Red Mountain Mining : HREE intercepted at Mt Mansbridge (Solo Prospect)

ASX ANNOUNCEMENT
RED MOUNTAIN MINING LTD	6th January 2022

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Assay Results Confirm Heavy Rare Earths at Mt Mansbridge

• Assays from Solo Prospect drilling intercepts 5m @ 0.316% Total Rare Earth Oxide (TREO) with an average 66.62% (Heavy Rare Earth Oxide) HREO
• REO distribution enriched in HREO with an average of 5.65% Dysprosium (Dy) and 0.97% Terbium (Tb)
• Remaining assays from drilling to be returned Q1 2022
• Petrology observation to be returned within coming weeks
• Following the wet season, completion of RC drilling at Mt Mansbridge is scheduled for Q2 2022

Red Mountain Mining Limited (RMX, the Company) (ASX:RMX) is pleased to provide an update for its Mt Mansbridge Project located in the Eastern Kimberley region of Western Australia.

Prioritised assay results from drilling undertaken at the Solo Prospect have recently been received from the laboratory with Heavy Rare Earth Element enrichment confirmed from drilling at the Solo Prospect.

The average ratio of HREO to TREO for the drilling at the Solo Prospect is 66.62% (Figure 1). Drilling has confirmed the presence of rare earths and in particular the large distribution of Yttrium and the dominance of heavy rare earth elements dysprosium (5.65%) and terbium (0.97%) which suggests the mineralisation is xenotime.

Figure 1 - Pie chart showing average distribution of REO for drill samples from the Solo Prospect

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Petrological analysis is currently being undertaken by Diamantina Laboratories with results expected in the coming weeks.

The following REO intercept (5m 51-56m) from drillhole MMRC002 was returned from the Solo Prospect (Figure 2):

• 0.316% Total Rare Earth Oxide (TREO)
• 0.246% Heavy Rare Earth Oxide (HREO)
• 0.070% Light Rare Earth Oxide (LREO)
• 0.170% Yttrium Oxide (Y2O3)
• 0.019% Dysprosium Oxide (Dy2O3)

The Company successfully completed 4 of the planned holes at the project before the drill rig and personnel demobilized from site due to the onset of the wet season within the Kimberley making access untenable. Complete results are set out in Tables A and B below.

With substantial access tracks now established at the Mt Mansbridge project and heritage clearance achieved, the Company is planning on resuming the drill program once the site is accessible again in early 2022 and anticipates an efficient completion of the program.

Mineralisation was associated with a silica altered structure, hosted within a broader package of quartz and quartz- mica greywackes and occasional finer grained pelites. Remaining assays from the remainder of hole MMRC002 and MMRC001 & 003 from the prospect will be returned and reported upon in February 2022.

Figure 2 - MMRC002 Cross-Section

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Figure 3 - Mt. Mansbridge Project - Rare Earth Element and Nickel-Copper-Cobalt-PGE Prospects

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Déjà vu Prospect (Ni-Cu-Co-PGE's)

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The Déjà vu Prospect was identified and drilled by CRAE between 1991 and 1993. The prospect was originally targeted for diamond bearing kimberlites, however it encountered serpentinised peridotite. Sporadic sampling and assaying through the ultramafic intrusive unit returned several encouraging cobalt assay results between 70-100mincluding 0.34%, 0.32% and 0.22% Co (Previously announced 24/2/21 ASX Announcement: RMX to progress Ni-Cu-Co-PGETarget at Mt Mansbridge).

Litho-geochemical studies recently undertaken by the Company's geochemical and geological consultants highlighted the cobalt as primarily magmatic related (i.e. not weathering enrichment) and also that the anomalous cobalt values cannot be explained by the observed silicate minerals within the peridotite only.

Hole MMRC004 was drilled to a depth of 75m before the drill rig experienced mechanical issues. These issues were unable to be resolved prior to the rig's demobilization, which was necessary to avoid the rig being stranded over the wet season.

Samples from 59-75m were prioritized for rushed assay at the laboratory. Assay results from this zone reported a consistent zone of Cobalt: 16m @ 112.8ppm Co (59-75m). Mg and Ni values were also observed to be gradually increasing down hole alluding to a zone of increased fertility deeper in the intrusive system. Unfortunately, the hole finished short of the target zone and requires further drilling.

The hole was originally designed to 'twin' the existing CRAE drill hole to provide further geological information and a comprehensive set of samples around the existing cobalt anomaly. Further deeper RC drilling and an additional hole to the north and south are planned for early 2022.

Figure 4 - Déjà vu Cross Section with CRA Drilling

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Hole_ID	Grid	MGA_E	MGA_N	RL	EoH	Azi	Dip
MMRC01	MGA94_Z52	451079	7890904	425	151	225	-60
MMRC02	MGA94_Z52	451148	7890891	425	150	225	-60
MMRC03	MGA94_Z52	451206	7890846	425	150	225	-60
MMRC04	MGA94_Z52	453980	7892700	404	75	0	-60

