RMP.L Regulatory News (RMP)

13 March 2013 Red Emperor Resources NL ("Red Emperor" or "the Company") Half Year Report for the Period Ending 31 December 2012

Please see below extracts from the Company's Half Year Report for the periodended 31 December 2012, being the:

Directors' ReportConsolidated Statement of Comprehensive IncomeConsolidated Statement of Financial PostionConsolidated Statement of Cashflows

A copy of the entire Half Year Report is available on the Company's website: www.redemperorresources.com

For further information please visit www.redemperorresources.com or contact: Red EmperorGreg Bandy +61 8 9225 2826Rebecca Sandford +44 20 7025 7040

Fox-Davies Capital Limited (Nominated Adviser and Broker)Susan Walker/Simon Leathers +44 20 3463 5000Daniel Fox-Davies/Richard Hail +44 20 3463 5000

Tavistock CommunicationsConrad Harrington/Ed Portman +44 20 7920 3150

Directors'Report

Your directors present their report on the consolidated entity of Red EmperorResources NL and the entities it controlled at the end of, or during, the halfyear ended 31 December 2012.

1. Directors

The persons who were directors of Red Emperor Resources NL during the half yearand up to the date of this report are:

Mr Greg Bandy (Executive Director)Mr Jason Bontempo (Non Executive Director)Mr Stephen Brockhurst (Non Executive Director)

2. Review of Operations for the Half Year ended 31 December 2012

The Consolidated Statement of Profit or loss and Other Comprehensive Incomeshows a consolidated net loss for the half year ended 31 December 2012 tomembers of $12,969 (2011: net loss of $2,907,696).

Puntland Project

During the half year Red Emperor's JV partner and operator of its PuntlandProject, Horn Petroleum Corp, drilled the second of two exploration wells atDharoor and conducted an open hole drill stem test at Shabeel North-1. Thedrilling rig and associated equipment has now been demobilised and Horn hascompleted restoration of both Shabeel drilling locations.

Efforts are now focused on making preparations for a seismic acquisitioncampaign in the Dharoor PSA which will include a regional seismicreconnaissance grid in the previously unexplored eastern portion of the basinas well as prospect specific seismic to delineate a drilling candidate in thewestern portion of the basin where an active petroleum system was confirmed bythe recent drilling at the Shabeel-1 and Shabeel North-1 locations. The focusof the Dharoor seismic program will be to delineate new structural prospectsfor the upcoming drilling campaign. Based on the encouragement provided by the two Shabeel wells, the Operator(Horn Petroleum Corporation) and its partners, Red Emperor and Range Resources,have entered into the next exploration period in both the Nugaal and DharoorValley Production Sharing Contracts ("PSCs") which carry a commitment to drillone well on each block within an additional 3 year term. The currentoperational plan would be to contract a seismic crew to acquire additional datain the Dharoor Valley block and to hold discussions with the PuntlandGovernment to gain access regarding drill ready prospects in the Nugaal Valleyblock.

The Joint Venture has formally entered into next phase of the Dharoor andNugaal Valley Production Sharing Agreements ("PSAs") and it is important tonote that Red Emperor has now earned its 20% interest in the two projects andremains fully funded for the current program.

Georgian Project

During the half year the Joint Venture announced the completion of theacquisition of a 200km 2D seismic program. The majority of this recent seismicwas acquired over Block VIb to firm up leads identified in the previous 410km2D seismic program and tie to two gas wells, which were drilled and suspendedin Soviet times. Two lines were also acquired over the site of the Mukhiani well, the firstexploration well drilled in Block VIa. Red Emperor has been advised thatprocessing is under way and results of the interpretation is expected to becompleted in Q1 2013, with the joint venture confident that it will then haveassembled the requisite amount of seismic and geological information to enablethe JV to identify revised drillable targets and attract potential farm inpartners if desired. The JV continues to work towards the development of the CBM and conventionalpotential around the Tkibuli– Shaori Coal Field ("Tkibuli"). The GeorgianIndustrial Group ("GIG") has made available a significant amount of informationincluding a detailed geological model based on 339 wells drilled in the region,many of which vented methane. It is envisaged that following completion of thecurrent technical and economic analysis, between three and four pilotproduction well locations will be identified with drilling expected to commencein 2H 2013. 3. Subsequent Events Subsequent to the end of the period the Company announced that, along with itsjoint venture partners, Strait Oil and Gas UK Limited and Range ResourcesLimited (together "the Consortium") that it had executed a heads of agreementwith the Georgian Industrial Group ("GIG") with respect to the jointdevelopment of the Coal Bed Methane project (CBM) and conventional gaspotential around the Tkibuli–Shaori Coal Field ("Tkibuli Project") in theRepublic of Georgia.

