Redcorp Ventures Ltd.

Redcorp’s outlook took a very positive turn in early 2006 when we decided to re-evaluate the Tulsequah Project in light of improving metal prices. The previous Feasibility Update scoping study which was curtailed in May 2005 was re-examined by an independent engineering consultant and found to have significant opportunities for improvement. We then made a decision to advance the Project through a series of key objectives in 2006 in order to determine its development path.We raised exploration funds in 2006 and were successful in demonstrating sizeable additions and expansion potential at the Tulsequah Chief deposit and at the Big Bull deposit. Wardrop Engineering Inc. was selected to commence the Feasibility Study re-evaluation. We also commenced the expansion of our management team to direct the Feasibility Study work and expanded corporate activity.A significant change in the Feasibility Study update was the recognition and introduction of an improved transportation access plan. Previously, we had engineered and obtained permitting approval for a 160 km access road which would allow for outbound concentrate haulage and inbound supplies. In the fall of 2006, we determined that an alternative method was available. Shallow draft barge technology was identified which would allow the Project to utilize a much more direct route along the Taku River on a year-round basis instead of seasonally. Development of this access alternative resulted in significant savings to the Project in both capital and operating costs and contributed to its significantly improved economics.

The potential change in the Project’s access mode has also resulted in an improved relationship with the Taku River Tlingit First Nation (TRTFN) who, in February 2007, signed an initial letter agreement with us covering the barge amendment Environmental Assessment process. The agreement also contemplates entering into discussions for an Impact and Benefits Agreement defining the opportunities for TRTFN participation in project benefits and environmental mitigation. Our exploration activities in Portugal centre on the advanced Lagoa Salgada exploration project which hosts a copper-zinc-lead-silver-gold massive sulphide deposit, located in the highly productive Pyrite Belt in southern Portugal. We are also evaluating an earlier stage gold prospect at Vila de Rei in central Portugal where reconnaissance work has identified potential for intrusive-related gold mineralization on the concession. Further work will concentrate on follow-up of the identified targets and delineation of drill targets. A drilling program is scheduled to commence at Lagoa Salgada in February, continuing through the first quarter of 2007.We expect 2008 to be a pivotal year in our planned transition from an advanced exploration company to a mid-tier producer in 2009.