PEEL MINING LIMITED — Capital/Financing Update 2024

Jul 4, 2024

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5 July 2024

Further Information

Red Hill Minerals Limited ( ASX: RHI ) ( Red Hill or the Company ) advises that on 5 July 2024 it released an announcement to the ASX platform titled “Binding Heads of Agreement for Broken Hill & Olary projects”. The announcement referenced an existing non JORC compliant resource estimate at the Anabama Project. This attached amended announcement provides further information with respect to this estimate, including a Cautionary Statement, on page 4.

All other details of the announcement remain the same.

This announcement has been approved by the Board of Directors.

Ira Gibbs

Company Secretary

(08) 9481 8627 enquiries@redhillminerals.com.au www.redhillminerals.com.au ABN 44 114 553 392

Address Level 2, 9 Havelock St West Perth WA 6005

Postal Address PO Box 689 West Perth WA 6872

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5 July 2024

Binding Heads of Agreement expands Red Hill’s exploration into the Broken Hill and Olary regions of NSW and SA

Red Hill Minerals Limited ( ASX: RHI ) ( Red Hill or the Company ) is pleased to announce that it has executed a conditional binding Heads of Agreement with Peel Far West Pty Ltd, a subsidiary of ASXlisted Peel Mining Limited ( ASX: PEX ) ( Peel ) to enter into a $6.5 million 5-year farm-in agreement for the exploration of the Curnamona Project.

Highlights

• Red Hill may earn a 75% interest by incurring $6.5 million in exploration expenditure during the farm-in period of up to five years.

• Upon earning a 75% interest, a Joint Venture will be formed with Red Hill as the Manager. From this stage onwards, funding reverts to a standard contribute or dilute arrangement.

• The Curnamona Project tenements cover over 1,460 km² of land holding in the Broken Hill province of New South Wales ( Broken Hill Project ) and across the border into South Australia ( Anabama Project ).

• Red Hill considers the Broken Hill Project to have Tier 1 potential for Zinc-Lead-Silver deposits. The tenements host the highly prospective Willyama Supergroup and occurrences of interpreted Broken Hill Type mineralisation[1] .

• The Anabama Project is prospective for Copper/Gold and contains an existing non JORC compliant resource estimate of 4.2Mt at 0.52% Copper reported by Placer Exploration Ltd[2] .

Figure 1: The Curnamona Project Tenements

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(08) 9481 8627 enquiries@redhillminerals.com.au www.redhillminerals.com.au ABN 44 114 553 392

Address Level 2, 9 Havelock St West Perth WA 6005

Postal Address PO Box 689 West Perth WA 6872

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Red Hill’s Executive Chairman, Joshua Pitt, said: “The Curnamona tenements provide Red Hill with an opportunity to explore for Tier 1 Zinc-Lead-Silver deposits throughout the highly prospective Broken Hill region and an opportunity to advance a proven copper target at Anabama in South Australia. Red Hill is looking forward to working closely with Peel to apply systematic and innovative exploration approaches to unlock value from these tenements. The Company is excited to progress exploration of the Curnamona tenements in parallel with the West Pilbara Gold and Base Metals Project and will continue to assess future projects to add to the exploration portfolio”.

Key terms of the Heads of Agreement are included in the attachment to his announcement.

The parties intend to put in place a separate contracting agreement where Red Hill may utilise Peel’s existing team for exploration related activities.

This announcement has been approved by the Board of Directors.

