WA Gold Strategy

In August 2017, Red 5 announced plans to embark on a major new growth strategy in the Eastern Goldfields region of Western Australia after entering into binding agreements to acquire the operating Darlot Gold Mine from South African-based gold producer Gold Fields Limited (JSE, NYSE: GFI) and the advanced King of the Hills Gold Project from West Australian mid-tier gold producer Saracen Mineral Holdings (ASX: SAR).

These acquisitions were successfully completed in early October 2017, providing Red 5 with an extensive strategic footprint in the world-class Leonora-Leinster mineral district of WA, with the ability to leverage this position by pursuing a regional consolidation strategy aimed at establishing the Darlot mill as a central processing hub.

The completion of these transactions has also seen both Gold Fields and Saracen join the Red 5 share register as major shareholders with relevant interests of 19.92% and 10.54% respectively, representing a strong endorsement of the Company’s growth strategy and management team.

In April 2018, Red 5 further expanded its asset portfolio in the Eastern Goldfields with the acquisition of the Ockerburry Hill exploration licence (EL36/865), located 20km west of Darlot. The tenement covers a highly prospective part of the Yandal Greenstone Belt, and includes the Ockerburry Fault System and other interpreted mineralised structures.

Further details regarding the Eastern Goldfields Consolidation Strategy is available from the Company’s ASX Announcements and investor presentations.