RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2013

May 19, 2013

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20 May 2013

Dear Shareholder

Notice to Overseas Shareholders of Rights Issue

We write to you as the registered holder of Red Mountain Mining Limited ( Red Mountain or Company ) shares as at today’s date. As announced on 15 May 2013, the Directors of Red Mountain have resolved to offer a pro-rata renounceable rights issue of approximately 281,358,039 shares, on the basis of 3 New Shares for every 2 Shares held on the Record Date at an issue price of 1 cent per New Share ( New Shares ), with 1 free attaching New Short-Dated Option exercisable at 1.5 cents each on or before 30 June 2014 for every 2 New Shares subscribed for under the Prospectus and 1 free attaching New Long-Dated Option exercisable at 3 cents each on or before 30 June 2016 for every 4 New Shares subscribed for under the Prospectus to raise approximately $2,813,580 ( Rights Issue or Offer ).

The Offer is partially and conditionally underwritten by Patersons Securities Limited ( Underwriter or Patersons ) up to the Minimum Subscription amount of $550,000. In consideration, Patersons or its nominees will be entitled to a $60,000 corporate advisory fee, $35,750 underwriting fee (being 6.5% of the Underwritten Amount) and one Long Dated option, exercisable at 3 cents each on or before 30 June 2016, for every two (2) shares of underwriting committed ( Underwriter Options ) payable on completion of the offer, plus 6.5% of the amount of any Shortfall Securities beyond the Underwritten Amount that are placed and which is payable upon completion of the Offer.

The funds raised from the Entitlement Issue are intended to be used for:

• a) Drilling high-grade gold targets at Lobo and Archangel prospects to seek to increase and upgrade Mineral Resources at the Batangas Gold Project;

• b) Undertaking a preliminary scoping study into a gold project development at the Batangas Gold Project;

• c) General working capital; and

• d) Payment of the costs of the Rights Issue process including the underwriting fee.

Participation in the Rights Issue is available to Red Mountain shareholders registered on the record date of 27 May 2013 ( Record Date ) and who reside in Australia, New Zealand or Canada ( Eligible Shareholders ).

The Rights Issue is being made pursuant to a prospectus which was lodged with the Australian Securities and Investments Commission on 16 May 2013 ( Prospectus ). The Prospectus is available at the Company’s website: www.redmm.com.au or on the ASX website (company announcements section, ASX code: RMX) at www.asx.com.au.

Ineligible shareholders

In accordance with the Listing Rules of the Australian Securities Exchange, the Company has considered the number of shareholders with registered addresses outside of Australia, New Zealand and Canada and the size of the shareholdings held by those shareholders. Taking into consideration the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to shareholders with registered addresses outside of Australia, New

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

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Zealand and Canada, the Company has formed the view that it is unreasonable to extend the Offer to those shareholders ( Ineligible Shareholders ).

Accordingly, Red Mountain will not be sending you a copy of the Prospectus as Red Mountain is unable to extend to you the opportunity to participate in the Rights Issue.

Pursuant to section 615 of the Corporations Act of Australia, Red Mountain has appointed Patersons as a nominee to sell the rights to the new securities under the Offer to which Excluded Shareholders are entitled. Patersons will have the absolute and sole discretion to determine the timing and price at which the rights will be sold and the manner of any such sale. Red Mountain will pay Patersons a brokerage fee of 1.5% (subject to a minimum charge of $100) on the execution of the sale of any rights. The net proceeds of the sale of rights after the deducting of all expenses will be forwarded by Red Mountain to the Excluded Shareholders in proportion to their share of such rights.

Notwithstanding that Patersons must sell rights, Excluded Shareholders may nevertheless receive no net proceeds if the costs of the sale are greater than the sale proceeds.

If you have any queries in relation to the Rights Issue, please do not hesitate to contact Shannon Coates, the Company Secretary on (08) 9226 5668.

Yours faithfully

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Shannon Coates Company Secretary

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