Red Metal : Issue of Incentive Options November 2017

In accordance with resolutions passed at the Company's Annual General Meeting held on 13 November 2017, the Company has issued a total of 2,000,000 options exercisable at 20 cents and expiring on 12 November 2020 to the Directors (comprising 1,000,000 options to Mr Rutherford and 500,000 options to each of Mr Barwick and Mr Pitt). The options are exercisable in two tranches, with 50% being exercisable at any time from the date of issue, and 50% being exercisable from 16 November 2018.

In addition, the Directors have issued 1,375,000 options exercisable at 20 cents and expiring on 12 November 2020 to technical and administrative staff. The options are exercisable in two tranches, with 50% being exercisable at any time from the date of issue, and 50% being exercisable from 16 November 2018. These incentive options are issued pursuant to the Company's 15% capacity under the Australian Securities Exchange Listing Rules.