RED MOUNTAIN MINING LIMITED — Interim / Quarterly Report 2021

Oct 27, 2021

ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD 28 October 2021

Quarterly Report for quarter ending 30 September 2021

Red Mountain Mining Limited (the Company, Red Mountain or RMX) is pleased to provide the following report on its activities during the quarter ending 30 September 2021.

OPERATIONAL REVIEW

Mt Maitland Gold and Base Metals Project – 100%

On 13 July 2021, the Company announced that drilling had completed at the Maitland South prospect. Drilling successfully intersected the Maitland South Shear Zone between 266.77m and 281.42m (14.65m width). The shear zone consisted of quartz filled breccias on the margins with strongly silica, sericite, with minor hematite altered schist within the centre of the zone. Disseminations of pyrite were observed throughout the interval.

Drilling of the Jacia IP chargeability anomaly was completed prior to this with encouraging base metal and gold indications. Occurrences/blebs of chalcopyrite (Cu), Sphalerite (Zn) and Galea (Pb) associated with quartz veining were noted during logging.

In addition, two zones of intercalated, pyrite bearing, Banded Iron Formation (BIF) and amphibolite were intersected during drilling. These zones are prospective for gold mineralisation. BIF related gold mineralisation has previously been observed at the Maitland Project at the Lenanphyl prospect which RMX drilled in late 2020.

Mt Mansbridge Heavy Rare Earths and Ni-Co-PGM Project – 100%

On 6 July 2021, the Company announced that 952 soil samples were recently collected from the three priority Rare Earth Element prospects at Mt Mansbridge: Killi-Killi, Vader and Kylo. Samples were analyzed during collection utilizing a REE calibrated portable XRF with areas of interest immediately infilled by the team. RMX's consulting geochemist identified a subset of samples for further laboratory analysis.

On 27 July 2021 the Company announced that it had completed a technical review of its Cow Creek Prospect Nickel-Cobalt prospect at its 100% owned Mt Mansbridge Project in Western Australia. The review highlighted Cow Creek as prospective for mafic-ultramafic intrusive related for Ni-Cu-Co-PGEs.

On 18 August 2021, the Company announced that soil sampling assay results have been received from the laboratory from the 952-sample survey that was completed earlier in the year at Mt Mansbridge. The survey generated several REE soil anomalies, in particular, two significant anomalies have been defined at the Killi-Killi Prospect by the Company's consulting geochemist. The first soil anomaly is a HREE anomaly and is located on the western end of the Mt Mansbridge inlier. Geologically, the anomaly is located on the

prospective unconformable contact between the basement Killi-Killi Formation and the overlying Gardiner Sandstone. The second soil anomaly is a LREE anomaly that was partially defined by previous soil sampling programs. The anomaly has now been defined at a length of 1km and is again located on the prospective unconformable contact.

On 20 September 2021, an update of the project was provided, noting that a final drill planning, mapping and review site visit across the Mt Mansbridge tenure was completed in late August. The results of the work have recently been received confirming targets for rare earths RC drill testing. Further refinement of Mt Mansbridge Ni-Cu-Co-PGE targets has also been completed by the companies' geophysical consultants, SGC.

Heritage surveying was announced as completed at the start of October 2021. An RC drilling rig has been secured and is scheduled to commence drilling in mid-October.

Koonenberry Gold Project – 100%

The Koonenberry Gold Project covers approximately 657 km2 and is located in a geologic setting considered analogous to the prolific Victorian Goldfields located in south-eastern Australia.

The Koonenberry Gold Project adjoins Manhattan Corporation's (ASX:MHC) Tibooburra Gold Project where Manhattan has recently announced a new high grade gold discovery (see announcement dated 25 June 2020).

The Company is currently reviewing data sets at its Koonenberry Project and is monitoring closely other current and ongoing drilling activities in the region.

Mukabe-Kasari Cobalt-Copper Project, DRC

The Board continues to assess the prospectivity of this project in light of the work carried out there during 2020.

Batangas Gold Project, Phillippines – Shares and NSR

The Company holds approximately 1.7m shares in London listed Blue Bird Merchant Ventures Limited (LON: BMV). Blue Bird is focused on its near-term production gold project in South Korea. BMV share price as at 30 September 2021 was 3.40 pence.

The Company retains its net smelter royalty over the Philippines located Batangas gold project.

Corporate

The Company's cash position at the end of the September quarter was $1.942 million.

New Projects

The Company continues to review and assess opportunities that will add value to its portfolio.

Authorised on behalf of the Board,

Mauro Piccini Company Secretary

ASX ADDITIONAL INFORMATION

ASX Listing Rule 5.3.1

Exploration and Evaluation during the quarter was $391,000 ($12,000 from operating activities and ~$379,000 from investing activities). The majority of this was spent on the Company's Mt Mansbridge Project.

