Ann: Solid start at King of the Hills with ramp-up on track, page-15

Darlot underground mine to transition into an additional medium-term, high-grade feed source for the
new King of the Hills (“KOTH”) processing plant, enabling a step-change in Darlot’s production cost │
Implementation of 12-month mine development program to unlock Darlot’s extensive 1.3Moz Resource base
• Following an extensive review of the Darlot mine inventory, Red 5 announces its Darlot Mine Plan based
on utilising latent capacity in the new KOTH processing plant, an approach that the Company refers to as
the KOTH Processing Hub Strategy.
• The commencement of processing operations at KOTH in the June Quarter 2022 will provide a more costeffective processing alternative for Darlot ore, repositioning Darlot as a high-grade satellite ore source for
KOTH.
• In advance of production commencing at KOTH, the following Darlot initiatives will occur in FY22:
o A Plant Capacity Study completed by Mintrex has confirmed that the KOTH processing plant can
process up to 4.7Mtpa of ore without additional capital expenditure.
o Darlot will undertake an initial 12-month phase of underground mine development to establish
new mining areas and reduce the reliance on remnant stopes.
o A workforce transition strategy is being developed for Darlot non-mining and processing
personnel to relocate to KOTH, thereby reducing the labour recruitment risk for KOTH.
o From the June Quarter 2022, Darlot ore will be processed at the KOTH processing plant. The Darlot
ore processed will be added to the 4Mtpa of ore proposed to be mined and processed from the
KOTH open pit and underground mines.
• FY22 Darlot production guidance is 62,000oz – 72,000oz at an AISC of A$2,300 - A$2,400 per ounce
(inclusive of Darlot mine development costs of A$190 - A$220 per ounce).
• With the future implementation of Darlot ore processing at KOTH, Red 5 is targeting in FY23 to reduce
Darlot’s AISC to between A$1,700 – A$1,900 per ounce.
• In the current gold price environment, Darlot has the potential to add significant value for a number of
years as a high-grade satellite ore source for KOTH, with the cash-flow generated from operations
facilitating the ongoing exploration of Darlot’s world-class mineral system.
• Red 5 continues to evaluate scalability within the KOTH mine plan and processing facility with the support
of Mintrex and Orelogy

RED5 FFS states that the ASIC will be A$1339/ ozfor yrs 1-6 and A$1415/ oz LOM