RED 5 Limited Annual Report 2023

FY2023 Annual Report · RED 5 Limited

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Annual Report

2023

Our vision is to be
a successful multi-operational
exploration and mining
company, providing benefits
to all stakeholders through
the consistent application of
technical excellence and
responsible and sustainable
industry practices.

Corporate PROFILE

Red 5 Limited (ABN 73 068 647 610) is mid-tier
Australian gold producer with established mines
located in the Leonora District of Western Australia.
The Company is listed on the Australian Securities
Exchange (Ticker: RED).

Red 5 owns and operates the new long-life King of the
Hills (KOTH) Gold Mine, located approximately 900
kilometres north-east of Perth and 25 kilometres north
of Leonora in Western Australia. The KOTH Gold Mine
comprises a centralised 5.5Mtpa processing hub,
which is fed by three mines:

1. KOTH Open Pit

2. KOTH Underground

3. Darlot Underground, a satellite mine
100 kilometeres north of KOTH.

KOTH has a Mineral Resource estimate of 4.5 Moz’s
and an Ore Reserve of 2.5 Moz’s. Darlot has a Mineral
Resource of 1.8 Moz’s and an Ore Reserve of 0.1 Moz’s.

The Red 5 Group also holds a royalty interest in the
Siana Gold Project in the Philippines, which
recommenced gold production in 2023.

CONTENTS

2023 Highlights

Message from the Chairman

Managing Director’s Report

Environmental, Social and
Governance Summary

Resources and Reserves Statement

Tenement Schedule

Financial Report

Directors’ Report

Annual Financial Statements

Notes to Financial Statements

Director’ Declaration

Independent Auditor’s Report

Statement of Shareholders

Corporate Directory

2023 ANNUAL REPORT

2023 Highlights

WESTERN AUSTRALIAN GOLD OPERATIONS
King of the Hills (KOTH) Gold Mine

FINANCIAL AND CORPORATE
\ Red 5 incurred a net loss of the

\ Positive safety performance, with Red 5’s 12-month Total Recordable
Injury Frequency Rate (TRIFR) improving significantly year-on-year to
9.0 (20.2 at 30 June 2022).

\ Commercial production declared at the King of the Hills (KOTH) gold

mine on 16 December 2022.

\ Total gold production for FY-23 of 162,883 ounces, including

production of 102,574 ounces at an AISC of A$1,837/oz for 2H FY-23.

\ Total gold sales for FY-23 of 164,974 ounces.

\ KOTH processing plant now operating at an annualised throughput rate
of 5.5Mtpa, significantly higher than the nameplate design of 4.0Mtpa.

Exploration and resource development

\ Updated Ore Reserve and Mineral Resource statement announced

on 7 September 2023, which demonstrates the scale and potential of
Red 5’s Leonora district operations reinforced with updated Mineral
Resources of 6.2M ounces and Ore Reserves of 2.6M ounces.

\ High-grade assays received from underground Resource extension
and grade control drilling across key mining areas at KOTH, with
results underpinning the FY-23 and FY-24 mine plans and confirming
the potential to extend existing Resources.

\ Strong assay results received from underground grade control and

resource extension drilling across several key mining areas at the Darlot
Gold Mine. Results confirm the FY-24 and FY-25 Darlot mine plan with
new targets for Resource growth also identified.

\ First-pass exploration drilling has delivered positive results at Yandal

South, with air-core drilling intersecting multiple zones of gold
mineralisation along a 1.2km strike.

consolidated Group after income tax for
the year ended 30 June 2023 of $8.7 million
(30 June 2022: loss of $28.6 million).
The FY-23 results include an unaudited
underlying EBITDA of $96.1 million
(2022: loss of $4.3 million).

\ Two highly respected mining executives

were appointed to the Red 5 Board as part
of an ongoing Board renewal process, with
Russell Clark appointed as Chair and Peter
Johnston appointed as Non-Executive
Director in July 2023. Mr Kevin Dundo
retired from the Board during the year after
13 years of valued service to the Company.

\ Capital raisings completed to support the
ramp-up of production at KOTH and future
growth opportunities.

\ Publication of Red 5’s inaugural ESG

Report for the 2022 financial year (FY-22),
which provides a formal framework to
articulate the Company’s future
sustainability initiatives and goals.

\ The Company’s net debt position improved
significantly in the June 2023 Quarter,
reducing by $44.5 million to $81.9 million
on 30 June 2023. Cash and bullion were
$45.9 million at 30 June 2023, with $127.8
million of gross debt outstanding at the end
of the reporting period.

2023 ANNUAL REPORT

Message to Shareholders FROM THE CHAIRMAN

Dear Shareholders

Having been appointed as the new Chair of Red 5 on 1 July

As mining reached the main contact zone between the

2023, let me say at the outset that it is very exciting to have the

granodiorite and ultramafic rock, where the majority of higher-

opportunity to join a rapidly growing Australian gold company at

grade gold mineralisation is located in the open pit, this helped

a significant period in the Company’s history.

I would firstly like to acknowledge my predecessor, Kevin

Dundo, who provided strong leadership over a long period of

drive a significant uplift in gold production. Four consecutive

months of record gold production from March onwards

underpinned a record 61,705 ounce June 2023 quarter.

time and steered the Company through a major transformation,

The processing plant is now operating at an annualised

from being a gold producer in the Philippines to emerging as a

throughput rate of 5.5 million tonnes per annum, almost 40 per

new mid-tier Australian gold producer.

From the perspective of a relative newcomer to the Red 5 story,

FY 2023 has clearly been a year of two quite contrasting halves.

cent above its nameplate design capacity. This firmly

establishing it as the largest and most efficient processing hub

in the Leonora district and provides a glimpse of the enormous

scale and potential of the KOTH asset once operating at full

Pleasingly, our safety performance improved significantly over

capacity.

the course of the year, reflecting a relentless focus by the team

on enhancing safety outcomes as well as the transition to

steady-state operations and a marked reduction in staff turnover

over the course of the year.

Red 5’s 12-month Total Recordable Injury Frequency Rate

Thanks to the very strong June 2023 quarterly performance, the

Company’s financial position significantly improved by year end.

Red 5’s net debt position reduced by $44.5 million to $81.9

million on 30 June 2023. With cash and bullion of $45.9 million

at financial year-end following the repayment of $22.0 million of

dropped to 9.0 for the 2023 financial year, down from 20.2 as at

debt in the June 2023 quarter, Red 5 will continue to focus on

30 June 2022, and there were nil lost-time injuries and nil

rapidly reducing its debt in the year ahead and strengthening its

restricted work injuries reported in the June 2023 quarter. This is

balance sheet.

an important result and one that we must all strive to maintain in

the years ahead.

Despite the seamless delivery of the $225 million King of the

Corporately, the Company is continuing a process of board

renewal, with highly respected mining executive Peter Johnston

joining the Board as a Non-Executive Director from 10 July 2023

Hills (KOTH) gold mine on time and within budget last year, the

shortly after my own appointment on 1 July 2023.

first six months of project ramp-up proved challenging – due

mainly to the impacts of the COVID-19 pandemic, severe labour

shortages in the overheated Western Australian market and

general cost inflation.

These impacts, combined with the inevitable challenges and

pitfalls that arise with the commissioning of any new large-scale

mining project, delayed our ramp-up schedule and put short-

term pressure on working capital, which prompted two capital

raisings totalling $159 million during the year.

The combination of these additional funds, together with an

incredible amount of hard work and relentless focus – including

a well-executed “catch-up” plan in the open pit , a strong

collaboration with our contracting partners to address labour

shortages and fine-tuning of the processing plant – have seen

the operation well and truly hit its straps in the second half of

the financial year, after commercial production was declared in

December 2022.

The Company has executed an impressive mine development

and ramp-up program over the past 12 months that has

positioned KOTH as one of the largest scale and longest life new

gold mining operations delivered in Australia in recent history.

In closing, I am truly excited about what lies ahead for Red 5.

I would like to thank Mark Williams and the entire executive

team, as well as the employees and contractors who are the

lifeblood of our operations.

Also, a very warm thank-you to all our shareholders for your

continued support. The past 12 months has been at times

challenging and frustrating, and the Company has well and truly

turned the corner in 2023 – I look forward to what can be

achieved in the years ahead.

Russell Clark

Chairman

18 September 2023

2023 ANNUAL REPORT

MANAGING DIRECTOR’S Report

The 2023 financial year has seen Red 5 complete the ramp-up of
production at our King of the Hills (KOTH) gold mine in the Eastern
Goldfields region of Western Australia, with commercial production
being declared on 16 December 2022.

In addition, I am very pleased to report that the Company has also
achieved a much-improved safety performance over the year,
reducing our Total Recordable Injury Frequency Rate (TRIFR) at the
end of the reporting period to 9.0, down from 20.2 at 30 June 2022.

The ramp up was achieved despite the dual headwinds of intense
labour shortages and rampant cost inflation and represents an
outstanding outcome by both the Red 5 team and our contracting
partners, MACA-Interquip and Macmahon Contractors.

250,000mE

300,000mE

On the mining front, Red 5’s Eastern Goldfields operations delivered
total gold production over the past year from KOTH and Darlot of
165,544 ounces, including production in the second half of the
reporting period of 102,574 ounces at an all-in sustaining cost
(AISC) of A$1,837 per ounce.

Importantly, after overcoming the start-up issues that emerged
during the initial commissioning and ramp-up phase, the Company
was able to deliver four successive months of record production
between March and June 2023, ending the reporting period with all
mining and processing activities operating at or above
expectations.

350,000mE

NLGP

400,000mE

150km

G
o

ﬁ

G
a

Bellevue

Vivien

Agnew

Agnew
1.3 Mtpa

Leinster
Goldﬁelds

i
g

Thunderbox

RED 5 LIMITED
Tenements

ARDEA JV
Tenements

Gold Mine
(operating, closed)

Gold Project
(developing)

Mtpa

Mill throughput
(million tonnes/annum)

Gold Prospects

Greenstones

Granites

NORTH

25 Kilometers

Western
Australia

Darlot Project

King of the Hills
Project

Darlot

100km

Darlot
1.0 Mtpa

Thunderbox
6.0 Mtpa

50km

Bundarra

6,950,000mN

Duketon
2.5, 2.5 & 5 Mtpa

Duketon

6,900,000mN

6,850,000mN

Laverton

Granny Smith
3.5 Mtpa

Bannockburn

King of the Hills

King of the Hills
5 5. Mtpa

Mt Morgans
2.8 Mtpa

Gwalia

Gwalia
1.5 Mtpa

Leonora

Cardinia

Mt Morgans

Granny Smith

6,800,000mN

Apollo Hill

Sunrise Dam

Sunrise Dam
4.1 Mtpa

Mt Ida

Ulysses

Darlot and KOTH locations, showing annual mill throughput from key gold deposits in the region.

2023 ANNUAL REPORT

MANAGING DIRECTOR’S Report (cont.)

HEALTH AND SAFETY
The operational focus on safety leadership during the reporting
period has contributed to an improved safety performance at both
the KOTH and Darlot sites. The improvement in safety performance
reflects our focus on stabilising the workforce and transitioning to
steady-state operations.

0.50

(Lost Time Injury Frequency Rate)

LTIFR
(12-month)

TRIFR
(12-month)

FY23 TRIFR Safety Statistics (12-month)

17.56

17.80

15.51

9.01

R
F
R
T
h
t
n
o
m
2
1

9.01

(Total Recordable Injury Frequency Rate)

September
2022

December
2022

March
2023

June
2023

2023 ANNUAL REPORT

MANAGING DIRECTOR’S Report (cont.)

EASTERN GOLDFIELDS, WESTERN AUSTRALIA
Red 5 holds an extensive 2,555km2 strategic tenement footprint in the world-class Leonora-Leinster mineral district in the northern
goldfields of Western Australia, which includes the KOTH and Darlot gold mines.

In addition to its operating gold mines, Red 5’s tenements also offer significant exploration upside, with active exploration programs being
undertaken at both Darlot and KOTH during the year.

WESTERN AUSTRALIAN GOLD OPERATIONS

Table 1: Quarterly physicals and cost summary for FY-23

Units

Sep 2022
Quarter

Dec 2022
Quarter

Mar 2023
Quarter

Jun 2023
Quarter

2H FY23

Mining physicals

KOTH OP Ore Mined

KOTH OP Waste Mined

KOTH OP Mined Grade

KOTH UG Development

KOTH UG Ore Mined

KOTH UG Mined Grade

Darlot UG Development

Darlot UG Ore Mined

Darlot UG Mined Grade

Total Contained Gold Mined 3

KOTH processing physicals

Ore Milled

Head Grade

Recovery

Gold Produced

Gold Sales for AISC Purposes

g/t

Average Gold Price Achieved 4

A$/oz

Costs

Mining

Cartage

Processing

G&A

Ore Stockpile Movements

Selling Costs (inc. by-product credits)

Cash costs

Royalties

Sustaining Capital and Mine
development

Corporate Overheads

Finished Goods & GIC Movements

All-in Sustaining Costs

All-in Sustaining Costs (AISC)

A’000

A$/oz

0.68

8.19

0.47

1,205

0.168

1.01

1,512

0.174

2.55

0.63

8.60

0.65

1,325

0.175

1.40

1,336

0.180

2.13

1.20

6.59

0.85

1,248

0.201

1.58

598

0.165

2.37

1.57

5.26

0.96

1,173

0.266

1.70

509

0.183

2.87

2.77

11.85

0.92

2,421

0.467

1.65

1,107

0.349

2.64

33,375 1

33,364

55,681

75,015

130,696

0.879

0.93

91.2

24,049

30,005 2

$2,540

1.099

1.14

90.1

36,260

35,100

$2,348

1.044

1.32

92.1

40,869

40,907

$2,527

62,690

4,286

15,980

6,207

1.196

1.71

93.5

61,705

58,962

$2,668

67,803

4,853

24,297

6,268

(20,640)

(14,003)

(792)

67,731

3,966

5,774

4,370

1,923

83,764

2,048

(1,298)

87,920

6,048

5,508

4,093

(3,927)

99,642

1,690

2.240

1.53

92.8

102,574

99,869

$2,610

130,493

9,139

40,277

12,475

(34,643)

(2,090)

155,651

10,014

11,282

8,463

(2,004)

183,406

1,837

(1) Total includes mined ounces from Great Western of 3,223oz

(2) Gold sales include gold production from the Darlot process plant in July of 2,661 ounces

(3) Totals may not sum due to rounding

(4) Inclusive of hedges

2023 ANNUAL REPORT

MANAGING DIRECTOR’S Report (cont.)

EASTERN GOLDFIELDS, WESTERN AUSTRALIA (cont.)
Production summary

Darlot Underground

A total of 165,544 ounces of gold was recovered for the 12 months
to 30 June 2023, with ore sourced from the KOTH open pit, KOTH
underground and Darlot underground mines.

Gold sales for FY-23 totalled 165,544 ounces. Commercial
production at KOTH was declared on 16 December 2022, with
production for 2H FY-23 totalling 102,574 ounces at an all-in
sustaining cost (AISC) of A$1,837/oz.

Mining

KOTH Open Pit

The Darlot Underground has benefitted greatly from the investment
in mine development (completed in January 2023), that has
opened up a number of new high-grade areas including Middle
Walters South. Since putting the Darlot process plant into care
and maintenance in July 2022, there has been a successful focus
on reducing costs to reposition Darlot as a low-cost satellite
underground mine to KOTH. The Darlot Underground had a
very strong June Quarter benefitting from current high gold
prices, which if sustained, will likely see Darlot continue for a
number of years.

The KOTH open pit has now ramped up to full production, having
completed the cutback of Stage 1 in February 2023. Initial mining
was impacted by COVID-absenteeism, following the reopening of
the WA borders, which delayed the completion of the Stage 1
cutback by a number of months. Since mining commenced on the
primary ore body, there has been a significant step up in high-grade
ore tonnes from large contiguous ore zones in the open pit. The
open pit mining strategy is designed for the primary ore body to be
always accessible and mined throughout the life of mine.

)
s
e
n
n
o
t

0
0
0
‘
(

e
r
O

2,000

1,500

1,000

500

KOTH Open Pit Performance

Darlot Underground Performance

2.55

2.13

2.38

2.87

174k

180k

165k

183k

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Ore tonnes

Ore grade

4.0

3.0

2.0

1.0

0.0

)
u
A
t
/
g
(

e
d
a
r
G

)
s
e
n
n
o
t
0
0
0

‘
(

e
r
O

2,000

1,500

1,000

500

0.95

304k

330k

0.69

422k

270k

1.17

441k

1.23

517k

4,025

13,288

10,951

717k

1,049k

Q4 FY23

1.6

1.2

0.8

0.4

)
u
A
t
/
g
(

e
d
a
r
G

Q1 FY23

Q2 FY23

Q3 FY23

HG Ore

LG Ore

High grade

Low grade

KOTH Open Pit quarterly tonnes and grade performance (HG >0.5g/t).

KOTH Underground

The KOTH underground ramped up to the expected productivity
levels in the final four months of the financial year, following a
difficult start up impacted by COVID-19 absenteeism and shortages
of skilled underground miners. Development has now reached the
Regal, West and East zones and mining is performing much more
strongly in these new “fresh” areas.

4,000

3,000

2,000

1,000

)
s
e
n
n
o
t

0
0
0
‘
(

e
r
O

KOTH Underground Performance

1.58

1.70

1.40

1.01

168k

175k

201k

266k

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Ore tonnes

Ore grade

2.0

1.5

1.0

0.5

)
u
A
t
/
g
(

e
d
a
r
G

KOTH Underground quarterly tonnes and grade performance.

Darlot Underground quarterly tonnes and grade performance
throughout FY23.

Processing

Following a period of commissioning and ramp up of the KOTH
process plant in the first half of the financial year, commercial
production was declared on 16 December 2023.

Since June 2023, the KOTH process plant has been operating at
an annualised throughput rate of 5.5Mtpa, 37.5% higher than the
nameplate design of 4.0Mtpa, whilst maintaining gold
recovery levels.

)
s
e
c
n
u
o

0
0
0
‘
(
d
o
G

100

KOTH Gold Production

1.71

1.32

1.14

0.93

26,710

36,260

40,869

61,705

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Gold produced

Feed grade

2.0

1.5

1.0

0.5

)
u
A
t
/
g
(

e
d
a
r
G

FY23 KOTH Quarterly gold production and feed grade.

2023 ANNUAL REPORT

MANAGING DIRECTOR’S Report (cont.)

EXPLORATION AND RESOURCE DEVELOPMENT
KING OF THE HILLS

DARLOT

Darlot near-mine exploration

Drilling at the Darlot gold mine during the period confirmed Ore
Reserves underpinning the FY-23 and FY-24 mine plan and
identified new targets for potential Resource extension.
Encouraging results were recorded in a number of key areas, which
have confirmed and in some instances, identified the potential to
upgrade existing Resource estimates.

In addition, exploration drilling has successfully generated new
targets for Resource extension, with strong results received from
hole CAX0075, drilled just 320m from the current development in
the Lords South mining area.

Surface grade control drilling at the St George open pit satellite
deposit at Darlot also returned significant intersections including
3.0m at 2,999.3g/t from 41m (SGGC122) – equivalent to 105oz/
tonne – and 1.0m at 203.6g/t from 15m (SGGC007). The potential
development of a satellite open pit at St George will be evaluated at
a later date.

Underground drilling at KOTH delivered positive results, further
defining current Ore Reserves that underpin the FY-24 and
FY-25 mine plans and identifying new targets for potential
Resource extensions.

Significant assay results were reported across several key mining
areas in the KOTH underground mine, with these impressive drill
results provide further support for our mine plan over for FY24 and
FY25, as well as opening up potential new mining areas for the future.

Drilling of Regal was targeting a major controlling structure within
the granodiorite and along the eastern contact against the
ultramafic that surrounds the granodiorite intrusion. The area is
characterised by a series of moderately southwest dipping
structures in combination with other anastomosing tension veins
associated with the contact.

Regal represents a significant mining area for the KOTH
underground mine in FY-24, with capital development underway.

Surface exploration

Air-core drilling targeting the NW structure at Yandal South returned
highly encouraging results, identifying multiple intervals of vein-
hosted gold mineralisation across broad zones.

Recently acquired passive seismic data has revealed a >1,000m
depth extent to the NW structure with inversion modelling showing
a possible thrust style geometry dominating the geological setting.

Drill program access and pad preparation were completed in June
2023 for follow-up (Phase 2) exploration drilling at this emerging
discovery, designed to follow up the best-observed areas down to
150 metres with a revised drill orientation and tighter line spacing
(100 metres).

2023 ANNUAL REPORT

MANAGING DIRECTOR’S Report (cont.)

CORPORATE
BOARD APPOINTMENTS

In July 2023, mining executive Mr Russell Clark was appointed as
Chair of the Company and Mr Peter Johnston was appointed as an
independent Non-Executive Director.

These appointments are part of an ongoing renewal of the Red 5
Board, as the Company embarks on its next chapter of growth as a
leading mid-tier Australian gold producer.

During the reporting period, Mr Kevin Dundo retired as Chair of the
Board following 13 years of valued service to the Company and Ms
Fiona Harris retired as Non-Executive Director.

DEBT AND EQUITY FACILITIES

The $175.0 million debt funding package supporting the
construction and development of KOTH was fully drawn down in the
prior year. Repayments of the debt funding package commenced in
December 2022 and will be paid over four years. $47.3 million has
been repaid in the current year with $127.8 million remaining at 30
June 2023 (net debt at 30 June 2023 was $81.9 million). Borrowing
costs of $2.7 million were capitalised to the loan.

To support the ramp up of the new KOTH operations, Red 5
undertook two capital raisings during the year.

FINANCIAL

Gold and silver sales for the reporting period totalled $422.7 million
with 164,974 gold ounces sold at an average price of $2,542 per
ounce (2022: $165.0 million with 64,315 gold ounces sold at an
average price of $2,526 per ounce).

SUMMARY AND OUTLOOK
With the King of the Hills gold mine now operating at full capacity,
the coming financial year is expected to be a positive period for the
Company, focusing on delivering safe, consistent and profitable
ounces from the KOTH processing hub, in order to cement our
position as a new Australian mid-tier gold producer.

This will also support our aim of continuing to de-leverage the
balance sheet, with positive cash flow from operations enabling us
to continue to improve our net debt position.

On the exploration front, drilling programs will continue across our
tenement holdings within the Eastern Goldfields, with the aim of
de-risking the mine plan and identifying new mining areas.

As always, these activities will be conducted with an unwavering
commitment to the Company’s environment, social and governance
principles.

Backed by the robust, long-life KOTH mining operation, Red 5 is
now in a strong position to deliver reliable and profitable gold
production to drive value for shareholders and strong cash-flow to
achieve our growth objectives.

I would like to again acknowledge the outstanding efforts of the
Red 5 team, including both staff and contractors, who have worked
hard over the course of the year to achieve this result. I would also
like to acknowledge and thank all our shareholders for your
continued support.

The Group recorded a net loss after income tax for the year ended
30 June 2023 of $0.5 million, in comparison to a net loss for the
year ended 30 June 2022 of $28.6 million, after a gain on sale of
discontinued operation (Siana Project in the Philippines) of $20.0
million.

Mark Williams
Managing Director

18 September 2023

Cost of sales for the period of $386.4 million comprised production
costs, royalties, movement in stockpiles and depreciation charge.

2023 ANNUAL REPORT

ENVIRONMENTAL, SOCIAL AND GOVERNANCE Summary

SUSTAINABILITY
OUR APPROACH TO SUSTAINABILITY
At Red 5, we are acutely aware of the unique challenges and
responsibilities that come with operating in the mining industry.
Our commitment to sustainability is not just a corporate slogan;
it is a guiding principle that shapes our operations. The
following outlines our Sustainability focus:

Environmental Stewardship

Recognising the potential impacts of our operations on the
environment, we are committed to responsibly managing the
land and resources on which we depend and share with our
neighbours and future generations. We will continue to adopt
approaches to minimise water usage, prevent contamination
and ensure safe disposal of waste, prioritising the health of the
surrounding environment and our stakeholders.

MATERIALITY ASSESSMENT
During FY23, we performed an internal review to determine if our material
topics were still relevant and if any new topics should be reflected. The
evaluation resulted in the reorganisation and renaming of several material
topics. The updated topics aim to further develop the focus on our relevant
ESG impacts, capturing the expectations of our stakeholders and provide a
framework for measuring success. We recognise that our material topics will
evolve over time as the business grows and as our sustainability
performance matures, and the framework will be improved accordingly.
The full list of material topics is presented below.

Business Ethics

Cultural Heritage

Approvals & Compliance

GHG Management

Human Rights

Water Management

Occupational Health & Safety

Waste Management

Biodiversity Conservation

Human Capital

TSF Management

Employee Engagement

Biodiversity

Community Relations

Mine Closure & Land
Rehabilitation

It is important to note that the revision of our material topics considered the
guidelines outlined by the Global Reporting Initiative (GRI) and the industry
specific topics found within the SASB Metals and Mining standards.

ESG PROGRESS REPORT
The SASB framework has been chosen to ensure we maintain consistent
improvement and our sustainability reporting continues down an appropriate
scope. This decision was made based on the results of a gap analysis
conducted during the year of the SASB standards. The applicability and
comprehensiveness of the standards best suits our current maturity levels,
but also provides room for continued improvement. In this report, we detail
our performance in addressing our material topics by disclosing against the
SASB reporting indicators. As the organisation matures, we aim to continue
aligning our performance with the SASB standards.

KEY ENVIRONMENT ACTIVITIES

Greenhouse Gas (GHG) Management

Effective GHG management will involve implementing renewable energy
solutions and a reduction in the release of GHG emissions throughout our
operations and assist in global decarbonisation efforts.

Our organisation relies on the expertise of industry leaders to determine of
emissions through the regular reporting through the national pollutions
inventory (NPI) and the national greenhouse and energy reporting (NGER)
process.

In FY22, Red 5 was responsible for the production of approximately
66,800 tonnes of CO2-e between its mining, exploration and corporate
operations. With the expanding activities at the KOTH operations this has
increased to 145,781 tonnes in FY23. Having this precision of information
allows the organisation to more fully assess and identify opportunities for
improvement in carbon management.

Our operations are designed to minimise disruptions to local
ecosystems where possible. We actively engage in
rehabilitation activities and promote initiatives to ensure that
local biodiversity is investigated, understood and managed for
the best outcomes.

Greenhouse Gas Emissions

Through continual improvement, we are actively working to
reduce our carbon emissions generated thought our production
pipeline. The adoption of renewable energy sources, energy-
efficient technologies, and carbon capture and storage
solutions are allowing us to develop an understanding of the
technologies available to the industry and how to incorporate
those into the future of our operations.

Community Engagement

We believe in fostering strong, positive and engaging
relationships with the communities in which we operate. This
involves regular consultations, transparent communication, and
initiatives aimed at ensuring that local community’s benefit from
our presence.

Workplace Health and Safety

The safety and well-being of our workforce are paramount. We
have implemented rigorous safety protocols, regular training
sessions, and health initiatives to ensure that our employees
work in a safe and supportive environment.

Ethical Governance and Anti-Corruption

We operate with the highest standards of integrity and
transparency. Our governance structures are designed to
prevent bribery, corruption, and other unethical practices,
ensuring that we remain accountable to our stakeholders.

Economic Contributions

Beyond our core operations, we are committed to contributing
positively to the economies of the regions in which we operate.
This includes providing fair wages, supporting local businesses
and communities.

Our operations will continue to develop, implement and
maintain management systems centred on the responsible use
of resources for future generations and with an appetite for
continual improvement.

2023 ANNUAL REPORT

ENVIRONMENTAL, SOCIAL AND GOVERNANCE Summary (cont.)

ESG PROGRESS REPORT (cont.)
KEY ENVIRONMENT ACTIVITIES (cont.)
KOTH

Power for the KOTH operation is sourced from an onsite
hybrid gas-solar power station. The installation is a 2 MW
solar farm feeding in the operation hub and solar arrays to
power several of the more remote production groundwater
bores with further options being evaluated to contribute to
reduction in the operation’s carbon emissions.

Water management

We are committed to optimising our water usage through
effective baseline monitoring, management, and routine
reporting. It is our responsibility to conserve this finite
resource, manage risks to water quality from our activities
and to operate in respect to other local resource users.

Darlot

Since the decommissioning of the processing circuit, the
Darlot operation has drastically decreased its water usage.
In FY23 approximately 508 kL of water was abstracted from
the underground to allow mining with 209 kL reused on site.
The Darlot borefield is still used to provide water for the
accommodation village including the ablutions, potable
supply and some minor uses across the operation
amounting to a further 108 kL during the same period.
Additional water supply from the neighbouring British King
has been placed in the care and maintenance but remains
as a potential source if needed.

