RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2023

Jun 19, 2023

ASX ANNOUNCEMENT

RED MOUNTAIN MINING LTD

20 June 2023

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Completion of Maiden Drilling at Mustang Lithium Project

HIGHLIGHTS

• Successful completion of Phase 1 maiden drilling program at RMX’s 100% owned Mustang Lithium Project

• Two extra holes added to upgrade drilling campaign for a total completion of 10 holes

• Majority of drill holes encountered over 45 meters of lithium bearing claystone consistent with expected host geology

• Preparation of drill samples underway for delivery to American Assay Laboratories

• Results for assays to be fast-tracked with expected turnaround time of 3 weeks

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Figure 1. Western view of Drill hole 7 during Phase 1 drilling.

Red Mountain Mining Limited (“ RMX ” or the “ Company ”) is pleased to announce that Phase 1 Reverse Circulation (RC) maiden drilling has been completed at its 100% owned Mustang Lithium Project in Nevada, USA.

Nevada based drilling company, Alloy Drilling LLC, was engaged to undertake the Mustang Phase 1 drilling program. Two (2) extra drill holes were added to the initial eight (8) hole program to gain further insight into the Mustang geology.

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Figure 2. Phase 1 drill program completed for a total of 10 holes

From the 10 holes drilled, a majority encountered over 45 meters of lithium bearing claystone consistent with host geology. Table 1 shows a full summary of the Phase 1 drilling campaign.

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Figure 3. Collection of lithium bearing claystones awaiting to dry

The final batch of drilled claystones are currently being dried to meticulously avoid any cross contamination. Preparation of remainder samples are underway for delivery to American Assay Laboratories for comprehensive analysis.

The Company has instructed fast-tracking of assay results and expects a turnaround time of 3 weeks.

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Table 1. Full summary of Phase 1 drilling program. Metric used for ‘Observations’ is in feet.

Why Lithium, Why Nevada?

Lithium is considered a critical mineral around the globe as a result of a number of factors playing into importance, including:

• Macroeconomic Factors – Favourable short, medium, and long-term market fundamentals.

• Environmental Factors – Lithium is an indispensable component of electric vehicle batteries and other energy storage solutions required to achieve an electrified and clean energy future.

• Policy Factors – A global policy initiative transitioning to a clean energy future. The United States, in particular Nevada, is a Tier-1 mining jurisdiction due to the following reasons:

• Mining Friendly – Nevada was ranked the top jurisdiction for mining according to the Fraser Institute 2020 annual survey.

• Geological Setting – Nevada hosts the world’s largest known lithium deposits including:

  • Defence Production Act – The USA has recently invoked the Defence Production Act in an effort to encourage and secure domestic production of battery materials.

  • Offtake Partners – Close proximity to gigafactories and manufacturers with substantial lithium supply requirements.

  • Security – Nevada enjoys a legal framework characterized by clear laws and reliable enforcement.

  • Policy – In the United States there is bipartisan support and funding for promoting clean energy and fostering clean energy investment.

  • Minimal Outlays – Nevada has no minimum annual expenditure requirements.

Authorised for and on behalf of the Board,

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Mauro Piccini

Company Secretary

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Disclaimer

In relying on the above mentioned ASX announcement and pursuant to ASX Listing Rule 5.32.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the above-mentioned announcement.

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Figure 4. Location map showing RMX’s two projects relative to its neighbours in Nevada

Mustang Lithium Project (Nevada, USA)

Mustang is located on the on the south-eastern flank of the hydrologically closed Monte Cristo Valley, 9 km south of Belmont Resources Kibby Lake project, and 40km east of American Lithium’s TLC deposit.

The Mustang project comprises 140 claims (1,070 ha) of a generally flay alluvial outwash plane with well exposed fines-dominant sediments and lithic tuffs. The outcrops are finely laminated mudstone beds and volcanic tuff and ash layers. This mixed unit of lacustrine sedimentary beds with minor volcanics is similar to host rocks found at American Lithium’s TLC deposit and Cypress’ Clayton Valley deposit. This claim area is within a mapped caldera with the Monte Cristo Valley containing a significant area of volcanic rock capable of supplying lithium to the closed basin. Andesite and basalt flows are exposed in all directions within 2-6km of the project in erosional windows through the alluvium.

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