RHI: Chalice withdraw from Pilbara JV

ABN: 44 114 553 392

Registered Office: Level 2, 9 Havelock Street, West Perth WA 6005

Postal Address: PO Box 1160, West Perth WA 6872

18 January 2018

Company Announcements Office ASX Limited

Level 4, 20 Bridge Street SYDNEY NSW 2000

Chalice withdrawal from Pilbara JV

Telephone: [phone]

Facsimile: (61 8) 9481 8445 E-mail:[e-mail]

Website:www.redhilliron.com.au

The Company has received notice from Chalice Gold Mines Limited (Chalice) that it is withdrawing from its gold and base metals joint venture on Red Hill's tenements in the Pilbara.

Further information on the JV activities will be supplied in Red Hill Iron's December Quarterly Report. A precis of the Chalice information is set out below:

"During the quarter, Chalice completed reconnaissance aircore and RC drilling programs to follow-up on gold and base metal targets identified at the Wyloo West, Wyloo East, Ken's Bore, Derek's Bore, G1, B2 and Red Hill prospects.

In total, 276 holes for 9,259m were drilled including 276 AC holes for 5,685m and 59 RC holes for 3,574m. While anomalous results were returned from several of the prospects, they are not considered sufficiently encouraging to warrant follow-up exploration. Accordingly, the Company has provided notification to Red Hill of its withdrawal from the farm-in and joint venture agreement, subsequent to quarter-end."

N Tomkinson Chairman