RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2013

Sep 12, 2013

13 September 2013

ASX ANNOUNCEMENT

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MORE PROMISING DRILL RESULTS FROM LOBO IN THE PHILIPPINES

• Drilling confirms gold - copper mineralisation open along strike and at depth

• • New drilling program now started at Pica prospect

Perth-based Red Mountain Mining Limited (ASX: RMX) (“the Company”, “Red Mountain”) today announced further gold and copper intersections at the Japanese Tunnel prospect, Lobo gold project, Batangas, 120km south of Manila in the Philippines.

Results have been received for an additional 4 holes completed at the Japanese Tunnel prospect. The peak new intersection, LB-85, intersected 3.7metres (m) at 3.06 g/t gold (Au), 8.7 g/t silver (Ag) and 2.26 % copper (Cu) from 12.3m downhole depth including 1.55m @ 5.97g/t Au, 18.4 g/t Ag, 4.88% Cu and including 0.5m @ 9.7 g/t Au, 34.8 g/t Ag, 8.29% Cu. LB-85 is the most westerly intersection, opening up potential to extend the mineralised zone to the south-west and at depth.

LB 86 tested the structure to the northeast of LB 82 ( 8.7m at 4.34 g/t Au, 13.8 g/t Ag and 0.89% Cu from 2.9m downhole depth) intersecting 3.25m @ 1.36 g/t Au, 5.34 g/t Ag, 0.82 % Cu from 19.5m downhole depth including 1.1m @ 2.02 g/t Au, 13.13 g/t Ag, 2.04% Cu.

All holes intersected gold mineralisation and results are summarised in Table 1 below.

The intersections in LB 85 and LB 86 have opened up potential to extend the mineralisation to the northeast, towards the next epithermal breccia-lode outcrop 60m distant that produced a peak assay of 3.79 g/t Au , and to the southwest, where mapping has determined that the structure potentially continues at least 700m before it is covered by a veneer of postmineralisation limestone. The next appearance of epithermal quartz in this direction is 1.5 km to the southwest at Signal, where previous rockchip samples of sub-cropping epithermal quartz-barite lode graded up to 72.6 g/t Au .

Red Mountain Managing Director, Mr Jon Dugdale: “The results from the initial Japanese Tunnel program confirm the continuity of the near surface gold-copper mineralisation that remains open in all directions. We look forward to further drilling at Japanese Tunnel to extend the mineralisation and define a maiden resource.”

Drilling has now commenced at the Pica prospect at Lobo, further testing high grade epithermal veins and breccias that previously produced intersections including PC-05: 5m at 4.28 g/t Au and 15.75 g/t Ag from 22.4m downhole including 1.3m at 9.49 g/t Au, 21.5 g/t Ag . Following completion of the next drillhole, drilling will be planned to test along strike to determine strike extent and confirm the Exploration Target.

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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Michael Wolley Non-Executive Chairman Non-Executive Director Jon Dugdale Shannon Coates Managing Director Company Secretary

CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

Table 1: Drilling results from Japanese Tunnel:

Drill hole	North (Grid)	East (Grid)	Azi (Mag)	Dip	Depth m	From m	To m	DH m	Au **g/t **	Ag g/t	Cu %
LB82-13	9984	10003	145°	-45°	50	2.9	11.6	8.7	4.34	13.8	0.89
					incl.	2.9	6.6	3.7	8.62	26.9	1.66
					Incl.	5.55	6.1	0.55	16.8	9.0	1.7
						16.35	17.65	1.3	1.46	1.7	0.05
						20	23.4	3.4	1.37	1.51	0.22
LB83-13	9975	9998	145°	-45°	49.9	1.0	4.0	3.0	1.07	2.23	0.14
						27.5	28.5	1.0	1.77	1.9	0.22
LB84-13	9964	9997	144°	-44.8°	49.95	27.6	29.6	2.0	1.98	1.95	0.01
LB85-13	9973	9986	145°	-47.3°	51.2	5.6	7.6	2.0	1.8	6.03	1.11
						12.3	16.0	3.7	3.06	8.71	2.26
					Incl.	12.3	13.85	1.55	5.97	18.4	4.88
					Incl.	12.3	12.8	0.5	9.7	34.8	8.29
						14.8	16	1.2	1.57	2.29	0.42
						18.2	18.5	0.3	2.09	3.1	0.54
LB86-13	10000	10000	143°	-45°	50.1	19.5	22.75	3.25	1.36	5.34	0.82
					incl.	19.5	20.6	1.1	2.02	13.13	2.04
						27.3	30.85	3.55	1.25	2.42	0.34
					incl.	27.3	28.85	1.55	2.38	5.88	0.46
LB87-13	10185	10057	145°	-60°	31.8	awaitingresults
	Total 6h				282.95

