RED MOUNTAIN MINING LIMITED — Board/Management Information 2011

Sep 1, 2011

ASX ANNOUNCEMENT

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Red Mountain Appoints Chief Executive Officer Following Solid Market Debut

Date: 2 September 2011

Highlights

• Appointment of Andrew Richards as Chief Executive Officer

• Solid market debut following heavily oversubscribed IPO

China focussed gold company, Red Mountain Mining Limited (“Red Mountain Mining” or “the Company”, ASX: RMX) has appointed Mr Andrew Richards as Chief Executive Officer following a solid market debut on the Australian Securities Exchange. On its first full day trading, shares in the Company peaked at $0.215 before closing at the Initial Public Offer price of $0.20 on strong volumes.

Andrew Richards will commence as CEO on Monday 5 September 2011. He is a trained geologist with 30 years experience in the mining industry including seven years in a senior project finance role. He was also chief geologist for Newcrest Mining’s Telfer and New Celebration gold mines between 1991 and 1996.

Mr Richards has extensive corporate mining experience throughout Asia and South America, including listing Dragon Mountain Gold in 2007 to develop the multi‐million ounce Lixian Gold Project in China. Most recently, he assisted with the listing of a rare earth project on the Frankfurt Exchange and a proposed gold project listing in Australia.

Red Mountain Mining Non‐Executive Chairman Mr Michael Wolley said the appointment of Mr Richards marked an important step in the Company’s move to advance its Chinese gold projects, Zhongqu and Diebu.

“ Mr Richards has an excellent track‐record in project and corporate management and I believe his appointment will significantly strengthen the Company’s management and operational capacity,” said Mr Wolley.

“The Board has strong confidence in his ability to lead the Company towards achieving its strategic operational goals and creating long‐term shareholder value.”

A summary of the key terms of Mr Richards’ employment agreement has been attached.

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For further information please visit www.redmm.com.au or contact:

Michael Wolley Daniel Fraser Chairman Cygnet Capital Media : (61) 410 313 136 (Lead Manager) Melanie Gray Stokes (61 8) 9226 5511 FTI Consulting (61) 424 135 294 (61 8) 9386 1233

About Red Mountain Mining

Red Mountain Mining is a newly listed gold producer with two projects in China. The Company’s strategy is to unlock the potential of ‘under‐developed’ gold projects in China by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.

The Company has binding acquisition agreements to acquire 51% of the Zhongqu project (operating gold mine and infrastructure) and 90% of the Diebu project .

The Zhongqu Project is an operational gold mine with substantial exploration potential. The Project has been operational since 2002 using labour intensive manual mining methods. Covering 7.19km[2] , the Project has a modern gold treatment plant with 400,000 tpa capacity.

Zhongqu has a Chinese classified non‐JORC compliant gold mineralisation. Please refer to Red Mountain's prospectus of 4 July 2011. A further Exploration Target estimate exists with an estimated range of 400,000 to 550,000 tonnes at 7.0 to 9.5 g/t of gold.[1] . Red Mountain is conducting a drilling program to bring the existing gold mineralisation into JORC compliance.

The Diebu Project has an exploration target of between 400,000 to 550,000 tonnes at 3.5 to 4.5 g/t of gold[1] . The Company obtained encouraging results from its first comprehensive examination of Diebu in 2008. Mineralisation occurs irregularly over 6kms but has not yet been adequately explored and in particular, has not been drilled.

The mine openings (adits) have been developed following the common Chinese approach to “explore by mining”. Openings have been driven to intersect and follow the perceived main structures without consideration being given to adjacent potential replacement gold mineralisation. The system has gold, arsenic, antimony and mercury anomalism.

Red Mountain Mining was incorporated in Australia in May 2006 and was listed on the ASX in September 2011. It has spent more than five year examining potential project acquisitions in China.

1 The potential quantity and grade of the Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

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Appendix 1 – Summary of key terms and conditions of engagement

Employment term: Mr Richards has been appointed to the position of CEO of Red Mountain Mining Limited (“Red Mountain Mining”) for an initial period of six months.

Remuneration:

Mr Richards’ remuneration will comprise the following elements:

• Retainer for up to 10 days service per month at $14,000 per month (exclusive of GST)

• The days worked to be reviewed on a quarterly basis and if the average is greater than 10 days/month during that period, then the additional days will be paid at $1500 per day

• Mr Richards’ remuneration to be reviewed in 6 months time.

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