KOTH

KOTH mine dewatering and existing production bores
around the pit provided the necessary water supply for the
KOTH processing plant construction, commissioning and
ramp up during FY22. In FY23 the re-commissioned Sullivan
borefield, including four new production bores, mine
dewatering and recycled tailings decant water continued to
support operations. Approximately 2.6 million kL were
abstracted across the three water licences at King of the
Hills, much of this was used during the construction phase
to build infrastructure such as tailings storage facilitate
construction activities, fed into the processing circuit and is
being used to manage dust across the operations as well as
supplying the KOTH accommodation village.

To improve our dust management at KOTH a dust
management program was introduced in from Q3 FY23.

This has seen a vast reduction in dust generated from
vehicle operations on site roads. In Q1 FY24 we will
commence trials on further opportunities to reduce dust
from our operations.

Waste Management

Appropriate waste management and safe disposal is critical to our industry to
minimise environmental impacts. We are committed to reducing our waste
generation and implementing recycling and reusing practices where possible
though the utilisation of the operational Waste Management Plan.

Darlot

Hydrocarbon wastes are all removed from site by a certified contractor,
transporting the wastes to an appropriate facility where it is disposed of in
accordance with State regulations.

Metals recycling is ongoing at the operation along with specialised waste
initiatives focussing on e-waste, HDPE pipe and decommissioned infrastructure.

Waste Generation - Darlot

Waste rock generated

Metric tons (t)

Hazardous waste generated

Metric tons (t)

Hazardous waste recycled

Metric tons (t)

248,480

1,551,272

9,373

Waste related non-compliance
incidents or violations

Number

KOTH

Disposal and recycling processes across the operation will continue to be
refined and improved in collaboration with our business partners, which will
include a new landfill, scrap storage/salvage and bioremediation area planned
for construction in FY24.

Waste Generation - KOTH

Non-mineral waste generated

Metric tons (t)

Waste rock generated

Metric tons (t)

Hazardous waste generated

Metric tons (t)

1,460

5,907,200

1,112,265

Waste related non-compliance
incidents or violations

Number

TSF Management

Responsible tailings storage facility management includes designing and
operating our TSFs according to best practice industry standards and
conformance with regulations. These critical details are encapsulated in the TSF
operating manuals of our sites and practiced through the inclusion of a full time
TSF engineer championing the facilities. This ensures the safety of our workers
and surrounding communities and minimise environmental impacts.

Tailings Storage Facilities

Unit

KOTH

Darlot

Total weight of tailings produced

metric tons (t)

4,218,065

34,608

Total mineral waste mined

metric tons (t)

11,448,574

246,155

KOTH TSF 5 – pictured below

2023 ANNUAL REPORT

ENVIRONMENTAL, SOCIAL AND GOVERNANCE Summary (cont.)

ESG PROGRESS REPORT (cont.)
KEY ENVIRONMENT ACTIVITIES (cont.)

Mine Closure and Land Rehabilitation

Red 5 has made adequate financial provision for required mine
closure activities and to support development of appropriate
post-mining land uses. To facilitate understanding of what the ideal
post-mining land uses will be, we will engage, discuss and listen to
the values of our stakeholders and efforts will be made to
accommodate where possible. The end goal of these provisions is
to bring the land to a reusable state and provide value to the
surrounding stakeholders including pastoral, heritage and local
government groups.

Updated Mine Closure Plans are due in FY24 for the operations and
will be of a level reflecting the site maturity. Darlot being at an
advanced level while KOTH will be more conceptual but will improve
in detail as the operations progresses.

Biodiversity

Red 5 undertook a number of pest control activities to more fully
control feral populations of cats, dogs and foxes. The sites also fall
within the northern rangelands management group boundaries who
strive to minimise and control the spread of opuntia cactus (prickly
pear) in the northern goldfields.

KEY SOCIAL ACTIVITIES

Human Rights

Respect for human rights is an essential aspect of any responsible
business. Our commitment to human rights includes ensuring fair
treatment of employees, avoiding discrimination, and promoting
ethical practices throughout our operations and supply chain.

We reviewed and implemented changes into our terms and
conditions for contracting parties to further enhance our
commitments.

Diversity and Inclusion

In alignment with the “Sexual Harassment on Women in the FIFO
Mining Industry” report released by the Western Australian
Parliament in 2022, we implemented a number of initiatives during
the year which will continue into FY24 and beyond. These included
a review of village operations to ensure that these are reflective of
broader community standards and this culminated in the
implementation of common policies at both our operations. Review
of our security operations were ongoing through FY23 in
partnership with an external provided and further enhancements in
this area are scheduled for implementation in Q1 and Q2 FY24.

Recruitment marketing was also improved with the creation of a
recruitment micro-site for the King of Hills Project and extensive
engagement via social media channels.

Employee Engagement

Primary focus in FY23 was to focus on improving our retention
of employees.

During the year we relocated our People and Culture team to being
100% site based to improve communication with the workforce and
management ensuring that we were able to work with our
employees in a timely and focused manner.

We have a range of policies in place that promote an inclusive work
environment free from discrimination and harassment. Our
investigation processes are robust and have been developed to
appropriately examine, explore, resolve and put in place control
measures to protect our stakeholders.

At Red 5, we recognise that we operate in a highly competitive
industry and sector. As a result, we are focused on creating a
supportive environment that appropriately recognises and rewards
our employees for their positive contributions and efforts. Various
arrangements are in place that help to promote a sense of
commitment, belonging and satisfaction. These include retention
bonuses, quarterly performance bonuses, and market salary
reviews. Since the previous financial year, our turnover rate has
decreased by 15%.

Moving forward, we will continue to develop and implement
initiatives that support a positive work environment and ensures
strong employee relations. Our future objectives include:

\ Undertaking an employee culture survey;

\ Implementation of the CORRE Values Awards;

\ Implementing mandatory Bullying and Harassment training;

\ Introduction of a leadership development program.

Workplace Health and Safety

With implementation of the new Workplace Health and Safety
legislation, regulations and codes of practices Red 5 commenced
the alignment of its health and safety management system to these
new requirements.

The Implementation of new workplace behaviour complaint process
was implemented during Q1 FY23. This will be further supported in
FY24 as Red 5 rolls out additional training for supervisors.

We have experience an overall improve in the lag indicators and the
business continued to focus field leadership as a method to further
improve our safety performance in FY24.

Cultural heritage

We operate in respect to the interests, customs, traditions, and
cultures of local communities and Indigenous groups. We are
committed to engaging and consulting with traditional owners to
ensure protection of important cultural heritage values and to
maintain a positive relationship.

All of Red 5’s operations fall on land recognised under Indigenous
Native Title. The Native Title Act 1993 (Cth) ensures the co-
existence of our operations with the recognition and protection of
Native Title. There were no non-compliance incidents or violations
involving the rights of indigenous peoples throughout the year. The
Darlot Native Title Claim was determined on 5 July 2022, and has
seen the ongoing efforts to negotiation of an agreement with Red 5
continuing in FY24.

The landscape of the region in which we operate holds special
significance for local traditional owners. Surveys involving specialist
archaeologists, anthropologists and the traditional owners have
been undertaken at all areas of our operations. Sites of importance
have been mapped and integrated into our mine planning process
to avoid impact and ensure their preservation for generations
to come.

2023 ANNUAL REPORT

ENVIRONMENTAL, SOCIAL AND GOVERNANCE Summary (cont.)

ESG PROGRESS REPORT (cont.)
KEY SOCIAL ACTIVITIES (cont.)

KEY GOVERNANCE ACTIVITIES

Community relations

Environmental Approvals and Compliance

During FY23 Red 5 continued its support of
the Leonora Gift and confirmed our support
of the Leonora Blazers youth basketball
team which attended the NAIDOC
basketball tournament in July 2023. In FY24
we look forward to being able to support a
range of community events and groups.

We undertook a number of feral pest control
programs at both KOTH and Darlot.
Through our ownership of Melrose Pastoral
Station we commenced a destocking
program and will be investigating a range of
programs in FY24 to further enhance the
pastoral lease operations.

During FY23, we conducted continuous
routine monthly, quarterly, and annual
compliance monitoring, sampling, and
reporting across the operations during the
year. Likewise, there were no fines or
penalties imposed on the Company, no
serious environmental incidents and no
material environmental harm.

In the reporting year, we further increased
the precision of our monitoring system by
improving the quality of the data
management system and building the body
knowledge of environmental requirements
amongst the leadership teams at both
KOTH and Darlot.

Proactive engagements with the
Environment Section have been undertaken
at both sites where cooperation between
operations and project teams have
accorded a holistic approach to risk
management relating to new projects.

During the FY23 compliance and reporting
requirements for both KOTH and Darlot
associated with environmental approvals,
compliance, care and maintenance and
rehabilitation obligations at the Great
Western operation have been achieved.

Additionally, a care and maintenance plan
has been completed and submitted to
DMIRS for the Darlot Tailings Storage
Facilities and Processing Plant.

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement

WESTERN AUSTRALIAN GOLD OPERATIONS
KING OF THE HILLS GOLD PROJECT

The combined Mineral Resource for the King of the Hills (KOTH)
Gold Project decreased by 3% for a reduction of 142koz, net after
depletion since 30 June 2022. However, within the KOTH open pit,
Measured ounces has increased by 185% through open pit grade
control drilling. While the KOTH underground resource has
increased Indicated ounces by 102%.

The combined open-pit and underground Ore Reserve at KOTH,
which includes regional open pit reserves, as at 30 June 2023 is
69.5Mt @ 1.1g/t for 2.46Moz of contained ounces. This represents
a decrease of 2% or 56koz, net after depletion since 30 June 2022.
The key catalyst for this decrease is the introduction of additional
modifying factors for oxide and transitional material.

During the 2023 financial year (FY23), Red 5 Limited (Red 5) has
completed a total of 146,729 grade control drill metres in the KOTH
open pit. This comprised of 137,031 metres drilled in Stage 1 and
9,698 metres drilled in Stage 2. For the KOTH underground, 75,365
drill metres were completed in FY23.

The KOTH Gold Project Mineral Resource, as at 30 June 2023, is
96.5Mt @ 1.4g/t for 4.5Moz of contained ounces. This estimate
includes historic stockpiles, ROM material and underground
broken stocks.

The KOTH Gold Project Mineral Resource and Ore Reserve
estimates, net of mining depletion, as of 30 June 2023 are detailed
on the next page.

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement (cont.)
WESTERN AUSTRALIAN GOLD OPERATIONS (cont.)
King of the Hills Gold Project Mineral Resource as at 30 June 2023

Project

Cut-off
Au (g/t)

Mining
Method

Classification

Measured

King of the Hills

0.4

Indicated

Inferred

Measured

1.0

Indicated

Inferred

Measured

Variable

All

Indicated

Inferred

Indicated

0.6

Inferred

Sub Total

Indicated

0.4

Inferred

Sub Total

Indicated

0.5

Inferred

Sub Total

Indicated

King of the Hills – Sub Total

Rainbow

Severn

Centauri

Cerebus-Eclipse

0.5

Inferred

Regional Resources

Variable

Regional Resources – Sub Total

King of the Hills and Regional Resources

Variable

Sub Total

Indicated

Inferred

Measured

Indicated

Inferred

Sub Total

Measured

Indicated

Inferred

Sub Total

Indicated

Measured

1.0

Variable

All

Indicated

Inferred

King of the Hills Gold Project – Sub Total

Stockpiles

Broken stocks

ROM

Stockpiles – Sub Total

King of the Hills Gold Project
(as at 30th June 2023)

Grand Total

Tonnes
(kt)

Grade Au
(g/t)

Contained
Au (koz)

4,056

55,658

9,009

11,901

4,622

4,092

67,559

13,630

85,282

1,380

200

1,580

480

440

920

1,390

320

1,710

2,160

650

2,810

5,410

1,610

7,020

4,056

61,068

10,619

75,742

11,901

4,622

16,560

92,302

1,682

2,543

4,244

6,654

74,651

15,240

96,545

1.1

1.3

1.2

2.3

2.4

2.0

1.1

1.5

1.3

1.4

1.3

1.7

1.5

1.6

1.5

1.3

1.5

1.3

1.1

1.2

1.4

1.3

1.4

1.1

1.3

1.2

1.3

2.3

2.4

2.0

2.3

1.5

0.4

1.7

0.5

0.9

1.5

1.4

142

2,375

359

911

297

145

3,286

657

4,087

112

242

308

142

2,617

425

3,184

911

297

1,211

4,395

189

3,552

723

4,463

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement (cont.)

WESTERN AUSTRALIAN GOLD OPERATIONS (cont.)
King of the Hills Gold Project Mineral Resource as at 30 June 2022

Project

Cut-off
Au (g/t)

Mining
Method

Classification

King of the Hills Gold Project

Variable

All

King of the Hills Gold Project – Sub Total

Stockpiles

Broken stocks

ROM

Stockpiles – Sub Total

King of the Hills Gold Project
(as at 30th June 2022)

Grand Total

Variable

All

King of the Hills Gold Project Mineral Resource - difference

King of the Hills Gold Project

Variable

All

Grand total - difference

Production for FY23

Measured

Indicated

Inferred

Indicated

Measured

Indicated

Inferred

Measured

Indicated

Inferred

Tonnes
(kt)

1,330

78,290

22,680

102,300

2,064

1,120

3,189

2,455

80,354

22,680

105,489

4,199

-5,703

-7,440

-8,944

4,861

Grade Au
(g/t)

Contained
Au (koz)

1.2

1.4

1.6

1.4

0.4

1.2

0.6

0.5

0.9

1.4

1.6

1.4

0.0

0.1

-0.1

0.0

0.9

3,492

1,156

4,698

0.2

3,520

1,156

4,748

117

-434

-285

143

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement (cont.)

WESTERN AUSTRALIAN GOLD OPERATIONS (cont.)
King of the Hills Gold Project Ore Reserve as at 30 June 2023

Project

Cut-off
Au (g/t)

Mining
Method

Classification

King of the Hills

0.4

King of the Hills – Sub Total

Rainbow

Centauri

1.4

0.3

Cerebus-Eclipse

0.3

Regional Resources – Sub Total

Stockpiles

Broken Stocks

ROM

Stockpiles – Sub Total

King of the Hills Gold Project
(as at 30 June 2023)

Grand Total

0.0

Variable

All

Variable

All

Proved

Probable

Sub Total

Proved

Probable

Sub Total

Proved

Probable

Sub Total

Proved

Probable

Sub Total

Proved

Probable

Sub Total

Probable

Proved

Probable

King of the Hills Gold Project Ore Reserve as at 30 June 2022

Project

Cut-off
Au (g/t)

Mining
Method

Classification

King of the Hills and Regional Resources

Variable

All

King of the Hills and Regional Resources - sub total

Stockpiles

Broken Stocks

ROM

Stockpiles – sub-total

King of the Hills Gold Project
(as at 30 June 2022)

Grand Total

Variable

All

Variable

All

King of the Hills Gold Project Ore Reserve - difference

King of the Hills Gold Project

Variable

All

Grand Total - difference

Production for FY23

Proved

Probable

Proved

Probable

Proved

Probable

Tonnes
(kt)

4,644

54,188

58,831

2,524

61,355

2,054

326

1,490

3,869

1,682

2,543

4,244

7,206

62,262

69,468

Tonnes
(kt)

1,327

65,740

2,064

1,007

3,076

2,339

67,804

70,143

4,866

-5,542

-676

4,894

Grade Au
(g/t)

Contained
Au (koz)

0.8

1.2

1.1

0.0

1.8

1.2

0.0

0.8

0.0

1.2

0.0

1.0

0.9

0.4

1.7

0.5

0.7

1.1

122

2,010

2,132

148

2,280

116

166

2,297

2,464

Grade Au
(g/t)

Contained
Au (koz)

1.0

1.2

0.4

1.2

0.6

0.5

0.8

1.2

-0.1

0.0

-0.1

0.9

2,573

2,600

2,663

104

-303

-199

143

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement (cont.)

WESTERN AUSTRALIAN GOLD OPERATIONS (cont.)
DARLOT GOLD PROJECT

The Mineral Resource for the Darlot Gold Project has decreased by
5koz, net after depletion since 30 June 2022. This decrease is the
result of mining depletions and drilling focusing on grade control
rather than resource definition during FY23. There was no change
to the surface mining Mineral Resources. During FY23, a total of
11,180 underground drill metres was completed.

The Darlot Gold Project Mineral Resource, as of 30 June 2023,
which includes all stockpiles, ROM, and underground broken
stocks, is 16.6Mt @ 3.3g/t for 1.8Moz of contained gold.

The Ore Reserve for the Darlot Gold Project has increased by 117%
for an increase of 61koz, net after depletion since 30 June 2022.
The major contributor to the increase in Ore Reserve is the addition
of new areas into the mine plan, namely Lower Burswood, Boon
West, Chappell, Dar Cent, and Upper Oval. The Darlot Gold Project
Ore Reserves as at 30 June 2023 is 1.4Mt @ 2.5g/t for 114koz of
contained ounces.

The Darlot Gold Project Mineral Resource and Ore Reserve
estimates, net of mining depletion, as of 30 June 2023 are
detailed below.

Darlot Gold Project Mineral Resource as of 30 June 2023

Cut-off
Au (g/t)

Mining
Method

Classification

Tonnes
(kt)

Grade Au
(g/t)

Contained
Au (koz)

Project

Darlot

2.0

Great Western

1.5

Underground – Sub Total

Darlot Region

0.5

Great Western

0.5

Open Pit – Sub Total

Darlot Gold Project – Sub Total

Broken stocks

ROM

Stockpiles – Sub Total

Darlot Gold Project
(as at 30 June 2023)

Grand Total

Variable

All

Variable

All

Measured

Indicated

Inferred

Measured

Indicated

Inferred

Measured

Indicated

Inferred

Measured

Indicated

Inferred

Measured

Indicated

Inferred

7,170

4,541

142

11,912

100

810

3,508

4,604

16,516

159

8,120

8,288

16,567

7.4

4.2

3.9

0.0

4.0

3.1

4.1

1.0

1.2

1.5

2.8

2.7

1.9

1.4

3.3

2.9

2.3

2.4

1.6

3.9

2.8

3.3

971

568

1,561

166

214

1,775

1,017

754

1,779

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement (cont.)

WESTERN AUSTRALIAN GOLD OPERATIONS (cont.)
Darlot Gold Project Mineral Resources as of 30 June 2022

Project

Cut-off
Au (g/t)

Mining
Method

Darlot and Great Western

0.5 - 2.0

All

Classification

Measured

Indicated

Inferred

Darlot Gold Project – Sub Total

Broken stocks

ROM

Stockpiles – Sub Total

Darlot Gold Project
(as at 30 June 2022)

Grand Total

Variable

Measured

0.5 - 2.0

All

Darlot Gold Project Mineral Resources – difference

Darlot Gold Project

0.5 - 2.0

All

Grand Total - difference

FY23 Production

Darlot Gold Project Ore Reserve as at 30 June 2023

Measured

Indicated

Inferred

Measured

Indicated

Inferred

Proved

Probable

Proved

Probable

Proved

Probable

Proved

Probable

Cut-off
Au (g/t)

Mining
Method

1.7 - 2.4

Classification

Proved

Probable

Variable

Proved

Variable

All

Variable

Proved

Variable

All

Project

Darlot

Darlot Gold Project – Sub Total

Broken Stocks

ROM

Stockpiles – Sub Total

Darlot Gold Project
(as at 30 June 2023)

Grand Total

Darlot Gold Project – Sub Total

Broken stocks

ROM

Stockpiles – Sub Total

Darlot Gold Project
(as at 30 June 2022)

Grand Total

Darlot Gold Project Ore Reserve as at 30 June 2022

Darlot

1.7 – 2.4

Darlot Gold Project Ore Reserve – difference

Darlot Gold Project

Variable

All

Grand total - difference

Production for FY23

Tonnes
(kt)

108

8,099

8,593

16,800

251

267

375

8,099

8,593

17,067

-216

-305

-500

702

Tonnes
(kt)

1,341

1,393

1,246

1,256

1,305

702

Grade Au
(g/t)

Contained
Au (koz)

1.1

3.9

2.9

3.4

2.3

0.6

0.7

0.8

3.9

2.9

3.4

0.8

-0.1

0.0

2.5

1,032

798

1,834

1.0

1,032

798

1,840

-2

-15

-44

-61

Grade Au
(g/t)

Contained
Au (koz)

0.0

2.6

2.9

2.3

2.4

2.6

2.5

0.0

2.6

2.3

1.6

1.8

2.6

0.6

-0.1

1.9

2.5

110

114

106

109

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement (cont.)

PHILIPPINES OPERATIONS
SIANA GOLD PROJECT

During the 2022 financial year, the Group divested its interests in the Siana Gold Project located in the Philippines and retains a 3.25% Net
Smelter Return royalty payable up to 619,000oz of gold produced.

COMPETENT PERSON’S STATEMENT
Accountabilities for compilation of the 2023 annual Mineral Resource and Ore Reserve estimates are summarised in the table below.

COMPETENT PERSONS FOR JORC 2012 MINERAL RESOURCE AND ORE RESERVE

Discipline

Competent Person

Role

Project

Mineral Resources

Byron Dumpleton

Ore Reserves

Kevin Oborne

Chief Geologist
(Red 5 Limited)

Group Technical
Services Manager
(Red 5 Limited)

King of the Hills
Darlot
Great Western
Regional Resources

King of the Hills
Darlot
Regional Resources

Professional
Membership

Membership
Number

AIG

1598

AusIMM

226591

Mineral Resource

Ore Reserve

Mr Byron Dumpleton confirms that he is the Competent Person
for the Mineral Resources summarised in this report and Mr
Dumpleton has read and understood the requirements of the
2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC
Code, 2012 Edition). Mr Dumpleton is a Competent Person as
defined by the JORC Code, 2012 Edition, having more than five
years’ experience that is relevant to the style of mineralisation
and type of deposit described in this report and to the activity for
which he is accepting responsibility. Mr Dumpleton is a Member
of the Australian Institute of Geoscientists, No. 1598. Mr
Dumpleton is a full time employee of Red 5 Limited. Mr
Dumpleton has reviewed this report and consents to the inclusion
of the matters based on his supporting information in the form
and context in which it appears.

Mr Dumpleton verifies that the Exploration Results and Mineral
Resource estimate section of this report is based on and fairly
and accurately reflects in the form and context in which it
appears, the information in his supporting documentation relating
to Open Pit and Underground Mineral Resource estimates.

Mr Kevin Oborne confirms that he is the Competent Person for
the underground and open-pit Ore Reserve estimates
summarised in this report and Mr Oborne has read and
understood the requirements of the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code, 2012 Edition). Mr
Oborne is a Competent Person as defined by the JORC Code,
2012 Edition, having more than five years’ experience that is
relevant to the style of mineralisation and type of deposit
described in the report and to the activity for which he is
accepting responsibility. Mr Oborne is a Member of the
Australasian Institute of Mining and Metallurgy, No. 226591. Mr
Oborne is a full time employee of Red 5 Limited. Mr Oborne has
reviewed this report and consents to the inclusion of the matters
based on his supporting information in the form and context in
which it appears.

Mr Oborne verifies that the Ore Reserve section of this report is
based on and fairly and accurately reflects in the form and
context in which it appears, the information in his supporting
documentation relating to the Ore Reserves.

Red 5 confirms that it is not aware of any new information or data
that materially affects the information included in the original ASX
market announcements and that all material assumptions and
technical parameters underpinning the estimates in the relevant
ASX market announcements continue to apply and have not
materially changed. The Company confirms that the form and
context in which the Competent Persons findings are presented
have not been materially modified from the original market
announcements.

2023 ANNUAL REPORT

MINERAL RESOURCES AND ORE RESERVES Statement (cont.)

GENERAL NOTES
Mineral Resources are quoted as inclusive of Ore Reserves and
Ore Reserves are quoted as inclusive of Mineral Resources.
Discrepancy in summation may occur due to rounding. Figures
take into account mining depletion as at 30 June 2023. Figures also
include ROM, stockpiles and underground broken stocks as at
30 June 2023.

For information that relates to KOTH Gold Project Resources and
Reserves, and Darlot Gold Project Resources and Reserves, refer
to the ASX release dated 7 September 2023 and titled “Mineral
Resources and Ore Reserves ”.

KING OF THE HILLS GOLD PROJECT

Mineral Resources:

1. KOTH open pit resource figures are based on a Measured,
Indicated and Inferred pit optimisation shell. This shell was
generated with a gold price of A$2,700/oz and with updated
unit cost data and pit wall guidelines.

2. The information that relates to Centauri and Cerebus-Eclipse,

which forms part of the KOTH Regional Resources, refer to ASX
release dated 1 May 2019 titled “Maiden JORC open pit
Resources defined for near-mine regional deposits at King of
the Hills”.

Ore Reserves:

1. KOTH Gold Project reserves are based on a gold price of

A$2,400/oz.

2. Cut-off grades for KOTH open pit are 0.4g/t, KOTH

underground are 1.3g/t, and regional reserves (Rainbow,
Centauri, and Cerebus-Eclipse) are 0.4g/t.

3. KOTH Gold Project open pit reserves are generated with

detailed pit designs.

4. Ore loss and mining dilution for all open-pit reserves were

reflected in the SMU process. Additional mining dilution and ore
loss is applied to weathered material.

5. Underground reserves have planned dilution varying between
5% to 15% with planned mining recovery between 90% to
95%.

6. KOTH Gold Project open pit reserves do not include any

Inferred material.

7. KOTH underground reserves include a proportion of Inferred

material that is entrained within the proved and probable stope
designs.

DARLOT GOLD PROJECT

Mineral Resources:

1. For the Darlot open pit regional resources, Darlot Mining

Company Pty Ltd (DMC) has a Joint Venture (JV) with PanAust
Limited where DMC owns 84% and PanAust owns 16%.
The resources under the JV are Waikato South, totalling
1,902kt @ 0.8g/t for 50koz of contained gold, and Cornucopia
North, totalling 62kt @ 1.3g/t for 3koz of contained gold. For
information that relates to these deposits refer to the ASX
release dated 10 February 2020 titled “Red 5 Resource and
Reserve growth at Darlot Gold Mine”.

Ore Reserves:

1. Darlot Gold Project reserves are based on a gold price of

A$2,400/oz.

2. Cut-off grades for the underground reserves are 2.4g/t Au.

3. Underground reserves have planned dilution varying between

10% to 20% with planned mining recovery between
90% to 95%.

4. Underground reserves include a proportion of Inferred material
that is entrained within the proved and probable stope designs.

GOVERANCE AND INTERNAL CONTROLS

Mineral Resources and Ore Reserves are estimated either by
suitably qualified consultants or internal personnel in accordance
with the applicable JORC Code and using industry standard
techniques and internal guidelines for the estimation and reporting
of Mineral Resources and Ore Reserves. All data is collected in
accordance with applicable JORC Code requirements. Ore
Reserve estimates are based on pre-feasibility or feasibility studies
which consider all material factors.

The estimates and supporting data and documentation are
reviewed by qualified Competent Persons (including estimation
methodology, sampling, analytical and test data).

