RMP.L Regulatory News (RMP)

17 December 2018

ALASKA UPDATE - KEY PERMITS GRANTED

The Board of Red Emperor Resources NL (ASX/AIM: RMP) ("RMP" or the "Company") is pleased to provide the following operations update with respect to the drilling of the Winx-1 exploration well, located on the Western Blocks, North Slope of Alaska.

Highlights

· All major permits (excluding Permit to Drill) granted for the drilling of the Winx-1 exploration well

· Permit to Drill on schedule for submission prior to year-end, with approval expected in January 2019

· Preparations for ice road construction underway, build start expected in January

· Spud of Winx-1 exploration well on schedule for February 2019

RMP is pleased to advise that 88 Energy Limited (ASX/AIM: 88E), in its capacity as consortium operator, has received approval for all major permits required for the drilling of the Winx-1 exploration well, including the Plan of Operations and key permits for both the ice road and ice pad. The other main permit, the Permit to Drill, is due for submission, as planned, prior to the end of the year and approval is expected in January 2019, prior to spud in February.

The Winx Prospect is a 3D seismic defined conventional oil prospect in the successful Nanushuk play fairway with a gross mean unrisked prospective resource of 400MMbbls (126MMbbls net to Red Emperor) and is adjacent to the Horseshoe 1/1A discovery well drilled by the Armstrong/Repsol JV in 2017. Refer to the ASX release of 25 June 2018 for further details.

Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Red Emperor's Managing Director, Greg Bandy, commented:

"Granting of these major permits ahead of schedule has brought us one significant step closer to drilling the much anticipated Winx-1 exploration well in Q1 2019. Thanks must go to the operations team at 88 Energy who have once again shown their ability to efficiently manage this JV and we look forward to updating the market with more detailed aspects of the operations over the coming weeks".

Figure 1 | Winx-1 exploration well, Western Blocks, Alaska North Slope, targeting extension of the Nanushuk play

See link: http://www.rns-pdf.londonstockexchange.com/rns/6053K_1-2018-12-16.pdf

The primary objective of the Winx-1 well is the Nanushuk Topset play, targeting the Nanushuk 4 and 5 sands. As can be seen in Figure 2 below, the Winx prospect has been identified using the Nanuq South 3D which covers the Horseshoe discovery plus a large swath of the "Western Blocks". Similar amplitude response is observed at the Winx prospect as that seen at Horseshoe.

Figure 2 | Winx-1 targeting multiple stacked prospects with strong amplitude support

See link: http://www.rns-pdf.londonstockexchange.com/rns/6053K_2-2018-12-16.pdf

For further information, please visit www.redemperorresources.com or contact:

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

About Red Emperor Resources NL

Red Emperor Resources NL is an Australian natural resource exploration company listed on both the Australian Securities Exchange (ASX: RMP) and the AIM Market (AIM: RMP). Red Emperor has oil and gas interests on the Alaska North Slope and in South East Asia.

Alaska

Red Emperor has executed Definitive Agreements with its consortium partners 88 Energy Limited and Otto Energy Limited that will see the Company participate in the drilling of a highly prospective Nanushuk oil trend exploration well on the Alaska North Slope in early 2019. The drill target is immediately adjacent to and a direct analogue of the Horseshoe-1/1A oil well drilled in 2017. Horseshoe is part of the billion-barrel plus Nanushuk oil play-fairway, one of the largest conventional oil fields discovered in the US in more than 30 years.

Technical work on the Western Blocks has identified a gross best estimate prospective resource volume of 400 MMbbls (126 MMbbls net to RMP), and a geological chance of success of 25%-35%. The estimated quantities of petroleum that may potentially be recovered by the application of future development projects relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

The relevant interests in the Western Blocks under the commercial agreements (subject to standard regulatory approval by the State of Alaska) are as follows:

* Government royalty of 16.67%

** Currently Operator of record on leases

*** "After back-in" interests reflect position if Great Bear exercise option to acquire further 10% working interest

Philippines

Red Emperor also holds an equity interest of 37.5% of Block SC55, which is located in the southwest Palawan Basin. SC55 covers an area of 9,880km2 and was awarded to Otto Energy Investments Ltd (formerly NorAsian Energy Ltd) in 2005.. It is a deep-water block in the middle of a proven regional oil and gas fairway that extends from the productive offshore Borneo region in the southwest to the offshore Philippine production assets northwest of Palawan.

Red Emperor participated in a US$25m exploration well (Hawkeye-1) within the block in 2015 and contributed in excess of AUD5m towards drilling costs. Over US$50m has been spent exploring SC55 to date and a number of drill-ready targets remain, including the "Cinco" gas prospect which has a best estimate prospective resource of 1.6tcf recoverable gas.

Prospective Resources Reporting Notes

The Company announced the prospective resources estimate for the Western Blocks in its announcement "Red Emperor to acquire interest in large oil prospect in prolific Alaska North Slope" on 25 June 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in that announcement, and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

(i) The prospective resources information in this document is effective as at 30 April 2018. (ii) The prospective resources information in this document has been estimated and is classified in accordance with SPE PRMS (Society of Petroleum Engineers Petroleum Resources Management System). (iii) The prospective resources information in this document is reported according to the Company's economic interest in each of the resources and net of royalties. (iv) The prospective resources information in this document has been estimated and prepared using the deterministic method. (v) The prospective resources information in this document has been estimated using a 6:1 BOE conversion ratio for gas to oil; 6:1 conversion ratio is based on an energy equivalency conversion method and does not represent value equivalency. (vi) The prospective resources information in this document has been estimated on the basis that products are sold on the spot market with delivery at the sales point on the production facilities (vii) Prospective resources are reported on a best estimate basis. (viii) For prospective resources, the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. (ix) In respect to the prospective resources referred to in this statement, Red Emperor's working interest in the four leases (ADL#s 391718, 391719, 319720 and 391721), totalling 22,711 acres all of which are located on the North Slope, Alaska, USA will be 31.5% (as set out in the table on page 2) upon completion of the transaction detailed in this ASX release. (x) The prospective resources have been estimated on the following basis: the best estimate prospective recoverable resource calculation was based on a consideration of offset well information and seismic expression; a combination of volumetric assessment and field analogues have been used to estimate the prospective resources; exploration drilling will be required to assess these resources. (xi) The chance of discovery is considered moderate as the prospective resources are near developed and undeveloped reserves and in a proven oil and gas producing province. There is a risk that exploration will not result in sufficient volumes of oil and/or gas for a commercial development. (xii) Prospective resources are un-risked and have not been adjusted for an associated chance of discovery and a chance of development.