Red5 Annual Report 2022

8 2022 ANNUAL REPORT CORPORATE Divestment of Siana gold project In September 2021, Red 5 completed the divestment of its interests in Philippine affiliated company Greenstone Resources Corporation (GRC), which holds both the Siana and Mapawa gold projects in the Philippines, to TVI Resource Development (Phils.) Inc. (TVIRD). TVIRD is the Philippine affiliate of the Canadian-listed TVI Pacific Inc. TVIRD has two operating mines and a number of other development projects in the Philippines with interests in gold, nickel and copper. Consideration for the transaction comprised US$19m cash, which was received during the reporting period. In addition, the sale consideration includes an entitlement to a net smelter return royalty of 3.25% for up to 619,000 ounces of gold, which will become payable from first gold from the restart of the Siana processing plant. Based on an assumed gold price of US$1,800/oz, this royalty has an estimated future face value of US$36m. The divestment of its interests in the Siana and Mapawa projects is consistent with Red 5’s strategy to focus on its KOTH and Darlot gold mines in Western Australia. Financial The Group recorded sales revenue of $165.0 million for the 2022 financial year. Net cash outflows from operating activities was $2.4 million with $55.6 million in cash and bullion at year-end, of which $15.7 million was allocated to reserve accounts and bank guarantees for the KOTH project. For the year ended 30 June 2022, the Company recorded a gross loss from operations of $31.1 million and a net loss after income tax of $28.6 million. SUMMARY AND OUTLOOK With production now ramping up at the new, long-life KOTH gold mine, the coming financial year is set to be a defining period for Red 5, with the Company expected to join the ranks of mid-tier Australian gold producers during FY-23. The new modern 4.7Mtpa mill at KOTH provides a platform for Red 5’s next growth chapter, with the capacity to process ore from Darlot to deliver a reduction in group operating costs. While much of the focus over the past year has been on our activities at KOTH, we have also laid the foundations for new growth and development at Darlot, with a high-rate development strategy initiated in early FY-22 set to unlock new mining areas in the Middle Walters South, Pedersen and Burswood areas of the Darlot underground in FY-23. In parallel with our mining and processing operations, Red 5 will also continue its exploration and resource development activities, with targeted drilling programs planned across key targets over the coming year. All these activities will be conducted with a commitment to the Company’s environment, social and governance principles. Further information regarding the Company’s ESG activities is contained in the following section of this report. With these foundations, the coming year will be a busy and exciting growth period for Red 5. The strength of this position is thanks to the outstanding hard work and commitment of the Red 5 team of staff and contractors, who have delivered an exceptional effort over the past year. I would also like to thank our shareholders for their continued support. Mark Williams Managing Director 31 August 2022 MANAGING DIRECTOR’S Report (cont.)

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