VAULT MINERALS LIMITED — AGM Information 2003

Nov 26, 2003

ASX

SHAREHOLDERS REPORT

Inquiries regarding this report and company business may be directed to:

Greg Edwards Managing Director $\alpha$ r Lance Govev Exploration Director

Level 1 43 Ventnor Avenue West Perth 6005 Western Australia Tel: (+61) 8 9322 4455 Fax: (+61) 8 9481 5950

Web: www.red5limited.com

Investor Inquiries: info@red5limited.com

Red 5 Limited is a publicly listed company on the ASX-ticker symbol RED.

The Board strategy is to focus on the development of Siana and divest remaining non-core assets.

CHAIRMAN'S ADDRESS 2003 Annual General Meeting

The Company performance in financial year 2003 can, without qualification, be described as outstanding, particularly with respect to the Siana gold project.

Siana

A Mineral Production Sharing Agreement. which allows the Company to conduct exploration, development and mining activities was granted in December 2002, just ten months after our initial discussions with landowners, stakeholders and governments. Our first drill programme commenced immediately and with early success.

Although no exploration had been conducted in the preceding twelve years, the rich mining history of the region allowed the Company to rapidly and efficiently establish local exploration field crews

Our exploration programme was focused on evaluating and extending the Siana open pit resource and on reconnaissance activity to determine target priorities on the balance of the tenements.

Two deep holes below the open pit confirmed an extension of the mineralised system to at least 130 metres below the limit of the Main Zone reported resource, and the first intersection in the predicted East Zone.

Both will be drill tested in the upcoming sixteen hole (6,000 metre) programme.

Our reconnaissance activity has been equally rewarding. Discoveries at Crackeriack. Fritz Weber and Alegria have extended the prospective Boyongan Corridor to the north and south of Siana over a strike of nine kms.

Portfolio Rationalisation

An important element of this vear's strategy was a rationalisation of the tenement portfolio. With no income earning assets, the Board deemed important the desirability to focus on fewer assets, in particular eliminating those tenements with limited potential or farming-out the better tenements where practical.

Accordinalv. North Bullfinch, Western Arm and Roger River were either surrendered or the Company withdrew from the joint venture. Ajana and Black Shale are in the process of being farmed out or relinguished.

The major divestment, as the financial vear came to a close, was the Indee and Telfer assets for \$0.5 million in cash and 9.1 million shares in listed Range River Gold NL. The 15 percent shareholding is currently valued at \$3.6 million.

Consequent on the transaction, was the effective transfer of \$0.84 million of earn-in, rates and rental commitments to the new owner.

Overall, the transaction value to Red 5 currently stands at \$4.9 million.

More recently, the Ravensthorpe tenements were divested for a cash consideration of \$350,000.

Capital Raisings

During the 2003 financial year, shareholders participated in an inaugural Share Purchase Plan contributing \$313,000. Placements raised a further \$1.38 million. Funds raised were directed to our exploration programmes.

Post year end, two placements were completed in parallel with the increasing exploration success and the increasing number of quality targets identified at Siana. In aggregate, a further \$3.44 million was raised, the maiority in a rare underwritten issue.

As at today's date, our cash position is \$4.5 million, supplemented in recent days by the Ravensthorpe asset sale and the exercise of unlisted options.

This will allow us to mount a serious. uninterrupted exploration programme focused on Siana for the next fifteen months

Share Register

Our share register growth reflected success in the business. Shareholder numbers financial vear end to financial year end were 25 per cent higher.

Importantly, the increase was dominated by holdings of greater than 100,000 shares. I say importantly. because this reduces the friction costs of being a listed entity – for example. share register costs and annual report costs are the same whether you hold one share or one million shares

Since the release of the Annual Report, and completion of our rights issue, shareholder numbers have risen a further 25 percent to 1.185.

Of particular note, is Scudder Gold and Precious Metals, an international resources fund, managed by Deutsche Asset Management -based in Sydney. They currently hold 5.4 per cent of Red 5 issued capital.

Post financial year end

The pace of progress, post financial vear-end. is unabated.

Last month. Red 5 became entitled to take up an 80 per cent interest in Siana, considerably earlier than originally envisaged. The Siana deep drill results, the Bovongan Corridor extensions, and the raising of equity to fully fund a major diamond drill/project evaluation were clearly persuasive elements in discussions with our partner.

Subsequently, we increased our land position in the prospective Surigao Valley by 36 per cent, through the new Mapawa Joint Venture. Located approximately 19 kms north of Siana, this area is equally highly mineralised with considerable potential for gold. silver and possibly copper resources.

It is relatively under-explored by modern exploration techniques.

Shareholders should be aware of the intense discussions between our executive directors and landowners to achieve this result.

Numerous discussions were held to rationalise and in some cases eliminate rovalties, prior to signing joint venture documentation.

Anglo American

The rich mineral endowment of the region has also been clearly demonstrated by the Anglo American discoveries at Boyongan and Bayugo.

As reported earlier this month, Anglo, under a Confidentiality Agreement conducted exploration over a small portion of the Siana JV ground.

Their results were outstanding, with two new drill ready copper-gold targets and one copper zone identified. Follow-up samples in stream float, up to 6.1 a/t gold and 2.1% copper, and in outcrop. a 0.74g/t gold and 1,740 ppm copper, clearly demonstrate the porphyry copper-gold potential.

Potential joint venture discussions with Anglo continue in earnest with the objective of achieving the best possible outcome for Red 5 shareholders

The desire of Anglo to pursue further exploration is well illustrated by the massive drill pad construction on the southern most target.

Current Drill Programme

In the next three months up to four drill rigs will be operating in the Siana mine area conducting resource infill and extension drilling, and in the mine environs, exploration drilling on a number of targets.

Two rigs are currently operating. One rig is drilling the first hole into the Mango IP anomaly. It is then scheduled to test the Dayano IP anomaly followed by the new Cawilan target. The second rig has just commenced a hole beneath the Siana open pit, with a further five to eight out of the sixteen hole programme expected to be completed in the next three months

Concurrent activities include follow-up stream sediment sampling, particularly up-stream, in the area of the six recent discoveries. This will be complemented by ground reconnaissance and rock chip and soil sampling.

Board Expansion

I should also take this opportunity to signal a modest expansion of the Board

Colin Jackson, has accepted a position as non-executive director. and joins the Board post this meeting.

He has assisted the Company in many aspects of its business. in particular, continuous disclosure reporting and contact with the financial community over the last eighteen months.

As Red 5 moves closer to project evaluation, and the market value rises, Colin's background in mineral process feasibility evaluation and design, and his rapport with the larger local and overseas investment institutions will complement Board skills.

In conclusion, an excellent 2003 and a promising start to 2004.

I thank shareholders for their support and look forward to reporting progress on our many exploration targets.

Nicholas Smith

Chairman 27 November 2003

CORPORATE DIRECTORY

Board of Directors

Nicholas J Smith (Chairman) Gregory C Edwards (Managing Director) Allen L Govey (Exploration Director)

Company Secretary

Frank J Campagna

Issued Capital As at 27 November 2003

Ordinary shares 187.355.976 Options (31.01.04) 54,419,620 Options (various) 14,870.000

Registered Office

Level 1 43 Ventnor Avenue West Perth Western Australia 6005

Telephone: (61 8) 9322 4455 Facsimile: (618) 9481 5950 F-mail: info@red5limited.com www.red5limited.com Web-site:

Share Registry

Enquiries relating to shareholding and notification of change of address should be directed to:

Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153

Telephone: (61 8) 9315 0933 Facsimile: (61 8) 9315 2233 E-mail: registrar@securitytransfer.com.au