ask anything, page-97

Red 5 crowning achievements in more detail; a welcoming for new investors.

1. Closing the under drain valves of TSF4 for 3 weeks causing the tailings dam to fail. The TSF4 tailings dam was inspected every day by a competent person; however no one noted the dam walls were being saturated by excess water and would eventually fail. A minimum freeboard of water is required per the dam design and was not maintained.


2. Not disclosing to the shareholders for 6 months the cause of the TSF4 failure until the day of the AGM; then only disclosing the failure mechanism because shareholders had 43 avadavats plus satellite images leading up to the dam failure. Outstanding commitment to continuous disclosure per corp act 2001 sect 674-677.

3. Understanding of the JORC code 2004; RED 5 obliterated their ore reserve by decommissioning tailings dam TSF3 after the failure of TSF4 in favour of a ROM pad to store 1-2 weeks of ore; the JORC code is mandatory mining knowledge; the ore reserve is signed off by competent person every quarter. By decommissioning TSF3 RED had also destroyed their mining reserve (and any chance of restarting the mine) as per the JORC code 2004. This act alone destroyed the investment of shareholders.

4. The Philippines mining authority permits; RED 5 totally disregarded and did not inform Philippines mining authorities of changes undertaken to the mine plan (see point 3 for instance).

Welcome to new investors; the above are classifies as just " an innocent mistake".