Ann: $12.5m Entitlement Offer to fund Blacksmith Iron Ore Project, page-2

Rights Issue

This is another necessary step towards production. There are some real positives in this Rights Issue.

1 - The offer may provide sufficient funding for the completion of both the PFS and DFS.

2 - The discount price is small, not the usual ~25%. Yet both OCJ and TIO will take up the offer.

3 - The offer only applies to existing shareholders so others cannot get a slice at discounted prices. Minimal dilution for shareholders if they take up their entitlement.

4 - Support by the top two shareholders shows commitment and belief in the project.

5 - The Board (and that means TIO and OCJ) elected to do a CR that did not allow non existing shareholders to take part at this time. That could be because they don’t want to dilute their opportunity (or some other reason).

6 - Major shareholders (both represented on the RHK board) I would suggest expect a good PFS otherwise they wouldn’t want to provide funds for a DFS at this time. They are likely to have a pretty good idea of what is to come in the PFS by now (as indeed we can speculate too). It is not hard to conclude that the project metrics are looking very positive indeed.

I will be taking up my full entitlement.

I am not a financial advisor. My assumptions may be incorrect. So DYOR before making any financial decision.