So I used BlenderGIS to create something that looks like this but the topography is not sending to Rhino, it shows up as all white. I made sure to select the topography and export to OBJ with these settings:
The mtl file needs to be in the same folder as your OBJ file. Both are text files so open the MTL file in a (plain) text editor. Make sure that the path to the texture is relative.
Note that you of course also need the texture(s) for the material.