Ann: Quarterly Activities and Cashflow Report, page-5

Andrew Knox, Managing Director
“Red Sky continues to navigate the challenges presented throughout the last six months and has made
solid strategic headway in terms of positioning the company for growth.
The Company has responded swiftly to adapt the business to the current environment, and we have
maintained a firm focus on cost discipline, successfully reducing G&A expenses. We continue to
aggressively pursue business development opportunities in line with our stated growth strategy and
believe we are well placed to capitalise on the opportunities that have presented themselves as a result
of the current market dynamics. The Company expects to see increased operational activity during the
current quarter pending the completion of an acquisition.
Once again the Company thanks shareholders for their continued patience and ongoing support of our
strategy to develop into a material full cycle E&P company.