RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2013

Aug 25, 2013

ASX ANNOUNCEMENT

26 August 2013

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HIGH GRADE GOLD INTERSECTION AT JAPANESE TUNNEL, LOBO GOLD PROJECT, BATANGAS, THE PHILIPPINES

Perth-based Red Mountain Mining Limited (ASX: RMX) (“the Company”, “Red Mountain”) today announced the first high-grade gold, near surface, diamond drilling intersection from its new drilling program testing the Japanese Tunnel epithermal vein structure. Diamond drillhole, LB-82, intersected 8.7 metres (m) at 4.34 g/t gold (Au) from 2.9m downhole depth including 3.7m @ 8.62 g/t Au and including 0.55m @ 16.8 g/t Au.

This drillhole tested immediately beneath previous high-grade surface trenching results of 4m at 12.23 g/t Au including 1m at 25.14 g/t Au and 2m at 18.12 g/t Au including 1m at 28.69 g/t Au (see cross section below).

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Figure 1: Cross section through the Japanese Tunnel drillhole LB-82 and surface trench results

CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director

Red Mountain Managing Director, Mr Jon Dugdale: “This result is a great start to our new drilling program at Lobo, which is ultimately aiming to define additional high grade, near surface, gold resources over the coming months”.

A total of three holes have been completed at Japanese Tunnel, with two additional drillholes planned to initially scope the high grade zone either side of the discovery outcrop. Surface mapping and trench sampling has encountered a further epithermal breccia-lode outcrop 60m to the northeast of this area, between Japanese Tunnel and South West Breccia (Indicated and Inferred resource of 194,000 tonnes @ 7.2 g/t Au ) that produced a peak assay of 3.79 g/t Au , indicating that the mineralized structure continues in this direction. Mapping has also determined that the structure potentially continues 700m to the southwest of Japanese Tunnel, where it is covered by a veneer of post-mineralisation limestone.

Table 1: Japanese Tunnel Drilling Results Summary

Drill hole	Northing(Grid)	Easting(Grid)	Azimuth(Mag)	Dip	Depthm	Fromm	To m	DH m	Aug/t	Agg/t	Cu %
LB82-13	9984N	10003E	145°	-45°	50.0	2.9	11.6	8.7	4.34	13.8	0.89
						2.9	6.6	3.7	8.62	26.9	1.66
						16.35	17.65	1.3	1.46	1.70	0.05
						20.0	23.4	3.4	1.37	1.51	0.22
LB83-13	9975N	9998E	145°	-45°	49.9
LB84-13	9964N	9997E	144°	-45°	50.0
Total 3h					149.9

About the Lobo Project

Surface trench channel sampling and drilling conducted by Red Mountain and the previous operator has intersected high-grade epithermal gold mineralization 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 mineralization 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. 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.

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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Figure 2: 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 Kevin Skinner Managing Director Field Public Relations (+61) 402 298026 (+61) 414 822631 (+61) 8 9226 5668 (+61)8 8234 9555

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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.

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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

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