RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2013

Jul 15, 2013

ASX ANNOUNCEMENT 16 July 2013

DRILLING TO CONFIRM HIGH GRADE, AT SURFACE, EXPLORATION TARGETS AT LOBO, BATANGAS GOLD PROJECT, THE PHILIPPINES

Perth-based Red Mountain Mining Limited (ASX: RMX) ("the Company", "Red Mountain") is planning to commence a staged drilling program to test high-grade gold epithermal lode Exploration Targets on its Lobo mining property, Batangas Gold project, located 120 km south of Manila in the Philippines.

The initial Exploration Targets include the at and near-surface Pica and Japanese Tunnel prospects, based on currently drilled and sampled outcropping mineralization at these prospects only, and limited to a maximum depth of 150m. The total Exploration Target is 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 Table 1 below 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.

Drilling is proposed to test the validity of the Exploration Targets, to be completed in two stages over the next 2 to 4 months (subject to financial capability) as follows:

Stage 1: As previously disclosed, a total of 5 diamond drill holes will be drilled, two at Pica and three at Japanese Tunnel, with the objective of confirming the thickness and grade of the previously drilled and/or trench channel sampled high-grade gold mineralization. This will allow refinement of the Exploration Target and planning of further drilling to define potential Mineral Resources.

Stage 2: Extension and infill drilling at Pica and Japanese Tunnel at sufficient density (e.g. 40m x 20m) to define Mineral Resources.

Red Mountain Managing Director, Mr Jon Dugdale, commented: "We are looking forward to drilling the near surface, high-grade, vein discoveries at Pica and Japanese Tunnel to confirm the Exploration Targets and ultimately define further high-grade resources and enhance our already substantial gold resource base at Batangas Gold project."

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office

The Lobo Project and Explanation of the Basis of the Exploration Target(s)

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 1).

Figure 1: Plan of the Lobo MPSA with epithermal lode structures and Exploration Targets.

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 also been completed on the West Drift epithermal lode discovery. Mineral Resource estimation is in progress for this shoot.

Drilling has also intersected high-grade gold epithermal vein/lode mineralization at Pica and Japanese Tunnel. However the current drill spacing is of insufficient density to allow estimation of Mineral Resources, but in all cases the mineralization is open at depth and along strike and requires further drilling to define the extent of high grade mineralization and to provide sufficient exploration information to estimate a Mineral Resource.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office

ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD 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

2

Exploration Targets have been estimated for the Pica and Japanese Tunnel prospects, as tabulated below:

Exploration Target		Tonnage Range		Grade in grams per tonne					Gold Equivalent Oz
				Au	Ag				Au Equ. Range, Au Equ. Range, Au Equ. Oz
Pica	V 1	70,000	130,000	5.1	20.6	5.4	4.3	6.4	10,000	27,000
	V 2	130,000	230,000	3.7	18.2	4.0	3.2	4.8	13,000	36,000
	V 3	100,000	180,000	3.2	10.0	3.3	2.7	4.0	9,000	23,000
Total Pica		300,000	540,000	3.9	16.0	4.1	3.3	5.0	32,000	86,000
Japanese Tunnel		70,000	130,000	5.9	6.8	6.0	4.8	7.2	11,000	30,000
Total		400,000	700,000	4.2	14.3	4.5	3.6	5.4	45,000	120,000

Table 1: Exploration Targets on the Lobo MPSA:

Note: V1-3 represent the different high grade gold veins already drill-identified at Pica.

Exploration Targets have been calculated for the Pica and Japanese Tunnel tabulated prospects, based on surface trenching and drilling results. The true thickness and grade of the mineralization intersected in the trenching or by completed drilling has been extrapolated and multiplied by the mapped or intersected strike length and dip length and the specific gravity indicated by measurements on core samples for transitional oxide and/or fresh material.

The Exploration Targets are expressed as ranges in terms of both quantity (tonnage) and grade. Grade is expressed as a range of gold equivalent grams per tonne based on a gold price of A$1300/oz, silver price of A$20/oz and relative metallurgical (CIP) leaching recovery based on testing completed to date at Batangas of 0.94 silver to 1 gold.

At Pica gold and silver mineralization, in at least three shallow dipping veins, has been intersected by three diamond drillholes. Drilling results from Vein 1 include PC05: 5m @ 4.28 g/t Au, 15.75 g/t Ag from 22.4m including 1.3m @ 9.49 g/t Au, 21.5 g/t Ag and in PC06: 1.7m @ 4.4 g/t Au, 34.8 g/t Ag. Previous intersections in PC02 included from Vein 2: 4.4m @ 4.34 g/t Au and 17 g/t Ag and Vein 3: 4.15m @ 3.2 g/t Au, 10 g/t Ag (see Figure 2, cross section, below). Surface mapping at Pica has defined mineralization within a northeast-southwest trending structure over a >100m strike length.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office

Figure 2:Cross section through Pica with drilling results, Exploration Targets and planned drilling

At Japanese Tunnel surface trenching and channel sampling has been completed in three approximately 20m spaced trenches, defining a mineralised gold lode structure that has been extrapolated to a 100m strike length. The trenching and previous drilling results are shown on the Japanese Tunnels longitudinal projection below (Figure 3) and include surface trenching results of 5m at 10.43g/t Au including 1m at 25.14g/t Au and 2m at 18.12 g/t Au including 1m at 28.69g/t Au that were announced on 7th January 2013, and 20m to the southwest of the initial trench a broad~8m zone of veining including 0.3m @ 3.9 g/t Au and 0.75m @ 2.29 g/t Au before the veined zone passes into an area of agglomerate and under limestone cover. The dip length of mineralization is indicated by the two previous drillholes that intersected mineralization to 75m vertical depth. This dip length has been extrapolated to a limit of 100m for the purposes of the Exploration Target calculation but remains open at depth.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office

Figure3:Japanese Tunnel (and SWB) Longitudinal Projection, Exploration Target, drilling planned

___________________________________________________________________________________________________ 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

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.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office

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 30th 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 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.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office