Execution of Drilling Contract

5 May 2015 Red Emperor Resources NL EXECUTION OF DRILLING CONTRACT WITH MAERSK DRILLING The Board of Red Emperor Resources NL ("Red Emperor" or "the Company") ispleased to advise that its Joint Venture partner and Operator of Block SC55,Otto Energy Ltd (ASX: OEL) ("Otto"), has executed a binding contract withMaersk Drilling to secure the Maersk Venturer ultra-deepwater drill ship todrill the Hawkeye-1 exploration well. The Joint Venture can confirm that the drilling window will be between 17 Julyand 15 August 2015. Prior to this window, the mobilisation of key services andequipment will have occurred and the Maersk Venturer will have sailed to theHawkeye-1 drilling location. The well is expected to take around 23 days todrill. Final costing for the well is being completed with the majority of servicesalready contracted. The total expected cost remains within guidance of US$30 to$35 million. This cost is a dry-hole well-cost estimate - if the wellencounters hydrocarbons more detailed evaluation, including well logging, willbe undertaken. Red Emperor's well-cost exposure is capped at US$5.625m. SC55 is located in the southwest Palawan Basin and covers an area of 9,880km2.It is a deep-water block in the middle of a proven regional oil and gas fairwaythat extends from the productive offshore Borneo region in the southwest to theoffshore Philippine production assets northwest of Palawan. The Hawkeyeprospect was identified on 2D seismic in 2007 and further defined with a 600km23D seismic acquisition in late 2009. Hawkeye contains a 'Best Estimate' STOIIPof ~480 MMbbls of oil and a 'Best Estimate' Gross Prospective Resource of 112MMbbls (RMP net 14.3 MMbbls). 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