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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	RED
Latest Price:	2.19 (4.29% )
52-week High:	2.35
52-week Low:	1.10
Market Cap:	2,811.25M

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Red 5

Red 5 (ASX: RED) is focused on gold exploration and production in the Philippines.

Red 5 receives Siana Gold Project financing

Friday, December 04, 2009

Red 5 (ASX: RED) has finalised a $45 million equity raising, together with the award of an exclusive mandate to consummate an innovative financing package of US$40 million, leaving the company financially closer to delivering full funding for the development of the Siana Gold Project.

Importantly, the total package includes conservative capital cost over-run and working capital provisions. Total gold delivery commitments are minimal and less than one tenth of those normally required with conventional project finance.

The Siana Gold Project is located in the Surigao District of the Philippines.

The equity placement of 290 million ordinary shares at 15.5 cents per share was made to professional and sophisticated investors by Petra Capital in Australia, Singapore and Hong Kong and Southern Cross Equities in London, for proceeds of A$44,950,000 before costs.

The issue will be conducted in two tranches with 98 million shares in Tranche 1 (A$15,190,000) to beissued immediately after receipt of funds and 192 million shares in Tranche 2 (A$29,760,000) subject to shareholder approval.

The equity placement was over subscribed with thirty one new institutions joining the register.

The Company has also exclusively mandated Deutsche Bank AG, Sydney branch and Ashmore Investment Management Limited, a subsidiary of Ashmore Group plc, in relation to an US$40 million senior secured financing for the project, following which any financing commitment will be subject to normal detailed due diligence and all necessary approvals.

Ashmore is a leading emerging markets fund manager based in the UK, with US$31 billion under management worldwide.

The company has a long standing association with the Philippines, having invested in hard assets across a wide range of industries includingmining, oil refining, telecommunications, transport and high end commercial and residential developments.

The Red 5 Limited Board, post receipt of the Notice to Proceed, committed to the commencement of early infrastructure development expenditure from existing treasury funds of
A$21 million.

Tenders for construction and mining contracts will be issued next week.

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