Red Mountain Mining Secures Option Over Pioneer Tungsten Project in Montana

Red Mountain Mining Secures Strategic Foothold in Montana's Premier Tungsten District

Red Mountain Mining (ASX: RMX) has announced the signing of an exclusive option agreement, meaning Red Mountain Mining secures option over the Pioneer Tungsten Project in the Pioneer Mountains of southwest Montana, USA. This strategic acquisition places the company directly alongside Almonty Industries (NASDAQ/TSX/ASX: AII), one of the world's largest listed tungsten producers with a current market capitalisation of AU$9.2 billion. The announcement comes with a fully funded AU$1.6 million placement to support immediate exploration and project advancement activities.

A Prime Location Next to a Billion-Dollar Neighbour

The Pioneer Tungsten Project covers 2,000 hectares across three distinct prospect areas — Mammoth, Lost Creek, and Greenstone — positioned adjacent to claims acquired by Almonty Industries in November 2025. Almonty's neighbouring ground hosts significant tungsten mineralisation, including:

• The Gentung Tungsten Deposit with a total mineral resource of 6.83 million tonnes at 0.315% WO3, including a higher-grade core of 2.87 million tonnes at 0.464% WO3
• The Ivanhoe and Lost Creek Mines, which collectively produced an estimated 680,000 tonnes of tungsten ore during the 1950s and 1970s
• A targeted production timeline at Gentung by the second half of 2026, with expected annual output of 140,000 metric tonne units (1,400 tonnes) of WO3

Red Mountain's claims straddle the same critical geological contact that hosts all significant known mineralisation in the district — the boundary between the Uphill Creek Granodiorite and the Snowcrest Range Group limestones. The company's position, furthermore, represents geological continuity with a district that a multi-billion-dollar producer is actively advancing toward production.

Three Prospects, One Compelling Geological Story

The Pioneer Tungsten Project's three prospect areas each demonstrate independent geological merit whilst sharing the same mineralisation model that defines the broader district.

Greenstone — Historical Drilling Confirms Widespread Mineralisation

The Greenstone prospect represents the most drill-tested area within the project. Four shallow percussion drillholes completed in 1951 by the Minerals Engineering Company returned tungsten mineralisation along their entire lengths, with average assay results comparable to those recorded at Almonty's adjacent 6.8 million tonne Gentung deposit.

Historical drill results at Greenstone include:

Individual sample assays within the holes ranged from 0.07% to 0.81% WO3, with the strongest results consistently recorded by the Lewis and Walker laboratory. USGS airborne magnetic data identifies a shallow magnetic feature extending east of the exposed granodiorite margin at Greenstone.

This magnetic signature appears similar to that observed beneath the Gentung orebody, suggesting potential for concealed skarn mineralisation beneath overburden cover.

Cautionary Note on Historical Results: The historical drilling results presented have not been reported in accordance with the JORC Code 2012, and a Competent Person has not provided sufficient detail to disclose the results as JORC-compliant. Red Mountain confirms that nothing has come to its attention that causes it to question the accuracy or reliability of the results, but the company has not independently validated the results.

Mammoth — Untested Ground Adjacent to Historic Production

The Mammoth prospect lies within several hundred metres of the Ivanhoe Tungsten Mine and the northern boundary of Almonty's claim blocks. The Mammoth Adit intersects scheelite-bearing garnet skarn approximately 2.5 metres thick, striking at 335° and dipping 25° to the northeast. The skarn extends in outcrop over at least 40 metres west of the adit, with broken skarn material observed beyond 100 metres.

Importantly, no drill testing has been undertaken on any of the Mammoth claims. USGS magnetic data shows similar subsurface features beneath Mammoth's claims as those observed beneath the blind Gentung deposit, which was discovered in 1974 through drilling of an interpreted extension of the Ivanhoe skarn. The Gentung orebody sits at approximately 200 metres depth and represents a completely blind discovery beneath overburden cover.

Lost Creek — Historical Mine Production Validates Exploration Potential

The Lost Creek prospect sits approximately 600 metres south along strike from Almonty's claims. The historical Lost Creek Tungsten Mine produced 19,000 tonnes at an average grade of 0.18% WO3 between 1952 and 1956 from adits and small open pits. Red Mountain's claims encompass the I Pit (a shallow 60m x 15m open cut) and the southern section of the H Adit.

Channel rock chip and drill core samples at Lost Creek recorded anomalous tungsten with a maximum value of 0.55% WO3. The steeply dipping stratigraphy (65–75° to the east) at Lost Creek means that down-dip extensions of mineralisation can potentially be tested by relatively shallow drill holes collared at different elevations across the claims.

Understanding Tungsten Skarns — The Geological Foundation

Tungsten skarns represent one of the most economically significant tungsten deposit types globally, formed through specific geological processes that create predictable mineralisation patterns.

What Is a Skarn?

A skarn forms when hot magmatic fluids, driven by a cooling granite or granodiorite intrusion, react with adjacent carbonate-rich rocks such as limestone. The chemical reaction replaces the original rock with a new assemblage of minerals, primarily garnet (andradite and grossular varieties) and pyroxene. When tungsten is present in the magmatic fluids, it precipitates as scheelite (CaWO4) within these garnet skarns.

Why Does Geological Repeatability Matter for Investors?

The grade and thickness of skarn mineralisation can be remarkably consistent across a district once the controlling geological contact is established. In the Pioneer Mountains, this critical contact is the boundary between the Uphill Creek Granodiorite and the Snowcrest Range Group limestones. Every significant tungsten occurrence in the district — Ivanhoe, Lost Creek, Gentung, and Red Mountain's three prospects — occurs along this same geological contact.

