RMP.L Regulatory News (RMP)

22 April 2015 Red Emperor Resources NL QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 31 MARCH 2015 AND APPENDIX 5B The Board of Red Emperor Resources NL ("Red Emperor" or the "Company") ispleased to provide the following commentary and Appendix 5B for the periodending 31 March 2015. Philippines (SC55) On 2 March 2015 Red Emperor signed a Farmin Agreement with Otto EnergyPhilippines Inc. (a wholly owned subsidiary of Otto Energy Ltd (ASX: OEL "Otto") to farm in to the highly prospective offshore Philippines Block, ServiceContract 55 ("SC55"). SC55 is located in the southwest Palawan Basin, covers an area of 9,880km2 andwas awarded to Otto Energy Investments Ltd (formerly NorAsian Energy Ltd) in2005. It is a deep-water block in the middle of a proven regional oil and gasfairway that extends from the productive offshore Borneo region in thesouthwest to the offshore Philippine production assets northwest of Palawan. SC55 contains a number of distinct exploration play types including the Hawkeyeturbidite clastic prospect and the material Cinco carbonate gas/condensateprospect, as well as a number of follow-up leads. The permit provides amaterial opportunity and a series of possible drill targets in an explorationcampaign that will be undertaken during the remaining term of the servicecontract. The Hawkeye prospect was identified on 2D seismic originally acquired by Ottoin 2007 and further defined with the 600km2 3D seismic acquisition in late2009. Hawkeye contains a 'Best Estimate' STOIIP of ~480 MMbbls of oil and a'Best Estimate' Gross Prospective Resource of 112 MMbbls (RMP net 14.3 MMbbls)of oil according to the Operator, Otto Energy. The Cinco gas/carbonate prospect was identified as part of a 1,800km2 3Dseismic program undertaken by BHPB in 2010 that focused on a trend of carbonateprospects and leads, with Cinco being analogous to the Malampaya producing gas/condensate field in the Philippines. Cinco contains a 'Best Estimate' GIIP of2.4 Tcf with a 'Best Estimate' Gross Prospective Resource of 1.6 Tcf of gas and57 MMbbls of associated condensate (RMP net 208 Bcf) and 7.3 MMbbls). The NetProspective Resources exclude Government Share of profit oil. Hawkeye Prospect The Hawkeye prospect is interpreted to be a large, relatively undeformedMiocene aged toe thrust, analogous to offset discoveries in Malaysia. TheMiocene turbidite reservoir is likely to be tested by a well sitting inapproximately 1,690m of water. The prospect was first identified on 2D seismicdata, which was later followed up by a 3D seismic acquisition in early 2010.The 3D data has further matured the prospect to drillable status. Hawkeye is awell imaged, toe thrust structure of more than 500m vertical relief, 50km2 areawith attendant Direct Hydrocarbon Indicators. Multiple flat spots are evidentwith an associated oil column consistent with detailed rock property analysis. The Operator's estimate of the Hawkeye Prospective Resources is shown below: (MMbbls) STOIIP Gross Recoverable Net RMP Low Estimate 87 19 2.4 Best Estimate 484 112 14.3 High Estimate 1,539 401 51.1 *Source: Otto Energy The Operator, Otto Energy, is anticipating a spud date in early Q3 2015 for theHawkeye-1 well. The exploration well has been designed to reach the top oftarget reservoir approximately 1,000m below the sea bed floor and intersect thegas oil contact to prove or otherwise the presence of the oil leg. Otto has entered into a Letter of Intent with Maersk to secure the MaerskVenturer ultra-deepwater drillship to drill the Hawkeye-1 exploration well. Asone of the most modern and advanced drillships in the world, this rig has therequired capability to drill the Hawkeye-1 exploration well. All required longlead items have now been procured and stored in yards in Labuan, Malaysia.Drilling of the Hawkeye-1 exploration well is expected to commence in early Q32015. Please refer to ASX Announcement on 2 March 2015 for more details on thetransaction. Puntland The Company's Joint Venture (JV) continues to significantly reduce its presencein Bosaso, Puntland and will refrain from any operational activity andassociated expenditures pending a resolution of the political situation betweenthe Regional Government of Puntland and the Federal Government of