a couple of questions

Hi Guys,

I've a couple of questions I was hoping could be answered here...

1. I note in the Annual Report (pg 7) that Year 1 anticipated gold production is circa 45koz Au at a grade of 2.88g/t for a plant throughput of 594ktpa. (Year 2 ramps up to 72k oz due to higher grade and higher ore throughput).

In the latest Investor Presentation the 12 month period 1/7/12 through to 30/6/13 RED is now anticipating 75koz Au production.

I can't reference any announcements lifting this production figure in the period between the AR (20/10/11) and the Investor Presentation (15/3/12) that explains this change.

RED isn't counting this period as Year 2, surely?

Any suggestions?

2. I note in the latest Quarterly Report that independent consultants confirm that there is water ingress coming into the pit from underneath.

Does any one know the implications of this for the costs (pumps) and technical challenges for any future underground mining. (I am very aware since an investment misadventure with BSM where water ingress was a major problem).

3. Whilst the plant has a 1.1mtpa throughput RED doesn't start operating at this capacity until Year 3 (according to the AR)... is this to do with ore accessibility or plant ramp up, or something else?

Thanks in advance (sorry if these have been discussed previous to my arrival).

A couple of answers to other peoples questions/ assumptions are below (if it helps):

1. The Cash Cost per oz is after Ag credits so can't count Ag revenue on top. (from Annual Report pg 7 footnote 4)

2. The Annual Report doesn't have any mention of a tax holiday or tax relief in Philippines which would be a material note to the accounts, so my interpretation is that tax is payable.

Cheers
John