RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2023

Jun 4, 2023

ASX ANNOUNCEMENT

RED MOUNTAIN MINING LTD

5 June 2023

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Maiden Drilling Commences at Mustang Lithium Project

HIGHLIGHTS

• Confirmation of Reverse Circulation (RC) drill rig on site & commencement of Phase 1 drilling

• Experienced & reputable Nevada based drilling company, Alloy Drilling LLC, engaged to complete maiden drill program consisting of 8 holes at maximum depth of 150m

• Surface sampling nearing completion at the Lithic Lithium Project, with an RC drill program to be planned upon receiving sampling assay results

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Figure 1. RC drill rig on site and Phase 1 drilling has commenced

Red Mountain Mining Limited (“ RMX ” or the “ Company ”) is pleased to announce that the Reverse Circulation (RC) drill rig is on site and phase 1 drilling has commenced at the Mustang Lithium Project in Nevada, USA.

Nevada based drilling company, Alloy Drilling LLC, has been engaged to undertake Mustang’s maiden Phase 1 drilling program, which consists of eight (8) holes (refer to below figure 2) drilled to a maximum of 150m in depth to target lithium bearing clay horizons.

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Figure 2. RMX’s Mustang Project with Phase 1 Proposed Drill Holes

LITHIC LITHIUM PROJECT

Additional mapping and surface sampling is nearing completion at the Lithic Lithium Project. This initiative will assist RMX with further evaluation of the project’s lithology and stratigraphy and assist in providing future drill targets. A drilling program for Lithic will be subsequently designed upon receipt of assay results from surface sampling.

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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

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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