2023 ANNUAL REPORT

TENEMENT Schedule 2 August 2023

WESTERN AUSTRALIA

Project

Tenement number

King of the Hills Gold Mine

Darlot Gold Mine

E37/1385, E37/1409, E37/1410, L37/0211, L37/0248, L37/0250, M37/0021,
M37/0067, M37/0076, M37/0090, M37/0179, M37/0201, M37/0222,
M37/0248, M37/0330, M37/0394, M37/0407, M37/0410, M37/0416,
M37/0429, M37/0449, M37/0451, M37/0457, M37/0496, M37/0529,
M37/0544, M37/0547, M37/0548, M37/0551, M37/0570, M37/0571,
M37/0572, M37/0573, M37/0574, M37/0905, M37/1050, M37/1051,
M37/1081, M37/1105, M37/1165, P37/9157, P37/9160, P37/9161,
P37/9270, P37/9271, P37/9281, P37/9282, P37/9283, P37/9284,
P37/9285, P37/9286, P37/9287, P37/9288, P37/9289, P37/9290,
P37/9291, P37/9293, P37/9294, P37/9295, P37/9392, P37/9393,
P37/9394, P37/9395, P37/9396, P37/9397, P37/9398, P37/9399,
P37/9400, P37/9401, P37/9402, P37/9403, P37/9404, P37/9405,
P37/9406, P37/9407, P37/9408, P37/9409, P37/9410, P37/9491, P37/9492

P37/9292, P37/9626

E36/0865, E36/0940, E36/0941, E36/0944, E36/0945, E36/0964, E36/0968,
E36/0969, E36/0980, E36/0997, E36/0999, E36/1002, E37/1194, E37/1195,
E37/1210, E37/1247, E37/1253, E37/1268, E37/1269, E37/1296, E37/1297,
E37/1298, E37/1319, E37/1321, E37/1322, E37/1350, E37/1352, E37/1369,
E37/1378, E37/1391, E37/1393, E37/1395, E37/1398, E37/1400, E37/1413,
E37/1415, E37/1428, G37/0037, L37/0118, L37/0206, L37/0207, L37/0223,
L37/0224, L37/0230, L37/0231, L37/0237, M37/0054, M37/0155,
M37/0252, M37/0373, M37/0417, M37/0418, M37/0419, M37/0420,
M37/0503, M37/0584, M37/0592, M37/0608, M37/0667, M37/0774,
M37/0775, M37/1217, P36/1879, P36/1883, P36/1884, P36/1889,
P36/1920, P36/1921, P37/8587, P37/8699, P37/8716, P37/8788,
P37/8789, P37/9210, P37/9345

Red 5 interest

100%

100% (Applications pending)

100%

E36/1027, E36/1044, E36/1051, E36/1056, E36/1072, E36/1073, E37/1512,
E37/1521, L37/0238, P36/1931

100% (Applications pending)

E37/1220

E37/1271, E37/1272, E37/1273, E37/1274, E39/1706, E39/1854, E39/1985

Right to explore and mine
Sub-Lease Area

Farm-in agreement to earn up
to 80%

M37/0552, M37/0631, M37/0709, M37/1045

M37/0246, M37/0265, M37/0320, M37/0343, M37/0345, M37/0393,
M37/0776

30%

84%

M37/0421, M37/0632

Montague Project

M57/0429, M57/0485, E57/0793

100% with a portion of
tenements at 30% via
agreement

25% free carried

Abbreviations

M: Mining Lease

P: Prospecting Licence

E: Exploration Licence

L: Miscellaneous Licence

2023 ANNUAL REPORT

DIRECTORS’ Report

The Directors of Red 5 Limited (“Red 5” or “parent entity”) present
their report on the results and state of affairs of Red 5 and its
subsidiaries (“the Group” or the “consolidated entity”) for the year
ended 30 June 2023.

1. DIRECTORS AND

COMPANY SECRETARY

The names of the Directors of Red 5 in office during the course of
the financial period and at the date of this report are as follows:

Russell Clark (Chair, appointed 1 July 2023)
Andrea Sutton (Acting chair, 13 March 2023 to 30 June 2023)
Mark Williams (Managing Director)
Peter Johnston (Non-Executive Director, appointed 10 July 2023)

Ian Macpherson (Non-Executive Director)
Colin Loosemore (Non-Executive Director)
Steve Tombs (Non-Executive Director)
Kevin Dundo (Chair, resigned 12 March 2023)
Fiona Harris (Non-Executive Director, resigned 6 December 2022)

In July 2023, Red 5 made two important Board appointments with
the appointment of a new Chair, Mr Russell Clark, and non-
executive Director, Mr Peter Johnston. Mr Clark and Mr Johnston
are highly respected global mining executives who bring further
significant mining and governance capability to the Red 5 Board
of Directors.

Unless otherwise indicated, all Directors held their position as a
Director throughout the entire financial period and up to the date
of this report.

Other listed
company
directorships

1.1

INFORMATION ON DIRECTORS

Russell Clark

Non-Executive Chair (from 1 July 2023)

Appointment
date

Qualifications

Experience

Other listed
company
directorships

Non-executive Chair from July 2023.

BSc Mineral Resources Eng. (Hons), GradDip
FinInv, FAICD.

Mr Clark is an internationally experienced
mining professional and director with over 40
years of experience in senior corporate,
operational and project development roles.
During his career, Mr Clark served as
Managing Director and CEO of Grange
Resources for five years, as Group Executive
of Operations for Newmont he managed the
group’s Australian and New Zealand
Operations including the KCGM mine in
Kalgoorlie, and he held a number of mine
general manager roles for Normandy Mining.
Mr Clark is a qualified Mining Engineer and
has worked across Australia, North and
South America, Africa, Europe and the Asia
Pacific.

Chair of CZR Resources Ltd (since
September 2021).

Chair of Pearl Gull Iron Ltd (since July 2021).

Non-executive director of Tungsten Mining
NL (since February 2020).

Andrea Sutton

Non-Executive Director (Acting Chair from
13 March 2023 to 30 June 2023)

Appointment
date

Non-executive Director since November 2020
and acting Chair from March 2023 to 30 June
2023.

Special
responsibilities

Chair of the Sustainability Committee.

Member of the Audit and Risk Committee.

Member of the Remuneration and
Nomination Committee.

Qualifications

B.Eng Chemical (Hons), GradDipEcon,
GAICD.

Experience

Ms Sutton is a qualified Chemical Engineer
and has over 25 years’ experience with Rio
Tinto and ERA. Between 2013 and 2017, Ms
Sutton was Chief Executive and Managing
Director of ERA, then a Non-Executive
Director from 2018 to 2020. Ms Sutton had
extensive executive and operational
leadership roles across Rio Tinto. This
experience included Head of Health,
Environment, Safety and Security; General
Manager Operations at the Bengalla Mine
and General Manager of Infrastructure, Iron
Ore.

Non-executive director of:

- DDH1 Holdings Pty Ltd (since February

2021);

Iluka Resources Limited (since March
2021); and

- Energy Resources of Australia Ltd
(October 2018 to May 2020).

Mark Williams

Executive Director

Appointment
date

Non-Executive Director from January 2014
and Managing Director since April 2014.

Special
responsibilities

Managing Director

Qualifications

Dip CSM Mining, GAICD.

Experience

Other listed
company
directorships

Mr Williams was previously General Manager
of the Tampakan Copper-Gold Project in the
southern Philippines from 2007 to 2013. He
has over 26 years’ of mining experience
operating within a diverse range of open cut,
underground, quarrying and civil engineering
environments across the developed markets
of Australia, United Kingdom and New
Zealand as well as the emerging markets of
Philippines, Vietnam, Thailand and South
Pacific.

Mr Williams has not held directorships in any
other listed companies in the past 3 years.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

1. DIRECTORS AND

COMPANY SECRETARY (cont.)

Peter Johnston

Non-Executive Director

Appointment
date

10 July 2023

Qualifications

BA, FAICD, FAusIMM.

Experience

Other listed
company
directorships

Mr Johnston is a highly experienced
Australian mining executive and Board
Director who has more than 35 years of
operational and project development
experience. Mr Johnston’s distinguished
career has seen him hold senior roles with
major resource companies including Head of
Global Nickel Assets for Glencore, Managing
Director and Chief Executive Officer of
Minara Resources and Executive General
Manager at WMC Resources for Olympic
Dam, the Nickel Division and the Copper and
Fertilisers Division.

Chair of Jervois Mining (since 2018).

Non-Executive Director of:
NRW Holdings Limited (since 2016); and
Tronox (US) (since 2012).

Ian Macpherson

Non-Executive Director

Appointment
date

Special
responsibilities

April 2014

Chair of the Audit Committee; and

Member of the Remuneration and
Nomination Committee.

Qualifications

B.Comm, CA.

Experience

Other listed
company
directorships

Mr Macpherson is a Chartered Accountant
with over 35 years’ experience in the
provision of financial and corporate advisory
services. He was a former partner at Arthur
Andersen & Co managing a specialist
practice providing corporate and financial
advice to the mining and mineral exploration
industry. Mr Macpherson established Ord
Partners in 1990 (later to become Ord Nexia)
and has specialised in the area of corporate
advice with particular emphasis on capital
structuring, equity and debt raising,
corporate affairs and stock exchange
compliance for publicly listed companies.

Chair of RBR Group Limited (since October
2010).

Colin Loosemore Non-Executive Director

Appointment
date

Special
responsibilities

December 2014

Member of the Sustainability Committee.

Member of the Audit Committee.

Qualifications

B.Sc.Hons., M.Sc., DIC., FAusIMM.

Experience

Mr Loosemore is a Geologist with over 40
years’ experience in multi-commodity
exploration including over 30 years as a
director of public exploration companies
within Australia and overseas. He graduated
from London University in 1970 and the Royal
School of Mines in 1977. Mr Loosemore was
most recently Managing Director of
Archipelago Resources plc where he oversaw
the development of the Toka Tindung Gold
Mine in Sulawesi, Indonesia.

Other listed
company
directorships

Mr Loosemore has not held directorships in
any other listed companies in the last 3
years.

Steve Tombs

Non-Executive Director

Appointment
date

August 2018

Special
responsibilities

Chair of the Remuneration and Nomination
Committee.

Member of the Sustainability Committee.

Qualifications

B.Sc.Hons, FAusIMM.

Experience

Other listed
company
directorships

Mr Tombs is a Mining Engineer with over 40
years’ experience in the mining industry in
Australia and overseas. Mr Tombs graduated
from Nottingham University in 1976 and was
previously Red 5’s General Manager at Darlot
and the Underground Project Manager at
Siana. Mr Tombs previously held Senior
Management positions at AngloGold Ashanti,
Placer Dome and Newcrest.

Mr Tombs has not held directorships in any
other public companies in the last 3 years.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

1. DIRECTORS AND COMPANY SECRETARY (cont.)
1.2

INFORMATION ON COMPANY SECRETARY

Lisa Wynne

Joint Company Secretary

David Coyne

CFO & Joint Company Secretary

Appointment
date

18 August 2023

Appointment
date

4 September 2023

Qualifications

B.Bus, CA, FGIA, MAICD.

Qualifications

B.Com, CPA, Grad. Dip, MAICD.

Experience

Ms Wynne is a Chartered Accountant
with over 18 years’ experience in
finance, accounting, corporate
governance, strategy, risk management
and mergers & acquisitions. Ms Wynne
has held senior roles as Chief Financial
Officer, Company Secretary and
Non-Executive Director for ASX-listed
and not-for-profit companies.

Mr Coyne is a CPA with over 30 years’ experience in
the mining, and engineering and construction
industries, both within Australia and internationally. He
is experienced in debt and equity financing, corporate
governance, risk management, accounting and
acquisitions and divestments. In addition to previous
company secretarial roles, Mr Coyne has also served
as a director for ASX-listed mining companies in both
executive and non-executive capacities.

1.3 DIRECTOR’S MEETINGS

The number of meetings of the Board of Directors of Red 5 and of each Board committee held during the year ended 30 June 2023 and
the number of meetings attended by each Director whilst in office are as follows:

Board
meetings

Audit
Committee

Remuneration &
Nomination
Committee

Risk, Environment
& Sustainability
Committee

Health, Safety
& Community
Committee

Director

Eligible

Attended

Eligible

Attended

Eligible

Attended

Eligible

Attended

Eligible

Attended

Andrea Sutton

Mark Williams

Ian Macpherson

Colin Loosemore

Steven Tombs

Kevin Dundo

Fiona Harris

2. PRINCIPAL ACTIVITIES
The principal activities of Red 5 and the consolidated entity (which includes associated entities of Red 5) during the financial period
were gold mining and mineral exploration.

3. RESULTS OF OPERATIONS
Red 5 incurred a net loss of the consolidated entity after income tax for the year ended 30 June 2023 of $8.7 million (30 June 2022:
loss of $28.6 million after a gain from discontinued operation).

The current year results include an unaudited underlying EBITDA(a) of $96.1 million (2022: loss of $4.3 million).

Sales revenue

Cost of sales (excluding depreciation)

Other income

Administration and other expenses (excluding depreciation)

Exploration expenditure

Underlying EBITDA

30 June 2023

30 June 2022

$’000

422,745

(311,875)

811

(8,419)

(7,181)

96,081

$’000

164,962

(153,934)

208

(12,972)

(2,522)

(4,258)

(a) Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) is an unaudited non - IFRS measure and is a common

measure used to assess profitability before the impact of different financing methods, income taxes, depreciation of property, plant and
equipment and amortisation of intangible assets, fair value movements.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

3. RESULTS OF OPERATIONS (cont.)
The underlying EBITDA reconciles to the profit/(loss) before tax as
follows:

Underlying EBITDA

Financing income

Financing expenses

Depreciation and
amortisation

Loss from continuing
operations before income tax
expense

30 June 2023

30 June 2022

$’000

96,081

$’000

(4,258)

(21,721)

(2,815)

(83,151)

(42,514)

(8,730)

(49,579)

3.1 REVIEW OF OPERATIONS

During the financial year, Red 5 completed the ramp-up to
steady-state gold production at the King of the Hills (KOTH) mine,
located in the Eastern Goldfields region of Western Australia,
following the completion of its newly constructed processing plant
in 2022. The KOTH process plant receives ore from the KOTH
Open Pit mine, KOTH Underground mine and Darlot Underground
satellite mine. Mining operations continued at the Darlot
underground mine throughout the reporting period, with the Darlot
processing plant going into care and maintenance on
28 July 2022.

Commercial production was declared at KOTH on 16 December
2022. Following a delay in completing the cut back of the KOTH
open pit due to the impacts of COVID-19, mining reached the
primary zone of the ore body in February 2023, which resulted in
access to large contiguous high-grade ore zones and a sustained
improvement in the ore feed to the processing plant.

Throughout the second half of FY2023, Red 5 has demonstrated a
consistent improvement in results, month on month, with the June
Quarter delivering sustained positive cashflows. The company
delivered four consecutive months of record production since
March 2023, underpinning total production for the second half of
the year of 102,574 ounces, compared to the first half of 62,970
ounces. This paved the way for an all-in-sustaining-cost of
$1,837 per ounce, placing the company in the upper end of
production guidance and mid-range of cost guidance for the
second half of FY2023.

The KOTH process plant also achieved record throughput rates
for the June 2023 quarter. In June, it has been operating at an
annualised throughput rate of up to 5.5Mtpa – a significant
increase from the original nameplate capacity of 4.0Mtpa, and this
rate is expected to be maintained.

Operations have been cash flow positive since March 2023,
putting Red 5 in a solid position to continue to de-leverage and
strengthen the balance sheet for the future. The Company’s Net
Debt position improved by $56.6 million during the second half of
the year to be $81.9 million at 30 June 2023.

(a) Gold production

A total of 165,544 ounces of gold were recovered at the KOTH and
Darlot process plants for the 12 months to 30 June 2023, sourced
from the three gold mine operations. The Darlot plant transitioned
to care and maintenance in July 2022.

A summary of key production statistics for the year ended 30 June
2023 and 30 June 2022 is provided below:

Mined tonnes

Mined grade

Tonnes milled

Average head grade

Recovery

Gold produced

Gold sold

Year ended

Units

30 June 2023

30 June 2022

g/t

5,654,934

2,660,914

1.11

1.15

4,252,673

1,359,974

1.31

92.2

165,544

164,974

1.66

92.1

66,871

64,315

The Group delivered total gold production from its King of the Hills
Open Pit, Underground and Darlot mines of 165,544 ounces for
the year ended 30 June 2023, recovered from 4,252,673 tonnes of
ore processed at an average head grade of 1.31g/t Au.

Gold sales of 164,974 ounces for the year underpinned revenue of
$422.7 million. The Group posted a gross operating profit of
$28.1 million.

Exploration and Resource Development

At KOTH, drilling during the reporting period focused on grade
control drilling of key mining areas and extensional drilling along
the high-grade trend south of Regal from the East-West Link area.
Assay results to date and visual inspection of the core indicate the
potential for further future increases in the KOTH Mineral
Resource estimate.

Drilling at the Darlot Underground satellite mine has confirmed
Ore Reserves underpinning the FY24 and FY25 mine plan and
identified new targets for potential Resource extension.
Encouraging results have been recorded in a number of key areas,
which have confirmed and, in some instances, identified the
potential to upgrade existing Resource estimates.

Exploration drilling has also generated new targets for Resource
extension at Darlot, with strong results received from a part-
Government-funded Exploration Incentive Scheme (EIS) hole
(CAX0075), drilled just 320m from the current development in the
Lords South mining area. Surface grade control drilling at the St
George open pit satellite deposit at Darlot also returned significant
intersections, with the potential development of a satellite open pit
at St George to be evaluated at a later date.

Regional aircore drilling was undertaken at Mt Zephyr, Gale South
and Yandal South. Soil sampling programs in the Darlot area
focused on Great Southern, Taranaki Mag High, Mt Zephyr West,
Yandal South, Bundarra, Yandal North and Darlot North, designed
to in-fill gaps in existing datasets.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

3. RESULTS OF OPERATIONS (cont.)
3.1 REVIEW OF OPERATIONS (cont.)
Resource and Reserves at King of the Hills

In September 2023, Red 5 reported a continued increase in Resource confidence at King of the Hills (KOTH), with a 185% increase in
open pit Measured Resources and a 102% increase in underground Indicated Resources. A total of 75,365m of underground drilling
and 137,031m of open pit grade control drilling was completed at KOTH during FY2023 with significant emphasis placed on grade
control and Resource conversion, particularly in the KOTH underground where drilling focused on de-risking stoping areas within
FY2024 and FY2025 mine plans.

The updated KOTH Gold Project Mineral Resource estimate at 30 June 2023 comprising a total Measured, Indicated and Inferred
Mineral Resource of 96.5Mt at 1.4g/t Au for 4.5Moz of contained gold.

The updated KOTH Gold Project Ore Reserve estimate at 30 June 2023 comprising a total Proved and Probable Ore Reserve of 69.5Mt at
1.1g/t Au for 2.5Moz of contained gold, including 62.7Mt at 1.1g/t Au for 2.2Moz of contained gold for open pit Reserves. This includes a
+191% increase in contained ounces in the Proved Reserve category. For the underground Reserve a total of 2.5Mt at 1.8g/t Au for 0.1Moz
of contained gold, representing a +10% increase in contained ounces, post depletion, since the previous estimate at 30 June 2022.
Stockpiles and underground Broken Stocks as at 30 June 2023 comprise a total of 4.2Mt at 0.5g/t Au for 0.1Moz of contained gold.

9,500N

10,000N

10,500N

11,000N

11,500N

King of the Hills Open Pit Ore Reserves

Stockpiles and ROM of 4.2Mt
at 0.5g/t for 0.1Moz as at 30 June 2023

5,000 Elev

STAGE 5
FY2028 to FY2037

Reserve (Mt)
Grade (g/t)
Contained Au
Strip Ratio (W:O)

8.3
1.2
0.3
10.8

STAGE 1
Present to FY2026

Reserve (Mt)
Grade (g/t)
Contained Au (Moz)
Strip Ratio (W:O)

7.8
1.0
0.2
3.7

NORTH

200m

Current open pit and surface

STAGE 2
Present to FY2031

Reserve (Mt)
Grade (g/t)
Contained Au (Moz)
Strip Ratio (W:O)

16.6
1.0
0.6
5.4

STAGE 3
FY2025 to FY2034

Reserve (Mt)
Grade (g/t)
Contained Au (Moz)
Strip Ratio (W:O)

11.7
1.2
0.5
5.7

1 Topography, designs and figures as at 30 June 2023.
2. Discrepency in summation may occur due to rounding.
3. Figures quoted for ‘Strip Ratio’ are derived from Life-of-Mine plan, which includes Inferred Mineral Resources.

KOTH Open Pit Ore Reserves and Mining Inventory at 30 June 2023.

Resources and Reserves at Darlot

STAGE 4
FY2027 to FY2037

Reserve (Mt)
Grade (g/t)
Contained Au (Moz)
Strip Ratio (W:O)

14.4
1.2
0.6
5.9

Red 5 delivered an updated Darlot Gold Project Mineral Resource estimate at 30 June 2023 comprising a total Measured, Indicated and
Inferred Mineral Resource of 16.6Mt at 3.3g/t Au for 1.8Moz of contained gold. This includes the Darlot regional underground resources,
open pit resources and stockpiles.

The updated Darlot Gold Project Ore Reserve estimate at 30 June 2023 provided a total Proved and Probable Ore Reserve of 1.4Mt at
2.5g/t Au for 114koz of contained gold, including stockpiles and broken stocks.

The updated Darlot Ore Reserves delivered a +117% increase in contained ounces, post depletion, since the previous estimate at 30
June 2022, reflecting grade control drilling and new mining areas at Lower Burswood, Boon West, Chappell, Dar-Cent and Upper Oval.

JORC 2012 Mineral Resource and Ore Reserves

Red 5 confirms that it is not aware of any new information or data that materially affects the information included in the original market
announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market
announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the
Competent Persons findings are presented have not been materially modified from the original market announcements.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

3. RESULTS OF OPERATIONS (cont.)
3.1 REVIEW OF OPERATIONS (cont.)

(b)

Siana Gold Project, Philippines

The Group divested its interests in the Philippine-affiliated
company, Greenstone Resources Corporation (GRC), which
holds the Siana Gold Project and the Mapawa Gold Project in
the Philippines, in September 2021 to TVI Resource
Development (Phils) Inc.

As part of the transaction, the Group is due a Net Smelter Return
royalty of 3.25% payable for up to 619,000 ounces of gold, with
an estimated future face value of US$36.0 million (based on a
US$1,800/oz gold price). As per the accounting standards, the
royalty represents a variable consideration and is treated as a
contingent asset until re-commencement of production at Siana.

Siana restarted operations in FY23. The first royalty from Siana
was received in the second half of FY23, amounting to $0.4
million, which is included in other income.

The $175.0 million debt funding package supporting the
construction and development of King of the Hills was fully
drawn down in the prior year. Repayments of the debt funding
package commenced in December 2022 and will be paid over
four years. $47.3 million was repaid in the current year. $127.8
million of debt is remaining at 30 June 2023, with net debt of
$81.9 million at 30 June 2023. Borrowing costs of $2.7 million
were capitalised to the loan.

To support the ramp up of the new KOTH operations, Red 5
undertook two capital raisings during the year:

In October 2022, a $60.0 million two-tranche share
placement and a $9.0 million Share Purchase Plan (SPP) for
retail shareholders.

In March 2023, a $80.0 million two-tranche placement and
$10.0 million SPP for retail shareholders.

Two key executive appointments were made during the year:

\ Richard Hay was appointed as Chief Operating Officer,
taking over from Jason Greive. Mr Hay is a seasoned
geologist and a highly experienced mining executive with
previous senior management and operational leadership
roles at Evolution Mining, Barrick Gold and Gascoyne
Resources. Before the appointment, Mr Hay had been
working for Red 5 for six months, assisting with Darlot’s
transition to being a satellite underground mine to KOTH,
allowing for a smooth transition.

\ Patrick Duffy was appointed as Chief Financial Officer,
taking over from John Tasovac. Mr Duffy is a Chartered
Accountant with extensive commercial, financial and
governance expertise having worked at Ernst & Young,
Xstrata and Glencore. Mr Duffy was previously the Chief
Corporate Development Officer of Red 5, and the roles were
combined.

In July 2023, Red 5 made two important Board appointments
with the appointment of a new Chair,
Mr Russell Clark, and non-executive Director, Mr Peter Johnston.
Both Mr Clark and Mr Johnston are highly respected global
mining executives that further significant mining and governance
capability to the Red 5 Board of Directors.

(d)

Sustainability

At Red 5, we are acutely aware of the unique challenges and
responsibilities that come with operating in the mining industry.
Our commitment to sustainability is not just a corporate slogan; it is
a guiding principle that shapes our operations.

The following outlines our Sustainability Policy:

Environmental Stewardship

Workplace Health and Safety

The safety and well-being of
our workforce are
paramount. We have
implemented rigorous safety
protocols, regular training
sessions, and health
initiatives to ensure that our
employees work in a safe
and supportive environment.

Recognising the potential impacts
of our operations on the
environment, we are committed to
responsibly managing the land
and resources on which we
depend and share with our
neighbours and future
generations. We will continue to
adopt approaches to minimise
water usage, prevent
contamination and ensure safe
disposal of waste, prioritising the
health of the surrounding
environment and our stakeholders.

Biodiversity Conservation

Community Engagement

We believe in fostering
strong, positive and
engaging relationships with
the communities in which we
operate. This involves regular
consultations, transparent
communication, and
initiatives aimed at ensuring
that local communities
benefit from our presence.

Ethical Governance and
Anti-Corruption

We operate with the highest
standards of integrity and
transparency. Our
governance structures are
designed to prevent bribery,
corruption, and other
unethical practices, ensuring
that we remain accountable
to our stakeholders.

Our operations are designed to
minimise disruptions to local
ecosystems where possible. We
actively engage in rehabilitation
activities and promote initiatives
to ensure that local biodiversity is
investigated, understood and
managed for the best outcomes.

Greenhouse Gas Emissions

Through continual improvement,
we are actively working to reduce
our carbon emissions generated
through our production pipeline.
The adoption of renewable energy
sources, energy-efficient
technologies, and carbon capture
and storage solutions are allowing
us to develop an understanding of
the technologies available to the
industry and how to incorporate
those into the future of our
operations.

Economic Contributions

Our operations will continue to develop, implement and maintain
management systems centred on the responsible use of
resources for future generations and with an appetite for continual
improvement.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

3. RESULTS OF OPERATIONS (cont.)
3.1 REVIEW OF OPERATIONS (cont.)

(e)

ESG Materiality

During FY23, we performed an internal review to determine if our
ESG material topics were still relevant and if any new topics
should be reflected. The evaluation resulted in the reorganisation
and renaming of several material topics. The updated topics aim
to further develop the focus on our relevant Sustainability impacts,
capturing the expectations of our stakeholders and providing a
framework for measuring success. We recognise that our material
topics will evolve over time as the business grows and as our
sustainability performance matures, and the framework will be
improved accordingly. The full list of material topics is presented
below.

Business Ethics

Cultural Heritage

Approvals & Compliance

GHG Management

Human Rights

Water Management

Occupational Health & Safety

Waste Management

Human Capital

TSF Management

(g) Regulations

Red 5 is subject to significant environmental regulation in respect
to its mineral exploration activities. These obligations are
regulated under relevant government authorities within Australia.

Compliance with environmental obligations is monitored by the
Risk and Environment Committee. There have been no significant
environmental breaches during the year ended 30 June 2023.

3.2 FINANCIAL REVIEW

(a)

Income statement

Gold and silver sales for the reporting period totalled $422.7
million, with 164,974 gold ounces sold at an average price of
$2,542 per ounce (2022: $165.0 million with 64,315 gold ounces
sold at an average price of $2,526 per ounce). Cost of sales for
the period of $394.6 million comprised of production costs,
royalties, movement in stockpiles and depreciation charge.

The Group recorded a net loss after income tax for the year ended
30 June 2023 of $8.7 million in comparison to a net loss for the
year ended 30 June 2022 of $28.6 million which included a gain
on the sale of discontinued operations of $20.0 million.

Employee Engagement

Biodiversity

(b)

Balance sheet

Community Relations

Mine Closure & Land
Rehabilitation

It is important to note that the revision of our material topics
considered the guidelines outlined by the Global Reporting
Initiative (GRI) and the industry-specific topics found within the
SASB Metals and Mining standards. We aim to continue to build
on our alignment with the SASB standards in the future.

(f) Workplace Health and Safety

The operational focus on safety field leadership during the
reporting period has contributed to an improved safety
performance at both the KOTH and Darlot sites. The continued
improvement in safety performance reflects our focus on
stabilising our workforce and transitioning to steady-state
operations.

LTIFR
(12-month):

TRIFR
(12-month):

0.50

(Lost Time Injury Frequency Rate)

9.01

(Total Recordable Injury Frequency Rate)

R
F
R
T
h
t
n
o
m
2
1

FY23 TRIFR Safety Statistics (12-month)

17.56

17.80

15.51

9.01

September
2022

December
2022

March
2023

June
2023

Total assets increased by $93.1 million to $670.5 million at 30
June 2023. The increase in total assets was mainly driven by
capitalised mine development and construction of Tailings
Storage Facility 5 (TSF 5) at King of the Hills. Other movements
included additional plant and equipment purchases, depreciation
of operating assets and capitalised exploration costs.

Cash and cash equivalents were $20.1 million which, together with
restricted cash of $15.7 million and bullion receivable of $10.1
million, amount to a cash and bullion balance (non-IFRS) of $45.9
million at 30 June 2023.

Total liabilities were $340.4 million, a decrease of $54.2 million
from 30 June 2022. This was mainly driven by repayment of
borrowings and a reduction in lease liabilities.

During the year, cash and cash equivalents decreased by $12.4 million.

Cash inflows from operating activities for the year were $46.7 million.
Cash receipts of $420.0 million reflect the sale of gold and
associated by-products. This was offset by other net operating cash
outflows of $373.3 million, driven by higher payments to suppliers
and employees resulting from increased operational costs.

Net cash outflows from investing activities for the period were
$126.2 million, reflecting expenditure of $95.8 million on
development activities in all three mining operations, and
purchases of property, plant and equipment amounting to $29.5
million, including the construction of TSF 5 at King of the Hills.

Net financing inflows of $67.2 million are primarily from the net
proceeds of equity raisings of $152.1 million, offset by the
repayment of borrowings for the King of the Hills plant
construction of $47.3 million, payments of interest of $12.0 million
and lease liability payments of $25.6 million.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

4. DIVIDENDS
No amounts were paid by way of dividends since the end of the
previous financial year (2022: Nil). At the time of this report, the
Directors do not recommend the payment of a dividend.