Table A - Drilling Details

Hole_ID	Sample_ID	Fm	To	CeO2	Dy2O3	Er2O3	Eu2O3	Gd2O3	Ho2O3	La2O3	Lu2O3	Nd2O3	Pr6O11	Sm2O3	Tb4O7	Tm2O3	Y2O3	Yb2O3	TREO	HREO	LREO
MMRC002	MM0197	46	47	0.016%	0.002%	0.001%	0.001%	0.003%	0.000%	0.006%	0.000%	0.011%	0.002%	0.003%	0.000%	0.000%	0.009%	0.001%	0.056%	0.021%	0.036%
MMRC002	MM0198	47	48	0.009%	0.001%	0.001%	0.000%	0.001%	0.000%	0.004%	0.000%	0.005%	0.001%	0.001%	0.000%	0.000%	0.005%	0.001%	0.030%	0.011%	0.019%
MMRC002	MM0199	48	49	0.020%	0.006%	0.003%	0.001%	0.005%	0.001%	0.007%	0.000%	0.013%	0.003%	0.004%	0.001%	0.000%	0.026%	0.003%	0.093%	0.050%	0.043%
MMRC002	MM0200	49	50	0.018%	0.002%	0.001%	0.001%	0.002%	0.000%	0.007%	0.000%	0.012%	0.003%	0.003%	0.000%	0.000%	0.010%	0.001%	0.060%	0.021%	0.039%
MMRC002	MM0201	50	51	0.019%	0.001%	0.001%	0.000%	0.002%	0.000%	0.007%	0.000%	0.012%	0.003%	0.002%	0.000%	0.000%	0.005%	0.001%	0.054%	0.013%	0.041%
MMRC002	MM0202	51	52	0.028%	0.017%	0.010%	0.002%	0.013%	0.003%	0.009%	0.001%	0.020%	0.005%	0.006%	0.003%	0.002%	0.206%	0.010%	0.334%	0.272%	0.062%
MMRC002	MM0203	52	53	0.015%	0.003%	0.001%	0.001%	0.003%	0.000%	0.006%	0.000%	0.010%	0.002%	0.002%	0.000%	0.000%	0.012%	0.001%	0.057%	0.024%	0.033%
MMRC002	MM0204	53	54	0.021%	0.016%	0.010%	0.002%	0.013%	0.003%	0.007%	0.001%	0.015%	0.003%	0.005%	0.003%	0.002%	0.151%	0.010%	0.263%	0.216%	0.047%
MMRC002	MM0205	54	55	0.055%	0.053%	0.030%	0.006%	0.044%	0.010%	0.025%	0.004%	0.056%	0.013%	0.019%	0.009%	0.004%	0.460%	0.029%	0.816%	0.667%	0.149%
MMRC002	MM0206	55	56	0.028%	0.006%	0.003%	0.001%	0.008%	0.001%	0.010%	0.000%	0.018%	0.004%	0.005%	0.001%	0.000%	0.022%	0.002%	0.110%	0.051%	0.060%
MMRC002	MM0207	56	57	0.012%	0.003%	0.002%	0.000%	0.003%	0.001%	0.005%	0.000%	0.005%	0.002%	0.002%	0.000%	0.000%	0.014%	0.001%	0.049%	0.025%	0.024%
MMRC002	MM0208	57	58	0.012%	0.002%	0.001%	0.000%	0.002%	0.000%	0.006%	0.000%	0.005%	0.002%	0.002%	0.000%	0.000%	0.013%	0.001%	0.047%	0.022%	0.025%
MMRC002	MM0209	58	59	0.012%	0.001%	0.001%	0.000%	0.001%	0.000%	0.005%	0.000%	0.005%	0.001%	0.001%	0.000%	0.000%	0.006%	0.001%	0.036%	0.013%	0.023%
MMRC002	MM0210	59	60	0.010%	0.001%	0.001%	0.000%	0.001%	0.000%	0.005%	0.000%	0.005%	0.001%	0.001%	0.000%	0.000%	0.006%	0.001%	0.033%	0.012%	0.022%
MMRC002	MM0211	60	61	0.011%	0.001%	0.001%	0.000%	0.001%	0.000%	0.005%	0.000%	0.007%	0.001%	0.002%	0.000%	0.000%	0.006%	0.001%	0.037%	0.013%	0.023%

Table B - MMRC002 - Prioritized Rare Earth Element Assay Results (Converted to oxide %) - 46-61m

personal

	Rare Earth Oxide	%
	CeO2	0.030
	La2O3	0.011
	Nd2O3	0.024
	Pr6O11	0.006
	LREO Total %	0.070
	Dy2O3	0.019
	Er2O3	0.011
	Eu2O3	0.002
	Gd2O3	0.016
	Ho2O3	0.004
	Lu2O3	0.001
	Sm2O3	0.007
	Tb4O7	0.003
	Tm2O3	0.002
	Y2O3	0.170
	Yb2O3	0.010
	HREO Total %	0.246
	TREO %	0.316

Rare Earth Oxide	%
CeO2	15.03
La2O3	5.45
Nd2O3	10.46
Pr6O11	2.43
LREO %	33.38
Dy2O3	5.65
Er2O3	3.04
Eu2O3	0.8
Gd2O3	5.25
Ho2O3	1.04
Lu2O3	0.39
Sm2O3	2.95
Tb4O7	0.97
Tm2O3	0.45
Y2O3	43.15
Yb2O3	2.92
HREO %	66.62

For

Table C (left)- MMRC002 - 51-56m (5m) - Rare Earth Oxide summary

Table D (right) - MMRC002 - 51-56m (5m) - Individual Rare Earth Oxide proportions of the TREO

• LREO - Light Rare Earth Oxides = CeO2, La2O3, Nd2O3, Pr6O11
• HREO - Heavy Rare Earth Oxides = Dy2O3, Er2O3, Eu2O3, Gd2O3, Ho2O3, Lu2O3, Sm2O3, Tb4O7, Tm2O3, Y2O3, Yb2O3
• TREO - Total Rare Earth Oxides = HREO + LREO
• Table D - Rare Earth Oxide Proportions % = REO / TREO x 100

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