The Board of Red Metal announced the execution of a significant, multi-project option and joint venture agreement with OZ Minerals Limited (OZ Minerals) aimed at fast-tracking the search for greenfield discoveries on the Company's highly sought after Australian base metal exploration portfolio. OZ Minerals is widely recognized as one of Australia's premier mining companies and has shown a strong commitment to regional exploration in Australia. It owns the large Prominent Hill copper and gold mine in South Australia and is also developing the nearby Carrapateena copper and gold deposit.

The new Greenfields Discovery Alliance agreement provides OZ Minerals with a two year option to fund a series of mutually agreed, proof-of-concept work programs on six of Red Metal's exciting early-stage projects: Yarrie for copper-gold and copper-cobalt in WA; Nullarbor for copper-gold and copper-nickel in WA; Gulf for copper-gold in QLD; Three Ways for zinc-lead-silver in QLD; Lawn Hill for zinc-lead-silver in QLD, and Mount Skipper for zinc-lead silver in QLD. Under the alliance OZ Minerals has committed to expend a minimum amount on each project within the two year period. Their total commitment is $8.05 million.

After completion of the minimum expenditure commitment on a project, OZ Minerals has the option to trigger the formation of a joint venture over that project whereby it can earn 51% by spending the designated Earn-In Amount on exploration within the designated Earn-In Period. The details of commitments and earn-in requirements are explained in the table below. Once OZ Minerals has earned 51% of a particular project Red Metal can elect to contribute pro-rata to future exploration and development costs and retain a 49% interest or elect not to contribute and be diluted to a 30% interest at completion of a positive decision to mine.

Should Red Metal elect not to contribute, all funding incurred on its behalf by OZ Minerals from the commencement of a project joint venture up until a positive decision to mine will be treated as a loan, only repayable from Red Metal's share of future production. Importantly, Red Metal believes the Earn-In Amounts for each project are sufficient to clearly outline any potential ore discoveries before the company must elect whether or not to contribute. Under the terms of the agreement OZ Minerals will make an initial cash payment to Red Metal of $1.8 million being $300,000 for each of the six nominated projects.

Payments in relation to the Yarrie and Three Ways applications are dependent upon satisfactory conditions of grant. Red Metal is also eligible to receive an additional payment of $500,000 for any project that OZ Minerals ultimately selects for joint venture earn-in. Board believes that the Greenfields Discovery Alliance between Red Metal and OZ Minerals sets a new standard for the effective collaboration of a growth oriented major Australian mining group with an expert, ASX-listed, junior exploration company well recognized for its ability to generate promising greenfields initiatives.

Exploration under the alliance will commence early in the 2019 field season with high-resolution gravity surveys on Nullarbor and Lawn Hill, followed by proof-of-concept drilling on the Mount Skipper, Gulf and Nullarbor projects. Work programs on the exciting Yarrie and Three Ways projects are pending granting of the tenements which is expected in 2019. Technical details on each of the six alliance projects are presented in Red Metal's most recent quarterly operations reports.