RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2023

May 14, 2023

ASX ANNOUNCEMENT

RED MOUNTAIN MINING LTD

15 May 2023

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Drilling Permit Granted for the Mustang Lithium Project

Nevada, USA

HIGHLIGHTS

• Exploration drilling permit for RMX’s Mustang Lithium Project now granted by the Nevada Bureau of Land Management.

• Nevada drilling company, Alloy Drilling LLC, engaged for Mustang’s maiden drilling program.

• Site preparation along with constructing drill access tracks at Mustang expected to commence this week.

• Phase 1 drilling at Mustang on schedule to commence toward the end of May.

• Surface sampling and mapping progressing well at the Lithic Lithium Project.

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Figure 1. Topography and vegetation facing west within the middle of the Mustang Project

Red Mountain Mining Limited (“ RMX ” or the “ Company ”) is pleased to announce that the Nevada Bureau of Land Management (BLM) has approved the exploration drilling permit for its Mustang Lithium Project, based in Nevada, USA.

The Company has secured a reputable Nevada based drilling company, Alloy Drilling LLC, to complete 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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Red Mountain is currently performing the required site preparations and constructing drill access tracks at Mustang. This activity is expected to be completed within the next 7 days, with the Reverse Circulation (RC) drill rig to mobilise to site post completion of site preparation.

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

LITHIC LITHIUM PROJECT

Additional mapping and surface sampling continues 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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