5. OPTIONS GRANTED OVER SHARES
No options were granted during or since the end of the financial
year. No person entitled to exercise the options has any right by
virtue of the option to participate in any share issue of Red 5 or
any other corporation.

6. PERFORMANCE RIGHTS
At the date of this report, there were 57,029,435 performance
rights convertible into ordinary fully paid shares.

Vesting date: 31 December 2023 (STIP rights
subject to retention period)

Vesting date: 30 June 2023 (LTIP rights
subject to performance conditions)

Vesting date: 30 June 2023 (PIO rights
subject to performance conditions)

Vesting date: 30 June 2024 (LTIP rights
subject to performance conditions)

Vesting date: 30 June 2025 (LTIP rights
subject to performance conditions)

Total

Number

2,343,313

7,945,729

11,550,613

18,410,000

16,779,780

57,029,435

A total of 7,945,729 performance rights (LTIP Rights) that were
issued in 2021 to key management personnel, senior management
and operating personnel are due to be cancelled following the
non-achievement of performance conditions (being Total
Shareholder Return outperformance against the All Ordinaries
Gold Index and increases in ore reserves), measured over the
three years ending 30 June 2023, and personnel exiting the
company during the performance period.

In addition, 11,550,613 performance rights (PIO Rights) were
issued in 2022 to key management personnel, senior management
and operating personnel.

Upon vesting at 30 June 2023, 2,705,870 PIO Rights will be
exercised into an equivalent number of ordinary fully paid shares
in accordance with the terms of the Plan. The balance of the
8,844,743 PIO Rights will be forfeited due to factors including not
achieving some PIO targets, Board discretion not to award all
PIO rights and personnel exiting the company during the
performance period.

INDEMNIFICATION AND INSURANCE
OF DIRECTORS, OFFICERS
The Company has made an agreement indemnifying all the
Directors and officers of the Company against all losses or
liabilities incurred by each Director or officer in their capacity as
Directors or officers of the Company to the extent permitted by
the Corporations Act 2001. The indemnification specifically
excludes wilful acts of negligence.

The Company paid insurance premiums in respect of Director’s
and Officer’ Liability Insurance contracts for current officers of the
Company, including officers of the Company’s controlled entities.
The liabilities insured are damages and legal costs that may be
incurred in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of entities
in the Group.

8. EVENTS SUBSEQUENT TO THE

END OF THE YEAR

No events have arisen in the interval between the end of the
reporting period and the date of this report any item, transaction
or event of a material and unusual nature likely, in the opinion of
the directors of the Company, to affect significantly the operations
of the Company, the results of those operations, or the state of
affairs of the Company, in future financial years.

LIKELY DEVELOPMENTS
AND EXPECTED RESULTS
OF OPERATIONS

In the opinion of the Directors, the ramp up of the KOTH Gold
Mine to steady state production during the financial year has
repositioned the Company as a significant new Australian gold
miner, with a large, long-life gold mine in central Western
Australia. The Company’s focus in the short term is to maximise
cash flow from the KOTH operations and to reduce its existing
debt.

Once a strong balance sheet is established, the Company will be
in a stronger position to pursue growth initiatives at its operations
and across its extensive tenement package, while beginning to
consider non-organic growth opportunities.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

10. BUSINESS STRATEGY AND

PROSPECTS FOR FUTURE YEARS
Business strategy

(a)

The Group’s business strategy is firmly anchored in the Company
vision of being a successful multi-operational exploration and
mining company, providing benefits to all stakeholders, through
the consistent application of technical excellence and responsible
and sustainable industry practices.

With KOTH gold production now generating strong positive cash
flows, the Company is looking forward to another transformational
year as it takes further important steps to deliver on its strategy of
becoming a substantial Australian gold producer. To achieve the
strategy, the Company will focus on:

\ Unlocking the full potential of the KOTH operation;

\ Attracting and retaining an experienced leadership and

operating team; and

\ Enhancing balance sheet strength and scale to achieve
growth through economic and commodity price cycles.

The substantial KOTH mineral resource and reserves underpin the
future of Red 5, with the large KOTH bulk open pit providing the
primary feed to the KOTH process plant, complemented by the
additional higher-grade ore sources from the KOTH and Darlot
underground mines. The longer-term strategy at KOTH is to
extend the mine lives at its three gold mines and evaluate
additional processing capacity beyond the current 5.5Mtpa
throughput. The business plans associated with the strategy are in
place, and the LOM plans demonstrate very robust future cash
flows. The positive cash flow generated over a ~15-year mine life
will position the Company in the future to evaluate and undertake
strategic acquisitions that align with the goal of becoming a major
regional gold producer.

(b) Material Business Risks

Red 5’s business, operating and financial results and performance
are subject to various risks and uncertainties, some of which are
beyond the Company’s reasonable control. Set out below are
matters that the Directors consider relevant and that have the
potential to impact the achievement of the business strategies.
The matters identified are not necessarily listed in order of
importance and are not intended as an exhaustive list of all
business risks and uncertainties.

\ External economic drivers (including macroeconomic,

metal prices and exchange rates)

\ The Company is exposed to fluctuations in the Australian

dollar gold price, which can impact future revenue
streams. As a mitigation, the Company has a partial gold
price hedging program to assist in offsetting variations in
the Australian dollar gold price, providing price certainty
over a fixed portion of future production.

\ The Company is exposed to global inflationary pressures

across a range of input costs such as oil and gas,
operating and maintenance parts and consumables and
labour. As a mitigation, the company collaborates with its
suppliers to identify ways to manage these cost pressures.

\ Reserves and Resources

\ The Mineral Resources and Ore Reserves for the Group’s
assets are estimates only in compliance with industry
standards, and no assurance can be given that future
production will achieve the expected tonnages and
grades.

\ Operational risks

\ Drilling, mining and processing activities carry risk and as
such, activities may be curtailed, delayed or cancelled as
a result of a number of factors outside the Company’s
control. These include geological conditions, technical
difficulties, securing and maintaining tenements, weather,
residue storage and tailings storage facility failures and
construction of efficient processing facilities. The
operation may be affected by force majeure, fires, labour
disruptions and availability, landslides, the inability to
obtain adequate machinery, engineering difficulties and
other unforeseen events. As with most mines, reserves,
resources and stockpiles are based on estimates of grade,
volume and tonnage. The accuracy and precision of these
estimates will depend upon drill spacing and other
information such as continuity, geology, rock density,
metallurgical characteristics, mining dilution and costs,
etc. which evolve as the mine moves through different
parts of the ore body. Red 5 endeavours to take
appropriate action to mitigate these operational risks
(including by properly documenting arrangements with
counterparties and adopting industry best practice
policies and procedures) or to insure against them, but the
occurrence of any one or a combination of these events
may have a material adverse effect on the Company’s
performance and the value of its assets.

\ Pandemics

\ Red 5 has continued to manage the Company’s ongoing

response to COVID-19 in cooperation with our contractors.
The COVID-19 situation remains unpredictable, and the
Company will continue to monitor and manage for
potential impacts, particularly around labour availability.

\ The Company is maintaining a range of measures across

its business consistent with advice from State and Federal
health authorities and commensurate with the community
risk profile. These measures help ensure the health and
welfare of our employees and their respective
communities.

\ Legal compliance and maintaining title

\ The Company has systems and processes in place to

ensure title to all its properties, but these can be subject
to dispute or unforeseen regulatory changes.

\ Climate Change

\ Changes to climate-related regulations and government
policy have the potential to impact our future financial
results. These changes may include the imposition of a
carbon tax on carbon output or the implementation of new
regulatory requirements for diesel or other fossil fuel
consumption used in Red 5’s operations.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

10. BUSINESS STRATEGY AND PROSPECTS FOR FUTURE YEARS (cont.)
\ Capital and Liquidity

\ The Company has processes in place to monitor and manage its liquidity and capital structure to ensure sufficient funds are

available to meet the Group’s financial commitments. Red 5 has a single debt facility with external financiers.

\ Health and Safety

\ Red 5 has implemented management systems which promote a strong safety culture and support a genuine commitment to

keep its people and stakeholders safe and healthy. The Company’s safety management practices are focused on a bottom-up
approach supporting the organisational values.

\ Environmental

\ The Company has environmental liabilities associated with its tenements. The Company monitors its ongoing environmental

obligations and risks and implements preventative, rehabilitation and corrective actions as appropriate.

\ Community relations

\ Red 5 has an established community relations function that includes principles, policies and procedures designed to provide a

structured and consistent approach to community activities. Red 5 recognises that a failure to manage local community
stakeholder expectations appropriately may lead to dissatisfaction, potentially disrupting production and exploration activities.

11. REMUNERATION REPORT
LETTER FROM THE CHAIR OF BOARD

Dear Shareholders,

I am pleased to present Red 5’s Remuneration Report for the Financial Year to 30 June 2023 (FY23).

FY23 Performance Summary

The last 12 months have been significant for Red 5 with the establishment of King of the Hills as a major new gold processing
hub in Western Australia, fed by three mines at King of the Hills and Darlot. For a significant portion of the year, the business
has had to navigate the lasting impacts of the COVID pandemic, including related absenteeism, chronic labour skill shortages
and supply chain delays.

Despite these challenges, Red 5 has achieved significant milestones, including meeting the upper end of production guidance
for the second half of the financial year.

Remuneration Outcomes

When determining the FY23 remuneration outcomes, the Board has carefully considered the achievements made over the year
in combination with the unforeseen factors that have impacted the Company. The Board believes the remuneration outcomes
are reasonable (as outlined below) providing appropriate alignment between executive performance, shareholder returns and
recognition of executive retention criticality over the next business phase. Refer to Section 11.5 for further details.

\ Total Fixed Remuneration (TFR): the TFR for the Managing Director increased by 5% (from $687,500 to $725,000) over the
year. The other KMPs of CFO and COO were appointed during the current year. The KMP salaries were set to ensure
market competitiveness based on external remuneration benchmarking analysis.

\ Short Term Incentive Plan (STI): while the production gateway was not met, the Board exercised its discretion to award a
41% STI outcome to the COO to recognise his significant contribution during the year and the external factors which have
contributed to the production gateway not being achieved. The STI to Mr Hay was settled in cash. No STI was awarded to
the other KMPs. Refer to Section 11.5.2 for further details.

\ Long Term Incentive Plan (LTI): Red 5 did not achieve either the total shareholder return or gold production performance

gates for the three-year period ended 30 June 2023, resulting in a zero LTI remuneration outcome.

\ Project Incentive Opportunity (PIO): Red 5 achieved 47% of the PIO outcomes, however the Board exercised its discretion

in awarding a reduced PIO outcome to KMP’s and other executives. This was settled in cash and shares as per the
incentive plan. Refer to Section 11.5.3 for further details.

\ NED Fees: there were no increases to the NED fees in FY23.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11. REMUNERATION REPORT (cont.)
LETTER FROM THE CHAIRMAN OF BOARD (cont.)

Changes to the Remuneration Framework

The Board regularly reviews our executive remuneration structure to ensure it continues to drive shareholder value and enables
us to attract and retain the talent we need. Following a review undertaken in FY23, including input from external remuneration
consultants, changes to the company’s remuneration framework in FY24 are outlined below. Refer to Section 11.7 for details.

Removing the production gate for the STI: Based on a review of the current STI framework, including alignment with typical
market practice, the Company has removed the STI production gateway for FY24. The Company recognises that production is a
key business driver and contributor to shareholder value and currently applies an STI weighting of 20% to production targets.
The Board is of the view that a production gateway for the entire STI programme is no longer appropriate.

Modifying LTI relative total shareholder return assessment from an index to a peer group: The Company recognises that the
S&P/ASX All Ordinaries Gold Index (Index) previously used for assessing LTI vesting includes a broad spectrum of companies
within the gold sector. The Index can be significantly influenced by the share price performance of the largest constituents.

To provide a stronger link between Company performance and executive reward, Red 5 has developed a list of peers which are
considered directly comparable to Red 5 (e.g. based on size, stage of operations and geographical location of mines). It is the
Board’s view that the adoption of a specific peer group, rather than the Index, will provide a stronger alignment between the
relative performance of Executives and shareholder value.

The Board is confident that Red 5’s current and planned remuneration policies continue to support the financial and strategic
goals of the business as a leading gold producer. We are committed to transparency and an ongoing dialogue with shareholders
on remuneration. To this end, we have made changes to the 2023 Remuneration Report to improve the overall format and flow of
information.

On behalf of the Board, I invite you to review the full report and thank you for your continued support of Red 5.

Sincerely

Russell Clark
Chair

TABLE OF CONTENTS

This Remuneration Report (Report) outlines the remuneration arrangements in place for key management personnel (KMP) of Red 5
Limited (Red 5 or the Company) for the year ended 30 June 2023 (FY23) in accordance with the requirements of the Corporations Act
2001 and its Regulations. The Report contains the following main sections:

11.1 Who is covered by this Remuneration Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

11.2

Remuneration Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

11.3

Principles of Remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

11.4

Executive Remuneration Framework and Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

11.5

FY23 Executive Remuneration Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

11.6 Non-Executive Directors’ Remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

11.7

Planned Remuneration Approach for FY24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

11.8

Details of Remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

11.9

Additional Remuneration Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11. REMUNERATION REPORT (cont.)
11.1 WHO IS COVERED BY THIS REMUNERATION REPORT

For the purposes of this Report, KMP’s are defined as those persons having authority and responsibility for planning, directing and
controlling the major activities of the consolidated entity, including any Director (whether Executive KMP or Non-Executive Director
(NED) of Red 5.

The following were the KMP’s of the Company at any time during the year ended 30 June 2023 and unless otherwise indicated, KMP for
the entire period:

Name

Executive Director

Mark Williams

Current Executive KMP

Richard Hay

Patrick Duffy

Jason Grieve

John Tasovac

Non-Executive Directors

Andrea Sutton

Ian Macpherson

Colin Loosemore

Steven Tombs

Kevin Dundo

Fiona Harris

Position

Managing Director

Chief Operating Officer

Chief Financial Officer

Chief Operating Officer

Chief Financial Officer

Term as KMP

Full year

From 12 November 2022

From 1 September 2022

Until 11 November 2022

Until 31 August 2022

Acting Chair, Independent Non-Executive Director

Full year, acting chair from 13 March 2023

Independent Non-Executive Director

Full year

Chair, Independent Non-Executive Director

Resigned 12 March 2023

Independent Non-Executive Director

Resigned 6 December 2022

11.2 REMUNERATION GOVERNANCE

KMP remuneration decision making is directed by Red 5’s remuneration governance framework as follows:

Board

Take an active role in the governance and oversight of Red 5’s remuneration policies and have overall
responsibility for ensuring that the Company’s remuneration strategy aligns with Red 5’s short- and
long-term business objectives and risk profile.

Remuneration Committee
(Committee)

Responsible for reviewing the remuneration arrangements for KMP and make recommendations to
the Board including:

\ reviewing remuneration levels and other terms of employment on an annual basis having regard
to relevant market conditions, qualifications and experience of the KMP, and performance
against targets set for each year where applicable.

\ advising the Board on the appropriateness of remuneration packages / structures of the

Company, given trends in comparative peer companies both locally and internationally, with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high calibre
Board and executive team.

The Committee’s charter can be found on the Company’s website at:
www.red5limited.com/site/about-red5/corporate-governance

External Remuneration
Consultants

To ensure the Committee is fully informed when making remuneration decisions, it may seek
external, independent remuneration advice on remuneration related issues.

Share trading policy

During the year, the Committee engaged a consultant, The Reward Practice Pty Ltd, to provide
remuneration services in respect to external benchmarking and general insights for executive
incentive arrangements. Fees of $37,750 were incurred for services by The Reward Practice Pty Ltd
in relation to the current financial year.

Red 5’s share trading policy prohibits a KMP (that are granted share-based payments as part of their
remuneration) from entering into other arrangements that limit their exposure to losses that would
result from share price decreases. Entering into such arrangements is also prohibited by law.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11. REMUNERATION REPORT (cont.)
11.3 PRINCIPLES OF REMUNERATION

Four principles guide Red 5’s remuneration policies and practices:

Remuneration quantum
should target the middle to
upper quartile of the market
that Red 5 operates in to
attract and retain the key
talent required.

At-risk reward should be
based on the achievement of
challenging targets over the
short term (1 year) and long
term (3+ years).

Emphasis of reward
programs should be to
motivate and retain key
talent over the long term.

An appropriate mix of cash
and equity awards so that
over time executives and
employees are aligned
with the long-term interests
of shareholders.

Note - NEDs do not receive performance-related remuneration or participate in any incentive plans.

11.4 EXECUTIVE REMUNERATION FRAMEWORK AND COMPONENTS

Executives receive fixed and variable remuneration consisting of short and long term incentive opportunities. Executive remuneration
levels are reviewed annually by the Remuneration Committee with reference to the remuneration guiding principles and market
movements.

The following diagram presents a high-level summary of remuneration components for executive KMP’s for FY23:

Fixed remuneration

Base salary + superannuation + benefits

Variable remuneration

STI Plan

LTI Plan

Cash

Service Rights (1 year)

Rights (3 years)

50% financial performance
50% non-financial performance

70% relative TSR
30% growth in reserves

In addition, various minimum gateways are in place that need to be achieved to be awarded the variable remuneration component.

The following diagram sets out the mix for fixed and “at risk” remuneration for executive KMP at maximum opportunity level for FY23
based on the potential of a 100% vesting of STI and LTI. Note given the one-off nature of the PIO, it is excluded from the remuneration
mix analysis.

2023 Rumuneration Mix (at Maximum Opportunity)

Total at risk

Managing
Director

43%

24%

33%

57%

Other KMP’s

54%

24%

22%

46%

50%

100%

Fixed

STI (at risk)

LTI (at risk)

Fixed remuneration

Fixed remuneration consists of base salary, superannuation and optional salary sacrifice benefits. It is designed to recognise the
execution of business strategy and executives’ qualifications, experience and accountability. It is set with reference to comparable roles
in similar companies.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11. REMUNERATION REPORT (cont.)
11.4.1 STI

The following table outlines the FY23 STI arrangements in detail:

What is the purpose?

\ Reward executive KMP for the achievement of Red 5’s annual targets linked to business

strategy and shareholder value;

\ Ensure that executives have commonly shared objectives related to the delivery of annual

business plans;

\ Encourage share ownership among senior roles; and

\ Provide a component of remuneration to enable the Company to compete effectively for the

calibre of talent required for it to be successful on a short to medium term basis.

How is it paid?

STI awards are paid in 50% cash and 50% equity following the conclusion of the performance
period. The 50% equity component is to be satisfied in Service Rights (subject to 12 or 18
months continued service).

What is the target incentive
opportunity?

The STI target opportunity is set as a percentage of TFR. Subject to performance, the MD was
entitled to an STI of up to 60% and other executive KMP’s were entitled to an STI of up to 50%.

What is the performance period?

The STI is offered annually and is measured over a single financial year.

How is performance assessed?

An executive’s actual award is based on meeting KPIs set in advance of the financial year. The
KPIs comprise financial and non-financial objectives which directly align the individual’s reward
to the Company’s annual business plans. The KPIs set for the FY23 awards were:

\ Company Financial: budgeted EBITDA (20%)

\ Gold production: across both Darlot and KOTH (20%)

\ Safety: assessed by Total Recordable Injury Frequency Rate (TRIFR) and no fatalities (20%)

\ Cost management: via All-in-Sustaining-Cost (AISC) per ounce (20%)

\ Individual effectiveness: measured by Board or Managing Director (where applicable) (20%)

KPIs are set at threshold, target, and stretch levels resulting in payout at 50%, 100% and 200%
of the target opportunity.

What is the gateway?

An overall gateway of 90% of budgeted gold production level must be achieved before any
award is made under the STI.

What vesting conditions / dealing
restrictions apply to the equity
components of the STI award?

Service Rights are granted following the performance period based on KPI outcomes and are
intended to prevent the equity being sold for a period of 12 or 18 months. They vest into shares
12 or 18 months after the grant date based on continued employment with the Company (no
further restriction period applies following the vesting).

The purpose of deferral / restrictions is to manage the risk of short-termism inherent in setting
short term objectives, promote sustainable value creation and build further alignment with
shareholder interest.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.4

REMUNERATION REPORT (cont.)
EXECUTIVE REMUNERATION FRAMEWORK AND COMPONENTS (cont.)

11.4.2 LTI

The following table outlines the FY23 LTI arrangements in detail:

What is the purpose?

\ To promote the alignment of interest between executives and shareholders through the

holding of equity in the Company. As such, LTI awards are generally granted to executives
and management who are able to influence the future of Red 5, and/or are in a position to
contribute to shareholder wealth creation;

\ Ensure that executives have commonly shared goals related to producing relatively high

returns for shareholders;

\ Encourage share ownership among senior roles;

\ Provide a component of remuneration to enable the Company to compete effectively for

the calibre of talent required for it to be successful on a long-term basis; and

\ Help retain employees, thereby minimising turnover and providing a stable workforce.

How is it paid?

LTI awards are paid in Performance Rights for nil cash consideration.

What is the LTI opportunity

The LTI opportunity is set as a percentage of TFR. Subject to performance, the MD was
entitled to an LTI of up to 60% and other executive KMP were entitled to an LTI of up to 45%.

What is the performance period

The LTI is considered annually and is measured over a 3-year performance period.

How is performance assessed?

LTI awards are granted at the beginning of the performance period and vest based on:

\ Total Shareholder Return (TSR) compared to that of S&P/ASX All Ordinaries Gold Index

(70%); and

\ Growth of the Company’s proved and probable ore reserves (30%).

Retesting after 12 months (following the end of the performance period) is available on the
relative TSR hurdle.

What is the gateway?

The following gateway must be satisfied in order for the awards to vest:

How the LTI vesting is
determined?

\ A positive TSR being achieved.

LTI vesting is subject to the following sliding scale:

Relative TSR (70%)

Performance level to be achieved

Percentage vesting

=< S&P/ASX All Ordinaries Gold Index (Index)

Target: Outperform the Index by 10%

50%

Performance between Target and Stretch

Sliding scale vesting

Stretch: Outperform the Index by 20%

100%

Growth in ore reserves (30%)

Performance level to be achieved

Percentage vesting

<15%

Threshold =15%

Target = 20%

Stretch = > 35%

25%

50%

100%

What are the restrictions of the
equity components of the LTI
awards?

There are no further restrictions to the vested awards following the end of the performance
period.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.5

REMUNERATION REPORT (cont.)
FY23 EXECUTIVE REMUNERATION OUTCOMES

The following table summarises key measures of Company performance for FY23 and the previous four financial years:

Performance outcomes over the past five FYs

ASX share price at year end

Profit/(loss) after income tax attributable to owners of
the company for continuing operations ($’000)

Profit/(loss) after income tax attributable to owners of
the company ($’000)

Dividends paid ($’000)

Underlying EBITDA(a) ($’000)

(a) Underlying EBITDA is a non-IFRS measure that is unaudited.

11.5.1 Fixed remuneration outcomes

FY23

$0.19

FY22

$0.25

FY21

$0.19

FY20

$0.20

FY19

$0.18

(8,730)

(48,664)

(9,478)

4,544

(3,030)

(8,730)

(28,615)

(43,245)

4,544

(3,030)

96,081

(4,258)

11,635

53,978

29,890

Following the review of executive remuneration levels against relevant market comparators (with the benchmarking analysis provided by
The Reward Practice Pty Ltd), the following table outlines total fixed remuneration (TFR) changes for executive KMP’s in FY23:

FY23 Executive KMP Fixed Remuneration Outcomes

Mark Williams, Managing Director

Richard Hay, Chief Operating Officer (from 12 November 2022) (a)

Patrick Duffy, Chief Financial Officer (from 1 September 2022) (a)

Jason Greive, Chief Operating Officer (resigned 11 November 2022) (a)

John Tasovac, Chief Financial Officer (resigned 31 August 2022) (a)

FY23 TFR

$725,000

$356,596

$373,562

$219,616

$75,728

FY22 TFR

$687,500

n/a

$550,000

$440,000

(a) The remuneration of KMP’s who were only a KMP for part of the year has been apportioned for the time that they were a KMP.

The Board will continue to monitor remuneration levels based on the factors set out in the executive remuneration framework.

11.5.2 FY23 STI outcome

Following the end of FY23, the gateway of 90% of budgeted gold production was not achieved due to several external factors that were
not known when setting the STI targets. These factors include the continued disruptions by the COVID-19 pandemic on the Red 5 key
operations and staffing levels, the increased labour market pressures across the WA gold mining industry, and the global breakdown in
the supply chain of key parts and spares.

Within the above context, the Board carefully assessed the FY23 performance against set targets and exercised its discretion to
proceed with a 40% of STI outcome for the Chief Operating Officer (COO). Note the STI for the Managing Director and Chief Financial
Officer did not have discretion applied and received no STI. The STI award to the COO will be fully satisfied in cash.

The Board considered the exercise of discretion for the STI appropriate for the following reasons:

\ Despite the unforeseen challenges in FY23, Red 5 had a solid year overall where the applicable Executives made significant

contributions to meeting several important operational metrics (e.g. improvement in safety and turnaround in production in 2H
FY23).

\ As competition for executive talent within the mining industry remains extremely tight, the retention of key staff is considered a key
priority for Red 5 over the coming years. The FY23 awards in Service Rights recognise executive achievement over the year whilst
providing a retention mechanism to ensure the progression of key operational and strategic objectives in the following 12 months.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.5

REMUNERATION REPORT (cont.)
FY23 EXECUTIVE REMUNERATION OUTCOMES (cont.)

The following table outlines KPI performance outcomes for FY23:

Threshold

Target

Stretch

FY23 STI KPIs and Performance Outcomes

FY23 Actual

KPI

KPI Weighting

Performance Outcomes

STI Outcomes

Group EBITDA ($m)

20%

Below threshold

Gold production across
Darlot and KOTH (oz)

20%

Below threshold

TRIFR and no fatalities

20%

Achieved

AISC ($)

20%

Below threshold

Individual effectiveness

20%

Achieved

90% of budgeted gold
production level

Gateway

Not satisfied

STI performance outcomes (FY23 awards):

$154.4m

$172.0m

$189.2m

170,100oz

189,000oz

207,900oz

16.5

15.0

13.5

$2,025/oz

$1,841/oz

$1,656/oz

50%

100%

200%

20%

40%

Based on the above outcomes, the following provides further detail for the FY23 STI awards.

FY23 Executive KMP STI Award Outcomes

Target STI
Opportunity $

STI awarded
%

STI outcomes
$

Number of Service
Rights awarded

Mark Williams

Richard Hay (commenced 12 November 2022)

Patrick Duffy (commenced 1 September 2022)

Jason Greive (resigned 11 November 2022)

John Tasovac (resigned 31 August 2022)

Total

(a) Mr Hay’s STI award will be paid in cash.

435,000

215,123

168,475

818,598

11.5.3 FY23 Project Incentive Opportunity (PIO)

40%

86,049 (a)

86,049

The Project Incentive Opportunity (PIO) was put in place in FY22 to be a 24 month plan focused on constructing and establishing
Red 5’s KOTH Mining and Processing Hub operations.

The following table outlines KPI performance outcomes for FY23:

Threshold

Target

Stretch

FY22-23 PIO Performance Hurdles and Outcomes

FY23 Actual

KPI

KPI Weighting

Performance Outcomes

PIO Outcomes

Gold ounces produced -
combined Darlot and KOTH (oz)

50%

Between Threshold
and Target

225,000oz

250,000oz

275,000oz

Ore processed (Kt) at KOTH

25%

Below Threshold

5,220Kt

5,800Kt

6,380Kt

Development metres
completed at Darlot (m)

Total:

25%

Stretch Achieved

6,300m

7,000m

7,700m

22%

25%

47%

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.5

REMUNERATION REPORT (cont.)
FY23 EXECUTIVE REMUNERATION OUTCOMES (cont.)

Whilst two of the three performance hurdles were met during the measurement period, the Board using its discretion capping the award
for KMP’s and other Executives to a maximum cash award of $55,000 and share award of 200,000 shares. The capping of awards was
due to the Company’s overall performance over the period, which in the Board’s opinion, resulted in a dilution of shareholder value.

Based on the above outcomes the following provides further detail for FY23 PIO awards.

FY23 Executive KMP PIO Award Outcomes

Maximum PIO
Opportunity $

PIO awarded
%

PIO outcomes
$

Mark Williams

Richard Hay (commenced 12 November 2022) (a)

Patrick Duffy (commenced 1 September 2022)

Jason Greive (resigned 11 November 2022)

John Tasovac (resigned 31 August 2022)

Total

687,500

194,446

338,000

500,000

400,000

2,119,946

16%

47%

33%

55,000

54,839

55,000

Shares
awarded

200,000

129,186

200,000

164,839

529,186

(a) Mr Hay was not part of the original PIO awards program due to commencing employment after PIO rights were granted. However due to Mr

Hay’s significant contribution to the Company, he has been included in the PIO rights programme.

