2 2022 ANNUAL REPORT Dear Shareholders I am pleased to report on what has been a year of great success and achievement for Red 5. Notwithstanding the unprecedented challenges of the market for labour, equipment and services in Western Australia, surging cost inflation and the spread of the COVID-19 pandemic, our team successfully delivered the $226 million King of the Hills (KOTH) gold mine on time and on budget. At the time of this report, commissioning of all key aspects of the new KOTH process plant had been completed with ramp-up of the 4.7Mtpa mill proceeding to plan. The efficient, professional and seamless execution of this project is a credit to the Red 5 team, led by our Managing Director Mark Williams, Chief Operating Officer Jason Greive and Project Manager Warren King – supported by our Tier-1 contracting and business partners MACA-Interquip and Macmahon Contracting. There is little doubt that, had we not taken the step of raising the equity component of $125 million in March 2020 with the onset of the global COVID-19 crisis – a move which allowed us to lock in orders for long-lead items and secure a fixed price EPC contract – the price tag for the KOTH project would have been significantly higher and the timeline to completion extended. This approach also resulted in a change to the normal sequence of events typically seen during the mine financing and development process – with the bulk of the equity component raised before the completion of the Final Feasibility Study in September 2020 and ahead of the competitive $175 million debt funding package that was secured in June 2021. I would like to take this opportunity to acknowledge and thank our financiers, BNP Paribas, HSBC and Macquarie, our key contracting and business partners and our shareholders and key investors for supporting our development strategy and helping us to achieve this outcome. Turning to our Western Australian gold operations in the Eastern Goldfields, gold production for FY-22 was 66,871 ounces. This reflected a strong performance by the Darlot gold mine and the Great Western open pit, notwithstanding the impacts of operator and skills shortages in the West Australian mining sector, high staff turnover and the impacts of COVID-19. In 2021, we announced a plan for the Darlot underground mine to transition to become a high-grade feed source for the new KOTH processing plant. In what represents a reversal of our original operating strategy in the Eastern Goldfields, this will facilitate a decrease in Darlot’s production cost base with ore being processed through the low-cost 4.7Mtpa CIL plant at KOTH. In line with this strategy, the Darlot processing plant was placed on care and maintenance in July 2022, with trucking of Darlot underground ore to KOTH commencing in the September Quarter 2022. This has also provided an opportunity to transition many Darlot employees across to KOTH, reducing the labour related risks for KOTH and at the same time de-risking the ramp-up of production at KOTH. Message to Shareholders FROM THE CHAIRMAN On the corporate front, we completed the divestment of our interests in the Siana Gold Project in the Philippines during the year, for a consideration of US$19 million in cash as well as a net smelter return on future gold production up to 619,000 ounces. This has completed Red 5’s transformation from a Philippinesfocused gold producer into an Australian gold producer with an exciting future of growth ahead of us. As we embark on this next chapter of our growth journey, I am pleased to say that Red 5 has continued to evolve and strengthen its Board and senior leadership team to ensure that we have the right skills-sets and experience to lead the Company into the future. The Company recognises the benefits of diversity in a competitive labour market and the importance of being able to attract, retain and motivate employees from the widest possible pool of available talent. Programmes are being developed to encourage diversity within employment in the Company and in the composition of its Board We recently welcomed Fiona Harris AM to the Board as a nonexecutive Director, bringing further valuable corporate and governance experience. Fiona has already made a strong contribution and we look forward to her input and wise counsel in the years ahead. We have also continued to recruit and build our site leadership team at KOTH with high-quality appointments during the year including Neil Valk as General Manager Operations, Craig Hatch as Operations Manager, Andrew McRae as Mining Manager, Oliver Keene as Mining Manager Underground and Patrick Duffy moving to the position of Chief Financial Officer post year end. Like other gold producers, Red 5 has not been immune to the broad-based sell-off in global equity, debt and commodity markets that unfolded in the final two months of the financial year and continued into the early part of FY-23. It is important to focus on the significant achievements of the year, the quality of our core asset at KOTH and the strong growth potential ahead of us – all of which will help to strengthen our business during this period of global volatility. With a substantial Ore Reserve of 2.4 million ounces, KOTH is a top-10 endowed Australian gold mine and is a high-quality, long-life and highly strategic asset. Together with the new low-cost processing facility, KOTH will be a cornerstone of our continued growth in the Australian gold sector. In conclusion, my sincere thanks must go to the entire Red 5 team, my fellow Board members, our senior management team, our contracting partners, our financiers and our shareholders. You have all played a vital role in our success, and I would like to thank you for your hard work and support. Kevin Dundo Chairman 31 August 2022
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