segment of the breccias.

Through the interpretation of existing results, it is the Company’s belief that the breccia system is the higher level manifestation of an intrusion-related polymetallic system, potentially driven by a copper porphyry system at depth (see press release dated 20th January 2012). Typically these intrusion-related systems display vertical zonation from copper/gold at depth through to central zinc, lead with gold-silver and high grade silver/gold in the uppermost portions. Vertical and lateral metal zonation is undoubtedly important at La Negra, with the strong gold and silver values identified possibly indicating the currently exposed mineralisation represents the higher levels of the system. Therefore Red Gum believes that the majority of the metal system may still be preserved at depth.

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Photograph of siliceous tourmaline hydrothermal breccias at Red Gum Channel Sample Site 4 from Line 1800, which reported 0.69 grams/tonne gold and 13.1 grams/tonne silver.

About the La Negra Project

The La Negra Lead-Zinc-Silver (Copper-Gold) Project is located within Region IV in Chile, approximately 360 kilometres NNE of the capital, Santiago and approximately 10 kilometres ENE of the mining town of Combarbalá (Refer attached figure). Red Gum has an option to acquire 100% in the property, which comprises 11 separate mining and exploration concessions totalling approximately 2,600 hectares.

The La Negra property has a long history, dating back to colonial times, of sourcing high grade lead-zinc-silver material. Modern day geochemical sampling verified the surface and subsurface continuity of high metal grades (zinc, lead, silver, copper, gold) over significant widths within the old workings.

About Red Gum’s Analytical and QA/QC Procedures

Strict sample integrity is maintained throughout the geochemical sampling program. The bagged samples are transported to Australian Laboratory Services (“ALS)” in the city of La Serena in northern Chile, where samples are prepared and then sent to the ALS analytical facility in Santiago de Chile. All samples are prepared by drying first, then crushed to 70% -10 mesh (<2mm) size; riffle split to obtain an approximately 250 gram subsample. The subsample is further crushed to 85% -200 mesh (<75 microns) to obtain a 100 gram split ready for analysis. All samples are routinely assayed for gold by conventional fire-assay methods at the ALS facility and for 33 additional elements (including silver, copper, lead, zinc) using a four acid digestion followed by Inductively Coupled Plasma-Atomic Emission Spectroscopy ("ICP-AES") analysis.

Red Gum follows a rigorous ongoing QC/QA program, including routine insertion of standards and blanks as well as assay of duplicate samples at other independent laboratories.

Competent Persons Statement

The information in this document that relates to Exploration Targets 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.

Dr Pearson has sufficient experience that 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.

*ENDS***

For Further information please contact:

Paul Pearson, Managing Director + 61 8 8212 5724 Victoria Thomas, Six Degrees Investor Relations + 61 3 9674 0347

• 61 8 8212 5724