RDM ASX Announcement 23 October 2013

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ACN 103 367 684

ASX ANNOUNCEMENT 27 OCTOBER 2015

ASX Code: RDM

Red Metal Limited

is a minerals exploration company focused on the exploration, evaluation and development of Australian copper-gold and basemetal deposits.

Issued Capital:

174,771,919

Ordinary shares

5,800,000

Unlisted options

Directors:

Rob Rutherford

Managing Director

Russell Barwick

Chairman

Joshua Pitt

Non-executive Director

RED METAL LIMITED

Level 15

323 Castlereagh Street

Sydney NSW 2000

Ph: +61 2 9281 1805

Fax: +61 2 9281 5747

[email protected]

www.redmetal.com.au

Queensland Explorer of the Year 2013

MARONAN DEPOSIT - SUMMARY OF INFERRED RESOURCE ESTIMATES

Red Metal is pleased to announce the results of maiden, JORC (2012) compliant, resource calculations on the separate lead-silver and copper-gold deposits at Maronan (Tables 1 to 4).

Cross section and level plans have been prepared providing lead grade envelope interpretations of the multiple lead-silver horizons (Figure 1). Resource estimates have been made applying a range of lower cut-offs to the lead grade as an aid to determining which parameters could best enhance the projects economics. The resource estimates for the fresh lead-silver mineralisation (Table 1, Figure 2) have defined an inferred resource of;

7.0 Mt at 10.68% lead and 144 g/t silver using a ≥8% lead cut-off grade;

19.2 Mt at 7.91% lead and 114 g/t silver using a ≥5% lead cut-off grade;

30.8 Mt at 6.50% lead and 106 g/t silver using a ≥3% lead cut-off grade;

45.3 Mt at 5.05% lead and 86 g/t silver using a ≥1% lead cut-off grade.

Resource estimates for the separate copper and gold deposit using a lower cut- off grade at ≥0.5% copper (Tables 3 and 4) defined a total inferred resource for the fresh and weathered mineralisation of;

19.2 Mt at 1.24% copper and 0.6 g/t gold.

Importantly, this work defined preferred regions of thicker and/or higher- grade lenses within the deposit and also identified priority areas which offer scope for defining mineable lenses at quite shallow depths including some within about 100 metres of surface. Both the lead-silver resource and copper- gold resource have steep west northwest plunges and remain open at depth (Figure 1).

Red Metal's ongoing work at Maronan has established a firm understanding of the deposit. It has significant size potential and the observed grade variations allow considerable flexibility in how its resources can be appraised. Maronan can be viewed as a large tonnage but moderate grade opportunity or as offering high grade resources of more limited tonnes. Three dimensional block models resulting from the resource calculations will now be used to facilitate underground mining studies and scenario models designed to aid assessment of the economic potential of the deposit.

For comparison, South 32 Limited recently announced the total measured, indicated and inferred resource for the underground sulphide mineralisation at the nearby Cannington Mine as 71 Mt at 4.86% lead, 3.26% zinc and 170g/t silver using a net value cut-off of A$90 per tonne (refer to S32:ASX announcement dated 22 September 2015). Red Metal's understanding is the Cannington deposit (unlike Maronan) is closed-off at depth.

Untested Exploration Target

-900mRL

Fold

-600mRL

Fold Copper Vein Zone

Western Lead-Silver Zone

Eastern

Lead-Silver Zone

-300mRL

[Figure 1] Maronan Project: Interpreted geological level plans on magnetic image showing the trend of the host exhalative formation (buff polygons) and interpreted grade envelopes using a ≥3.0% lead cut-off grade (light blue western mineralised horizons, dark blue eastern mineralised horizons). Overprinting silica-carbonate-iron sulphide ± copper sulphide vein zone shown as light green hatching with the interpreted grade envelopes using a ≥0.5% copper cut-off grade shown as green with no hatching. Untested exploration target potential at the -900m RL shown in pink. Pink arrows highlight the down-plunge direction of the lead-silver and copper-gold resources.

Lead-Silver Inferred Resource (JORC 2012)

The Maronan lead-silver resource estimate benefited from Red Metal's new geological model and was constrained using manually interpreted, mineralisation envelopes at a lower cut-off grade of ≥3% lead and

≥1% lead (Table 1). This work divided the lead-silver deposit into the separate Western (Upper) mineralised zone and Eastern (Lower) mineralised zone distinguishable by their location, geochemistry and different silver to lead ratios (Figure 1). The Western and Eastern zones each contain between 2 and 6 parallel, planar horizons or lens of mineralisation which typically range from 1 to 10 metres in true thickness and appear to be tightly folded and thickened towards their northern ends (Figure 1). Locally lenses can have true widths of up to 20 metres.

Level plan interpretations show the individual horizons to be laterally continuous over about 200 metres with some up to 700 metres long. Cross section interpretations indicate very strong vertical continuity with planar horizons extending down-dip for greater than 1000 metres. Structural deformation forming steep west northwest plunging fold structures and elongation lineations is believed to have enhanced the vertical continuity and locally thickened some horizons. Interpreted northeasterly trending faults and the late-stage copper-gold mineralisation locally disrupt the continuity of some lead-silver horizons (Figure 1).

The majority of the inferred lead-silver resource (Table 1) is situated between about 200 and 1200 metres below surface with some small lens of potentially mineable mineralisation interpreted to extend to within about 100 metres of the surface. The mineralised horizons remain open at depth.

[Table 1] Maronan Project: JORC (2012) compliant inferred resource estimates for the fresh bedded lead-silver mineralisation style (galena) at differing lower cut-off grades. These computer resource estimates were constrained using geologist interpreted mineralisation envelopes at lower cut-off grades of ≥3% lead and ≥1% lead.

[Table 2] Maronan Project: JORC Compliant inferred resource estimate for the weathered bedded lead-silver mineralisation style (lead carbonate?) at a ≥3% lead cut-off grade. This computer resource estimate was constrained using geologist interpreted mineralisation envelopes at cut-off grades of ≥3% lead and ≥1% lead.

[Figure 2] Maronan Project: Grade-tonnage curve for JORC (2012) compliant inferred resource estimates for the fresh bedded lead-silver mineralisation style (galena) at differing cut-off grades. These computer resource estimates were constrained using geologist interpreted mineralisation envelopes at lower cut-off grades of ≥3% lead and ≥1% lead.