Quarterly Report

Manager of Company AnnouncementsASX LimitedLevel 8 Exchange Plaza2 The EsplanadePERTH WA 6000 By E-Lodgement Quarterly Report for the Period Ending 30 June 2014 Issued Capital: 266M * ASX Code: RMP Closing price: A$0.061* AIM Code: RMP Closing Price: £0.0332** as at 30 June 2014 The Board of Red Emperor Resources NL (Red Emperor or the Company) is pleasedto provide the following commentary and Appendix 5B for the period ending 30June 2014. Georgia Project During the quarter, the Company's JV partner and Operator, Strait Oil & Gas UK(Strait), continued to advance discussions and negotiations with respect topotential transactions associated with the JV and it's Production SharingContracts (PSCs) in Georgia. Strait advises Red Emperor that a positive outcometo these discussions is still likely to occur. In June, Strait signed a one year extension of the PSC for Block VIb with theState Agency for Regulation of Oil and Gas. Puntland Project Over the past quarter, the Federal Government of Somalia has been engaging theSomali States, including Puntland, in a process of revising the federalhydrocarbon law. The main issues being contemplated and negotiated by allparties are those of revenue sharing and where the authority to conductcontractual negotiations in the future will reside. These issues are delicateand discussions are ongoing, with Red Emperor's Joint Venture Partner andOperator, Horn Petroleum (TSXV: HRN), having met with the Puntland President,Mr Abdiweli, as well as the Federal Minister of Oil and Gas during the quarter. The Puntland Government obviously believes that it holds the right andauthority to assign and administer Production Sharing Contracts (PSCs) withinits boarders and Red Emperor's Joint Venture remains confident that theexisting Dharoor and Nugaal PSAs are valid. At recent meetings in Abu Dhabi,the JV was verbally assured of this, however it is yet to be presented withanything in writing by the Federal government to confirm it. Discussions continuewith the State and Federal governments to ensure alignment with regards tocontracts and a secure working environment, as well a commitment to explorationin Puntland and the unlocking of what is believed to be material naturalresources within its boarders. Corporate During the quarter, Red Emperor conducted a detailed review of at least 6separate projects and opportunities in a number of global jurisdictionsincluding the UK, Nigeria, Russia and Australia. While none of theseopportunities have resulted in a transaction, Red Emperor is actively lookingfor additions to its current portfolio of assets while remaining committed tomaintaining its substantial cash position. Along with a short-term financing loan, which has now been repaid, the companyalso invested in and committed to a placement in ASX listed company, HighfieldResources Limited (ASX: HFR) during the quarter. For and on behalf of the Board Greg BandyExecutive Director ASX Additional Information for Quarterly Report to 30 June 2014 Tenement Location Working Acquired/ Working Reference Interest at Disposed Interest at Beginning of End of Quarter Quarter Oil & Gas Beneficialpercentage interestsheld in farm-in orfarm- out agreement Block Vla Republic 20% N/A 20% of Georgia Block Vlb Republic 20% N/A 20% of Georgia Dharoor Puntland 20% N/A 20% Block Nugaal Puntland 20% N/A 20% Block Appendix 5B Summary - Consolidated Statement of Cashflow Current Year to Date Quarter $A'000) $A'000 Cash flows related to operating activities Receipts from product sales and related debtors - - Payments for: * exploration and evaluation - (787) * development - - * production - - * administration (297) (1068) Dividends received - - Interest and other items or a similar nature 98 423received Interest and other costs of finance paid - - Income taxes paid - - Other Receipts 26 74 Net operating Cash Flows (173) (1,358) Cashflows related to investing activities Payments for the purchase of: * prospects - - * equity investments - - * investments - - Proceeds from the sale of: * prospects - - * equity investments (298) (298) * investments asset acquisition escrow acc - - Loans to other entities - - Loans repaid by other entities - - Proceeds from underwriting - - Net investing cash flows (298) (298) Cash flows related to financing activities Proceeds from raisings - - Proceeds from sale of forfeited shares - - Proceeds from borrowings - - Repayment of borrowings - - Dividends paid - - Costs associated with issue of shares - - Net financing cash flows - - Net increase / (decrease) in cash held (471) (1,656) Cash at the beginning of the quarter / year 10,792 11,977to date Exchange rate adjustments - - CASH AT THE END OF THE QUARTER 10,321 10,321 Ground Floor, 1 Havelock Street, West Perth WA 6005 | Tel: +61 8 9488 5220 | Fax: +61 8 9324 2400 | www.redemperorresources.com ABN 99 124 734 961 BOARD & MANAGEMENT Mr Greg BandyEXECUTIVE DIRECTOR Mr Jason BontempoNON-EXECUTIVE DIRECTOR Mr Stephen BrockhurstNON-EXECUTIVE DIRECTOR Ms Rebecca SandfordMs Sara KellyJOINT COMPANY SECRETARY REGISTERED OFFICEGround Floor1 Havelock StreetWest Perth WA 6005 POSTAL ADDRESSPO Box 1440West Perth WA 6872 CONTACT DETAILSTel: +61 8 9488 5220Fax: +61 8 9324 2400 WEBSITEwww.redemperorresources.com SHARE REGISTRYComputershareLevel 245 St Georges TerracePerth WA 6000Tel: 1300 555 159 NOMINATED ADVISER & UK BROKERFox Davies Capital Limited1 Tudor StreetLondon EC4Y 0AHTel: +44 (0) 203 463 5010 ASX CODE| AIM CODERMP

30 July 2014