VAULT MINERALS LIMITED — Capital/Financing Update 2003

Nov 5, 2003

RED 5 UNVEILS MAJOR NEW COPPER-GOLD TARGETS FOLLOWING SIANA JV MOVES JOINT VENTURE DISCUSSIONS CONTINUING WITH ANGLO AMERICAN

Red 5 Limited (ASX: RED) is moving to expedite a drilling program targeting two outstanding copper-gold and one major copper target delineated at its Siana Gold Project in the Philippines following a regional exploration program carried out by Anglo American Corporation.

The Perth-based gold explorer said it was in ongoing discussions with Anglo regarding a possible joint venture over a portion of the Siana property located adjacent to Anglo's multi-million ounce Boyongan Copper-Gold deposit. The discussions follow completion of a 3-month geochemical and geophysical program carried out by Anglo over this area.

This program, and subsequent detailed soil sampling, resulted in the delineation of two drill-ready copper-gold targets up to 1.5 kilometres in diameter and one copper zone 2 kilometres in diameter. Follow-up rock chip assays to 6.1 g/t gold and 2.1% copper in stream float and 0.74 g/t gold and 1,740ppm copper in outcrop, have significantly enhanced the potential of these targets.

Red 5's Managing Director, Mr Greg Edwards, said the results indicated that the area, located in the southern portion of the Siana Project, was highly prospective for major porphyry copper-gold deposits and associated epithermal mineralisation.

"These are world-class targets and the basis for our discussions with Anglo has been that such mineralisation has the potential to add significantly to its major copper-gold discovery at Boyongan and, more recently, at Bayugo," Mr Edwards said.

"The program was undertaken under the terms of a Confidentiality Agreement that until recently allowed for Anglo to have exclusive rights to negotiate with Red 5," he added. A request by Anglo to extend the exclusivity period has not been granted by Red 5.

Mr Edwards said the Company was continuing discussions with Anglo with a view to expediting exploration of these exciting new targets, and may decide to internally fund the initial drilling program to test the first two copper-gold targets in the next few months.

"We are currently evaluating our priorities and available resources to integrate these targets into our existing drilling program at Siana, as exploration at this exciting project gathers pace," he added.

The proposed joint venture area does not include the existing 825,000-ounce Siana open pit resource, new discoveries made by Red 5 earlier this year at Crackerjack and Fritz Weber, or 6 new virgin areas recently discovered by a preliminary stream sediment survey.

Red 5 is continuing exploration on these areas following its success earlier this year with deep drilling beneath the existing open pit resource, which produced a wide intersection of 128 metres grading up to 11.5 $g/t$ gold over shorter intervals.

BACKGROUND INFORMATION

Red 5 has been exploring the Siana Gold Project since December 2002, when it was granted a key Mineral Production Sharing Agreement (MPSA) by the Philippine Department of Environment and Natural Resources after securing rights to the rich project last year. The Company recently confirmed its 80 percent beneficial interest in the project and announced an 80 percent beneficial interest in the nearby Mapawa Gold Project joint venture, located 18 kilometres to the north.

The Siana project is located in the established gold mining region of Surigao del Norte, in an area richly endowed with many epithermal gold systems and several known porphyry copper-gold deposits.

Surigao City, located 40 kilometres north of Siana, is a well-serviced port city with a predominantly Christian population of 120,000 and the local infrastructure (roads, power etc) that runs past the project area is highly developed.

The Siana mine has been a high-grade producer in the past, yielding some 4.9 million tonnes in total at an average grade of 6.3 g/t, including 1.6 million tonnes at 11.8 g/t from narrow vein underground development. Open pit production in the 1980s yielded 3.3 million tonnes grading 3.6 $g/t$ prior to its premature closure following flooding after exceptional typhoon rains.

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Released by: Jan Hope / Nicholas Read Jan Hope & Partners Telephone: (+61-8) 9388-1474 On behalf of: Mr Greg Edwards Managing Director Red 5 Limited Telephone: (+61-8) 9322-4455 www.red5limited.com