Ann: AGM chairman's address, page-16

WEDNESDAY 12 DECEMBER: Westin Sydney, 1 Martin Pl, Sydney Time: 12:00pm - 2.30pm (first presentation will start at 12.10pm) Registration is free for all genuine investors and includes a two-course lunch, beer, wine and soft drinks. Places are limited so registrations are essential. To register, contact us on (08) 9388 1474  or register directly below.

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COMPANY INFORMATION

RED 5 LTD ASX: RED   /   Shares on Issue: 1.24 billion    Market Cap: $86.9 million Presenter: Byron Dumpleton, Chief Geologist  Just 12 months after completing its landmark $34.5m acquisitions of the Darlot and King of the Hills (KOTH) gold mines in Western Australia, Red 5 is proving there's plenty of gold yet to be discovered. The company has recently commenced mining at the new high-grade Oval West orebody, which it discovered at Darlot in February, with Oval West expected to contribute to a strong uplift in gold production and a reduction in costs over the next two years. However it's KOTH which looks set to deliver the real game-changer for Red 5. The company has recently discovered a large zone of high-grade veins and stockworks at KOTH which have the potential to support a future bulk mining operation. A major 30,000m drill program is now underway to test this theory, with plenty of newsflow expected in coming weeks.

First of all, there's no company in the known universe that has 1.3bn shareholders .... so I don't get it. 

After the company got into trouble under the previous MD and BOD, the SP crashed and the company had to have CPR administered by the new (current) MD & the the new (current) BOD (with one new addition recently). They did a capital raising in 2013, and created more shares in the process, to save the company from the liquidator, and things were going well tell cyclone Gina struck. Rather than sitting on their hands they went out and bought the Darlot & KOTH mines ... with a combination of new shares and cash reserves ... so, yes the number of shares has increased agin, but this wasn't merely throwing good money after bad, but buying a completely new set of assets that are turning out to be silk purses rather than sow's ear or buttocks. The much maligned AISC is due to a combination of an aggressive ramping up of production, milling and exploration ..... all in the space of 12months .... round of applause if you please.

 The spectacular exploration results and the new inspired interpretation of the old data and new supplementary drilling offer the prospect of a real game changer .... and a spectacular SP revival .... pity you won't be along forth ride. There is cautious growing optimism among the hard heads of RED5 ..... and the conference (see above) will be the first of many to gain the markets recognition of Red's potential.

The company is now self funding, but doesn't rule out going to the market if a major opportunity were to arise .... but no further hares will be sold at current share prices. If the SP goes up by a factor of 10 maybe, but a RED with a healthy bank balance, zero debt and expanding profitable production should have no problem raising debt based finance. RED's MD is obviously a very good jockey, and RED's new assets are looking increasingly like a champion ride. RED is very undervalued. If the POG improves, SP will explode.