Letter of Intent Signed for Philippines Drill Rig

2 March 2015 Red Emperor Resources NL Letter of Intent Signed for Philippines Drill Rig The Board of Red Emperor Resources NL ("Red Emperor" or the "Company") is verypleased to advise that, subsequent to the announcement made earlier today thatit has signed an agreement to farm into the highly prospective offshorePhilippines Block SC55, Otto Energy Philippines Inc. (a wholly owned subsidiaryof Otto Energy Ltd, ASX: OEL) has entered into a Letter of Intent with Maerskto secure the Maersk Venturer ultra-deepwater drillship to drill the Hawkeye-1exploration well. As one of the most modern and advanced drillships in the world, this rig hasthe required capability to drill the Hawkeye-1 exploration well. Theexploration well has been designed to reach the top of target reservoirapproximately 1,000m below the sea bed floor and intersect the gas oil contactto prove or otherwise the presence of the oil leg. The Maersk Venturer was commissioned in 2014 and was built at the Samsung HeavyIndustries yard in Korea. Capable of operating in up to 3,600 metres of waterand with dual drilling derricks, high capacity mud pumps and bed space for 230personnel, the Maersk Venturer is one of the newest and most capable drillshipsin the world. The Maersk Venturer has recently completed work for TotalMalaysia. All required long lead items have now been procured and stored in yards inLabuan, Malaysia. Drilling of the Hawkeye-1 exploration well is expected tocommence in early Q3 2015. Detailed contractual arrangements with Maersk will be finalised in the comingweeks and a further announcement will be made in due course. For further information please visit www.redemperorresources.com or contact: Red Emperor Greg Bandy +61 8 9225 2826 Grant Thornton UK LLP

Philip Secrett/Jen Clarke/Jamie Barklem +44 20 7383 5100