Page 1

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 28 October 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 QUARTER ENDED 30 SEPTEMBER 2021 CORPORATE On 2 September shareholders approved the sale of the Company's 40 % interest in the Red Hill Iron Ore Joint Venture ( RHIOJV ) to Mineral Resources Limited ( MinRes ) . The sale netted the Company an initial payment of $ 200 million with a further $ 200 million to be paid when the first commercial shipment of iron ore extracted from the RHIOJV tenements departs port . Red Hill Iron will also receive a 0.75 % FOB royalty revenue stream from all future production from the RHIOJV tenements and , for the first 10 years , also from the APIJV owned Upper Red Hill Creek tenement . Red Hill Iron will receive additional royalties of 0.75 % FOB from all production from the MRL owned Bungaroo South resources that are developed in association with RHIOJV production . On 7 October the Company announced that it had resolved to pay a fully franked Special Dividend of $ 1.20 per share with a payment date of 10 November . The Red Hill Iron board has established a policy of delivering funds to shareholders that it deems are in excess of the need to maintain a reasonable level of financial strength .