RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2014

Sep 2, 2014

RED MOUNTAIN MINING LTD (ASX:RMX)

3 September 2014

ASX ANNOUNCEMENT

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RED MOUNTAIN EXECUTES CONTROLLED PLACEMENT AGREEMENT WITH ACUITY CAPITAL

• Agreement to assist funding to continue drill testing the five new priority targets at Lobo

Perth based Red Mountain Mining Ltd (“Red Mountain”) is pleased to announce that it has entered into a Controlled Placement Agreement (“CPA”) with Acuity Capital Investment Management Pty Ltd (“Acuity Capital”).

The CPA provides Red Mountain with access to standby equity capital of up to $3 million over the 12 months to 28 July 2015. Importantly, Red Mountain retains full control of the placement process, including having sole discretion as to whether or not to utilise the CPA. Further, there are no restrictions or conditions on other capital raising activities the Company may wish to undertake.

The Company has entered into the CPA to complement its funding initiatives and to strengthen its overall capital management program by adding a further capital raising tool. The CPA provides Red Mountain with the flexibility to quickly and efficiently raise capital, including the ability to take advantage of suitably attractive opportunities if they arise.

Red Mountain is under no obligation to raise capital under the CPA. If the Company does decide to utilise the CPA, the Company has control to determine the frequency, timing, maximum size and minimum issue price of any capital raised under the CPA.

Red Mountain Managing Director Mr Jon Dugdale said ,

“This CPA Agreement provides maximum flexibility for Red Mountain to manage its capital requirements. We have total control over whether we utilise the program, and the Company can specify the period and the minimum price requirements. At all times Red Mountain can control the maximum number of shares that are issued, thereby minimising the cost of capital and dilution for existing shareholders.

“It allows the Company to quickly and efficiently raise capital and potentially accelerate drilling of the five new priority target areas at Lobo.”

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

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

About the CPA with Acuity Capital:

The key features of the CPA are:

• i) Up to $3 million of standby equity capital available at the Company’s sole discretion to 28 July 2015; ii) No obligation on the Company to utilise;

• iii) The CPA provides Red Mountain with full control over the placement process, including the right to determine the following for each new placement:

  • a. Maximum Placement Amount to be issued for any particular Placement Period, minimising dilution of existing shareholders;

  • b. Floor Price, being the minimum issue price for that Placement Period, and

  • c. Placement Period, being the date(s) over which the VWAP and placement price is calculated;

• iv) Each new placement is issued at a 10% discount to a volume weighted average price (VWAP) over the Placement Period, subject to the Floor Price determined by the Company;

• v) The actual issue price per share may be higher than the Floor Price set by the Company for a Placement Period. This will occur where a discounted VWAP of Red Mountain shares over the relevant Placement Period is above the Floor Price;

• vi) There are no fees for Red Mountain entering into the CPA and there are no options required to be issued;

• vii) Red Mountain Mining Ltd has the right to cancel the CPA at any time for no fee;

• viii) No restrictions on Red Mountain entering into debt financing arrangements or from undertaking additional private placements, rights issues or shareholder purchase plans;

• ix) No restrictions on Red Mountain entering into strategic industry partnerships or undertaking acquisitions of assets and shares in the future;

• x) Utilisation of the CPA is dependent on Red Mountain’s available placement capacity under the ASX listing rules; and

• xi) Acuity Capital is not obligated to provide capital, including where the requested Floor Price is above the market price or if the full standby equity capital has been utilised.

_____________________________________________________________________________________________________________________________ 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 E: jon.dugdale@redmm.com.au E: matt@birneycorporate.com.au

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ASX code: RMX COMPANY DIRECTORS ABN 40 119568106 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