Ann: Quarterly Activities and Cash Flow Report for 31 Dec 2017, page-2

Quarter Highlights

The December quarter was exceptional for Red River, marking the first production quarter for Australia’s newest zinc producer:

• Cash flow positive during the Quarter: Thalanga Operations generated cash of A$6.8m for the quarter, and Red River’s cash balance increased by A$7.6m to A$23.2m (A$15.6m as at 30 September 2017);

• Strong Mine Production & Processing: West 45 produced 67kt ore grading 0.3% Cu, 2.5% Pb and 5.7% Zn, and Thalanga Operations milled 79kt ore grading 0.5% Cu, 3.2% Pb and 6.2% Zn;

• Consistent Concentrate Production: Produced 6,398 dry metric tonnes (dmt) of zinc concentrate, 2,859dmt of lead concentrate and 555dmt of copper concentrate;

• First Sales Made, Strong Revenue Generated: Provisional sales of 6,152 wet metric tonnes (wmt) of zinc concentrate and 2,694wmt of lead concentrate completed – first shipment of zinc concentrate plus copper concentrate sales to commence in January 2018;

• Commercial Production Declared: Red River declared commercial production from 31 December 2017 and Red River will commence reporting detailed operational results in future disclosures; and

• Ongoing Exploration Success: Red River increased the reserve at West 45 and delivered a maiden reserve for Far West together totalling 2.1Mt @ 11.9% zinc equivalent. Continued exploration success from Liontown East is indicating a significant discovery that in conjunction with Liontown has the potential to add future value.