ASX Listing Rule 5.3.2

There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.5

Payments to related parties of the entity and their associates:

Payments to Related Parties & their Associates	Amount
Director Fees and Superannuation	$36,434
Company Secretarial, Registered Office and Financial Management Services	$43,312

Tenement Table: ASX Listing Rule 5.3.3

Mining tenement interests held at the end of the quarter and their location

PERMIT NAME	PERMIT NUMBER	REGISTEREDHOLDER/APPLICANT	AREAINHECTARES	DATEOFRENEWALPERIODEXPIRATION	PERMITTERMEXPIRY	INTEREST/CONTRACTUAL RIGHT
Demiko1	ZEA 556	Tshiyaz Muneng Costa	340	N/A	N/A	Right to earn up to 90%
Comaki1	ZEA 557	Tshiyaz Muneng Costa	340	N/A	N/A	Right to earn up to 90%
Comialu1	ZEA 558	Tshiyaz Muneng Costa	425	N/A	N/A	Right to earn up to 90%
Comidel1	ZEA 559	Tshiyaz Muneng Costa	340	N/A	N/A	Right to earn up to 90%
KGCM1	ZEA 560	Tshiyaz Muneng Costa	425	N/A	N/A	Right to earn up to 90%
Psodema1	ZEA 561	Tshiyaz Muneng Costa	340	N/A	N/A	Right to earn up to 90%
CMAL1	ZEA 562	Tshiyaz Muneng Costa	340	N/A	N/A	Right to earn up to 90%
Comiko1	ZEA 563	Tshiyaz Muneng Costa	340	N/A	N/A	Right to earn up to 90%
Koonenberry	EL8997	Red Mountain Mining	35,400	3-Sept-23	3-Sept-23	100%
Koonenberry	EL9009	Red Mountain Mining	30,300	23-Oct-23	23-Oct-23	100%
Mt Mansbridge	E80/5111	Red Mountain Mining		10-Oct-2023	10-Oct2023	100%
Mt Mansbridge	E80/5229	Red Mountain Mining		6-Jun-2024	6-Jun-2024	100%

Mt Mansbridge	E80/5413	Red Mountain Mining		28-Jul-2025	28-Jul-2025	100%
Mt Maitland	E51/1900	Red Mountain Mining	5320	23-Dec-24	23-Dec-24	100%
Mt Maitland	E51/1982	Red Mountain Mining	1400	11-Jul-26	11-Jul-26	100%

*Note: Exploration Permits that have reached permit expiry have been submitted for renewal.

1. As announced on 18 June 2020, the Company has executed a binding exclusivity and earn-in agreement (Agreement) with the local owner of Mukabe Kasari. Pursuant to the revised terms of the Agreement, the Company has the right to earn up to 70% interest in the project.

The mining tenement interests relinquished during the quarter and their location

Nil.

The mining tenement interests acquired during the quarter and their location

Not applicable.

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter

Not applicable.

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

Not applicable.

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 Oliver Judd. Mr Judd 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 Judd 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 announcement 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 announcement.

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

Red Mountain Mining Limited

ABN Quarter ended ("current quarter")

40 119 568 106 30 September 2021

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation	(12)	(12)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs	(75)	(75)
	(e)administration and corporate costs	(237)	(237)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	(324)	(324)

2.		Cash flows from investing activities
2.1		Payments to acquire or for:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	-	-
	(d)	exploration & evaluation	(379)	(379)
	(e)	investments	-	-
	(f)	other non-current assets	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
2.2	Proceeds from the disposal of:
	(a)entities	-	-
	(b)tenements	-	-
	(c)property, plant and equipment	-
	(d)investments	-	-
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investingactivities	(379)	(379)

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debtsecurities	300	300
3.3	Proceeds from exercise of options	614	614
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	914	914

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	1,731	1,731
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(324)	(324)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(379)	(379)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	914	914

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	1,942	1,942

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	1,918	1,707
5.2	Call deposits	24	24
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	1,942	1,731

6.	Payments to related parties of the entity and theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	80
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-
	Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and anexplanation for, such payments.
6.1	Director and consulting fees paid to Directors and/or Director related entitiesFinancial management and Company secretary fee paid to Director related entity $43,312	$36,434

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.	Financing facilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamount at quarterend$A'000	Amount drawn atquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end		-
7.6	Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well.
	800,000 convertible notes were converted into 108,646,617 shares during the quarter.There were nil convertible notes outstanding at the end of the quarter.

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(324)
8.2	(Payments for exploration & evaluation classified as investingactivities) (item 2.1(d))	(379)
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(703)
8.4	Cash and cash equivalents at quarter end (item 4.6)	1,942
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	1,942
Estimated quarters of funding available (item 8.6 divided by8.72.76item 8.3)
	Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A".Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
8.8.1	Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not?
Answer: N/A
8.8.2	Has the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does itbelieve that they will be successful?
Answer: N/A

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Date: ...........................28 October 2021..........................................

Authorised by: The Board of Red Mountain Mining Limited (Name of body or officer authorising release – see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.