RMX – Red Mountain Mining

6 July 2017
Dale Allen
Australian Securities Exchange
Level 40, Central Park
152 St Georges Terrace
PERTH WA 6000
BY EMAIL: dale.allen@asx.com.au
Dear Dale
RMX ASX AWARE LETTER
We refer to your letter dated 5 July 2017 and respond to the questions raised in your letter as follows:
1. ASX understands that RMX was in possesion of material information, being the analyses of lithium levels for Drill Hole 1 prior to 4 July 2017. Is this correct?
No, this is incorrect. ALS (Fort Collins, Colorado), the primary laboratory conducting the analyses, had, prior to July 4, 2017, notified RMX that the results for drill hole 1 were available for collection by RMX.
However, RMX did not take possession of such information until 11.45pm (WST) Thursday 29 June, 2017.
By way of explanation, Red Valley was a greenfields exploration project that was seeking to define a large, Lithium brines deposit, amenable to conventional extraction techniques.
Following advice from our prospective and technical JV partner and Lithium specialist, Arizona based geologist, Mr William Feyerabend, the Board took the view that in order to properly evaluate the project as a whole, both results for drill hole 1 AND drill hole 2 needed to be considered.
Therefore, the Company instructed ALS to hold the results for drill hole 1 until the results of drill hole 2 were also to hand. In this way, a full and complete analysis of ground conditions at depth, stratigraphy, as well as Lithium content could be completed on the project as a whole and communicated to shareholders and the market generally. This decision was communicated to shareholdes in the Company’s announcement of 29 May, 2017.

2. If ASX’s understanding is not correct, please advise the time and circumstances in which RMX became aware of:
a. the completion of analyses of lithium levels for Drill Hole 1;
We were notified by e-mail at 10.53pm on Tuesday 23 May, 2017 that ALS had concluded its laboratory analysis of the brine samples collected from drill hole 1.
and
b. the level of lithium present in the Drill Hole 1 analyses was not at a quantity required for commercial operations?

As above, RMX received the results of drill hole 1 AND drill hole 2 analysis from ALS at 11.45pm on Thursday 29 June, 2017. By that point, the Company had been informed by ALS that the results would be forthcoming and, to that end, at 11.20pm, Mr King had
1
Red Mountain Mining Ltd ACN 119 568 106 Suite 5, 62 Ord Street, West Perth, Western Australia, 6005. PO Box 1928, West Perth, W.A. 6872
T: +61 (08) 9226 5668 F: +61 (08) 9486 8616 E: info@redmm.com.au W: www.redmm.com.au
already sent an e-mail to the Company Secretary requesting the Company be put into trading halt the following morning. Following receipt of the results, discussions took place between directors, Mr Jeremy King and Mr Lincoln Ho from around midnight that evening until about 1am. Having already requested a trading halt, it was agreed to further review results the next day and, importantly, to arrange a conference call with Mr Feyerabend.

3. If answering question 2, please advise if RMX considers the information, is information that a reasonable persion would expect to have a material effect on the price or value of its securities?
It is RMX’s view that possession of the results of laboratory analysis is information that a reasonable persion would expect to have a material effect on the price or value of its securities.
It is RMX’s view that possession of information that the results of analysis for drill hole 1 are available for collection is not information that a reasonable persion would expect to have a material effect on the price or value of its securities

4. Please advise the time and circumstances in which RMX became aware that the lithium levels present in Drill Hole 1 analyses were not of a quantity required for commercial operations? In answering this question, please comment specifically on the statement included in RMX’s announcement released to ASX on 29 May 2017: “Analyses for lithium levels are ready for hole 1 and remains secure at the respective labarotories.”
The Company received the results of both hole 1 and 2 on 11.45pm Thursday 29 June, 2017, as per above.
Consequently, as above, the Company had no choice but to immediately put its securities into trading halt while results were reviewed.
After a conference call with Mr Feyerabend on the morning of Monday 3 July 2017, Perth time, the Board concluded that the Lithium levels present in drill hole 1 and drill hole 2 analyses were not of a quantity required for commercial operations.

5. Please confirm that RMX is in compliace with the Listing Rules, in particular, Listing Rule 3.1.
Confirmed.

6. Please confirm that RMX’s responses to the questions above have been authorised and approved in accordance with its published continuous disclosure policy or otherwise by its board or an officer of RMX with delegated authority from the Board to respond to ASX on disclosure matters.
Confirmed.

Please do not hesitate to contact me if further information is required.
Yours sincerely
Shannon Coates
Company Secretary

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