RDM, RED METAL LIMITED

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MMG, of Century Mine and more recently Dugald River Mine, getting involved in this junior

MALLAPUNYAH ZINC JOINT VENTURE

Red Metal is pleased to announce it has advanced the prospective Mallapunyah
zinc project located in the McArthur Basin region of the Northern Territory
(Figure 1), with the execution of an option and joint venture agreement with
MMG Exploration Pty Ltd, a subsidiary of global miner MMG Limited (MMG).
Red Metal is excited by the entry of such a high quality joint venture partner on
a project the company believes holds much promise.

MMG bring strong local mining expertise having recently commissioned the
large Dugald River zinc-lead-silver mine in Northwest Queensland and
previously owned the giant Century zinc-lead-silver operation (Figure 2).
Importantly, MMG have active zinc exploration programs in the McArthur Basin
region and good working relationships with the local communities.

Under the Mallapunyah agreement MMG will finalize land access negotiations
towards grant of the tenement. Once granted MMG will have the right to earn
70% of the project by completing a bankable feasibility study within seven
years. Red Metal will be free carried to a decision to mine.

During the option period MMG can vest a 60% interest in the project by
spending $4M within the first five years from grant of the tenement and
electing to advance the project towards feasibility. MMG have committed to a
minimum exploration expenditure of $250,000 per year during this period.

Exploration on the Mallapunyah project targets zinc-lead-silver deposits similar
to the giant McArthur River and Century mines as well as sedimentary-hosted
styles of copper mineralisation. Recent success on the Teena project by Teck
has highlighted the potential for additional deposits within this fertile terrain.

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