RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2013

May 30, 2013

ASX ANNOUNCEMENT

31 May 2013

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DESPATCH OF RIGHTS ISSUE PROSPECTUS AND ENTITLEMENT & ACCEPTANCE FORM

Red Mountain Mining Limited (ASX: RMX) (“the Company “or “Red Mountain”) confirms that the Prospectus for its pro-rata renounceable rights issue (“Rights Issue”), together with the Entitlement & Acceptance Form and a letter from the Company’s Chairman, a copy of which follows, was today despatched to eligible shareholders.

As previously announced, the Prospectus was lodged with ASIC and ASX on 16 May 2013 and a letter advising shareholders of the offer was despatched to eligible shareholders on 20 May 2013.

The Rights Issue offer opened today and will close at 5.00pm WST, Monday, 17 June 2013.

Enquiries about the Entitlement Offer should be made to the Red Mountain Mining Rights Issue Offer information line on 1300 850 505 (from within Australia) or +61 3 9415 4000 (from outside Australia).

MEDIA CONTACT:

____________________________________________________________________________________________ Jon Dugdale Kevin Skinner Managing Director Field Public Relations (+61) 402298026 (+61) 414822631 (+61) 8 9226 5668 (+61) 8 82349555

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 completed the acquisition of significant gold resources and copper gold tenements in the Philippines on 30 October 2012. Since acquisition the company has 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 JORC compliant 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.

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ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS Neil Warburton Non Executive Chairman Jon Dugdale Managing Director Keith Rowe Non Executive 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

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31 May 2013

Dear Fellow Shareholder,

PRO RATA RENOUNCEABLE RIGHTS ISSUE - RED MOUNTAIN MINING LIMITED

I am pleased to offer you the opportunity to further invest in your Company.

After extensive consultation with the Company’s various advisers and other industry participants, and taking into account the current difficult market conditions for capital raising, your Board has formed the view that the most appropriate method of capital raising for the Company (and most equitable to existing shareholders), is a Rights Issue that also incudes includes additional incentives - namely, free attaching Long Dated and Short Dated Options, which will be independently tradeable on the ASX. Hence that is why the new 1 cent shares (“New Shares”) will be offered together with one (1) attaching Short Dated Option for every two (2) New Shares subscribed, exercisable at 1.5c on or before 30 June 2014 , and one (1) attaching Long Dated Option for every four (4) New Shares subscribed, exercisable at 3c on or before 30 June 2016.

The Company’s main asset is the Batangas Gold Project which has a combined Indicated and Inferred JORC Mineral Resources estimate of 5.78 million tonnes at 2.2 grams per tonne gold (g/t Au) for 408,000 oz gold using a 0.85g/t Au cut off. (ASX Release dated 30 January 2013). Fully subscribed at the issue price, the Company will have a market capitalisation of $4.7m and cash of circa $3.0m (after costs of the issue).

I will be taking up New Shares to at least the equivalent of my full personal Rights Issue entitlement and encourage all shareholders to do the same. I also invite existing shareholders to apply for New Shares in addition to their entitlement (see the Entitlement and Acceptance Form with the Prospectus for more details).

The planned additional exploration program is detailed in the Prospectus. Fully subscribed, the majority of the funds from the Rights Issue are planned to be used to drill the high grade exploration targets at Lobo, Batangas, with the objective of increasing the high grade gold mineral resources at Batangas prior to completing a scoping study to evaluate the economic viabiltiy of a potential gold project development.

Thank you in anticipation of your continued support.

Yours sincerely,

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Neil Warburton Chairman

The information in this letter relating to 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 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 the Managing Director of Red Mountain Mining Ltd. Mr D u gd a l e consents to the inclusion in the letter of the matters based on his information in the form and context in which it appears.

Red Mountain Mining Ltd ACN 119 568 106 Unit 1, No. 2 Richardson Street, West Perth, Western Australia, 6005. PO Box 1928, West Perth, W.A. 6872 T: +61 (08) 9226 5668 F: +61 (08) 9486 8616 E: info@redmm.com.au W: www.redmm.com.au