RAND MINING LIMITED — Capital/Financing Update 2011

May 22, 2011

23 M ay 2011

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ABN 41 0 04 669 658

Suite G1/2 49 Melville Pa r ade South P e rth WA 6151 Australi a

Co m panies Ann o uncements Office Aus t ralian Secu r ities Exchange Limited 4[th] F loor 20 B ridge St Syd n ey NSW 20 0 0

PO Box 307 West P e rth WA 6872 Australi a

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T 61 8 9 474 2113 F 61 8 9 367 9386 E info@randmining.com. a u W rand m ining.com.au

Extension of term for option to acquire 100% of Tapeta Iron Ore project, located in Northern Central Liberia, West Africa

On 2 1 Dec 201 0 , Rand Mini n g NL ( Rand or the Company ) anno u nce that it h ad entered into a c onditional option agr e ement wi t h Resourc e Capital L imited ( RCL ) (a company inc o rporated in the Republi c of the Sey c helles) and Iron Resour c es Limited ( IRL ) (a company inc o rporated in the Republi c of Ghana) ( Option Agreement ).

Un d er the terms and condi t ions of the original Op t ion Agreem e nt, Rand h a d acquired a six mo n th option ( Option ) t o acquire a ll of the issued shar e capital i n IRL from RCL ( Transaction ). IRL is the re g istered hol d er of an ir o n ore mine r al explorati o n license o v er a 600 k m² area w h ich encom p asses the G bi Range ( p ronounced Bwee) loca t ed in Nort h ern‐ Cen t ral Liberia, W est Africa ( Project Area ).

The Project Ar e a contains an extensi v e sequence of iron fo r mations lo c ated withi n the em e rging Liberian‐Guinean iron ore province, host to sev e ral of We s t Africa’s m ost imp o rtant iron o re deposits , including t h e world cla s s Simandou deposit.

The main iron f o rmations w ithin the Ta p eta Iron O r e project ar e strategically located w ithin 70k m of the Ye k epa to Buchanan railwa y line which connects th e iron or mi n es at Mt Ni m ba, in t h e north of the country, t o the iron o re exportin g port of Buchanan (Figu r e 3).

The existing rail and associ a ted port inf r astructure i s controlled by the Liberian govern m ent and is currentl y being utili s ed by ArcelorMittal (t h e world’s l a rgest steel producer) in its rep o rted bid to recommenc e productio n from the iron ore mines at Mt Nim b a by July 2 0 11.

Un d er the Shar e Purchase A greement, the Transact i on is condit i onal upon completion o f full due diligence s a tisfactory t o Rand and all necessa r y regulator y and share h older appr o vals req u ired to co m plete the Tr a nsaction b e ing obtaine d including, w ithout limi t ation:

• (a) any sh a reholder a p proval to c h ange the n ature and scale of Ra n d’s activities in accorda n ce with AS X Listing Rul e 11.1.2; an d

• (b) Rand c omplying w ith any r equirements of ASX, including the

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require m ents of Ch a pters 1 an d 2 of the Li s ting Rules and issuing a prospectus, as if Rand were applyin g for admis s ion to the official list of ASX (as r equired by ASX Listing R ule 11.1.3).

ASX may impos e mandator y escrow pr o visions up o n Rand’s issue of the r e levant secu r ities to R CL pursuan t to the ter m s and condi t ions of the Share Purchase Agreement. In addition, Ran d will seek a ppropriate w aivers fro m ASX for the purpose of permittin g the issue of the Per f ormance Shares and Pe r formance O ptions purs u ant to the Share Purch a se Agreement.

Ran d ’s due dilig e nce with r e gard to the T ransaction is continuin g and the Company has b een gra n ted a 3 mo n th extensio n of term to complete t h is exercise and will pres e nt to its sha r eholders th e Notice of M eeting and in connecti o n with the T ransaction w hen co m pleted.

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Ran d will make a further an n ouncemen t to the mar k et at the completion of the process .

For f urther info r mation, ple a se contact:

Rol a nd Berzins Co m pany Secre t ary

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