RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2011

Nov 20, 2011

ASX ANNOUNCEMENT

21 November 2011

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Exploration Update at Zhongqu & Diebu Projects

Highlights:

• Structural surface and underground geology studies to commence at Xinqu mineralised area within the Zhongqu project to assist interpretation of gold mineralisation controls.

• Stage II drilling program at Zhongqu delayed to December due to high rains.

• Exploration work commencing at Diebu project with access to exploration adits.

• Organisational restructure initiated to add additional technical resources to the group.

Zhongqu Project

China focussed gold exploration company, Red Mountain Mining Limited (“Red Mountain Mining” or “the Company”, ASX: RMX ) wishes to advise that due to above average rainfall at the Xinqu underground mine on the Zhongqu project, the proposed Stage II underground drilling program has been delayed. The underground drilling contractor is now planned to mobilise and commence drilling by early December 2011. It is anticipated this will be sufficient time to finish the planned program in JanuaryFebruary 2012 to outline the size and dimensions of the gold mineralisation encountered in the Stage I program.

The Stage II program follows the exciting Stage I drilling results which intersected the main granodiorite-contact shear zone with a best intersection of 31m at 4.61 g/t Au including 8m at 10.07 g/t Au, as well previously unrecognised limestone hosted structures (up to 14.3m at 4.50 g/t Au). Table 1 summarises the main intersections obtained in Stage 1 drilling.

Stage II drilling will target both these styles of mineralisation, with up to 15 drill holes totalling 2430m. Provision has been made to follow up encouraging drill intercepts during the program with additional holes.

The drilling aims to establish the “down dip” extension of the main granodiorite-contact shear zone and get a better understanding of the orientation and tonnage potential of the high-grade limestone structures.

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Section 200 through Xinqu mine showing some of the Stage 2 program holes to be drilled from the 6 Level to target the main gold mineralised zone down dip extension.

Mapping & Structural Analysis

A structural geology mapping program will commence underground and on surface at Zhongqu later this month with studies intended to better understand the controls on gold mineralisation. This will assist in drill targeting and resource definition with potential open pit mineralisation.

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View of pit workings above Xinqu underground mine at Zhongqu project showing cross cutting structures

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View to Zhongqu prospect from pit workings above Xinqu underground project.

During a recent site visit, geological outcrops in surface pits near the Xinqu underground mine were inspected and several structures of interest were identified. There also appeared to be a red, hematitic and brecciated structure which appears in style (and possibly location) to correlate with several structures intersected in the Stage I drilling. This will be assessed further in the upcoming structural study with potential surface drilling planned for next year.

Diebu Project

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Diebu mine offices

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Shari adit requiring refurbishment

An exploration team has been assembled and will mobilise to the Diebu Project in December 2011 to commence rehabilitation of the existing exploration adits and mapping of surface and underground exposures to establish potential drill targets. Drilling is expected to commence in the first half of 2012.

Organisational re-structure

The Company is currently reviewing its organisational structure and senior personnel requirements in both Australia and China, with a view to adding significant operational, technical and corporate experience to the Company. Sourcing of candidates for a Chinabased, Chief Operating Officer has commenced along with sourcing of experienced finance and geological professionals.

Corporate

The Company has continued to investigate additional projects within China that will add value to the Company. This review and due diligence process has highlighted potential project acquisitions. The Company will advise if a firm proposal to acquire any of these potential projects is instigated.

Table 1. Highlights of RMX drilling at Xinqu mine, Zhongqu project
Hole No.	From	To	Intersection
XQ6L 002XQ6L005XQ6L 009XQ6L 010	22m40m37m48m75m79m	26m47m43m56m77m84m	4 m at 5.71 g/t Au7mat 5.70 g/tAu6 m at 4.21 g/t Au
			8 m at 7.65 g/t Au2 m at 5.07 g/t Au5 m at 5.31 g/t Au
XQ6L013	183.5m	192.5m	9mat 5.59 g/tAu
XQ6L 014	95mIncluding:95m118m134m	126m99m126m135m	31 m at 4.61 g/t Au4m at 9.51 g/t Au, and8m at 10.07 g/t Au1 m at 4.62 g/t Au
XQ6L 015	107.5mIncluding:107.5m116m	121.8m113.5m119m	14.3 m at 4.50 g/ Au6 m at 7.14 g/t Au, and3 m at 6.27 g/t Au
XQ6L 017	120m	124.5m	4.5m at 6.33 g/t Au

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For further information about Red Mountain Mining please visit www.redmm.com.au or contact:

Company Investors Andrew Richards Ronn Bechler Chief Executive Officer Market Eye (+61) 423044879 (+61) 400 009 774 (+61 8) 9226 5668 (+61 3) 9591 8901

About Red Mountain Mining

Red Mountain Mining is a newly ASX listed gold explorer with two prime 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 (advanced exploration).

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

Zhongqu has a Chinese classified non-JORC compliant gold mineralisation details of which are provided in 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 about to commence a second round of a drilling 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 years examining potential project acquisitions in China.

Competent Person Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Andrew Richards, who is a member of The Australasian Institute of Mining and Metallurgy. He is a full time employee of Arc Resources Pty Ltd which is providing consulting services to Red Mountain Mining Ltd.

Andrew Richards has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Andrew Richards consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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