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RED HILL IRON Limited ABN : 44 114 553 392 Level 2 , 9 Havelock Street , West Perth WA 6005 PO Box 689 , West Perth WA 6872 Telephone : ( 618 ) 9481 8627 29 January 2021 Company Announcements Office ASX Limited Level 4 , 20 Bridge Street SYDNEY NSW 2000 E - mail : redhillinfo@redhilliron.com.au Website : www.redhilliron.com.au ACTIVITIES REPORT FOR THE PERIOD ENDING 31 DECEMBER 2020 CORPORATE As announced on 25 January 2021 , Red Hill Iron limited ( RHI ) is pleased to report the appointment of Ms Nanette Allen as a new director of our Company . Ms Allen has excellent credentials having been a director of several ASX listed companies where her roles focussed on resource definition , project feasibility studies and the asset divestment . She will be a valued contributor to our board as we move into the next stage of our company development . RED HILL IRON ORE JOINT VENTURE RHI holds a 40 % interest in the iron ore rights subject to the Red Hill Iron Ore Joint Venture ( RHIOJV ) with the API Joint Venture ( Aquila Steel Pty Ltd 50 % and AMCI ( IO ) Pty Ltd 50 % ) ( APIJV ) holding the remaining 60 % of the iron ore rights in the joint venture tenements . RHI retains 100 % of the other mineral rights in these tenements . API Management Pty Ltd ( APIM ) is the manager of the RHIOJV . RHI's 40 % interest is subject to reduction should APIM complete a bankable feasibility study , develop a mining operation based on that study , and deliver first resultant production to customers . If and when such delivery is achieved , then RHI's 40 % interest in the iron ore rights would be reduced to 19 % , or RHI at its election could convert that interest to a 2 % FOB royalty . Until commencement of commercial production , all of RHI's share of RHIOJV expenditure is met on its behalf by the APIJV as a loan which is only repayable out of 80 % of RHI's share of free cash flow from that mining operation . If RHI converts to a 2 % FOB royalty the loan is not repayable . During the quarter APIM and the joint venture participants have continued to analyse potential development options to achieve a viable path forward . APIM has continued project development investigations , assessing various combinations of port and rail infrastructure , annual mining capacity , product grade and project delivery options .