Terms of Agreement

GIG and the Consortium will jointly establish a Development Company on a 50:50basis. The Development Company will be commencing feasibility and technicalstudies, followed by an initial three or four well pilot project. The appraisal/ pilot production wells will be drilled first to clarify flow rates and otherkey parameters including optimum well construction / completion strategy, wellspacing and water treatment and disposal requirements prior to full scaledevelopment. Based on a study by Advanced Resources International ("ARI") fulldevelopment would involve 6 CBM wells per annum that are forecast to producebetween 0.3-0.5 mmcf/d per well. It is anticipated that over the first 3 years,production will build to rates that will fund further expansion of the CBMproject. The initial pilot project will focus on appraising area already known to beventing methane, thus ensuring a higher chance of success. The work programmeis anticipated to commence in the second half of 2013 and will be predominantlydebt financed, resulting in limited capital commitments for Red Emperor movingforward. New wells will target horizons at depths between 500 and 2,000 metresand can be drilled within approximately 45 days. The fast-track program isdesigned for gas production and sales to begin within 18 months given theexisting infrastructure and logistics. GIG have agreed a take or payarrangement for all gas produced by the Development Company at a 5% discount toa regional indexed price less transportation, thus removing the monetizationrisk so often faced with prospective CBM projects in the region. Over the lastfew years regional prices have averaged between US$8 - US$10 / mcf.

It is the intention of the Consortium to ensure that the first well of thepilot program counts as the commitment well with respect to retaining BlockVIb. Red Emperor will be free carried for the full costs of this first well.

4. AuditorsIndependence Declaration

The Auditor's Independence Declaration on page 4 forms part of the Director'sReport for the half year ended 31 December 2012.

This relates to the audit report, where they state that they have issued anindependent declaration.

This report is signed in accordance with a resolution of the Board ofDirectors.

Greg BandyExecutive DirectorPerth, Western Australia, 13 March 2013

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Note Half Year Half Year 31 December 31 December 2012 2011 $ $ Revenue from continuing operations Interest income 244,580 85,761 Gain on derivative liability 11 450,257 - Administration expenses (302,375) (319,454) Compliance and regulatory (198,407) (237,873)expenses Director fees (161,049) (174,400) Occupancy expense (13,552) - Corporate advisory (50,000) (40,000) Share based payments expense 4 - (1,040,198) Impairment of exploration 6 - (774,026)expenditure Share of net loss of associate 7 - (629,620) Foreign exchange gain/(loss) 17,577 222,114 for all applicable occurrences Loss before income tax expense (12,969) (2,907,696) Income tax expense - - Loss for the half year (12,969) (2,907,696) attributable to owners of the Company Exchange difference on 367,675 438,746translation of foreignoperations Other comprehensive income 367,675 438,746 Total comprehensive profit/loss 354,706 (2,468,950)for the half year attributable to owners of the Company Basic loss per share (cents per (0.005) (0.162) share) Diluted loss per share (cents N/A N/Aper share)

The above consolidated statement of profit or loss and other comprehensiveincome should be read in conjunction with the accompanying notes.

Consolidated Statement of Financial Position

Note 31 December 2012 30 June 2012 $ $ ASSETS Current Assets Cash and cash equivalents 13,771,216 18,139,777 Trade and other receivables 5 125,520 1,060,102 Total Current Assets 13,896,736 19,199,879 Non-Current Assets Financial assets at fair value through 400 400profit and loss Property, plant and equipment 20,241

20,241

Investment accounted for using the 7 6,537,648 5,510,096equity method Exploration and evaluation expenditure 6 22,365,884 16,041,554 Total Non-current Assets 28,924,173 21,572,291 TOTAL ASSETS 42,820,909 40,772,170 LIABILITIES Current Liabilities Trade and other payables 156,946 139,925 Derivative financial liability 11 31,351 481,608 Total Current Liabilities 188,296 621,533 TOTAL LIABILITIES 188,296 621,533 NET ASSETS 42,632,612 40,150,637 EQUITY Issued Capital 3 49,659,005 47,531,732 Accumulated losses (10,588,173) (10,575,200) Reserves 8 3,561,780 3,194,105 TOTAL EQUITY 42,632,612 40,150,637

The above consolidated statement of financial position should be read inconjunction with the accompanying notes.

Consolidated Statement of Cashflows

Note 31 December 2012 31 December 2011 $ $ CASH FLOWS FROM OPERATINGACTIVITIES Payments to suppliers and (829,355) (763,524)employees (inclusive of GST) Finance and interest costs (782) (541) Interest received 244,580 85,761 Net cash (used in) operating (585,557) (678,304)activities CASH FLOWS FROM INVESTINGACTIVITIES Payments for exploration and (6,882,140) (8,579,867)evaluation Proceeds from acquisition 984,136 -escrow account Payment for purchase PP&E - (19,997) Net cash (used in) investing (5,898,004) (8,599,864)activities CASH FLOW FROM FINANCINGACTIVITIES Proceeds from issue of shares 2,250,000 6,512,224and options Payments for share issue (135,000) (530,756)costs Proceeds from repayment of - 35,000loan Net cash provided by 2,115,000 6,016,468financing activities Net increase/(decrease) in (4,368,561) (3,261,700)cash held Cash and cash equivalents at 18,139,777 7,942,356the beginning of thehalf-year Cash and cash equivalents at 13,771,216 4,680,656end of half-year

The above consolidated statement of cashflows should be read in conjunctionwith the accompanying notes.