12.5.4 FY23 LTI outcome

Following the assessment of relevant performance hurdles over the three years ended 30 June 2023, no rights granted at the start of
FY21 vested as Red 5 did not satisfy the two performance gates of a positive TSR over the measurement period, and 90% of budgeted
gold ounces over the measurement period.

Threshold

Target

Stretch

FY21-23 LTI Performance Hurdles and Outcomes

FY23 Actual

KPI

Relative TSR (against the S&P/ASX
All Ordinaries Gold Index)

Growth in ore reserves excluding
50% of acquired ore reserves

AISC (as a percentage of operating
costs per ounce of AISC)

Safety compliance criteria
(no fatalities, maintenance of the
ISO14001 and ISO 18001
certifications, and year on year
improvement in safety)

Gateways:

\ Positive TSR; and

\ 90% of budget gold production

over the measurement period
1 July 2021 to 30 June 2023

KPI
Weighting

50%

Below threshold

20%

Stretch met

Performance Outcomes

<=Index

>10%

>20%

16%

20%

36%

20%

Below threshold

95%

90%

80%

10%

Below threshold

Threshold

Target

Stretch

Gateway

Both gateways not satisfied

Total level of LTI vesting (FY21-23 awards):

Vesting
Outcomes

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

REMUNERATION REPORT (cont.)
FY23 EXECUTIVE REMUNERATION OUTCOMES (cont.)

11.
11.5
Executive KMP – FY21-23 LTI Awards Vesting Outcomes

Executive KMP

Mark Williams

Richard Hay (a)

Patrick Duffy (b)

Jason Greive

John Tasovac

Total

Maximum LTI
Opportunity $

292,249

Not eligible

90,652

72,864

105,024

560,789

Number of LTI
Rights held

1,526,102

516,535

415,182

598,425

3,056,244

LTI Rights
vested %

LTI Rights
forfeited $

(292,249)

Number of LTI
Rights forfeited

(1,526,102)

(90,652)

(72,864)

(105,024)

(560,789)

(516,535)

(415,182)

(598,425)

(3,056,244)

(a) Mr Hay was appointed Chief Operating Officer on 11 November 2022, subsequent to the performance rights being issued in FY21.

(b) Mr Duffy was awarded the performance rights while in his previous role as Chief Corporate Development Officer.

11.6

NON-EXECUTIVE DIRECTORS’ REMUNERATION

In accordance with current corporate governance practices, the structure for the remuneration of NEDs and executive KMP is separate
and distinct. Shareholders approve the maximum aggregate fees payable to NEDs, with the current limit being $850,000 per annum.

11.6.1 FY23 Non-Executive Director Fee Policy

There were no increases to NED remuneration over FY23. The following table sets out the policy fee for NEDs for FY23 (exclusive of
statutory superannuation of 10.5%).

Chair

Member

Board and Committee Fees

Board

Audit Committee

Remuneration and Nomination Committee

Risk and Environment Committee

Health, Safety and Community Committee

FY23

$135,000

$15,000

$10,000

FY22

$135,000

$15,000

$10,000

FY23

$100,000

FY22

$100,000

Nil

The Board may approve any consultancy arrangements (at a rate) for NEDs providing additional services outside their Board and/or
Committee duties.

NEDs are not entitled to participate in performance-based incentive schemes. The Board may seek annual shareholder approval for a
share plan, under which NEDs can elect to receive a portion of their fees in shares in Red 5.

All Directors are entitled to have premiums on indemnity insurance paid by Red 5. The liabilities insured are for costs and expenses that
may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of
entities in the consolidated entity.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.6

REMUNERATION REPORT (cont.)
NON-EXECUTIVE DIRECTORS’ REMUNERATION (cont.)

11.6.2 FY23 Non-Executive Director Statutory Remuneration Disclosures

The following table outlines the fees paid to NEDs in FY23 as prepared in accordance with the requirements of the Corporations Act
2001 and the relevant Australian Accounting Standards.

Base fees

Committee
Chair fees

Consulting
fees

Superannuation

NED

Andrea Sutton, Acting Chair
from 13 March 2023

Ian Macpherson, NED

Colin Loosemore, NED

Steven Tombs, NED

Kevin Dundo, Chair until
12 March 2023

Fiona Harris, NED until
6 December 2022

TOTAL

FY23

FY22

FY23

FY22

FY23

FY22

FY23

FY22

FY23

FY22

FY23

FY22

FY23

FY22

100,000

94,125

135,000

43,207

6,319

537,332

541,319

10,000

15,000

10,000

45,000

11,550

11,000

12,075

11,500

11,688

11,000

11,688

11,000

9,883

13,500

4,537

663

61,421

58,663

Total

121,550

121,000

127,075

126,500

121,688

121,000

121,688

121,000

104,008

148,500

47,744

6,982

643,753

644,982

11.7 PLANNED REMUNERATION APPROACH FOR FY24

During FY23, the Company’s executive remuneration framework was reviewed, considering shareholder feedback, market insights on
incentive structure from external remuneration consultants and the Company’s circumstances. As a result, the following key changes to
executive remuneration arrangements are planned for FY24 to ensure a strong alignment with business need, shareholder feedback and
contemporary market practice. Further details will be provided in the FY24 Remuneration Report.

Remuneration Element

FY24 Approach

TFR

STI

LTI

\ As per the Red 5 Remuneration Framework, the Remuneration Committee will review TFR levels

and recommend necessary adjustments to the Board for approval.

\ Any remuneration changes for KMP’s during FY24 will consider independent market benchmarking
outcomes, changes in executive responsibilities, and local trends in the market for executive talent.

\ Remove production gateway: This change reflects the market practice of peers and provides an

enhanced alignment between executive performance and reward.

\ Change to the relative TSR assessment approach: The Board has considered alternative

methodologies of measuring TSR performance and adopted a selected peer group of comparable
gold companies for FY24 instead of an Index.

\ A list of peers directly comparable to Red 5 (e.g. based on size, stage of operations and

geographical location of mines) will provide a more substantial alignment between the relative
performance of Executives and shareholder value.

\ The vesting methodology for the relative TSR metric remains unchanged (e.g. threshold

performance set at median level).

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.8

REMUNERATION REPORT (cont.)
DETAILS OF REMUNERATION

The following table discloses details of the nature and amount of each element of the remuneration paid to executive KMP for the year
ended 30 June 2023 and 30 June 2022.

Short term

Long term

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Executive remuneration

Executive Director

Mark Williams

FY23

FY22

697,500

660,000

Executive KMP’s

Richard Hay (b)

Patrick Duffy (d)

Jason Greive (b)

John Tasovac (d)

FY23

FY22

FY23

FY22

FY23

FY22

FY23

FY22

329,096

86,049 (c)

346,062

205,037

522,500

68,750

412,500

60,000

69,338

27,500

48,862

55,000

602,831

(515,872)

985,159

27,500

74,416

658,559

(155,908)

1,264,567

27,500

18,583

54,839

21,961

538,028

46,277

27,500

14,097

55,000

255,958

(198,230)

546,664

14,579

10,889

27,500

38,701

6,978

5,128

27,500

32,978

104,126

(414,561)

(79,930)

286,147

874,848

40,749

(320,252)

(198,647)

314,754

(63,856)

783,876

TOTAL

FY23

1,646,445

86,049

115,615

104,057

97,559

164,839

1,025,625

(1,448,915)

1,791,274

FY22

1,595,000

60,000

82,500

146,095

- 1,259,460

(219,764) 2,923,291

(a) Includes salary and any superannuation contributions above the concessional cap that are expensed.

(b) Mr Greive resigned as Chief Operating Officer on 11 November 2022. Mr Hay was appointed as Chief Operating Officer from 12 November

2022. His salary has been apportioned for this period and excludes his payroll prior to being a KMP.

(c) Mr Hay received a discretionary award by the Board of Directors for his contribution to the ramp-up of the King of the Hills operations.

(d) Mr Tasovac resigned as Chief Finance Officer on 31 August 2022. Mr Duffy was appointed as Chief Finance Officer from 1 September 2022.

His salary has been apportioned accordingly for this period and excludes his payroll prior to being a KMP.

(e) No service rights were granted to KMP’s for FY23 because the STI objectives were not achieved. However, service rights granted to KMP’s

for FY22 have been expensed during the current year.

(f) Relates to performance rights expense for the PIO, 2021, 2022 and 2023 series. The fair value at the grant date of Tranche A, which has

market-based performance conditions, was estimated using a Monte Carlo simulation. The fair value at the grant date of Tranches B, C and
D, which have market and non-market-based performance conditions, were valued using a single share price barrier model incorporating a
Monte Carlo simulation.

(g) Performance rights that were issued to key management personnel, senior management and operating personnel in FY21 have been
forfeited following the non-achievement of performance conditions measured over the three years ended 30 June 2023. In addition,
PIO performance rights that were issued to key management personnel, senior management and operating personnel in FY22 have been
partially forfeited following the partial achievement of performance conditions measured over the two years ended 30 June 2023.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.8

REMUNERATION REPORT (cont.)
DETAILS OF REMUNERATION (cont.)

The relative proportions of remuneration that are linked to performance and those that are fixed are as follows:

Executive Director

Mark Williams

Non-Executive Directors

Andrea Sutton

Ian Macpherson

Colin Loosemore

Steven Tombs

Kevin Dundo

Fiona Harris

Executives

Richard Hay

Patrick Duffy

Jason Greive

John Tasovac

Fixed

At risk – short term incentives

At risk – long term incentives

2023

2022

2023

2022

2023

2022

79%

60%

100%

70%

71%

100%

67%

60%

16%

14%

40%

14%

21%

33%

32%

11.9

ADDITIONAL REMUNERATION DISCLOSURES

11.9.1 Executive Service Contracts

Remuneration and other terms of employment for executive KMP’s are formalised in service agreements. The service agreements
specify the components of remuneration, benefits and notice periods. Participation in STI and LTI plans is subject to the Board’s
discretion. Other major provisions of the agreements relating to remuneration are set out below:

Position

Terms of
agreement

TFR including
superannuation
effective July 2022

Executive KMP

Mark Williams

Richard Hay (a)

Patrick Duffy (b)

Jason Greive (a)

Managing Director

No fixed term

Chief Operating Officer

No fixed term

Chief Financial Officer

No fixed term

Chief Operating Officer

No fixed term

John Tasovac (b)

Chief Financial Officer

No fixed term

Notice period

3 months

Termination
benefit

12 months

3 months

6 months

$725,000

$574,600

$450,000

$578,000

$442,000

(a) Mr Hay was appointed to the role of Chief Operating Officer effective from 12 November 2022 following the resignation of Mr Greive from

the Company on 11 November 2022.

(b) Mr Duffy was appointed to the role of Chief Financial Officer effective from 1 September 2022 following the resignation of Mr Tasovac from

the Company on 31 August 2022.

11.9.2 Options granted to key management personnel

No options over ordinary shares were held or granted during the year to executive officers of Red 5 as part of their remuneration.

No shares were issued during the year as a result of the exercise of options granted as part of remuneration.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.9

REMUNERATION REPORT (cont.)
ADDITIONAL REMUNERATION DISCLOSURES (cont.)

11.9.3 Shareholdings of directors and key management personnel

The numbers of shares in Red 5 held during the financial year by key management personnel, including personally related entities, are
set out below:

2023

Andrea Sutton

Mark Williams

Ian Macpherson

Colin Loosemore

Steven Tombs

Kevin Dundo

Fiona Harris

Richard Hay

Patrick Duffy

Jason Greive

John Tasovac

Total

Balance at previous
year reporting date

Received through
vesting and
exercise of
PIO rights

Received through
vesting and
exercise of
service rights

Other purchases/
disposals during
the year

Balance at
reporting date

15,860,891

1,580,000

10,108,190

2,719,579

1,905,249

559,037

2,081,136

756,906

35,570,988

500,000

187,500

467,500

1,155,000

500,000

16,048,391

2,047,500

10,108,190

2,719,579

1,905,249 (a)

- (a)

559,037

2,081,136 (a)

756,906 (a)

36,725,988

(a) Balance held by the NED or KMP at the date that they left the Company.

12.9.4 Service rights held by KMP’s under the STI

There were no new service rights awarded during the financial year due to the outcome not being achieved. Service rights held by
KMP’s relating to the previous performance measurement period are set out below:

KMP

Mark Williams (a)

Patrick Duffy (a)

Grant Date

Vesting Date

Fair Value at
Grant Date

25-Oct-22

31-Dec-23

$104,007

09-Aug-22

31-Dec-23

$83,848

Granted

671,013

274,912

Exercised up to
reporting date

Outstanding at
reporting date

671,013

274,912

(a) Service Rights for Mr Williams and Mr Duffy were issued under the Red 5 FY22 Rights Plan. They have an 18 month service test and will vest

on 31 December 2023 if they are still employees at that date.

11.9.5 Performance rights held by KMP’s under the LTI

The number of performance rights in Red 5 held as at the date of this report by executive KMP’s are set out below:

Received
through
issuing of LTI
performance
rights (a)

LTI
Performance
rights
vested and
exercised (b)

PIO rights
vested and
exercised (c)

LTI
Performance
rights and
PIO rights
forfeited (d)

Balance at
prior year
reporting date

Balance at
reporting date

5,303,575

2,358,712

2,187,963

2,887,709

2,576,447

993,684

12,955,694

3,352,396

(200,000)

(2,837,091)

4,625,196

(200,000)

(1,059,392)

1,922,255

(2,887,709)

(2,576,447)

(400,000)

(9,360,639)

6,547,451

KMP

Mark Williams

Patrick Duffy

Jason Greive (d)

John Tasovac (d)

Total

(a) (b) (c) The following tables provide further details regarding Rights on foot.

(d) Mr Greive and Mr Tasovac left the Company during the year and are not eligible to be awarded the performance rights.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.9
(a)

REMUNERATION REPORT (cont.)
ADDITIONAL REMUNERATION DISCLOSURES (cont.)
FY23 LTI Performance Rights– Managing Director and KMP (Expiry date: 30 June 2025)

Managing Director

Other KMPs:

Patrick Duffy

Value per right

Valuation per tranche

Condition criteria

Tranche A

1,651,098

695,579

$0.142

$333,228

Tranche B

707,614

298,105

$0.159

$159,909

Total

2,358,712

993,684

$493,137

TSR ranking relative to TSR of
S&P/ASX All Ordinaries Gold
Total Return Index

Growth in the Company’s Ore
Reserves (proved and
probable), excluding 50% of
acquired Ore Reserves

In addition, vesting of the
performance rights is also
conditional on a positive Company
TSR for the measurement period.

TSR > Index TSR
+20%

TSR > Index TSR
+10%

TSR < or equal to
Index TSR

100%

Stretch:
35% or over

100%

50%

Target: 20% 50%

nil

Threshold: 15% 25%

< 15% nil

(a) The Tranche A Rights have been valued using a hybrid employee share option pricing model which incorporates a Monte Carlo

simulation. It uses a correlated simulation that simultaneously calculates the TSR of the Company and the Index on a risk-neutral
basis as at the vesting date with regards to the measurement period. The percentage by which the return on the stock exceeds the
total return on the Index is calculated as at the vesting date and a vesting percentage is calculated from the vesting schedule. The
forecast share price at the vesting date is then used to calculate the value of the Right. The price is adjusted based on the vesting
percentage, then discounted to its present value.

Tranche B Rights have non-market vesting conditions, but the inclusion of a positive TSR gate represents a market-based vesting
condition, and as such, the Tranche B Rights have been valued using a hybrid single barrier option pricing model. The model
incorporates a Monte Carlo simulation, which simulates the Company’s share price at the test date. The forecast share price at the
test date is then used to calculate the value of the Tranche B Rights. The average value of the Monte Carlo iterations where the
Company’s share price exceeds the barrier represents the value of the Tranche B Rights.

(b) Rights with market based and non-market based vesting conditions can only be exercised following the satisfaction of their exercise

conditions. In accordance with the terms of the Red 5 Rights Plan, performance rights were not issued to key management
personnel and senior management due to non-achievement of performance conditions measured over the three years ended
30 June 2023 in respect of the LTI performance rights.

(d) Performance rights with unmet performance conditions will lapse and be forfeited. In addition, performance rights for employees

who have resigned from the company will be forfeited.

Share based payments expense for the shares issued, service and performance rights for KMP’s was $1,141,240 (2022: $1,259,460).
The fair value is based on the observable market share price at the grant date.

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

11.
11.9

REMUNERATION REPORT (cont.)
ADDITIONAL REMUNERATION DISCLOSURES (cont.)

Details of the performance rights issued previously:

FY22 LTI Performance Rights– Managing Director and KMP (Expiry date: 30 June 2024)

Managing Director

Other KMPs:

Patrick Duffy

Value per right

Valuation per tranche

Condition criteria

Tranche A

1,586,539

650,000

$0.217

$485,329

Tranche B

679,945

278,571

$0.280

$268,384

Total

2,266,484

928,571

$753,713

TSR ranking relative to TSR of
S&P/ASX All Ordinaries Gold
Total Return Index

Growth in the Company’s Ore
Reserves (proved and
probable), excluding 50% of
acquired Ore Reserves

In addition, vesting of the
performance rights is also
conditional on the following being
exceeded:

TSR > Index TSR
+20%

TSR > Index TSR
+10%

TSR < or equal to
Index TSR

100%

Stretch:
35% or over

100%

50%

Target: 20% 50%

nil

Threshold: 15% 25%

< 15%

nil

1. A positive Company TSR for the

measurement period;

2. 90% of budgeted gold
production over the
measurement period.

11.9.6 Transactions with Key Management Personnel and their related parties

The NEDs Andrea Sutton, Kevin Dundo and Ian Macpherson invoiced for their directors’ fees through their private companies. They
were not separate entities that provided consulting services to the Company. NEDs Colin Loosemore, Steven Tombs and Fiona Harris
were paid directors fees through the Company’s payroll. Ms Sutton, Mr Dundo, Mr Macpherson, Mr Loosemore, Mr Tombs, and Ms
Harris met the definition and maintained their status as independent NEDs, thus retaining objectivity and their ability to meet their
oversight role.

END OF AUDITED REMUNERATION REPORT

2023 ANNUAL REPORT

DIRECTORS’ Report (cont.)

12. NON-AUDIT SERVICES
During the year, Red 5’s external auditors, KPMG, have provided other services in addition to their statutory audit function. Non audit
services provided by the external auditors comprised $95,428 (2022: $44,546) for non-audit services. Further details of the
remuneration of the auditors are set out in Note 27.

The Board has considered the non-audit services provided during the year and is satisfied that the provision of those services is
compatible with the general standard of independence for auditors imposed by the Corporations Act and did not compromise the
auditor independence requirements of the Corporations Act, for the following reasons:

\ All non-audit services were subject to the corporate governance guidelines adopted by Red 5;

\ Non-audit services have been reviewed by the audit committee to ensure that they do not impact the impartiality or objectivity of the

auditor; and

\ The non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a
management or decision-making capacity, acting as an advocate for Red 5 or jointly sharing economic risks and rewards.

13. AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act is included immediately
following the Directors’ Report and forms part of the Directors’ Report.

14. ROUNDING
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in
accordance with that instrument, all financial information has been rounded to the nearest thousand dollars, unless otherwise stated.

Signed in accordance with a resolution of the Directors.

Ian Macpherson
Audit Committee Chair

Perth, Western Australia
29 August 2023

2023 ANNUAL REPORT

AUDITOR’S Independence Declaration

Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001

To the Directors of Red 5 Limited

I declare that, to the best of my knowledge and belief, in relation to the audit of Red 5 Limited for the
financial year ended 30 June 2023 there have been:

ii.

No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and

No contraventions of any applicable code of professional conduct in relation to the audit.

KPMG

Jane Bailey

Partner

Perth

29 August 2023

2023 ANNUAL REPORT

Consolidated Statement of
PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the year ended 30 June 2023

CONSOLIDATED

30 June 2023

30 June 2022

Sales revenue

Cost of sales

Gross profit/(loss)

Other income and expenses

Other income

Administration and other expenses

Exploration expenditure

Financing income

Financing expenses

Total other income and expenses

(Loss)/profit before income tax expense

Income tax benefit/(expense)

Net (loss)/profit from continuing operations

Note

4(a)

4(b)

4(c)

4(d)

5(a)

5(b)

Profit/(loss) from discontinued operation (net of tax)

Net (loss)/profit after income tax for the year

Other comprehensive income/(loss)

Items that are or may be reclassified subsequently to profit or loss:

Foreign currency translation differences

Reclassified to profit or loss on sale of subsidiary

Cashflow hedge movements

Total comprehensive profit for the year

Net (loss)/profit after income tax attributable to:

Non-controlling interest

Members of parent entity

Total comprehensive profit attributable to:

Non-controlling interest

Members of parent company

(Loss)/profit per share attributable to shareholders

Basic and diluted earnings/(loss) per share

Basic and diluted earnings/(loss) per share – continuing operations

$’000

422,745

(394,620)

28,125

811

(8,825)

(7,181)

(21,721)

(36,855)

(8,730)

(54)

(8,784)

(8,730)

(8,784)

Cents

(0.31)

$’000

164,962

(196,049)

(31,087)

208

(13,371)

(2,522)

(2,815)

(18,492)

(49,579)

915

(48,664)

20,049

(28,615)

631

(26,504)

(1,444)

(55,932)

(86)

(28,529)

(28,615)

(83)

(55,849)

(55,932)

Cents

(1.21)

(2.06)

The accompanying notes form part of these financial statements.

2023 ANNUAL REPORT

Consolidated Statement of FINANCIAL POSITION as at 30 June 2023

CONSOLIDATED

30 June 2023

30 June 2022

Note

$’000

Assets

Current Assets

Cash and cash equivalents

Trade and other receivables

Inventories

Total Current Assets

Non-Current Assets

Property, plant and equipment

Mine properties

Exploration and evaluation assets

Trade and other receivables

Inventories

Intangible assets

Total Non-Current Assets

Total Assets

Liabilities

Current Liabilities

Trade and other payables

Financial liability

Provisions

Employee benefits

Lease liabilities

Total Current Liabilities

Non-Current Liabilities

Financial liability

Provisions

Employee benefits

Lease liabilities

Total Non-Current Liabilities

Total Liabilities

Net Assets

Equity

Contributed equity

Other equity

Reserves

Accumulated losses

Total Equity Attributable to Equity Holders of the Company

Non-controlling interests

Total Equity

20,112

28,973

76,550

125,635

289,329

228,498

10,767

8,168

7,911

169

544,842

670,477

63,683

21,854

447

7,130

18,557

111,671

104,286

59,239

797

64,413

228,735

340,406

330,071

596,668

930

8,168

(275,678)

330,088

(17)

330,071

32,526

19,025

41,415

92,966

303,378

131,416

41,133

8,180

292

484,399

577,365

64,174

19,376

1,296

8,316

18,490

111,652

152,894

47,681

739

81,604

282,918

394,570

182,795

443,160

930

6,918

(268,196)

182,812

(17)

182,795

The accompanying notes form part of these financial statements.

2023 ANNUAL REPORT

Consolidated Statement of CHANGES IN EQUITY for the year ended 30 June 2023

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY

a
t
i

p
a
c
d
e
u
s
s
I

d
e
t
a

u
m
u
c
c
A

s
e
s
s
o

y
t
i

u
q
e

r
e
h
t
O

e
v
r
e
s
e
r
n
o

i
t
a

l
s
n
a
r
t

y
c
n
e
r
r
u
c
n
g

i
e
r
o
F

e
v
r
e
s
e
r
g
n

g
d
e
H

d
e
s
a
b
-
e
r
a
h
S

s
t
n
e
m
y
a
p

g
n

i
l
l

o
r
t
n
o
c
-
n
o
N

t
s
e
r
e
t
n

a
t
o
T

$’000

Balance at 1 July 2022

443,160

(268,196)

930

Net profit/(loss) for the year

Foreign currency translation

Other comprehensive (loss)/ income
for the period

Total comprehensive income/ (loss)
for the period

Issue of ordinary shares

Share issue expenses

Vested performance rights (LTI)

Service and deferred rights (STI)
converted to ordinary shares

Performance rights (LTI) forfeited

Share based payments (LTI & STI)

158,904

(6,838)

1,367

(8,730)

1,248

433

(54)

Balance at 30 June 2023

596,668

(275,678)

930

379

6,485

(17)

182,795

(1,367)

(75)

(1,248)

3,994

7,789

(8,730)

(54)

(8,784)

158,904

(6,838)

3,994

(17)

330,071

Balance at 1 July 2021

442,626

(239,797)

930

26,309

1,444

3,274

(3,910)

230,876

Net profit/(loss) for the year

Other comprehensive (loss)/ income
for the period

Foreign currency translation differences

Reclassified to profit or loss

Ineffective portion of cash flow hedges
transferred to profit or loss

Total comprehensive income/ (loss)
for the period

Vested performance rights (LTI)
converted to ordinary shares

Service and deferred rights (STI)
converted to ordinary shares

Performance rights (LTI) forfeited

Share based payments (LTI & STI)

Transfer from reserves

Disposal of subsidiary

449

(28,529)

130

628

(26,504)

(1,444)

(25,876)

(1,444)

(449)

(85)

(296)

4,171

(130)

(86)

(28,615)

631

(26,504)

(1,444)

(83)

(55,932)

(296)

4,171

3,976

6,485

(17)

182,795

Balance at 30 June 2022

443,160

(268,196)

930

433

The accompanying notes form part of these financial statements.

2023 ANNUAL REPORT

Consolidated Statement of CASH FLOWS for the year ended 30 June 2023

CONSOLIDATED

30 June 2023

30 June 2022

Note

$’000

Cash flows from operating activities

Cash received from customers

Payments to suppliers and employees

Payments for exploration and evaluation

Sundry receipts

Interest received

Interest paid

Net operating cash flows used in discontinued operations

Net cash from/(used in) operating activities

Cash flows from investing activities

Payments for property, plant equipment and intangibles

Payments for mine development

Payments for exploration and evaluation

Disposal of discontinued operation, net of cash

Net cash used in investing activities

Cash flows from financing activities

Proceeds from issue of shares

Payments for share issue transaction costs

Proceeds from borrowings

Repayment of loans

Receipt from restricted cash

Payments of borrowing costs and interest

Payments of lease liabilities

Net cash from financing activities

Net (decrease)/increase in cash and cash equivalents

Cash at the beginning of the period

Effect of exchange rate fluctuations on cash held

Cash and cash equivalents at the end of the period

420,013

(366,325)

(7,181)

473

(376)

46,665

(29,499)

(95,786)

(880)

(126,165)

158,904

(6,838)

(47,250)

(12,021)

(25,616)

67,179

(12,321)

32,526

(93)

20,112

158,606

(157,055)

(2,522)

223

(791)

(828)

(2,359)

(94,844)

(82,729)

(3,998)

21,467

(160,104)

175,000

13,000

(2,730)

(8,409)

176,861

14,398

17,415

713

32,526

The accompanying notes form part of these financial statements.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023

SECTION

Page

SECTION

CORPORATE INFORMATION AND BASIS
OF PREPARATION

CAPITAL STRUCTURE AND FINANCIAL RISK
MANAGEMENT

Page

17. Financial liability
18. Fair value measurement
19. Financial instruments
20. Financial risk management
21. Contributed equity
22. Reserves

OTHER DISCLOSURES

Income tax and deferred tax

Investments in controlled entities

23. Discontinued operation
24.
25. Related parties
26. Share-based payment arrangements
27. Auditor’s remuneration
28.
29. Deed of cross guarantee
30. Parent entity disclosures
31. Capital commitments
32. Contingent liabilities
33 Subsequent events
34. New accounting standards and interpretations

2.3 FUNCTIONAL AND PRESENTATION
CURRENCY

The consolidated financial report is presented in Australian dollars,
which is the Group’s presentation currency. The functional currency
of the Parent Company and the Australian subsidiaries in which the
Group holds its Australian assets is Australian dollars, and the
functional currency of the Company’s legacy foreign subsidiaries is
Philippine pesos. The functional currency of each of the Group’s
entities is measured using the currency of the primary economic
environment in which that entity operates.

2.4 ROUNDING

The Company is of a kind referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191
and in accordance with that instrument, all financial information
has been rounded to the nearest thousand dollars, unless
otherwise stated.

2.5 REMOVAL OF PARENT ENTITY
FINANCIAL STATEMENTS

The Group has applied amendments to the Corporations Act 2001
that remove the requirement for the Group to lodge parent entity
financial statements. Parent entity financial statements have been
replaced by the specific parent entity disclosures in Note 30.