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Figure 1: Japanese Tunnel, plan projection of lode structures and drilling intersections

ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Michael Wolley Non-Executive Chairman Non-Executive Director Jon Dugdale Shannon Coates Managing Director Company Secretary

CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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Figure 2: Cross section through the Japanese Tunnel drillhole LB-85 and LB-83

About the Lobo Project

Surface trench channel sampling and drilling conducted by Red Mountain and the previous operator has intersected high-grade epithermal gold mineralisation in five areas on the Lobo Mineral Production Sharing Agreement (“MPSA” – equivalent to a Mining Lease), namely South West Breccia (“SWB”), Pica, Japanese Tunnel, West Drift and Ulupong (see Figure 2 below).

Mineral Resources (JORC 2004) have been defined for the SWB shoot, totaling Indicated and Inferred 194,000t @ 7.2 g/t gold for 45,000 ounces of gold (“oz Au”). This includes an Indicated Resource of 178,000t @ 7.4 g/t Au for 42,000 oz Au and an Inferred Resource of 16,000 t @ 5.3 g/t Au for 3,000 oz Au.

Drilling has discovered a new fully intact gold shoot on the West Drift epithermal lode . Initial Mineral Resource estimation is in progress for this shoot.

Drilling and surface trenching has also intersected high-grade gold epithermal vein/lode mineralisation at Pica and Japanese Tunnel . The current drill spacing is of insufficient density to allow estimation of Mineral Resources. However an Exploration Target has been estimated for both prospects, estimated in a range of 400,000 tonnes to 700,000 tonnes grading from 3.6 g/t gold equivalent (Au equ.) to 5.3 g/t Au equ. for 45,000 Au equ. ounces to 120,000 Au equ.

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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

ounces, (see release of 16[th] July 2013 for details). The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature and there is insufficient exploration to estimate Mineral Resources and it is uncertain whether further exploration will result in the estimation of Mineral Resources.

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Figure 3: Plan of Lobo MPSA with epithermal lode structures and Exploration Targets

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

Company Investors Media Jon Dugdale Matt Birney Managing Director Birney Corporate (+61) 402 298 026 (+61) 419 217 090 (+61) 8 9226 5668 (+61)8 9226 5668 jon.dugdale@redmm.com.au matt@birneycorporate.com.au

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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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About Red Mountain Mining Limited

Red Mountain Mining (ASX: RMX) is primarily a gold explorer and project acquisition company which listed on the ASX in September 2011. The Company’s strategy is to unlock the potential of ‘under-developed’ gold and polymetallic projects in the greater Asian region by introducing Australian mining methods and improving efficiencies to gain significant production and exploration upside.

The Company holds direct and indirect interests in tenements in the Philippines that contain significant gold resources and several high-quality copper-gold prospects.

Total Mineral Resources at Batangas at a 0.85 g/t Au lower cut off include Indicated Resources of 2.76 million tonnes @ 2.3 g/t Au, 208,000 oz Au and Inferred Resources of 3.02 million tonnes @ 2.1 g/t Au, 200,000 oz Au for a total of 5.78 million tonnes at 2.2 g/t Au, 408,000oz Au (announced January 30[th] 2013, 2004 JORC). The company is focussed on upgrading the Batangas resources through discovery of new, high grade, gold zones at Archangel, and Lobo (eg Japanese Tunnel, West Drift, Pica, Ulupong). The company will continue drilling with the objective of increasing the size and grade of the Mineral Resources at Batangas then completing a scoping study to demonstrate the viability of a potential high-margin gold project development.

Other gold opportunities will be reviewed on a continuous basis.

Competent Person Statement

The information in this report relating to Exploration Results, Exploration Targets and Mineral Resources is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration 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’. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. Mr Dugdale takes responsibility and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director

CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

Michael Wolley Non-Executive Director Shannon Coates Company Secretary