It might work, but - when the 555 output is high, current id flowing through *both* resistors. The diode and transistor effectively "short out" the red LED to keep it from illuminating, but they do not open the current path through its resistor; in fact, they increase its current above what it is when the red LED is on. This will shorten battery life significantly.
There is a better 1-transistor way, but it is buried in my old posts. I'll try to find it.
ak
There is a better 1-transistor way, but it is buried in my old posts. I'll try to find it.
ak
