director buying, page-3

I have a considerable concern with this announcement that Edwards, as Managing Director of RED, has purchased 500,000 shares in the company.

RED has recently put out a quarterly announcement that states that it expects to complete financial arrangements during August 2007 to fund development of its Siana gold mine. Clearly this is a critical and highly sensitive stage for the company. Therefore at such a time any decision to purchase (or sell shares, for that matter) by an Executive of the company, let alone the Managing Director of the company, must be seen as being likely to involve inside knowledge of the affairs of the company at this critical time.

Regardless of whether the financing is completed within the month of August or not, i believe the ASIC or ASX, or whoever the relevant governing body to do so is, must make inquiry as to the possibility of insider knowledge and therefore insider trading. If this is not undertaken i think it is a double standards approach to legislation regarding insider trading in Corporations Law. I would be interested to hear other people's views of this circumstance and whether they believe this matter should be investigated.

If you wonder why i should post this commentary, well yes of course it means i don't like the man (term used loosely!) involved, he has taken advantage of his position to get ridiculous high salary payments over the course of his involvement in the company, he has stayed overseas in the philippines the majority of his time as MD rather than represent the company as its MD in Australia, and has not put in place provisions to ensure shareholders and potential shareholders have had acceptable information for the company.

Furthermore RED's ASX releases have been inaccurate in a number of instances, especially in regards to estimates of time re feasibility study and financing, Mapawa MPSA finalisation.

Edwards, in my opinion, has demonstrated with his past performance that he is not reliable, not responsible, not competent, and now with this latest disclosure, not honourable with his actions. I hope the governing body investigates this latest action of his!!!

By the way, maybe RED is now worth an investment, but don't hold your breath! (I already hold shares in the company, if it has not become obvious!).