Somaliaregarding the legitimacy of oil concession contracts. Given the considerable efforts taken by the JV to date in Puntland (Somalia),the JV has requested a two year extension to the current exploration periodfrom the Government of Puntland to allow time for these political challenges tobe resolved. Red Emperor is optimistic that agreements can be reached to enable the JV toremain in control of its two PSCs that provide both exposure and leverage topotentially multiple billion barrels of oil. Georgia Despite Red Emperor again being advised during the quarter by the operator,Strait Oil & Gas ("Strait"), that an agreed drilling program and a validdrilling licence was in place with the Georgian Oil and Gas Ministry, drillingactivity did not commence in Block VIb. Whilst a drill rig and all requiredservices remain available, Strait's major shareholder, Range Resources Limited("Range"), who are obligated to fund the drilling program and the costs to theend of Phase III of the Production Sharing Contract ("PSC") on behalf of theJoint Venture, has been focused on the disposal of the asset as opposed tocontinued further investment. Red Emperor understands that representatives of Strait will be negotiating toextend the PSC that covers Block VIb, which was due to expire in March 2015,however there is no certainty that such an outcome can or will be achieved.While Red Emperor is hopeful that it will, in the meantime the Companycontinues to stand by its position with respect to Range's obligations to drilla second well and cover the costs of Phase III on Block VIb, which formed partof the "drilling program" contemplated in its 2011 Subscription Agreement (the"Agreement"). Red Emperor has met its financial commitment with respect to theAgreement and is disappointed that drilling activity is yet to commence. Thecompany will continue to protect its interests with respect to both blocks andthe value they represent. Corporate During the quarter the Company placed 66,558,555 shares at A$0.032 per share (£0.016) to raise approximately A$2.13m (£1.06m) from sophisticated investorsboth in Australia and the UK. The funds raised from the placement will be usedfor purposes associated with the Company's share of upcoming drilling costs inthe Philippines. Red Emperor sold its direct equity investment in Highfield Resources Limited(ASX: HFR) during the quarter in accordance with its treasury managementstrategy. The shares were sold at price of 80c per share, which netted theCompany A$798,279 after brokerage, a 66% return on its A$480,000 investment. Appendix 5B Summary - Consolidated statement of cash flows Cash flows related to operating Current quarter Year to date (6activities months) $A'000 $A'000 1.1 Receipts from product sales and - - related debtors 1.2 Payments for (a) exploration & (131) (346) evaluation - - (b) development - - (c) production (294) (816) (d) administration 1.3 Dividends received - - 1.4 Interest and other items of a 77 260 similar nature received 1.5 Interest and other costs of finance - - paid 1.6 Income taxes paid - - 1.7 Other (provide details if material) - - Net Operating Cash Flows (348) (902) Cash flows related to investing activities 1.8 Payment for purchases of: (a) - - prospects - (182) (b) equity investments - (59) (c) investment in associate 1.9 Proceeds from sale of: (a) - - prospects 798 798 (b) equity investments - - (c) other fixed assets 1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - - Net investing cash flows 798 557 1.13 Total operating and investing cash 450 (345) flows (carried forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, 2,123 2,123 options, etc. 1.15 Proceeds from sale of forfeited - - shares 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other (provide details if material) (137) (137) Net financing cash flows 1,986 1,986 Net increase (decrease) in cash 2,436 1,641 held 1.20 Cash at beginning of quarter/year 9,526 10,321 to date 1.21 Exchange rate adjustments to item - - 1.20 1.22 Cash at end of quarter 11,962 11,962 For further information please visit www.redemperorresources.com or contact: Red Emperor Greg Bandy +61 8 9212 0102 Grant Thornton UK LLP Philip Secrett/Jen Clarke/Jamie Barklem +44 20 7383 5100 Brandon Hill Capital Limited

Jonathan Evans +44 20 3463 5010