REDCASTLE RESOURCES LIMITED — AGM Information 2004

Nov 25, 2004

CHAIRMAN'S ADDRESS TO SHAREHOLDERS

Good morning. I'd like to thank all of you for taking the time to attend our Annual General Meeting today.

Once again, I am pleased to report another solid operating year for the Company.

This was the first full financial year for us as a publicly listed company and there were certainly new challenges and opportunities.

In general, the Company continued with the strategic approach that has served us well over the past three years. That is, we rely on our experience and industry knowledge to identify prime development projects, for which we devise attractive funding structures that will benefit all participants. As stated in the Annual Report, the Australian property market has softened for this past financial year and the trend will likely prevail over the new year. Nonetheless, we are fairly confident that good quality properties in desirable locations will remain in demand over the long run. To further diversify our exposure, the Company has also started pursuing more specialised projects, which will be developed in multiple stages over a longer timeframe. We believe that this strategy of extending the development lead time would safeguard the Company from short-term market volatility.

From a financial perspective, the Company has performed well in its business activities, with a 45.5% improvement in net profit after tax to A$5.1 million. Contributing to the profit increase were the full repayment of two loan facilities in North Sydney and West Dapto.

As most of you will know, one of our largest mezzanine debt funding transactions is the redevelopment project at the former Royal Alexandra Children's Hospital in Camperdown, Sydney. The project has generated a good profit for the Company but a minor delay in construction meant that the facility had to be extended to December 2004. In any event, a substantial proportion of the facility had already been repaid, hence the Company is well protected. We remain confident in the project's merits and look forward to settlement in the coming months. In addition to the repayment of the Camperdown project, the Company also expects incoming funds from the repayment of the short term facility granted for the acquisition of the Nardell Coal Mine in the Hunter Valley. The Company participated in this funding proposal as part of its foray into large scaled development projects, similar to the Bellambi project mentioned in our report last year. Both projects represented a good introduction to the new market niche and the experience gained from these transactions will be of significant benefit to the Company in the long run.

Since our Company's inception, the focus has always been on the quality of projects, rather than sheer volume. Looking at our completed projects and their attractive returns, I can safely say that the Company has stayed true to its mission of maintaining a diversified portfolio of high quality projects, and in turn fulfilling our promise to shareholders. Shareholders have noted that no dividends were paid for this financial year. Given the softening property market, the Company's directors have made this decision to ensure that there are sufficient resources for our continued expansion. Maintaining a stronger financial position would certainly allow us greater flexibility in our business activities.

Looking ahead, we will continue to source profitable projects that are consistent with our lending parameters. To ensure the Company's financial well-being, we will continue to maintain the strictest corporate governance and treasury policies. Shareholders can be assured that we would only participate in quality projects that can generate the highest rate of return with minimum exposure.

To conclude this address, I would like to extend my sincerest thank-you to our staff, all of whom have worked tirelessly to deliver these encouraging results. I wish to thank our business partners and shareholders for your loyal support. We strive to build this Company into one of the most prominent names in the financial sector and to share our rewards with our shareholders.

I look forward to the opportunity of standing in front of you again next year to present even better results. Thank you.