RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2012

Apr 1, 2012

ASX ANNOUNCEMENT

2 April, 2012

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Zhongqu Gold Project Update

• Red Mountain Mining Limited has defined an Inferred JORC compliant resource for Ore Body #3 at Xingqu of 390,600 tonnes grading 4.44 g/t Au and containing 55,750 ounces Au.

• The Company has negotiated a four month extension to the Framework Agreement to 31 July 2012 at no additional cost. This extension is to allow the current owners to drill other targets below and adjacent to the defined resource before finalising new revised financial terms to the Framework Agreement.

• In addition to the Inferred JORC resource, there is an estimated Chinese gold mineralisation target of approximately 1.7 million tonnes at 6g/t containing 333,000 ounces of gold within the project area that remains untested.

• Red Mountain Mining does not intend to proceed with the acquisition of the Zhongqu Project based on the original terms of the Framework Agreement, and will only proceed should further commercially viable terms be agreed with the vendors over the next four months.

• Red Mountain Mining remains in a strong financial position with $5 million in cash and no debt.

• The Company is advancing negotiations on other significant projects within China.

ZHONGQU PROJECT, GANSU

The Zhongqu Project is subject to a specific Framework Agreement whereby Red Mountain Mining has the option to acquire a 51% equity interest in the operating gold mine.

Resource Modelling

The drill results from two stages of confirmatory drilling at the Xingqu mine by Red Mountain Mining have been previously released to the market and identified the presence of high grade gold mineralisation within a series of lenses that may not be contiguous. The results from Ore Body #3 were incorporated into a model of the mineralisation and the wireframe for this model was provided to Ravensgate Mining Consultants, an independent consulting group.

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Ravensgate estimated an Inferred mineral resource for Ore Body #3 based on the drill results to date, in accordance with the JORC Code guidelines. This resource is summarised below and totals 390,600 tonnes grading 4.44 g/t Au (55,750 ounces Au) above a reporting grade of 1.0 g/t Au.

Xingqu Ore Body #3 Gold resource	Xingqu Ore Body #3 Gold resource	Xingqu Ore Body #3 Gold resource	(Zhongqu Project)	(Zhongqu Project)
Reportedabove:			Cont Gold(oz Au)
	tonnes	g/t Au		Classification
1.0g/t Au	390,600	4.44	55,750	Inferred
3.0g/t Au	291,600	5.19	48,650	Inferred

This resource dips shallowly to a depth approximately 120 metres below Level 6 of the Xinqu mine and restricted by the depth of drilling.

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3D Schematic diagram showing the extension to Xinqu Orebody #3 below the 6 level and proposed new shaft access.

Revised Framework Agreement

As a consequence of the first Inferred JORC Resource, the Company has negotiated a four month extension to the Framework Agreement to 31 July 2012 at no additional cost. This extension is to allow the current owners to drill other targets below and adjacent to the defined resource to increase the known resources before finalising new revised financial terms to the Framework Agreement.

In the meantime Red Mountain Mining will monitor the progress of this program, while directing its energies into assessing several significant project opportunities that have been provided in China.

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COMPANY STATUS AND OUTLOOK

Red Mountain Mining is currently reviewing a number of advanced stage projects in China that look very encouraging and will advise the market in due course.

The Company remains in a very strong financial position with $5 million in cash and no debt, a strong technical team, and a pipeline of projects to assess.

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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

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About Red Mountain Mining Limited

Red Mountain Mining (ASX: RMX) is a gold explorer incorporated in Australia in May 2006 and which listed on the ASX in September 2011 with options to acquire projects in China. The Company’s strategy is to unlock the potential of ‘under-developed’ advanced exploration and operating gold projects in China by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.

Competent Person Statement

The information in this report that relates to Exploration Results and 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.

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