Michael Wall

CHIEF EXECUTIVE OFFICER

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Material Terms of the Heads of Agreement

The Transaction	Red Hill, or its wholly owned subsidiary, may earn an initial 75% Joint Venture Interest in the Curnamona Project Tenements (Tenements) by spending $6.5 million on exploration during the farm-in period and the Parties will then form the Joint Venture in respect of the Tenements.
Conditions Precedent	The Transaction is subject to the following conditions precedent (Conditions): • execution of a Formal Agreement consistent with the terms of the Heads of Agreement; • completion of due diligence on the Tenements and the Transaction to the satisfaction of Red Hill, acting reasonably and confirmation of certain tenure; and • renewal of Tenement EL8877. The Parties must use their respective reasonable endeavours to ensure that all Conditions are satisfied as soon as practicable after execution of this Heads of Agreement, unless a Condition is expressly waived in writing by Red Hill. Peel has agreed to deal exclusively with Red Hill in this period in regard to the right to acquire an interest in the Tenements.
Farm-in	On satisfaction of the Conditions, Red Hill, or its wholly owned subsidiary, will have the exclusive right to earn a 75% JV Interest in the Tenements (Initial JV Interest) by spending $6.5 million on in-ground expenditure on the Tenements over a farm-in period of up to 5 years.
Minimum commitment	Red Hill must incur a minimum of $1.5 million on in-ground expenditure over the initial 24 months of the farm-in period, as may be extended by the Parties, before it is entitled to withdraw.
Joint Venture	On Red Hill earning the Initial JV Interest, Red Hill and Peel will form an unincorporated joint venture (Joint Venture) for the exploration and evaluation and, if warranted, development and exploitation of all minerals within the Tenements. The initial participating interests of the Parties (Participating Interests) will be: Red Hill 75% Peel 25% (each aParticipantwhile it holds a Participating Interest).
Manager	Red Hill will be the initial Manager of the Joint Venture.
Dilution	Standard dilution provisions will be included in the Formal Agreement relating to optional dilution. If a Participant’s Participating Interest dilutes to 10% or less, that Participant must, within 30 days of notification, elect: • for its Participating Interest to revert to a 1.5% Net Smelter Return (NSR) Royalty on all minerals extracted and sold from the Tenements; or • to offer to sell its Participating Interest to the other Participant.

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Additional Information in terms of ASX Mining FAQ 37 regarding the non JORC compliant Anabama Project resource estimate

• The non JORC compliant mineral resource estimate of 4.2Mt at 0.52% Copper was reported by Placer Exploration Ltd.

• The report containing the estimate is titled “Annual Report for the Period 16 April 1993 to 15 May 1997”, dated 1997, Placer Exploration Ltd, Australia. The report can be found in Open File Envelope No. 8787 on the Government of South Australia Energy and Mining search platform.

• This mineral resource estimate is non JORC compliant and may not conform to the requirements in the JORC Code 2012.

• Nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the estimate. The Company has not relied on the estimate by reference to any of the criteria in Table 1 of the JORC Code since the estimate is non JORC 2012 compliant.

• The summary of the methodologies and assumptions used to prepare the estimate is contained in the Placer Exploration Annual Report referenced above.

• The Company is not aware of any more recent estimates or data relevant to the reported mineral estimate.

• The Company has not assessed the evaluation and/or exploration work, or timing thereof, that may need to be completed to report the estimate as a mineral resource estimate in accordance with the JORC Code 2012.

• A statement by a Competent Person has not been made with regards to the accurate representation of the historical mineral resource estimate.

Cautionary Statement

The information in this report that relates to the Anabama Project historical resource estimate is based on information compiled by Placer Exploration Ltd and is not reported in accordance with the JORC Code 2012. A Competent Person has not done sufficient work to classify the estimates of the historical mineral resource estimate in accordance with JORC Code 2012. It is possible that following evaluation and/or further exploration work, the currently reported historical estimates may materially change and hence will need to be reported afresh under and in accordance with the JORC Code 2012. Nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the historical estimates. The Company has not independently validated the former owners, being Placer Exploration Ltd, estimates and therefore is not to be regarded as reporting, adopting or endorsing those estimates.

References

1 PlatSearch NL, 2005, Annual Report for Exploration Licence 6404 “Mundi Plains” for the period 20 April 2005 to 19 April 2006 , PlatSearch NL, Australia.

2 Placer Exploration Ltd, 1997, Annual Report for the Period 16 April 1993 to 15 May 1997 , Placer Exploration Ltd, Australia.

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