Red River Resources Limited

Feral

This is currently our most active project and is prospective for direct shipping grade hematite iron ore (DSO) as well as for magnetite iron ore. The project area has similar geology and is only 20 kilometres from the old Koolanooka iron ore mine which produced 6.7 million tonnes of iron ore between 1966 to 1972. Recent field work at Feral has delineated a number of zones of hematite enrichment, with grades of up to 62.5% Fe which will be drilled in the latter part of 2007. Successful delineation of DSO is likely to lead to rapid development of a mining project as the prospect area is only 10 kilometres from the railhead at the nearby town of Perenjori, which in turn is about 200 kilometres from the port of Geraldton. A recently completed aeromagnetic survey has also indicated that the project area contains very significant tonnages of magnetite.

Red River is currently earning 50% from the current tenement holders by the expenditure of $2 million and can take its equity to 75% by completing a bankable feasibility study.