This geological repeatability means that positive discoveries in one location substantially reduce the risk of analogous positions nearby, providing investors with a more predictable exploration framework than many other deposit types.

Key Technical Terms

• WO3 (Tungsten Trioxide): The standard reporting unit for tungsten grade in mineralised rock
• MTU (Metric Tonne Unit): Equal to 10 kilograms of WO3; the standard commercial trading unit for tungsten
• Scheelite (CaWO4): The primary tungsten mineral in skarn-hosted deposits; calcium tungstate
• Skarn: Rock formed through metasomatic replacement at the contact between igneous intrusions and carbonate rocks
• NSR (Net Smelter Royalty): A royalty on the proceeds from mineral sales after deduction of smelting and refining costs

The Tungsten Price Environment

The timing of Red Mountain Mining securing its option over the Pioneer Tungsten Project coincides with significant movement in tungsten prices over the past year.

This represents a greater than 230% increase in less than six months, driven primarily by China's transition from a net exporter to a net importer of tungsten — a structural shift that has tightened global supply considerably. The strong price environment has contributed to Almonty Industries' market capitalisation growth and has drawn new exploration entrants to the sector.

Demand drivers supporting the tungsten price include:

• Widespread use of tungsten carbide in cutting and drilling tools across construction, metalworking, and mining
• Growing use of tungsten metal in electronics
• Applications as an additive in specialty alloys used in aerospace, automotive, and defence industries
• Tungsten's ability to substitute for lead in various applications

The US Federal Government has been actively seeking to secure a reliable domestic supply of tungsten in response to supply constraints and reliance on Chinese-controlled supply chains. Red Mountain's Pioneer Tungsten Project is located entirely within the United States, in a district with documented tungsten production dating back to the 1950s.

Terms of the Option Agreement

Red Mountain has entered an arms-length option agreement with Orion Property Holdings LLC over the Pioneer Tungsten Project's 25 claims. The agreement structure, consequently, provides Red Mountain with considerable flexibility throughout the exploration and development process.

Key structural features include:

• Red Mountain can exit the agreement and return the claims at any time prior to each anniversary payment falling due, with no financial penalty
• Vendors retain a 2% Net Smelter Royalty (NSR), which Red Mountain has the right to purchase within 18 months of exercising the option for US$1.5 million
• The agreement is not a related party transaction

The staggered payment structure means Red Mountain's near-term capital commitment remains modest relative to the potential scale of the opportunity, whilst retaining full optionality over whether to continue advancing the project at each decision point.

Funding to Support the Initial Phase

Red Mountain has closed a placement to fund the initial option fee, ongoing project activities, and working capital requirements.

Placement details:

• Total raised: AU$1.6 million
• Shares issued: 94.2 million shares
• Issue price: 1.65 cents per share (11.5% discount to last close price of 1.9 cents; 21% discount to 15-day VWAP)
• Attaching options: 1-for-2 unlisted options at 5 cents exercise price, expiring 31 December 2028 (subject to shareholder approval)
• Expected share issue date: 11 May 2026

The company has also executed an agreement with Strategic Asset Capital Pty Ltd for a stand-by funding facility of AU$1 million, subject to shareholder approval. Red Mountain retains full control over if and when this facility is utilised, can set a floor price for any share issuances, and may terminate the facility at any time without cost or penalty.

Forward Work Programme

Following the 30-day due diligence period, Red Mountain expects to define high-quality, relatively shallow drill targets across the three prospect areas. The planned forward work programme includes:

1. Due diligence sampling at all historical mineralisation sites across Mammoth, Lost Creek, and Greenstone
2. Field mapping of skarn outcrops and subcrop to verify dips, strikes, and lateral extents
3. Verification of historical data through modern analytical methods
4. Definition of shallow drill targets for initial testing, likely at Greenstone given the concentration of historical data
5. Potential drill testing in the first year of exploration, subject to positive due diligence outcomes

The proximity of Red Mountain's claims to Almonty's planned Gentung Mine operation is noted as a factor that could allow any economic discoveries to be brought to market efficiently, given the existing infrastructure investment being made in the district by a major global tungsten operator.

Management Commentary:
Red Mountain anticipates being positioned to rapidly define high-quality, relatively shallow drill targets for testing during its first year of exploration on the Pioneer Tungsten Project, according to the announcement.

Investment Considerations

Red Mountain Mining's option over the Pioneer Tungsten Project consolidates several elements that investors in the critical minerals sector typically value: a demonstrated mineralised district, a well-resourced and active neighbour validating the geology, near-term exploration catalysts, and a structured agreement that preserves financial flexibility.

Key investment factors include:

The company's broader critical minerals portfolio includes US antimony projects in Utah, Idaho, and Thompson Falls, alongside the Armidale Antimony-Gold Project in New South Wales, Australia, positioning Red Mountain across multiple strategic commodities in tier-one mining jurisdictions.

With due diligence underway and drill targeting expected to follow, the coming months present a series of near-term catalysts for investors to monitor as Red Mountain advances its newly acquired position in one of the most active tungsten districts in the United States.

Want to Learn More About Red Mountain Mining's Pioneer Tungsten Project?

Red Mountain Mining (ASX: RMX) is advancing a strategically positioned tungsten project in one of the most active tungsten districts in the United States, sitting directly alongside a multi-billion-dollar neighbour already moving toward production. With a fully funded exploration programme, staged acquisition terms, and near-term drill targets in the pipeline, investors seeking exposure to this critical minerals opportunity can find out more about Red Mountain Mining and the Pioneer Tungsten Project by visiting the company's investor hub at investorhub.redmountainmining.com.au.