1. Reporting entity
2. Basis of preparation

FINANCIAL PERFORMANCE

3. Segment information
4. Revenue and expenses
5. Finance income and expenses
6. Earnings per share

OPERATING ASSETS AND LIABILITIES

Inventories

7. Cash and cash equivalents
8. Trade and other receivables
9.
10. Property, plant and equipment
11. Mine properties
12. Exploration and evaluation
13. Trade and other payables
14. Provisions
15. Employee benefits
16. Lease liabilities

CORPORATE INFORMATION AND BASIS OF PREPARATION

1. REPORTING ENTITY
Red 5 Limited (“parent entity” or “the Company”) is a for profit
company limited by shares incorporated in Australia whose shares
are publicly traded on the Australian Securities Exchange. The
Consolidated Financial Report for the year ended 30 June 2023
comprise the Company and its subsidiaries (together referred to as
the “Group” and individually as “Group entities”) and the Group’s
interest in associates and jointly controlled entities.

The Group is primarily involved in the exploration and mining
of gold.

2. BASIS OF PREPARATION
2.1 STATEMENT OF COMPLIANCE

The consolidated financial statements are general purpose financial
statements which have been prepared in accordance with
Australian Accounting Standards (AASBs) adopted by the
Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. The consolidated financial statements
comply with International Financial Reporting Standards (IFRSs)
adopted by the International Accounting Standards Board (IASB).

The consolidated financial statements were authorised for issue by
the Board of Directors on 29 August 2023.

2.2 BASIS OF MEASUREMENT

The consolidated financial statements have been prepared on the
historical cost basis, except for derivative financial instruments and
certain other financial assets and liabilities which are required to be
measured at fair value. Share based payments are measured at fair
value. The methods used to measure fair values of share based
payments are discussed further in the Note 26. Rehabilitation
provisions are based on net present value and are discussed
in Note 14.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

2. BASIS OF PREPARATION (cont.)
2.6 PRINCIPLES OF CONSOLIDATION
The consolidated financial report incorporates the assets and
liabilities of all entities controlled by the Company as at 30 June
2023 and the results of all controlled entities for the year then
ended. The Company and its controlled entities together are
referred to in this financial report as the consolidated entity. The
financial statements of controlled entities are prepared for the same
reporting period as the parent entity, using consistent accounting
policies. Intra-group balances and transactions, and any unrealised
income and expenses arising from intra-group transactions are
eliminated in preparing the consolidated financial statements.

Where control of an entity is obtained during a financial period,
its results are included only from the date upon which control
commences. Where control of an entity ceases during a financial
period, its results are included for that part of the period during
which control existed. Non-controlling interests in equity and
results of the entities which are controlled by the consolidated
entity are shown as a separate item in the consolidated
financial statements.

2.7 FOREIGN CURRENCIES

Foreign currency transactions:

Transactions in foreign currencies are translated at the foreign
exchange rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the statement of
financial position date are translated to Australian dollars at the
foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the Statement of
Profit or Loss and Other Comprehensive Income. Non-monetary
assets and liabilities that are measured in terms of historical cost in
a foreign currency are translated using the exchange rate at the
date of the transaction. Non-monetary assets and liabilities
denominated in foreign currencies that are stated at fair value are
translated to Australian dollars at foreign exchange rates ruling at
the dates the fair value was determined.

2.8 BUSINESS COMBINATIONS

The Group accounts for business combinations using the
acquisition method when control is transferred to the Group. The
consideration transferred in the acquisition is generally measured at
fair value, as are the identifiable net assets acquired. Any goodwill
that arises is tested annually for impairment. Any gain on a bargain
purchase is recognised in profit or loss immediately. Transaction
costs are expensed as incurred, except if related to the issue of
debt or equity securities.

The consideration transferred does not include amounts related to
the settlement of pre-existing relationships. Such amounts are
generally recognised in profit or loss.

Any contingent consideration is measured at fair value at the date
of acquisition. If an obligation to pay contingent consideration that
meets the definition of a financial instrument is classified as equity,
then it is not remeasured, and settlement is accounted for within
equity. Otherwise, other contingent consideration is remeasured
at fair value at each reporting date and subsequent changes in the
fair value of the contingent consideration are recognised in profit
or loss.

2.9

IMPAIRMENT

At each reporting date, the consolidated entity reviews and tests
the carrying value of assets when events or changes in
circumstances indicate that the carrying amount may not be
recoverable. Where an indicator of impairment exists, the
consolidated entity makes a formal estimate of recoverable amount.
Where the carrying amount of an asset exceeds its recoverable
amount the asset is considered impaired and is written down to its
recoverable amount. Impairment losses are recognised in the
Statement of Profit or Loss and Other Comprehensive Income
unless the asset has previously been revalued, in which case the
impairment loss is recognised as a reversal to the extent of that
previous revaluation with any excess recognised through the
Statement of Profit or Loss and Other Comprehensive Income.

The following significant exchange rates have been applied:

Calculation of recoverable amount

Average rate

Year-end spot rate

AUD

Philippine Peso

USD

2023

37.55

0.67

2022

37.19

0.72

2023

36.83

0.66

2022

37.91

0.69

Financial statements of foreign operations:

Each entity in the consolidated entity determines its functional
currency, being the currency of the primary economic environment
in which the entity operates, reflecting the underlying transactions,
events and conditions that are relevant to the entity. The functional
currency of the Australian entities is the Australian dollar and the
functional currency of the Philippine entities is the Philippine Peso.
The assets and liabilities of foreign operations, including goodwill
and fair value adjustments arising on consolidation, are translated
from the entity’s functional currency to the consolidated entity’s
presentation currency of Australian dollars at foreign exchange
rates ruling at reporting date. The revenues and expenses of foreign
operations are translated to Australian dollars at the exchange rates
approximating the exchange rates ruling at the date of the
transactions. Foreign exchange differences arising on translation
are recognised directly in a separate component of equity.

Recoverable amount is the greater of fair value less costs of
disposal and value in use. It is determined for an individual asset,
unless it does not generate cash inflows that are largely
independent of those from other assets or groups of assets, in
which case the recoverable amount is determined for the cash-
generating unit to which the asset belongs. The estimated future
cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset.

2.10 KEY ESTIMATES AND JUDGEMENTS

The preparation of the Consolidated Financial Statements requires
management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities at the date of the consolidated financial
statements. Estimates and assumptions are continually evaluated
and are based on management’s experience and other factors,
including expectations of future events that are believed to be
reasonable under the circumstances.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

2. BASIS OF PREPARATION (cont.)
2.10 KEY ESTIMATES AND JUDGEMENTS (cont.)

Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount
of assets or liabilities affected in future periods.

In particular, the Group has identified a number of areas where
significant judgements, estimates and assumptions are required.
Further information on each of these areas and how they impact
the various accounting policies are described with the associated
accounting policy note within the related qualitative and
quantitative note.

The selection and disclosure of the consolidated entity’s critical
accounting policies and estimates and the application of these
policies, estimates and judgements is the responsibility of the
Board of Directors. The estimates and judgements that may have a
significant impact on the carrying amount of assets and liabilities
are discussed below.

\ Inventories: refer note 9

\ Mine properties: refer note 11

\ Rehabilitation and mine closure provisions: refer note 11

\ Reserves and resources: refer note 11

\ Capitalised exploration and evaluation assets: refer note 12

\ Discontinued operations and assets held for sale: refer note 23

\ Share based payment transactions: refer note 26

Impairment of Assets:

At each reporting date, the Group makes an assessment for
impairment of all assets if there has been an impairment indicator
by evaluating conditions specific to the Group and to the particular
assets that may lead to impairment. The recoverable amount of
Property, Plant & Equipment and Mine Development Expenditure is
determined as the higher of value-in-use and fair value less costs of
disposal. Value-in-use is generally determined as the present value
of the estimated future cash flows. Present values are determined
using a risk adjusted discount rate appropriate to the risks inherent
in the asset.

Given the nature of the Group’s mining activities, future changes in
assumptions upon which these estimates are based may give rise
to a material adjustment to the carrying value. This could lead to the
recognition of impairment losses in the future. The inter-relationship
of the significant assumptions upon which estimated future cash
flows are based is such that it is impracticable to disclose the
extent of the possible effects of a change in a key assumption in
isolation.

Future cash flow estimates are based on expected production
volumes and grades, gold price and exchange rate estimates,
budgeted and forecasted development levels and operating costs.
Management is required to make these estimates and assumptions
which are subject to risk and uncertainty. As a result, there is a
possibility that changes in circumstances may alter these
projections, which could impact on the recoverable amount of the
assets. In such circumstances, some or all of the carrying value of
the assets may be impaired. Impairment losses are recognised in
the Statement of Profit or Loss unless the asset has previously
been revalued.

Going concern:

A key assumption underlying the preparation of the financial
statements is that the Group will continue as a going concern. An
entity is a going concern when it is considered to be able to pay its
debts as and when they are due, and to continue in operation
without any intention or necessity to liquidate or otherwise wind up
its operations.

The Directors believe it is appropriate to prepare the consolidated
financial report on a going concern basis, which contemplates the
continuity of normal business activities and the realisation of assets
and settlement of liabilities in the ordinary course of business.

The Group’s principal cash flow generating assets is the King of the
Hills (KOTH) Gold Mine (including the Darlot Underground satellite
mine), which operate as a single cash generating unit. The new
KOTH process plant declared commercial production on 16
December 2022, and is now operating well above design
throughput levels.

The development of the KOTH Project was partly funded via a
Project Financing Facility provided by Macquarie Bank, BNP
Paribas and Hongkong Shanghai Banking Corporation. Operations
has been cash flow positive since March 2023, putting Red 5 in a
solid position to continue to de-leverage and strengthen the
balance sheet for the future. The Company’s current asset position
improved by $64.1 million during the second half of the year.
Management has prepared a cash flow forecast for the next twelve
months, which anticipates that the Group will be able to pay its
debts as and when they fall due during that period.

Risk factors that may affect the going concern assumption are
adverse fluctuations in the gold price, rising operational costs, and
difficulties in achieving the budgeted throughput of the mill.

Production start date:

The Group assesses the stage of each mine under development/
construction to determine when a mine moves into the production
phase, this being when the mine is substantially complete and
ready for its intended use. The criteria used to assess the start date
are determined based on the unique nature of each mine
development/construction project, such as the complexity of the
project and its location. The Group considers various relevant
criteria to assess when the production phase is considered to have
commenced.

Some of the criteria used to identify the production start date
include, but are not limited to:

\ Level of capital expenditure incurred compared with the original

construction cost estimate

\ Completion of a reasonable period of testing of the mine plant

and equipment

\ Ability to produce metal in saleable form (within specifications)

\ Ability to sustain ongoing production of metal

When a mine development project moves into the production
phase, the capitalisation of certain mine development costs ceases
and costs are either regarded as forming part of the cost of
inventory or expensed, except for costs that qualify for
capitalisation relating to mining asset additions or improvements,
underground mine development or mineable reserve development.
It is also at this point that depreciation/amortisation commences.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

FINANCIAL PERFORMANCE
3. SEGMENT INFORMATION
The Group is managed primarily on the basis of its production, development and exploration assets in Australia. Operating segments are
therefore determined on the same basis. In the prior year, Red 5 disposed of its previous Philippine assets.

Unless otherwise stated, all amounts reported to the Board of Directors as the chief decision maker with respect to operating segments
are determined in accordance with accounting policies that are consistent to those adopted in the consolidated annual financial
statements of the Group.

(i)

Segment performance

Year ended 30 June 2023

Revenues (c)

Segment result before tax

Included within the segment result:

Other income

Interest income

Finance expenses

Exploration costs expensed

Depreciation and amortisation

Year ended 30 June 2022

Revenues (c)

Australia (a)

$’000

Philippines
(discontinued)

$’000

422,745

9,480

445

(8,549)

(7,181)

(82,820)

164,962

Other (b)

$’000

Total

$’000

422,745

(18,210)

(8,730)

366

(13,172)

(331)

811

(21,721)

(7,181)

(83,151)

164,962

Segment result before tax

(38,089)

20,049

(11,490)

(29,530)

Included within the segment result:

Other income

Interest income

Finance expenses

Exploration costs expensed

Depreciation and amortisation

Profit/(loss) from discontinued operation

(ii) Segment Assets

As at 30 June 2023

Segment assets

Additions to non-current assets:

Plant and equipment expenditure

Mine properties

As at 30 June 2022

Segment assets

Additions to non-current assets:

Plant and equipment expenditure

Mine properties

Intangible assets

208

(1,797)

(2,522)

(42,188)

648,311

31,007

95,786

546,992

198,540

82,729

20,049

(1,018)

(326)

208

(2,815)

(2,522)

(42,514)

20,049

22,166

670,477

31,088

95,786

30,373

577,365

103

198,544

82,729

117

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

3. SEGMENT INFORMATION (cont.)
(iii)

Segment liabilities

As at 30 June 2023

Segment liabilities

As at 30 June 2022

Segment liabilities

Australia (a)

$’000

204,028

215,484

Philippines
(discontinued)

$’000

Other (b)

$’000

Total

$’000

136,378

340,406

179,086

394,570

(a) Australia segment consists of the King of the Hills operation and Darlot gold mining satellite operation.

(b) Includes corporate costs of the group and inter-company transactions.

4. REVENUE AND EXPENSES
ACCOUNTING POLICY

Gold sales:

The Group recognises revenue when control has passed to the buyer; the Company has no significant continuing involvement; and the
amount of revenue and costs incurred or costs to be incurred in respect of the transaction can be measured reliably. The Group’s
assessment is that this occurs when the sales contract has been entered into and the customer has physical possession of the gold as this
is the point at which the customer obtains the ability to direct the use and obtains substantially all of the remaining benefits of ownership of
the asset.

The transaction price is determined based on the agreed upon price and the number of ounces delivered. Payment is due upon delivery
into the sales contract.

Gold forward contracts:

As part of the risk management policy, the Group enters into gold forward contracts to manage the gold price of a proportion of anticipated
gold sales. The counterparty to the gold forward contracts is BNP Paribas, Australia Branch, the Hongkong and Shanghai Banking
Corporation Limited, Sydney Branch and Macquarie Bank Limited (“MBL”) (the counterparties).

It is management’s intention to settle each contract through physical delivery of gold and as such, the gold forward sale contracts
disclosed below do not meet the criteria of financial instruments for accounting purposes. This is referred to as the “normal purchase/sale”
exemption. Accordingly, the contracts will be accounted for as sale contracts with revenue recognised once the gold has been delivered to
the counterparties.

(a) Revenue

Gold and silver sales

Realised gains/(losses) on cash flow hedges

(b) Cost of sales

Operating costs

Depreciation and amortisation mine assets (1)

CONSOLIDATED YEAR ENDED

30 June 2023

30 June 2022

$’000

422,745

(311,875)

(82,745)

(394,620)

162,899

2,063

164,962

(153,934)

(42,115)

(196,049)

(1) 2022: With Darlot underground transitioning to a satellite mine providing ore to King of the Hills, accelerated depreciation and impairments

for the Darlot Process Plant (in care and maintenance) were booked during the prior year totalling $22.6 million.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

4. REVENUE AND EXPENSES (cont.)
ACCOUNTING POLICY (cont.)

Royalty income

Other income

(d) Administration and other expenses

Employee and consultancy expenses

Share based-payments expense

Corporate costs

Depreciation

Legal fees

Property and other indirect tax expenses

Travel and accommodation

Foreign exchange (losses)/gains

Other expenses

CONSOLIDATED YEAR ENDED

30 June 2023

30 June 2022

$’000

366

445

811

(2,873)

(3,994)

(750)

(406)

(224)

(217)

(134)

(26)

(201)

208

(5,750)

(4,171)

(1,547)

(399)

(379)

(931)

(205)

647

(636)

(8,825)

(13,371)

FINANCE INCOME AND EXPENSES

5.
Accounting policy

Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest rate
method.

Finance expenses comprise interest expense on borrowings and amortisation of loan borrowing costs. Loan borrowing costs are
amortised using the effective interest rate method. Interest incurred on loans for the construction of a qualifying asset is capitalised to the
qualifying asset.

(a) Finance income

Interest income

(b) Finance expenses

Interest expense on borrowings and leases

Amortisation of borrowing costs

Unwinding of discount on rehabilitation provision

CONSOLIDATED YEAR ENDED

30 June 2023

30 June 2022

$’000

(18,881)

(1,120)

(1,720)

(21,721)

(1,867)

(90)

(858)

(2,815)

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

6. EARNINGS PER SHARE
Accounting policy

Earnings per share (“EPS”) is the amount of post-tax profit or loss attributable to each share. The Group presents basic and diluted EPS
data for ordinary shares.

Basic earnings per share is determined by dividing net operating results after income tax attributable to members of the parent entity,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during
the financial year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income
tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of
shares assumed to have been issued for no consideration in relation to potential ordinary shares, being unlisted employee performance
and service rights on issue.

Net (loss)/gain after income tax from continuing operations
attributable to members of the parent company

Net gain after income tax from discontinued operations

Net (loss)/profit after income tax attributable to members
of the parent company

Weighted-average number of ordinary shares (basic):

Opening issued ordinary shares (‘000)

Effect of shares issued 4 July 2022

Effect of shares issued 28 August 2022

Effect of shares issued 10 October 2022

Effect of shares issued 2 November 2022

Effect of shares issued 28 November 2022

Effect of shares issued 2 March 2023

Effect of shares issued 13 April 2023

Effect of shares issued 18 April 2023

Effect of shares issued 21 August 2021

Effect of shares issued 7 September 2021

CONSOLIDATED

30 June 2023

30 June 2022

$’000

(8,730)

$’000

(48,578)

20,049

(28,529)

CONSOLIDATED

Weighted average number of shares

2023

2022

2,356,359

2,346,322

409

4,535

256,279

36,746

12,179

138,876

16,032

35,210

8,353

266

Weighted average number of ordinary shares at 30 June (basic)

2,856,625

2,354,941

(i) Weighted-average number of ordinary shares (basic):

2,856,625

2,354,941

Effect of performance rights contingently issuable

Effect of service rights contingently issuable

Weighted average number of ordinary shares at 30 June (diluted)

2,856,625

2,354,941

Earnings per share (cents per share)

Basic and diluted (loss)/profit per share

Basic and diluted (loss)/profit per share – continuing operations

(0.31)

(1.21)

(2.06)

For fully diluted (loss)/profit per share, the weighted average number of ordinary shares on issue is adjusted to assume conversion of
dilutive potential ordinary shares. The Group’s potentially dilutive securities consist of performance and service rights. Since the Group has
a net loss after tax for the period, potentially dilutive securities amounting to 36,229,340 have not been taken into account because their
effect would be anti-dilutive.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

OPERATING ASSETS AND LIABILITIES
7. CASH AND CASH EQUIVALENTS
Accounting policy

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand. Cash at bank earns interest at floating rates based on
bank deposit rates.

Cash at bank (a)

Cash on hand

CONSOLIDATED

30 June 2023

30 June 2022

$’000

20,111

20,112

$’000

32,525

32,526

(a) The Group is required to maintain a minimum cash balance of $7.5 million in its account at Hongkong and Shanghai Bank Corporation

Limited. Prior year cash at bank also included $13.0 million funds for the construction of the tailings storage facility at King of the Hills which
the financiers required to be set aside for this purpose.

Reconciliation of profit after income tax to net cash flow from operating activities:

CONSOLIDATED

30 June 2023

30 June 2022

Operating (loss)/profit after income tax

Profit on sale discontinued operation

Amortisation and depreciation

Ineffective portion of cashflow hedges

Deferred tax

Share based payment

Interest expenses

Write down of obsolete inventory

Write down of gold-in-circuit inventory

Non-cash stockpile movements

Unwinding of asset retirement obligation

Amortisation of borrowing costs

Other

Changes in operating assets and liabilities:

(Increase)/decrease in inventories

(Increase)/decrease in receivables

Increase/(decrease) in payables

(Decrease)/increase in provisions

Net cash flow from operating activities

$’000

(8,730)

83,151

3,994

19,257

769

2,133

(12,610)

1,720

1,120

741

(35,135)

(9,948)

2,238

(2,035)

46,665

$’000

(28,615)

(21,225)

42,514

(2,063)

(915)

3,875

326

4,699

7,934

(522)

858

861

(14,843)

(1,664)

7,192

(861)

(2,359)

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

TRADE AND OTHER RECEIVABLES

8.
Accounting policy

Trade and other receivables are carried at amortised cost. Trade receivables are non-interest bearing.

CONSOLIDATED

30 June 2023

30 June 2022

Current assets

Trade debtors (a)

Restricted cash (b)

Prepayments

GST receivable

Sundry debtors

Interest receivable

Non-current assets

Security deposits (c)

VAT receivable

$’000

10,933

7,500

5,273

4,656

611

28,973

8,162

8,168

$’000

8,158

7,500

988

2,138

240

19,025

8,177

8,180

(a) Trade debtors includes amounts receivable for 3,563 ounces sold on 30 June 2023, equivalent to $10.1 million (30 June 2022: 2,794 ounces

equivalent to $7.4 million).

(b) Restricted cash is made up of $7.5 million of funds in a debt service reserve account which may be utilised for syndicate loan repayments.

INVENTORIES

9.
Accounting policy

Gold in circuit, bullion on hand and ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable
value. Cost represents the weighted average cost and comprises direct material, labour, and an appropriate portion of fixed and variable
production overhead expenditure on the basis of normal operating capacity, including depreciation and amortisation incurred in converting
materials to finished products.

Inventories of consumable supplies and spare parts expected to be used in production are valued at the lower of cost and net realisable
value. Any provision for obsolescence or damage is determined by reference to specific stock items identified. The carrying value of those
items identified, if any, is written down to net realisable value.

CONSOLIDATED

30 June 2023

30 June 2022

Current inventory

Stores, spares and consumables at cost

Provision for slow-moving stores, spares and consumables (a)

Run of mine stockpiles at net realisable value (2022: net realisable value) (b)

Gold in circuit at net realisable value (2022: net realisable value) (b)

Crushed ore stockpile at cost (2022: net realisable value) (b)

Gold Bullion at cost

Non-current inventory

Run of mine stockpiles at net realisable value

$’000

20,810

(6,151)

14,659

52,236

6,326

3,329

76,550

7,911

$’000

12,641

(5,382)

7,259

22,245

9,816

1,943

152

41,415

(a) During the period the provision for slow-moving stores, spares and consumables inventory at the Darlot mine was increased to $0.6 million

(30 June 2022: $5.4 million).

(b) Net realisable value adjustments of $5.9 million were made during the year (30 June 2022: $5.9 million).

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

10. PROPERTY, PLANT AND EQUIPMENT
Accounting policy

Property, plant and equipment includes land and buildings, plant and equipment, fixtures and fittings, right-of-use assets and assets under
construction. All assets acquired are initially recorded at their cost of acquisition, being the fair value of the consideration provided plus
incidental costs directly attributable to the acquisition.

Land and buildings are measured at cost less accumulated depreciation on the buildings. Buildings are depreciated on a straight-line basis
over the life of mine.

Plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Items of plant and
equipment are depreciated using a combination of units of production, straight line and diminishing value methods, commencing from the
time they are installed and ready for use, or in respect of internally constructed assets, from the date the asset is completed and ready for
use. Depreciation of the processing plant is based on life of mine. The expected useful lives of plant and equipment are between 3 and
13 years. Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

Fixtures and fittings include office equipment and computer hardware and are depreciated on a straight-line basis over their expected
useful lives between 3 and 13 years.

Right-of-use assets are measured at cost less accumulated depreciation and any accumulated impairment losses. They are depreciated
using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the
underlying asset to the Group by the end of the lease term, or the cost of the right-of-use asset reflects that the Group will exercise a
purchase option. In that case the right-of-use assets are depreciated over the useful life of the underlying asset.

Intangible assets mainly comprise capitalised software. Intangible assets are initially recorded at cost of acquisition, being the fair value of
the consideration provided plus incidental costs directly attributable to the acquisition. Capitalised software is amortised on a straight-line
basis over three years commencing when it is available for use.

Land and
buildings

Plant and
equipment (a)

Fixtures and
fittings

Right of use
assets

Assets under
construction

$’000

Cost

Balance at 1 July 2022

Additions (a)

Transfer from assets under construction

35,170

240

215,975

27,849

6,237

Balance at 30 June 2023

35,410

250,061

Balance at 1 July 2021

Additions (a)

Transfer from assets under construction

Balance at 30 June 2022

Accumulated depreciation

Balance at 1 July 2022

Depreciation for the period

Balance at 30 June 2023

Balance at 1 July 2021

Depreciation for the year (b)

Balance at 30 June 2022

Carrying amounts

At 1 July 2021

At 30 June 2022

At 30 June 2023

10,648

24,315

207

35,170

(7,507)

(3,543)

(11,050)

(5,830)

(1,677)

(7,507)

4,818

27,663

24,360

48,902

70,859

96,214

215,975

(49,286)

(20,402)

(69,688)

(31,082)

(18,204)

(49,286)

17,820

166,689

180,373

677

126,639

1,639

128,278

27,156

99,473

6,576

1,360

(6,244)

1,692

102,281

3,595

Total

$’000

385,037

31,088

416,125

189,356

198,544

(2,863)

(99,300)

126,639

6,576

385,037

(24,578)

(21,031)

(45,609)

(15,407)

(9,171)

(24,578)

11,749

102,061

82,669

(81,659)

(45,137)

(126,796)

(52,542)

(29,117)

(81,659)

102,281

6,576

1,692

136,814

303,378

289,329

684

369

302

677

(288)

(161)

(449)

(223)

(65)

(288)

146

389

235

(a) During the year ended 30 June 2023 additions includes sustaining capital and the newly constructed tailing storage facility at KOTH.

(b) With the Darlot underground transitioning to a satellite mine to provide ore to KOTH, and the Darlot process plant being placed into care

and maintenance in July 2022, accelerated depreciation of $10.0 million was recognised in FY22.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

11. MINE PROPERTIES
Accounting policy

Production stripping costs and Other mine development:

Pre-Production: Costs incurred in the development of a mine before production commences are capitalised as part of the mine
development costs, with the exception of any costs relating to the pre-production sale of products which is expensed to the Statement of
Profit or Loss. These include pre-strip costs which are costs incurred in open pit mining operations, to remove overburden and waste
materials to access the ore. The Group capitalises stripping costs incurred during the development of a mine as part of the investment in
constructing the mine.

All capitalised development costs incurred within that area of interest are carried at cost. They are amortised from the commencement of
commercial production over the productive life of the project according to the mine plan, on a units-of-production basis, where the unit of
account is tonnes of ore mined.

Post-Production: Costs incurred in developing further areas of the mine are capitalised as part of the mine development costs and are
amortised over the productive life of the project on a unit-of-production basis, based on reserves.

Deferred waste mining costs: Stripping costs incurred after the commencement of production are generally considered to create two
benefits, being either the production of inventory or improved access to the ore to be mined in the future. Where the benefits are realised in
the form of inventory produced in the period, the production stripping costs are accounted for as part of the cost of producing those
inventories. Where the benefits are realised in the form of improved access to ore to be mined in the future, the costs are capitalised, if the
following criteria is met:

\ Future economic benefits (being improved access to the ore body) are probable;

\ The component of the ore body for which access will be improved can be accurately identified; and

\ The costs associated with the improved access can be reliably measured.

If all the criteria are not met, the production stripping costs are charged to profit or loss as they are incurred.

Depreciation of the stripping activity asset is determined on a unit of production basis over the life of the asset based on reserves for each
area of interest.

Asset retirement obligation:

Asset retirement obligation represents the estimated future cost of closure and rehabilitation of the mine site. It is amortised over the life of
the mine. Changes in the asset retirement obligation (also referred to as a rehabilitation provision, refer note 14) resulting from changes in
the size or timing of the cost or from changes in the discount rate are also recognised as part of the asset cost.

