RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2020

Nov 24, 2020

ASX ANNOUNCEMENT

25 November, 2020

RED MOUNTAIN MINING LTD

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MT MANSBRIDGE RARE EARTHS PROJECT UPDATE

• Geophysical review of Mt Mansbridge project area completed

• Geophysical review vectors in on existing REE targets and identifies additional radiometric (potential xenotime) targets at Mt Mansbridge

• Granting of highly prospective Mt Mansbridge tenement E80/5413, providing access to explore over 33kms of unconformity target strike length and a total tenement area of 280km[2]

• Heavy Rare Earth prices continue to climb as China looks to implement export restrictions

• Phased work programme at Mt Mansbridge being developed; to culminate in drilling in 2021 post wet season

Mt Mansbridge Rare Earth Project

Red Mountain Mining (ASX:RMX) (the Company ) is pleased to announce the results of its geophysical review of all available magnetic, gravity and radiometric data at the Mt Mansbridge Project area. The review has further defined existing rare earth element ( REE ) targets as well as identify several early stage radiometric (potential xenotime) targets for follow up.

The Mt Mansbridge Project is comprised of three highly prospective exploration licenses (E80/5229, E80/5111 and recently granted tenement E80/5413) in the Kimberly region of Western Australia. The project area is considered prospective for hydrothermal vein hosted and unconformity-related REE mineralisation.

With the project area covered by numerous historical geophysical datasets and government surveys, the individual surveys were merged and reprocessed to undertake a geophysical review of targets.

Reprocessing and ratioing of radiometric data has provide valuable information for further vectoring existing REE targets as well identifying additional basement hosted and unconformity-related heavy rare earth element (HREE) xenotime targets for follow up and drilling at Mt Mansbridge (Figure 1).

Web: www.redmountainmining.com.au

ASX: RMX

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Figure 1: Mt Mansbridge radiometric targets for drilling and follow up

Mt Mansbridge tenement E80/5413 was recently granted (July 2020). Previous exploration undertaken on E80/5413 has identified an anomalous occurrence of yttrium and heavy lanthanide element dysprosium (refer to RMX ASX Announcement 29[th] October 2019). This dysprosium rich target (T4) is seen to occur within a strongly silicified siltstone unit and is located in close proximity to the southern unconformity on tenement E80/5413 (Figure 1).

While the HREE mineralisation at T4 is seen to occur within the basement sedimentary beds, the primary target REE mineralisation model could be an “unconformity-related” system with analogous geological setting and mineralisation model identified at the Killi Killi Prospect (T1 and T2).

Prospects T1 and T2 coincide with a broad REE soil anomaly defined by Quantum Resources from their ground sampling programme and is coincident with historically reported xenotime mineralisation (refer RMX ASX Announcement 12th August 2019 and WAMEX report A17492). The REE soil anomaly is seen to occur at the base of the unconformity and within the basement sandstone beds which are seen to correlate radiometrically (figure 2).

Web: www.redmountainmining.com.au

ASX: RMX

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Figure 2: Unconformity-related target areas T1 and T2 at the Killi Killi Prospect

The total REE are highest near the old BHP vein occurrence and at higher levels in the land surface around the unconformity between Killi Killi Beds and Gardiner Sandstone and within the basal zones of the Gardiner Sandstone (WAMEX report A17492). The proportion of HREE is highest near the BHP vein zone and in small pockets near the unconformity and least in the areas above the unconformity.

Prospect area 3 (T3A and T3B) is seen to host the prospective sedimentary Killi Killi Beds which outcrop and are unconformably overlain by the younger Gardiner Sandstone to the south. With a well-defined unconformity, similar geological setting and radiometric correlation, area T3 is considered prospective for both hydrothermal vein-hosted and unconformity-related REE mineralisation (figure 3). Further follow up is required to validate the occurrence of REE mineralisation at area T3.

Web: www.redmountainmining.com.au

ASX: RMX

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Figure 3: Target area 3 with well-defined unconformity and outcropping Killi Killi beds

Web: www.redmountainmining.com.au

ASX: RMX

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Rare Earths Market

With rare earth prices sensitive to trade wars and China controlling circa 98% of the supply of global dysprosium production, there is a strong global interest for new sustainable sources of HREE supply outside of China. Additionally, China is poised as of December 1, 2020 to implement export restrictions which are expected to reduce further the supply of rare earths.

As of 23 November, 2020, the Shanghai Metals Markets record the current price of Terbium to be US$1,110\kg and Dysprosium to be US$342\kg.

The recent advances in progressing the commercialisation of the Northern Minerals (ASX:NTU) Browns Range Heavy Rare Earth Project has further validated the need to explore for heavy rare earths at Mt Mansbridge. With a similar geological setting, presence of xenotime and proximity to the Browns Range has increased the potential for REE discoveries at Mt Mansbridge project area.

Work Programme

The Company is working on a staged work programme at Mt Mansbridge to further refine drill targets in preparation for a maiden drill programme post the wet season in 2021. This will include heritage clearance and all regulatory approvals. Further details will be advised in due course.

Authorised for and on behalf of the Board,

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Mauro Piccini, Company Secretary

Competent Persons Statement

The information in this announcement that relates to Exploration Results and other technical information complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed under the supervision of Mr Bill Oliver. Mr Oliver is a Member of the Australasian Institute of Mining and Metallurgy and the Australasian Institute of Geoscientists. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Oliver consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Disclaimer

In relying on the above mentioned ASX announcements and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the above-mentioned announcements.

Web: www.redmountainmining.com.au

ASX: RMX