Mineral rights:

Mineral rights comprise identifiable exploration and evaluation assets, mineral resources and ore reserves, which are acquired as part of a
business combination or joint venture acquisition and are recognised at fair value at the date of acquisition. Where possible, mineral
interests are attributable to specific areas of interest and are classified within mine properties and are amortised over the life of the mine.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

11. MINE PROPERTIES (cont.)

Production
stripping costs

Other mine
development

Asset
retirement
obligation Mineral rights

$’000

Total

$’000

Cost

Balance at 1 July 2022

Additions

Transfer from exploration and evaluation

Rehabilitation cost estimate change

Rehabilitation economic variables change

53,348

76,165

91,018

19,621

31,246

Balance at 30 June 2023

129,513

141,885

19,106

30,717

194,189

9,765

(1,874)

26,997

95,786

31,246

9,765

(1,874)

30,717

329,112

Balance at 1 July 2021

Additions

Transfer from assets under construction

Rehabilitation change in cost estimate

Balance at 30 June 2022

Accumulated depreciation

Balance at 1 July 2022

Amortisation

Balance at 30 June 2023

Balance at 1 July 2021

Amortisation

Balance at 30 June 2022

Carrying amounts

At 1 July 2021

At 30 June 2022

At 30 June 2023

Key estimates and judgements

Stripping costs:

53,348

(79)

(20,638)

(20,717)

(79)

53,269

108,796

58,944

29,381

2,693

91,018

(39,370)

(13,208)

(52,578)

(27,961)

(11,409)

(39,370)

30,982

51,648

89,307

22,965

30,717

(3,859)

19,106

(3,190)

(2,724)

(5,914)

(1,756)

(1,434)

(3,190)

21,209

15,916

21,083

112,626

82,729

2,693

(3,859)

30,717

194,189

(20,134)

(1,271)

(62,773)

(37,841)

(21,405)

(100,614)

(19,883)

(251)

(20,134)

10,834

10,583

9,312

(49,600)

(13,173)

(62,773)

63,025

131,416

228,498

The Group capitalises mining costs incurred during the production stage of its operations in accordance with the accounting policy
described above. Once it has identified its production stripping for each surface mining operation, it identifies the separate components of
the ore bodies for each of its mining operations. An identifiable component is a specific volume of the ore body that is made more
accessible by the stripping activity. Significant judgement is required to identify and define these components, and also to determine the
expected volumes (e.g. in tonnes) of waste to be stripped and ore to be mined in each of these components. These assessments are
undertaken for each individual mining operation based on the information available in the mine plan. The mine plans and, therefore, the
identification of components, will vary between mines for a number of reasons. These include, but are not limited to, the type of
commodity, the geological characteristics of the ore body, the geographical location and/or financial considerations.

Judgement is also required to identify a suitable production measure to be used to allocate production stripping costs between inventory
and any stripping activity asset(s) for each component. The Group considers that the ratio of the expected volume (e.g. in tonnes) of waste
to be stripped for an expected volume (e.g., in tonnes) of ore to be mined for a specific component of the ore body, is the most suitable
production measure.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

11. MINE PROPERTIES (cont.)
Reserves and resources:

The Group determines and reports ore reserves under the Australian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves Code (“JORC”) as revised December 2012 JORC for underground reserves and the JORC 2012 edition for open pit reserves.
The JORC code requires the use of reasonable investment assumptions to calculate reserves. Reserves determined in this way are taken
into account in the calculation of depreciation of mining plant and equipment (refer to note 10), amortisation of capitalised development
expenditure (refer to note 11 above), and impairment relating to these assets.

Changes in reported reserves may affect the Group’s financial results and financial position in a number of ways, including:

\ Asset carrying values may be impacted due to changes in estimated cash flows

\ Depreciation and amortisation charged in the statement of profit or loss and other comprehensive income may change where such

charges are calculated using the units of production basis

\ Deferred waste amortisation, based on estimates of reserve to waste ratios

\ Decommissioning, site restoration and environmental provisions may change where changes in estimated reserves alter expectations

about the timing or cost of these activities.

12. EXPLORATION AND EVALUATION
Accounting policy

Exploration and evaluation assets are accumulated at cost in respect of each identifiable area of interest. Costs incurred in respect of
generative, broad scale exploration activities are expensed in the period in which they are incurred, other than costs relating to
acquisitions. Costs incurred for each area of interest where a resource or reserve estimated in accordance with JORC guidelines has been
identified, are capitalised. The costs are only carried forward to the extent they are expected to be recouped through the successful
development of the area, or where further work is to be performed to provide additional information.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to
that area of interest. When production commences, the accumulated costs for the relevant area of interest will be reclassified to mine
properties and amortised over the life of the area according to the rate of depletion of reserves. No amortisation is charged during the
exploration and evaluation phase.

Accumulated costs in relation to an abandoned area will be written off in full to the Statement of Profit or Loss and Other Comprehensive
Income in the year in which the decision to abandon the area is made.

Opening balance

Exploration and evaluation expenditure incurred in current period (a)

Exploration expenditure transferred to profit or loss (b)

Exploration expenditure transferred to mine development (c)

Closing balance

CONSOLIDATED

30 June 2023

30 June 2022

$’000

41,133

8,061

(7,181)

(31,246)

10,767

$’000

37,135

6,520

(2,522)

41,133

(a) During the period exploration costs at Darlot of $3.2 million (2022: $2.5 million) were incurred. In addition, $4.0 million for drilling and elated

costs at King of the Hills gold project were capitalised (2022: $0.8 million).

(b) The carrying value of exploration costs totalling $7.2 million were expensed (2022: $2.5 million). These costs were associated with drilling

and studies at the KOTH and Darlot gold project where no further work will be performed in those particular areas.

(c) Capitalised exploration costs relating to drilling for the KOTH processing plant feasibility study were transferred to Mine Development during

the year.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

12. EXPLORATION AND EVALUATION (cont.)
Key estimates and judgements

Capitalised exploration and evaluation assets:

The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the
Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset
through sale.

Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources, future
technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration
obligations) and changes to commodity prices. To the extent that capitalised exploration and evaluation expenditure is determined not to
be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made. In addition, exploration
and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is determined in the future that this
capitalised expenditure should be written off, this will reduce profits and net assets in the period in which this determination is made.

13. TRADE AND OTHER PAYABLES
Accounting policy

Trade and other payables are recognised at the value of invoices received from suppliers. They represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make
future payments in respect of the purchase of these goods and services. They are non-interest bearing and are normally settled in
15 to 45 day terms.

Current

Creditors and accruals

Royalties and other indirect taxes

Other creditors

14. PROVISIONS
Accounting policy

CONSOLIDATED

30 June 2023

30 June 2022

$’000

56,527

6,666

490

63,683

$’000

60,069

1,663

2,442

64,174

A provision is recognised in the Statement of Financial Position when the consolidated entity has a present legal or constructive obligation
as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows at the pre-tax rate that reflects current market assessments of the time value of
money and where appropriate, the risk specific to the liability.

Rehabilitation and mine closure provisions:

A provision for rehabilitation costs is made based on the net present value of the Group’s estimated cost of restoring the environmental
disturbance that has occurred up to the balance date. Increases due to additional environmental disturbances are capitalised to the asset
retirement obligation (refer note 11) and amortised over the remaining lives of the operations where they have future economic benefit,
otherwise they are expensed. These increases are accounted for on a net present value basis. A change in the estimate was recorded in
the current year to reflect an increase in the contingency applied to estimated future rehabilitation costs.

Annual increases in the provision relating to the change in the net present value of the provision and inflationary increases are accounted
for in the Statement of Profit and Loss as a finance expense. The estimated costs of rehabilitation are reviewed annually and adjusted as
appropriate for changes in legislation, technology or other circumstances.

In the case of provisions for assets which remain in use, adjustments to the carrying value of the provision are offset by a change in the
carrying value of the related asset. Where the provisions are for assets no longer in use or for obligations arising from the production
process, the adjustment is reflected directly in the Statement of Profit or Loss.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

14. PROVISIONS (cont.)
Key estimates and judgements

The discounted value reflects a combination of the Group’s assessment of the costs of performing the work required, the timing of the
cash flows and the discount rate. A change in any, or a combination, of the three key assumptions used to determine the provisions could
have a material impact to the carrying value of the provision.

Risks that could affect the cost of the work required are unforeseen changes in regulations, changes in levels of contamination or changes
in the risk-free rate of the applicable government bond being used as the discount rate.

Opening balance

Provisions made

Provisions utilised

Change in estimate of rehabilitation disturbance cost

Change in economic variables of rehabilitation estimate

Unwinding of discount

Transferred from accounts payable

Closing balance

Current

Non-current

CONSOLIDATED

Rehabilitation
provision

Other
provisions (a)

$’000

47,681

9,765

(1,873)

1,720

57,293

$’000

1,296

1,461

(2,310)

1,946

2,393

447

1,946

2,393

Total

$’000

48,977

1,461

(2,310)

9,765

(1,873)

1,720

1,946

59,686

447

59,239

59,686

(a) Other provisions: Includes provision for Mine Rehabilitation Fund (MRF) Levy.

15. EMPLOYEE BENEFITS
Accounting policy

Provision for employee entitlements represents the amount which the consolidated entity has a present obligation to pay resulting from
employees’ service provided up to the balance date.

Liabilities arising in respect of employee benefits expected to be settled within twelve months of the balance date are measured at their
nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. All other employee benefit
liabilities are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees
up to the balance date. Obligations for contributions to defined contribution superannuation funds are recognised as an expense in the
Statement of Profit or Loss and Other Comprehensive Income as incurred.

Provision for employee entitlements

Provision for annual leave

Provision for long-service leave

Provision for incentive payments

Current

Non-current

CONSOLIDATED

30 June 2023

30 June 2022

$’000

3,823

1,690

2,414

7,927

7,130

797

7,927

$’000

3,436

1,589

4,030

9,055

8,316

739

9,055

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

16. LEASE LIABILITIES
Accounting policy

At the inception of a contract the Group assesses whether the contract is or contains a lease. A contract is, or contains, a lease if it
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Group recognises it as a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the
lessee, except for short term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these
leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of
the following lease payments:

\ fixed payments (including in-substance fixed payments), less any lease incentives receivable

\ variable lease payments that are based on an index or a rate

\ amounts expected to be payable by the lessee under residual value guarantees

\ the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

\ payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective
interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and
makes a corresponding adjustment to the related right-of-use asset) whenever:

\ The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of

exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised
discount rate;

\ The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in
which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the
lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used);

\ A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is

remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at
the effective date of the modification.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the
commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less
accumulated depreciation and impairment losses.

Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore
the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under
AASB 137. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those
costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers
ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the
related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of
the lease.

The Group applies AASB 136 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as
described in the ‘Property, Plant and Equipment’ policy (as outlined in the financial report for the annual reporting period).

Variable rents that do not depend on an index or rate are not included in the measurement the lease liability and the right-of-use asset. The
related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are
included in profit or loss.

As a practical expedient, AASB 16 permits a lessee not to separate non-lease components, and instead account for any lease and
associated non-lease components as a single arrangement. The Group has not used this practical expedient. For a contract that contains
a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to
each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the
non-lease components.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

16. LEASE LIABILITIES (cont.)

Future minimum
lease payments

2023

$’000

24,393

56,772

23,190

2022

$’000

25,289

73,581

29,282

104,355

128,152

24,393

79,962

104,355

25,289

102,863

128,152

CONSOLIDATED

Interest

Present value of
minimum lease payments

2023

$’000

5,836

12,155

3,394

21,385

5,836

15,549

21,385

2022

$’000

6,799

16,012

5,247

28,058

6,799

21,259

28,058

2023

$’000

18,557

44,617

19,796

82,970

18,557

64,413

82,970

2022

$’000

18,490

57,569

24,034

100,094

18,490

81,604

100,094

Less than one year

Between one and five years

Five years and later

Current

Non-current

Lease liabilities include electricity and gas power plants, vehicles and equipment. Ownership of the vehicles and equipment will revert to
the Company at the end of the leases at no additional cost.

The Company’s obligations under the leases are secured by the lessor’s title to the leased assets. They expire between October 2023 and
April 2032 and bear interest at rates between 2.3% and 8.4%.

Variable lease payments on right-of-use assets amounted to $164.4 million for the year (2022: $27.3 million).

CAPITAL STRUCTURE AND FINANCIAL RISK MANAGEMENT
17. FINANCIAL LIABILITY

Nominal Interest Rate

Loan Term

Carrying Value

Current

Non-current

Bank syndicate debt facility

30 June 2023

$’000

30 June 2022

$’000

BBSY bid rate + 4.5%

BBSY bid rate + 4.0%

69 months

126,140

21,854

104,286

126,140

172,270

19,376

152,894

172,270

Red 5 has a $175.0 million debt facility commitment which was entered into in the prior year with a syndicate comprising BNP Paribas,
Australia branch, The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch and Macquarie Bank Limited. The terms of
the debt facility were adjusted in December 2022.

The key terms of the project financing facilities include:

\ A$160.0 million senior secured project loan facility;

\ A$15.0 million cost overrun and working capital facility;

\ Loan term of 5.75 years, maturing on 30 September 2026;

\ An interest rate in respect of the senior secured project loan facility of BBSY-bid plus a margin of 4.0% - 4.5% p.a.;

\ Certain financial covenants; and

\ Guaranteed and secured on a first-ranking basis over all Australian assets of Red 5, Greenstone Resources (WA) Pty Ltd, Opus

Resources Pty Ltd and Darlot Mining Company Pty Ltd.

The first draw-down on the debt facility took place in July 2021 and $47.3 million has been repaid to 30 June 2023. Loan acquisition costs
of $2.7 million have been offset against the $175.0 million drawn down.

Under the Syndicated Facility Agreement which governs the long-term debt, the Company is subject to amended covenants from the
March 2023 quarter for which it has to report on a quarterly basis or in the event of a default. The Company has been compliant under
those amended financial covenants in FY23.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

18. FAIR VALUE MEASUREMENT
The fair values of financial assets and financial liabilities carried at amortised cost approximate their carrying value.

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest - level input that is significant to the fair value measurement is directly or indirectly

observable

Level 3 - Valuation techniques for which the lowest - level input that is significant to the fair value measurement is unobservable

The following financial assets and liabilities are classified as level 2:

\ Financial liabilities - borrowings of $126.1 million (30 June 2022: $172.3 million)

19. FINANCIAL INSTRUMENTS
Accounting policy

Non-derivative financial instruments:

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash
equivalents, loans and borrowings and trade and other creditors. Non-derivative financial instruments are recognised initially at fair value
plus any directly attributable transaction costs. Subsequent to initial recognition, non-derivative financial instruments are measured as
described below.

Trade and other receivables are carried at amortised cost. Trade receivables are non-interest bearing. Loans and borrowings are measured
at amortised cost using the effective interest method, less any impairment losses. Liabilities for trade creditors and other amounts are
carried at amortised cost. Trade payables are non-interest bearing and are normally settled on 30 day terms.

For trade receivables, the Group uses the simplified approach to recognise impairments based on the lifetime expected credit loss. For
other receivables, the Group applies the general approach and recognises impairments based on a 12-month expected credit loss.
Impairment allowances are based on a forward-looking expected credit loss model. Where there has been a significant increase in credit
risk, a loss allowance for lifetime expected credit losses is required.

Exposures are grouped by external credit rating and security options and an expected credit loss rate is calculated accordingly. Where
applicable, actual credit loss experience is also taken into account. For remaining receivables without an external credit rating or security
option, a rating of BB (Standard and Poor’s) is used, on the basis that there is no support that it is investment grade, nor is there any
evidence of default.

For the purposes of the statement of cash flows, cash includes deposits at call which are readily convertible to cash on hand and which are
used in the cash management function on a day to day basis, net of outstanding bank overdrafts.

Derivative financial instruments:

Derivative financial instruments are recognised initially at fair value; any attributable transaction costs are recognised in profit and loss as
incurred. Subsequent to initial recognition, derivatives are measured at fair value.

Cashflow hedges:

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is
recognised in other comprehensive income and accumulated in the hedging reserve. Any ineffective portion of changes in the fair value of
the derivative is recognised immediately in profit or loss.

It is management’s intention to settle each contract through physical delivery of gold and as such, the gold forward sale contracts entered
into by the Company do not meet the criteria of financial instruments for accounting purposes which is referred to as the “normal
purchase/sale” exemption. Accordingly, the contracts will be accounted for as sale contracts with revenue recognised once the gold has
been delivered to the counterparty.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

20. FINANCIAL RISK MANAGEMENT
Overview

This note presents information about the consolidated entity’s exposure to credit, liquidity and market risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Management
monitors and manages the financial risks relating to the operations of the consolidated entity through regular reviews of the risks.

Credit risk

Credit risk is the risk of financial loss to the consolidated entity if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the consolidated entity receivables from customers and investment securities. For the
Company it arises from receivables due from subsidiaries.

Presently, the consolidated entity undertakes exploration, mining and gold production activities.

The Group sells gold to four customers in Australia and has managed its exposure to credit risk by analysing the creditworthiness of the
customers.

Cash and cash equivalents

The consolidated entity limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have an
acceptable credit rating. Any excess cash and cash equivalents are maintained in short term deposits with more than one major Australian
commercial bank at interest rates maturing over 30 to 120 day rolling periods.

Trade and other receivables

The Group’s trade and other receivables relate mainly to gold sales and sales tax refunds. The Group has determined that its exposure to
trade receivable credit risk is low, given that it sells gold bullion to a single reputable refiner with short contractual payment terms and sales
tax refunds are due from Government tax bodies namely the Australian Tax Office and the Philippines Bureau of Internal Revenue.

Exposure to credit risk

The carrying amount of the consolidated entity’s financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date was:

Cash and cash equivalents

Trade and other receivables

Non-current receivables

Liquidity risk

CONSOLIDATED

Carrying amount

30 June 2023

30 June 2022

$’000

20,112

28,973

8,168

$’000

32,526

19,025

8,180

Liquidity risk is the risk that the consolidated entity will not be able to meet its financial obligations as they fall due. The consolidated entity
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the consolidated entity.

The consolidated entity manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by continuously
monitoring forecast and actual cash flows.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

20. FINANCIAL RISK MANAGEMENT (cont.)
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting
agreements:

Carrying
amount

$’000

63,683

82,970

126,140

272,793

64,174

100,094

172,270

336,538

CONSOLIDATED

Contractual
cash flows

Less than one
year

Between one
and five years

More than five
years

$’000

(63,683)

(104,355)

(150,638)

(63,683)

(24,393)

(32,961)

(56,772)

(117,677)

(23,190)

(318,676)

(121,037)

(174,449)

(23,190)

(64,174)

(128,152)

(194,598)

(64,174)

(25,288)

(27,830)

(73,582)

(166,768)

(29,282)

(386,924)

(117,292)

(240,350)

(29,282)

As at 30 June 2023

Trade and other payables

Lease liabilities

Financial liabilities

As at 30 June 2022

Trade and other payables

Lease liabilities

Financial liabilities

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and commodity prices will affect the
consolidated entity income or the value of its holdings of financial instruments. Changes in the market gold price will affect the derivative
valuation at each reporting date. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.

Hedge accounting

The Group’s risk management policy is to hedge gold sales in local currency as and when appropriate, subject to the terms of the
Syndicated Facility Agreement.

At 30 June 2023, there were commitments over future sales of gold from the King of the Hills operation (refer to note 31). These are
accounted for using the normal purchase/sale exemption and are not regarded as financial instruments.

Gold price sensitivity

Derivative financial instruments valued using valuations models with inputs such as forward gold prices, are sensitive to gold price
fluctuations. Currently there are no derivative financial instruments because the Group accounts for gold hedges using the normal
purchase/sale exemption (2022: nil).

Currency risk

The consolidated entity is exposed to currency risk on investments and purchases that are denominated in a currency other than the
respective functional currencies of the subsidiaries within the consolidated entity being Australian Dollar (A$) and Philippine Pesos. The
currencies in which these transactions primarily are denominated are United States dollars (US$). The consolidated entity has not entered
into any derivative financial instruments to hedge such transactions. The Company’s investments in its subsidiaries are not hedged as
those currency positions are considered to be long term in nature.

Interest rate risk

The consolidated entity is exposed to interest rate risk, primarily on its borrowings and on its cash and cash equivalents. This is the risk
that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on interest-bearing financial instruments.
The consolidated entity does not currently use derivatives to mitigate these exposures.

For cash and cash equivalents, the consolidated entity adopts a policy of ensuring that any excess cash is utilised to pay down long term
debt under the terms of the Syndicated Facility Agreement.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

20. FINANCIAL RISK MANAGEMENT (cont.)
At the reporting date the interest rate profile of the consolidated entity’s interest-bearing financial instruments was:

Cash and cash equivalents

Restricted cash

Security deposits

Borrowings

CONSOLIDATED

Carrying amount

30 June 2023

30 June 2022

$’000

20,112

7,500

8,162

(126,140)

(90,366)

$’000

32,526

7,500

8,177

(172,270)

(124,067)

Cash flow sensitivity analysis for variable rate instruments

An increase of 200 basis points or decrease of 200 basis points in interest rates at the reporting date would have increased/(decreased)
equity and profit or loss by the amounts shown below:

CONSOLIDATED

Profit or loss

Equity

200pb increase

200bp decrease

200bp increase

200bp decrease

$’000

(1,807)

$’000

1,807

$’000

(1,807)

$’000

1,807

(1,421)

1,241

(1,421)

1,241

30 June 2023

Variable rate instruments

30 June 2022

Variable rate instruments (a)

(a) Effect of 100 basis point changes in FY22

Net fair values

The carrying value of financial assets and liabilities equates to their fair value.

Capital management

The consolidated entity’s objective when managing capital is to safeguard its ability to continue as a going concern, so as to maintain a
strong capital base sufficient to maintain future exploration and development of its projects. In order to maintain or adjust the capital
structure, the consolidated entity may return capital to shareholders, issue new shares or sell assets to reduce debt.

Risk management is facilitated by regular monitoring by and reporting to the Board and key management personnel. Neither the Company
nor any of its subsidiaries are subject to externally imposed capital requirements.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

21. CONTRIBUTED EQUITY
Accounting policy

Ordinary shares are classified as equity. They entitle the holder to participate in dividends and proceeds on the winding up of the parent
entity in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at
a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

(a) Share capital

3,211,739,220 (30 June 2022: 2,356,360,652) ordinary fully paid shares

596,668

443,160

CONSOLIDATED

30 June 2023

30 June 2022

$’000

(b) Movements in ordinary share capital

On issue at 30 June 2021

Service rights vested

Performance rights vested and converted to shares

On issue at 30 June 2022

On issue at 1 July 2022

Capital raising for cash

Performance rights vested and converted to shares

Service rights vested and converted to shares

Share issue costs

On issue at 30 June 2023

On issue at 30 June 2022 (a)

On issue at 30 June 2023

CONSOLIDATED

Thousand shares

$’000

2,346,323

328

9,710

2,356,361

1,097,319

5,391

412

3,459,483

581

442,626

449

443,160

158,904

1,367

(6,838)

596,668

930

(a) Red 5 provided for 581,428 shares to be issued at a value of $930,285 to settle the outstanding tax liability in relation to the acquisition of

Merrill Crowe Corporation (MCC) in a previous financial year.

22. RESERVES

Foreign currency translation reserve (a)

Share-based payment reserve (b)

CONSOLIDATED

30 June 2023

30 June 2022

$’000

379

7,789

8,168

$’000

433

6,485

6,918

(a) The foreign currency translation reserve comprises foreign exchange differences arising from the translation of the financial statements of

foreign operations where the functional currency is different to the presentation currency of the reporting entity.

(b) The share-based payment reserve includes performance rights, service and deferred rights reserve. It arises on the granting and vesting of

equity instruments.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

OTHER DISCLOSURES
23. DISCONTINUED OPERATION
Accounting policy

A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished
from the rest of the Group and which:

\ represents a separate major line of business or geographic area of operations;

\ is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or

\ is a subsidiary acquired exclusively with a view to resale.

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as
held-for-sale. When an operation is classified as a discontinued operation, the comparative statement of profit or loss and Other
Comprehensive Income is re-presented as if the operation had been discontinued from the start of the comparative year.

Assets held for sale:

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will
be recovered primarily through sale rather than through continuing use.

Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any
impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except
that no loss is allocated to inventories, financial assets or deferred tax assets which continue to be measured in accordance with the
Group’s other accounting policies. Impairment losses on initial classification as held-for-sale or held-for-distribution and subsequent gains
and losses on remeasurement are recognised in profit or loss.

Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any
equity-accounted investee is no longer equity accounted.

Sale of Siana Gold Mine (Philippines)

During the previous year (FY2022) the Group sold its interests in the Philippine affiliated company Greenstone Resources Corporation
(GRC), which holds both the Siana Gold Project (Siana) and the Mapawa Gold Project, to TVI Resource Development (Phils.) Inc. (TVIRD),
the Philippine affiliate of the Canadian-listed TVI Pacific Inc.

The divestment included the process plant and all other infrastructure at Siana. A royalty of 3.25% payable for up to 619,000 ounces of
gold is payable to the Group from first gold from the restart of the Siana processing plant. Completion of the closing conditions of the
agreement, which included certain Philippine regulatory approvals, took place in September 2021. In FY2021 the Group received gross
proceeds of US$19.0 million (approximately A$25.3 million) through the repayment of outstanding shareholder advances due from its
Philippine-affiliated company, Red 5 Asia Inc, which was a shareholder of GRC.

The divestment of its interests in Siana is consistent with Red 5’s strategy to focus on its King of the Hills and Darlot gold mines in Western
Australia, with the aim of becoming a substantial mid-tier Australian gold producer.

(a) Results of discontinued operation

Disposal consideration net of costs to sell

Net assets disposed of

Non-controlling interest

Foreign currency translation reserve

Gain on sale of discontinued operation (i)

Care and maintenance costs

Profit from discontinued operation

CONSOLIDATED

30 June 2023

30 June 2022

$’000

22,076

(22,580)

(3,976)

25,704

21,224

(1,175)

20,049

(i) Gain on sale of discontinued operation is mainly derived from the release of the foreign currency translation reserve associated with the

disposal of the discontinued operation’s net assets. There were no tax consequences on the sale consideration due to available tax losses
in the Philippines.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

23. DISCONTINUED OPERATION (cont.)
(b) Effect of disposal of discontinued operation on the financial position of the Group

Plant, property and equipment

Mine properties

Inventory

Trade and other receivables

Cash and cash equivalents

Total assets disposed of

Trade and other payables

Provisions

Net liabilities disposed of

Net assets disposed of

Net cash used in operating activities

Net cash from investing activities

Net cash from financing activities

Net cash flow for the year

CONSOLIDATED

30 June 2023

30 June 2022

$’000

16,740

960

6,014

639

609

24,962

(18)

(2,364)

(2,382)

22,580

CONSOLIDATED

30 June 2023

30 June 2022

$’000

(828)

21,467

20,639

INCOME TAX AND DEFERRED TAX

24.
Accounting policy

Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it
relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at reporting
date, and any adjustment to tax payable in respect of previous years. Deferred income tax is provided using the balance sheet liability
method on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax
losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the
carry-forward of unused tax assets and unused tax losses can be utilised. A deferred income tax asset is not recognised where the deferred
income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred income tax to be utilised. Deferred income tax assets and
liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on
tax rates (and tax laws) that have been enacted at the balance date. Income taxes relating to items recognised directly in equity are
recognised in equity and not in the Statement of Profit or Loss and Other Comprehensive Income.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

INCOME TAX AND DEFERRED TAX (cont.)

24.
Tax consolidation

Red 5 Limited resolved to form a tax consolidated group incorporating all its Australian subsidiaries, with an effective date of 1 November
2017. In accordance with the tax consolidation legislation, the head entity of the Australian tax consolidated group, will assume the
deferred tax assets and liabilities initially recognised by wholly owned members of the tax consolidated group.

CONSOLIDATED

30 June 2023

30 June 2022

$’000

Current income tax

Current income tax charge

Adjustment for prior period

Deferred income tax

Deferred income tax credit

Adjustment for prior period

Income tax benefit/(charge)

A reconciliation between income tax charge and the profit/(loss)
before income tax at the applicable income tax rate is as follows:

(Loss)/profit before income tax

At statutory income tax rate of 30% (2022: 30%)

Temporary difference not recognised / (recognised)

Items not allowable for income tax purposes:

Non-deductible expenses

Utilisation of carry forward tax losses not brought to account

Current year losses for which deferred tax asset is not recognised

Prior period adjustment

Income tax benefit benefit/(charge)

1,018

(1,018)

(8,730)

2,619

(1,256)

(404)

(1,018)

842

915

(49,579)

14,874

2,458

(1,266)

(15,224)

915

Tax losses and temporary differences not brought to account (tax effected):

Tax losses

17,930

16,326

A portion of the tax losses and deductible temporary differences have not been recognised as a deferred tax asset at 30 June 2023
because the Directors do not presently believe that their realisation can be regarded as probable, except to the extent that they offset
deferred tax liabilities.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

INCOME TAX AND DEFERRED TAX (cont.)

24.
Movement in deferred tax balances:

Property, plant and equipment and intangible assets

Exploration and evaluation assets

Inventories

Provisions and employee benefits

Leases

Other items

Tax losses recognised

Property, plant and equipment and intangible assets

Exploration and evaluation assets

Inventories

Provisions and employee benefits

Derivative financial instruments

Leases

Other items

Tax losses recognised

Net balance at
1 July 2022

$’000

(71,074)

(11,941)

3,994

17,000

(460)

2,029

60,452

Net balance at
1 July 2021

$’000

(22,463)

(9,561)

18,771

1,584

(278)

10,414

(1,533)

Recognised
in other
comprehensive
income

$’000

Recognised
in other
comprehensive
income

$’000

618

Recognised in
profit or loss

Net balance at
30 June 2023

$’000

(21,309)

8,974

126

1,742

1,246

(227)

9,448

$’000

(92,383)

(2,967)

4,120

18,742

786

1,802

69,900

Recognised in
profit or loss

Net balance at
30 June 2022

$’000

(48,611)

(2,380)

3,994

(1,771)

(618)

(2,044)

2,307

50,038

915

$’000

(71,074)

(11,941)

3,994

17,000

(460)

2,029

60,452

25. RELATED PARTIES
The following were key management personnel of the consolidated entity at any time during the reporting period and unless otherwise
indicated, were key management personnel for the entire reporting period:

Executive Directors

Mark Williams – Managing Director

Non-Executive Directors

Andrea Sutton

Ian Macpherson

Colin Loosemore

Steve Tombs

Kevin Dundo (resigned 12 March 2023)

Fiona Harris (resigned 6 December 2022)

Other executives

Richard Hay – Chief Operating Officer

Patrick Duffy – Chief Financial Officer

Jason Greive – previous Chief Operating Officer

John Tasovac – previous Chief Financial Officer

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

25. RELATED PARTIES (cont.)
Compensation of key management personnel

A summary of the compensation of key management personnel is as follows:

CONSOLIDATED

30 June 2023

30 June 2022

2,012,948

104,057

97,559

(423,290)

1,791,274

2,241,301

141,130

146,095

1,039,696

3,568,273

Key management personnel

Short term benefits including service rights

Post-employment benefits

Long term benefits

Share based payments (a)

(a) Includes share based payments expensed and cancelled.

Loans to key management personnel

There were no loans to key management personnel during the period.

Transactions with related parties in the wholly owned group

During the financial year, unsecured loan advances were made between the parent entity and its controlled entities. All such loans were
interest-free. Intra entity loan balances have been eliminated in the financial report of the consolidated entity. The ownership interests in
related parties in the wholly owned group are set out in Note 28.

26. SHARE-BASED PAYMENT ARRANGEMENTS
Accounting policy

The consolidated entity may provide benefits to employees (including Directors) and other parties as necessary in the form of share-based
payments, whereby employees render services in exchange for shares or rights over shares (“equity settled transactions”).

The cost of these equity settled transactions with employees is measured by reference to the fair value at the date they are granted. The
value is determined using a Monte Carlo model or equivalent valuation technique. The cost of equity settled transactions is recognised,
together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on
which the relevant employees become fully entitled to the award (“vesting date”).

The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects the extent to which the
vesting period has expired and the number of awards that, in the opinion of the Directors, will ultimately vest.

No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. No expense is recognised for awards that do not ultimately vest, except for awards where vesting
is conditional upon a market condition.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised
for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement
award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

26. SHARE-BASED PAYMENT ARRANGEMENTS (cont.)
The following is the movement in performance rights during the period:

For the year ended 30 June 2023:

Performance rights Series:

2023 Series

2023 PIO Series

2024 Series

2025 Series

Total

For the year ended 30 June 2022:

Performance rights Series:

2022 Series

2023 Series

2023 PIO Series

2024 Series

Total

Balance at
1 July 2022

No. rights

7,945,729

11,550,613

18,410,000

Granted (a)

No. rights

Vested (b)

Forfeited (c)

No. rights

Balance at
30 June 2023

No. rights

7,945,729

11,550,613

18,410,000

16,779,780

54,686,122

16,779,780

37,906,342

16,779,780

Balance at
1 July 2022

No. rights

10,442,031

7,945,729

Granted (a)

No. rights

11,550,613

18,410,000

Vested (b)

Forfeited (c)

Balance at
30 June 2023

No. rights

(5,576,211)

(4,865,820)

7,945,729

11,550,613

18,410,000

18,387,760

29,960,613

(5,576,211)

(4,865,820)

37,906,342

(a) Performance rights granted during the year ended 30 June 2023:

LTIP Performance rights were granted to the Managing Director, Key Management Personnel, Senior Management and other operational
employees during the period. The performance rights are split into two tranches based on different performance conditions measured over
a period commencing 1 July 2022 to the vesting date which is 30 June 2025 if the conditions are met.

Details of the performance rights granted during the period are summarised below:

FY23 LTI Performance Rights 2025 Series (Expiry date: 30 June 2025)

Total performance rights

Value per right

Valuation per tranche

Condition criteria

Tranche A

11,745,853

$0.142

$1,667,911

Tranche B

5,033,927

$0.159

$800,394

Total

16,779,780

$2,468,305

TSR ranking relative to TSR
of S&P/ASX All Ordinaries
Gold Total Return Index.

Growth in the Company’s
Ore Reserves (proved and
probable).

In addition, vesting of the performance rights
is also conditional on the following being
exceeded:

TSR > Index
TSR +20%

TSR > Index
TSR +10%

100%

50%

TSR < or equal
to Index TSR

nil

Stretch:
35% or over

100%

- a positive Company TSR for the

measurement period.

Target:
20%

Threshold:
15%

50%

25%

< 15% nil

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

26. SHARE-BASED PAYMENT ARRANGEMENTS (cont.)

Model inputs

Grant date

Value of the underlying security at grant date

Exercise price

Dividend yield

Risk free rate

Volatility

Performance period (years)

Commencement of measurement period

Vesting date

Remaining performance period (years)

Weighted average fair value per right

Number of performance rights

Total Valuation

LTIP Rights (2025 Series)

24 November 2022

$0.185

nil

3.29%

70%

3.00

1 July 2022

30 June 2025

2.82

$0.147

16,779,780

$2,468,305

(b) Performance rights vested during the year ended 30 June 2023:

In accordance with the terms of the Red 5 Rights Plan, the PIO series performance rights that were issued to key management personnel
and senior management in respect of performance conditions measured over the two years ended 30 June 2023, have been partially
achieved. 2,588,111 PIO rights will vest and be converted to shares.

7,945,729 performance rights relating to the 2023 LTI Series and 8,962,502 performance rights relating to the PIO series have lapsed and
have been forfeited due to unmet performance conditions. These will be cancelled.

Shares issued, Service and Deferred Rights

Grant date

Vesting date

Fair value
at grant date

Granted

Exercised

Outstanding at
30 June 2023

Service rights issued and vested:

Mark Williams (b)

John Tasovac (b)

Patrick Duffy (b)

Jason Greive (b)

Other employees (b)

19-Aug-22

31-Dec-23

19-Aug-22

31-Dec-23

19-Aug-22

31-Dec-23

19-Aug-22

31-Dec-23

19-Aug-22

31-Dec-23

$206,250

$100,000

$84,500

$125,000

$204,517

671,016

325,340

274,912

406,674

665,374

671,016

325,340

274,912

406,674

665,374

(a) Service rights for Mr Greive issued under the Red 5 FY21 Rights Plan. They have a 12 month service test and vested on 1 July 2022 because

Mr Greive was still an employee at that date.

(b) Service rights for Mr Williams, Mr Tasovac, Mr Duffy, Mr Greive and certain other employees issued under the Red 5 FY22 Rights Plan. They
have an 18 month service test and will vest on 1 January 2024 if the holder of the rights are still employed at Red 5 on 31 December 2023. At
reporting date, Mr Greive and Mr Tasovac had resigned. Their unvested service rights will therefore be cancelled.

Share based payments expense for the shares issued, service and deferred rights was $0.279 million, (2022: nil). The fair value is based on
observable market share price at the date of grant.

Key estimates and judgements

Share based payment transactions:

The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the
date at which they are granted. The fair value is determined by using Monte Carlo modelling. This estimate also requires determination of
the most appropriate inputs to the valuation model, including the expected life of the equity instrument, volatility and dividend yield and
making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are
disclosed in the note above.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

27. REMUNERATION OF THE AUDITOR
During the year the following fees were paid or payable for services provided by the auditor of the parent entity and its related practices:

Amounts paid or due and payable to the auditor for:

Auditing and reviewing financial reports

- KPMG Australia

- KPMG Australia fee from prior year

- Overseas KPMG firms

Taxation advisory services

- KPMG Australia

CONSOLIDATED

30 June 2023

30 June 2022

219,900

95,428

315,328

195,900

40,000

4,445

44,546

284,891

INVESTMENTS IN CONTROLLED ENTITIES

28.
The Group’s subsidiaries at the end of the year are set out below:

Name of controlled entity:

Bremer Resources Pty Ltd

Estuary Resources Pty Ltd

Greenstone Resources (WA) Pty Ltd

Oakborough Pty Ltd

Opus Resources Pty Ltd

Red 5 Philippines Pty Ltd

Red 5 Mapawa Pty Ltd

Red 5 Dayano Pty Ltd

Darlot Mining Company Pty Ltd

Red 5 Mapawa Inc

Red 5 Dayano Inc

Red 5 Asia Inc

Surigao Holdings and Investments Corporation (a)

Country of
incorporation

Class of shares

2023 %

2022 %

Equity holding

Australia

Philippines

Ordinary

100

(a) The Company holds a 40% direct interest in Surigao Holdings and Investments Corporation (SHIC) voting stock. Agreements are in place
which deals with the relationship between Red 5 and other shareholders of these entities. In accordance with Australian accounting
standard, AASB 10 Consolidated Financial Statements, Red 5 has consolidated these companies in these financial statements.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

29. DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785, the wholly owned subsidiaries listed below are relieved
from the Corporations Act 2001 requirements for the preparation, audit and lodgement of financial reports and Directors’ Reports.

It is a condition of the Instrument that the Company and each of the subsidiaries enter into a Deed of Cross Guarantee. The effect of the
Deed is that the Company guarantees each creditor payment in full of any debt in the event of the winding up of any of the subsidiaries
under certain provisions of the Corporations Act 2001. If a winding up occurs under other provisions of the Act, the Company will only be
liable in the event that, after six months, any creditor has not been paid in full. The subsidiaries have also given similar guarantees in the
event that the Company is wound up.

The subsidiaries subject to the Deed are:

\ Opus Resources Pty Ltd

\ Darlot Mining Company Pty Ltd

\ Greenstone Resources (WA) Pty Ltd

Opus Resources Pty Ltd and Darlot Mining Company Pty Ltd both became parties to the Deed of Cross Guarantee on 30 June 2018.
Greenstone Resources (WA) Pty Ltd became a party to the Deed of Cross Guarantee on 30 June 2021.

A consolidated statement of comprehensive income and a consolidated statement of financial position, comprising of the Company and
controlled entities which are party to the Deed, after eliminating all transactions between parties to the Deed of Cross Guarantee, for the
year ended 30 June 2023, is set out as follows:

Statement of Comprehensive Income:

Sales revenue

Cost of sales

Gross profit/(loss)

Other income and expenses

Other income

Administration and other expenses

Exploration expenditure

Operating profit/(loss)

Financing income

Financing expenses

Net financing expense

Profit/(loss) income tax expense

Income tax benefit/(expense)

CLOSED GROUP

YEAR ENDED

30 June 2023

30 June 2022

$’000

422,745

(394,620)

28,125

446

(8,514)

(7,181)

12,876

(21,722)

(21,661)

(8,785)

$’000

164,962

(196,049)

(31,087)

208

(13,547)

(2,522)

(46,948)

(126,388)

(126,380)

(172,328)

915

Net (loss)/profit after income tax from continuing operations

(8,785)

(172,413)

Other comprehensive income/(loss)

Cashflow hedge movements

(1,444)

Total comprehensive profit/(loss) for the year

(8,785)

(173,857)

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

29. DEED OF CROSS GUARANTEE (cont.)
Statement of Financial Position:

CLOSED GROUP

YEAR ENDED

30 June 2023

30 June 2022

Assets

Cash and cash equivalents

Trade and other receivables

Inventories

Total current assets

Property, plant and equipment

Mine properties

Exploration and evaluation assets

Trade and other receivables

Inventories

Intangible assets

Investments

Total non-current assets

Total assets

Liabilities

Trade and other payables

Employee benefits

Borrowings

Lease liabilities

Total current liabilities

Employee benefits

Provisions

Borrowings

Lease liabilities

Total non-current liabilities

Total liabilities

Net assets

Equity

Contributed equity

Other equity

Reserves

Accumulated losses

Total equity

$’000

20,075

28,456

76,550

125,081

289,329

228,498

10,767

7,499

7,911

168

658

544,830

669,911

63,564

7,130

21,854

18,557

111,105

797

59,239

104,286

64,413

228,735

339,840

330,071

598,919

930

38,491

(308,269)

330,071

$’000

32,474

18,880

41,415

92,769

303,378

131,273

41,133

7,380

291

658

484,113

576,882

64,987

8,316

19,376

18,490

111,169

739

47,681

152,894

81,604

282,918

394,087

182,795

445,411

930

35,938

(299,484)

182,795

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

30. PARENT ENTITY DISCLOSURES
The following details information relating to the parent entity, Red 5 Limited:

Financial position of the parent entity:

Assets

Current assets

Non-current assets

Liabilities

Current liabilities

Non-current liabilities

Equity

Contributed equity

Other equity

Reserves

Accumulated losses

Result of the parent entity:

Profit / (loss) for the year

Other comprehensive income

Total comprehensive profit / (loss) for the year

Financial commitments of the parent entity:

Low value and short term leases:

Not later than one year

Total financial commitments

PARENT ENTITY
YEAR ENDED

30 June 2023

30 June 2022

$’000

20,641

396,202

416,843

29,329

106,483

135,812

596,668

930

7,789

(324,356)

281,031

28,849

292,988

321,837

25,340

153,263

178,603

443,160

930

6,485

(307,341)

143,234

PARENT ENTITY
YEAR ENDED

30 June 2023

30 June 2022

$’000

(18,263)

$’000

(172,413)

(1,444)

(173,857)

Contingent liabilities of the parent entity:

The parent entity did not have any contingent liabilities at 30 June 2023 (2022: $nil).

The parent entity has entered into a Deed of Cross Guarantee with the effect that the Company guarantees debts in respect of certain
subsidiaries.

Further details of the Deed of Cross Guarantee and the subsidiaries subject to the deed are disclosed in Note 29.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

31. CAPITAL COMMITMENTS

Capital expenditure commitments

Contracted but not provided for:

- not later than one year

Contractual sale commitments

Sale commitments: (a)

- not later than one year

- later than one year but not later than two years

- later than two years but not later than five years

Contractual expenditure commitments

Non-capital expenditure commitments:

- not later than one year

Tenement expenditure commitments:

- not later than one year

- later than one year but not later than two years

CONSOLIDATED

30 June 2023

30 June 2022

$’000

247,005

257,302

286,728

791,035

267

6,493

15,413

125,072

184,419

100,533

410,024

904

3,291

2,931

6,222

(a) New gold forward contracts were entered into during the year, amounting to 196,389 ounces of gold produced at the King of the Hills

operation. The new hedge contracts are priced at $2,797 per ounce for the period from January 2023 to September 2026.

Total gold forward contracts in place at 30 June 2023 amount to 313,119 ounces (2022: 189,650) of gold produced at the King of the Hills
amounting to $791.0 million (2022: $410.0 million) at an average price of A$2,526 per ounce (2022: $2,154 per ounce) and settle between
July 2023 and September 2026.

It is management’s intention to settle each contract through the physical delivery of gold and, accordingly, are accounted for as sale
contracts with revenue recognised once the gold has been delivered to the purchaser or agent.

32. CONTINGENT LIABILITIES
The consolidated entity had no material contingent liabilities as at the reporting date and as at the end of the year.

33. SUBSEQUENT EVENTS
There has not arisen in the interval between the end of the reporting period and the date of this report any item, transaction or event of a
material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the
results of those operations, or the state of affairs of the Company, in future financial years.

2023 ANNUAL REPORT

Notes to the CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2023 (cont.)

34. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Certain new accounting standards and interpretations have been published that are not effective for the 30 June 2023 reporting period.
Except for the amendment to AASB 16 Property, Plant and Equipment, the Group has not elected to early adopt any other new standards.
The other new standards do not have a material effect on the Group’s financial statements.

Amendment to AASB 116 Property, Plant and Equipment:

The Group has elected to early adopt the amendment in AASB 116 Property, Plant and Equipment, effective for annual periods beginning
on or after 1 January 2022.

The amendment to AASB 116 prohibits an entity from deducting from the cost of an item of property, plant or equipment any proceeds
received from selling items produced while the entity is preparing the asset for its intended use.

The effect of adopting the amendment in AASB 116 is to recognise in profit or loss the proceeds from sales of gold ore produced by the
Group’s King of the Hills operation while it is still in pre-production phase. Prior to the amendment pre-production sales proceeds were
recognised as a credit against the cost of the asset.

Effect of pre-production sales from King of the Hills:

Gold and silver sales (a)

Costs of goods sold (b)

Effect on gross profit

CONSOLIDATED

30 June 2023

30 June 2022

$’000

3,205

(7,644)

(4,439)

(a) Pre-production gold ounces sold that were produced by King of the Hills processing plant amounted to 1,205 ounces in the prior year.

This excludes ore fed into the plant sourced from the Great Western operation.

(b) Costs of producing the gold ounces sold by King of the Hills during the pre-production phase were allocated to the cost of goods sold on

the basis of the inventory value of the finished goods sold, along with an allocation of administrative overheads.

2023 ANNUAL REPORT

DIRECTORS’ Declaration

In the opinion of the Board of Directors of Red 5 Limited:

(a) the consolidated financial statements, accompanying notes and the remuneration disclosures that are contained in the Remuneration

Report in the Directors’ Report are in accordance with the Corporations Act 2001, including:

\ giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the financial year

ended on that date; and

\ complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations

Regulations 2001;

(b) the financial report also complies with International Financial Reporting Standards as disclosed in note 2.1; and

(d) At the date of the declaration, the Company is within the class of companies affected by ASIC Corporations (Wholly owned

Companies) Instrument 2016/785. The nature of the deed of cross guarantee is such that each company which is party to the deed
guarantees to each creditor payment in full of any debt in accordance with the deed of cross guarantee.

The Board of Directors has received the declaration by the Managing Director and Chief Financial Officer required by Section 295A of
the Corporations Act 2001, for the year ended 30 June 2023.

Signed in accordance with a resolution of the Directors.

Ian Macpherson
Audit Committee Chair

Perth, Western Australia
29 August 2023

2023 ANNUAL REPORT

Independent AUDITOR’S REPORT

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Red 5 Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Red 5 Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: •Giving a true and fair view of the Group’sfinancial position as at 30 June 2023 and ofits financial performance for the year endedon that date; and•Complying with Australian AccountingStandards and the Corporations Regulations2001.The Financial Report comprises: •Consolidated statement of financial position asat 30 June 2023;•Consolidated statement of profit or loss andother comprehensive income, Consolidatedstatement of changes in equity, andConsolidated statement of cash flows for theyear then ended;•Notes including a summary of significantaccounting policies; and•Directors’ Declaration.The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. 90

2023 ANNUAL REPORT

Independent AUDITOR’S REPORT (cont.)

Key Audit Matters The Key Audit Matters we identified are: •Sales revenue; and•Rehabilitation provision.Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Sales Revenue ($422.745 million) Refer to Note 4(a) to the Financial Report The key audit matter How the matter was addressed in our audit Existence and accuracy of sales revenue is a key audit matter due to its significance to the consolidated financial statements combined with the incremental audit effort assessing the application of relevant accounting standards. Gold sales revenue from the Group’s King of the Hills (KOTH) operations was the most significant item in the consolidated statement of profit or loss. We focused on the following judgements the Group applied in determining sales revenue: Assessing the revenue recognised againstthe requirements of AASB 15 Revenuefrom Contracts with Customers;Judgements made by the Group in therecognition and measurement of revenueand the level of audit effort required by usin assessing the Group’s assumptionsunderlying the timing of its recognitionbased on the terms of the relevantagreements; andDetermination of gold receivable from orpayable to the refiner at year end and theassociated impact to revenue recognised.The application of the “normal purchase/sale” exemption for gold forward contracts. Our procedures included: We evaluated the Group’s accounting policiesfor the recognition of sales revenue againstthe requirements of AASB 15 and ourunderstanding of the business;For gold sales recognised during the year weobtained the sales invoice and compared thequantity sold against third party statementsfrom the refinery and cash received in thebank;For a sample of sales recorded close to yearend, we tested against the recognition criteriaof AASB 15 checking control had passed tothe customer. Where revenue was recognizedbased on a provisional outturn, we inspectedthe final outturn received subsequent to year-end, tracing gold payable to third partystatements from the refinery and quotedcommodity prices; andFor gold forward contracts where “normalpurchase/sale” exemption was applied, wechecked the gold forward contracts, comparedto the Group’s gold production forecasts andinquired with finance and operationalpersonnel as to the intention to deliverphysical gold into those contracts inaccordance with the requirements of theaccounting standards to apply the own-useexemption.We evaluated the adequacy of the disclosures made in the financials against the requirements of the accounting standards. 2023 ANNUAL REPORT

Independent AUDITOR’S REPORT (cont.)

Rehabilitation provision ($57.923m) Refer to Note 14 to the Financial Report The key audit matter How the matter was addressed in our audit The rehabilitation provision is considered to be a key audit matter. This is due to the additional audit effort from the: Inherent complexity in the Groupestimating future environmentalrestoration and rehabilitation costs; andSignificant judgement applied by theGroup, and effort for us, in gatheringpersuasive audit evidence on the costs,particularly for those costs to be incurredseveral years in the future.The estimate of the rehabilitation provision is influenced by: The complexity in current environmentaland regulatory requirements, and theimpact to completeness of therehabilitation provision;The expected environmentalmanagement strategy of the Group andthe nature of the costs incorporated intothe rehabilitation provision; andThe expected timing of expenditurewhich is planned to occur several yearsinto the future, and the associatedinflation and discounting of costs in thepresent value calculation of therehabilitation provision.The Group uses third party and internal experts when assessing their obligations for restoration and rehabilitation activities and associated estimates of future costs. Our procedures included: Comparing the basis for recognition andmeasurement of the rehabilitation provision forconsistency with environmental and regulatoryrequirements and criteria in the accountingstandards;Evaluating the methodology applied by theGroup’s internal and third-party experts indetermining the nature and extent ofrehabilitation activities by comparison toindustry practice;Obtaining the Group’s rehabilitation provisionestimation, and critically evaluated by:oComparing the nature and extent ofactivities costed to a sample of theGroup’s rehabilitation plans and relevantregulatory requirements;oInvolving our sustainability closurespecialists, we tested key environmental-related assumptions incorporated into thefinancial modelling of closure costactivities against environmental laws andregulations and industry guidelines;oAssessing the planned timing ofrehabilitation activities through comparisonto the Group’s strategy and plans forcommencement and completion ofrehabilitation activities;oAssessing the competence, scope andobjectivity of the Group’s internal and thirdparty experts used in the determination ofthe rehabilitation provision estimate; andoWorking with our valuation specialists,comparing inflation rate and discount rateassumptions in the Group’s rehabilitationprovision determination to external marketdata for Australian bond rates andAustralian inflation targets.Evaluating the completeness of therehabilitation provision against the Group’sanalysis of where disturbance requiresrehabilitation and comparing to ourunderstanding of the Group’s operations. Wedid this by each operating location; and92

2023 ANNUAL REPORT

Independent AUDITOR’S REPORT (cont.)

Assessing the disclosures in the financial reportusing our understanding obtained from ourtesting against the requirements of theaccounting standard. This included evaluatingthe current and non-current rehabilitationprovision disclosure for consistency to theplanned timing of the rehabilitation expenditure.Other Information Other Information is financial and non-financial information in Red 5 Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. The Other Information we obtained prior to the date of this Auditor’s Report was the Directors’ report and the Corporate Directory. The Chairman’s Review, Managing Director’s Report, Environmental Social and Governance Summary, Resources and Reserves Statement, Tenement Schedule and Statement of Shareholders are expected to be made available to us after the date of the Auditor's Report. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: •Preparing the Financial Report that gives a true and fair view in accordance with AustralianAccounting Standards and the Corporations Act 2001;•Implementing necessary internal control to enable the preparation of a Financial Report that givesa true and fair view and is free from material misstatement, whether due to fraud or error; and•Assessing the Group and Company’s ability to continue as a going concern and whether the useof the going concern basis of accounting is appropriate. This includes disclosing, as applicable,matters related to going concern and using the going concern basis of accounting unless theyeither intend to liquidate the Group and Company or to cease operations, or have no realisticalternative but to do so.2023 ANNUAL REPORT

Independent AUDITOR’S REPORT (cont.)

Auditor’s responsibilities for the audit of the Financial Report Our objective is: •To obtain reasonable assurance about whether the Financial Report as a whole is free frommaterial misstatement, whether due to fraud or error; and•To issue an Auditor’s Report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our Auditor’s Report. Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Red 5 Limited for the year ended 30 June 2023 complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in pages 31 to 46 of the Directors’ report for the year ended 30 June 2023. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Jane Bailey Partner Perth 29 August 2023 94

2023 ANNUAL REPORT

Statement of SHAREHOLDERS as at 15 August 2023

DISTRIBUTION OF SHARE AND RIGHTS HOLDERS

1,001

5,001

10,001

100,001

1,000

5,000

10,000

100,000

and over

Including holdings of less than a marketable parcel
(based on a market share price of $0.215 per share)

CLASSES OF SHARES AND VOTING RIGHTS

Number of holders

Fully paid shares

Unlisted rights

720

2,555

1,606

5,311

1,914

12,106

1,514

106

122

At meetings of members or classes of members, each member entitled to vote may vote in person or by proxy or attorney. On a show
of hands every holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote, and on a poll, every person
present in person or by proxy has one vote for each ordinary share held.

TWENTY LARGEST HOLDERS OF FULLY PAID SHARES

Shareholder

HSBC Custody Nominees (Australia) Limited

JP Morgan Nominees Australia Pty Limited

Citicorp Nominees Pty Limited

BNP Paribas Noms Pty Ltd

HSBC Custody Nominees (Australia) Limited - A/C 2

BNP Paribas Nominees Pty Ltd

VBS Exchange Pty Ltd

National Nominees Limited

VBS Exchange Pty Ltd

10. Gannet Capital Pty Ltd

11.

12.

13.

14.

15.

16.

17.

18.

19.

VBS Exchange Pty Ltd

Broadgate Investments Pty Ltd

VSG Resources Pty Ltd

UBS Nominees Pty Ltd

VBS Exchange Pty Limited

VBS Exchange Pty Ltd

Gary B Branch Pty Limited

HSBC Custody Nominees (Australia) Limited

BNP Paribas Noms Pty Ltd

20. Neweconomy Com Au Nominees Pty Limited

730,105,154

532,640,404

341,217,293

126,725,701

116,304,857

104,752,433

72,273,918

55,703,005

50,000,000

44,965,868

40,000,000

34,187,439

29,477,504

23,674,517

21,300,917

20,697,674

16,958,649

15,275,786

13,698,281

12,699,498

21.10

15.40

9.86

3.66

3.36

3.03

2.09

1.61

1.45

1.30

1.16

0.99

0.85

0.68

0.62

0.60

0.49

0.44

0.40

0.37

2,402,658,898

69.45

2023 ANNUAL REPORT

Statement of SHAREHOLDERS as at 15 August 2023 (cont.)

SUBSTANTIAL SHAREHOLDERS

The following shareholders have lodged a notice of substantial shareholding in the Company.

Shareholder

VBS Exchange Pty Ltd

Franklin Resources Inc

UNQUOTED SECURITIES

The following classes of unquoted securities are on issue:

Number of shares

448,712,634

338,757,320

12.97

9.79

Security

Number on issue

Name of holder

Number

Performance Rights (2024)

Service Rights

Performance Rights (2025)

18,410,000

2,343,313

16,779,780

Mark Williams

671,013

28.6

Holders of greater than 20% of each class of security

CORPORATE GOVERNANCE STATEMENT

The Company’s 2022 corporate governance statement can be viewed at
https://www.red5limited.com/site/about-red5/corporate-governance

CORPORATE Directory

BOARD OF DIRECTORS

SHARE REGISTRY

Automic Pty Ltd
Level 5
191 St Georges Terrace
Perth WA 6000

Telephone: 1300 288 664
E-mail: hello@automicgroup.com.au
Web-site: www.automicgroup.com.au

BANKERS

Hongkong and Shanghai Banking
Corporation Limited

Macquarie Bank Limited

BNP Paribas

Russell Clark (Chairman)
Mark Williams (Managing Director)
Ian Macpherson (Non-Executive Director)
Colin Loosemore (Non-Executive Director)
Steven Tombs (Non-Executive Director)
Andrea Sutton (Non-Executive Director)
Peter Johnston (Non-Executive Director)

COMPANY SECRETARY

Lisa Wynne
David Coyne

REGISTERED OFFICE

Level 2
35 Ventnor Avenue
West Perth Western Australia 6005

Telephone: (61-8) 9322 4455
E-mail: info@red5limited.com
Web-site: www.red5limited.com

AUDITORS

KPMG

SOLICITORS

HopgoodGanim

STOCK EXCHANGE
LISTING

Australian Securities Exchange
Trading code: RED

ABN 73 068 647 610