RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2014

Jan 8, 2014

RED MOUNTAIN RELEASES MORE, EXCEPTIONAL, GOLD RESULTS FROM LOBO

• Flat lying colluvium surface zone above lodes produces more, exceptional, gold results
• New results include 1.8m @ 55.9 g/t gold at surface including 0.9m @ 110.9 g/t gold

Perth-based Red Mountain Mining today released further, significant, high-grade gold results from vertical sampling through the shallow dipping layer of colluvial boulders and rubble eroded from the high-grade bedrock lodes announced on Tuesday 7th January 2014, at its Lobo Prospect, Batangas Gold Project, in the Philippines.

The peak new trench sampling intersection (additional sampling of Trench 7) is:

1.8 metres at 55.9 g/t gold (Au), vertically from surface, including 0.9m @ 110.9 g/t Au

Also released are additional results from Trench 13, 100m southwest of Trench 7, from vertical sampling of a colluvium boulder of 1.2m @ 17.2 g/t Au from 1.2m vertical depth including 0.6m @ 31.2 g/t Au.

Red Mountain Mining Managing Director Mr Jon Dugdale said, "These additional high-grade gold results indicate that the exceptionally high grades in bedrock are also dispersed into the overlying colluvium rubble, from right at surface. The Company will continue to rigorously sample the colluvium layer that may be wide spread down slope of the lodes and represent an additional, at surface, mineral resource target in conjunction with the primary target of the high-grade bedrock lode occurrences."

Drill hole	Northing	Easting	Dip	From	To	Thick	Au g/t	Ag g/t	Cu %
Trench 7 A	(Grid)9,878	(Grid)9,997	-90	m0.0	m1.0	m1.0	10.7	6.4	0.07
Trench 7B	9,880	9,998	-90	0.0	1.8	1.8	55.9	8.3	0.10
Including				0.9	1.8	0.9	110.9	14.5	0.14
Trench 9 A	9,870	9,996	-90	0.0	1.2	1.2	0.44	2.4	0.04
Trench 9 B	9,870	9,999	-90	0.0	1.0	1.0	0.35	2.1	0.07
Trench 10 A	9,892	10,003	-90	1.0	2.7	1.7	4.83	5.0	0.04
Including				1.9	2.7	0.9	8.10	5.8	0.05
Trench 10 B	9,891	10,001	-90	0.0	2.6	2.6	2.24	1.8	0.05
Trench 10 C	9,890	9,999	-90	0.0	1.7	1.7	2.25	2.4	0.04
Trench 10 D	9,889	9,996	-90	0.0	1.0	1.0	1.83	2.6	0.06
Trench 13 A	9,985	9,763	-90	1.0	1.4	0.4	0.09	2.4	0.01
Trench 13 B	9,987	9,762	-90	0.8	1.3	0.5	5.13	3.2	0.04
Trench 13 C	9,990	9,762	-90	1.2	2.4	1.2	17.2	7.5	0.03
Including				1.2	1.8	0.6	31.2	12.0	0.04
Trench 16 A	9,986	9,768	-90	0.0	0.6	0.6	0.21	<0.5	0.01

The further trenching results to date from the colluvium layer are summarised in Table 1 below:

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Trench 16 B	9,988	9,768	-90	0.0	1.9	1.9	0.34	3.29	0.02
Trench 16 C	9,991	9,768	-90	0.0	0.9	0.9	0.04	1.22	0.02
SWB Test Pit 1	10,025	10,106	-90	0.0	0.9	0.9	4.54	1.77	0.02
Including				0.0	0.2	0.2	10.5	14.5	0.14
SWB Test Pit 2	10,016	10,071	-90	0.0	0.6	0.6	0.39	2.3	0.02
SWB Test Pit 3	10,037	10,104	-90	0.0	1.1	1.1	7.46	8.8	0.04
Including				0.0	0.6	0.6	12.4	12.3	0.03

Table 1: South West Breccia lode, colluvium layer trenching and test pitting results

Other results along strike from both Trench 7 and Trench 13 indicate a continuous layer of mineralised colluvium rubble that remains open along strike and down slope in both locations (see Figure 1 below). Further test pitting sampling is in progress at South West Breccia, immediately to the southwest of the Indicated and Inferred Mineral Resource (194,000t @ 7.2 g/t Au - JORC 2004), where a previous, horizontal, Trenching result of 14.5m @ 24.5 g/t Au was produced. The peak new vertical test pit result at South West Breccia of 1.1m @ 7.46 g/t Au including 0.6m @ 12.4 g/t Au was from Test Pit 3, close to the centre of the previous Trench. Additional Trenching is in progress at this location. Figure 1 shows the location plan of the latest colluvium trenching results within the 500m long South West Breccia Lode corridor.

Figure 1: Plan of the South West Breccia Lode Structure with new high-grade colluvium trenching results

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The latest results from the Trench 7 colluvium layer are shown with previously announced bedrock results on cross section Figure 2 below, with the interpreted northwest dipping lode structure, a potential drilling target.

Figure 2: Trench 7 Cross Section, looking northeast, with new Colluvium and previous Bedrock results

About the Lobo Prospect

Surface trench channel sampling and drilling conducted by Red Mountain has intersected high-grade epithermal gold mineralisation in five areas on the Lobo Mineral Production Sharing Agreement ("MPSA" – Philippines equivalent to a Mining Lease), namely South West Breccia ("SWB"), Pica, Japanese Tunnel, West Drift and Ulupong (see Figure 5 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.

Exploration Targets have been defined for the Japanese Tunnel and Pica prospects and a continuous program of soil sampling, mapping and surface trenching continues with the objective of defining targets for drilling to define additional high-grade Mineral Resources on the Lobo Prospect.

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Figure 3: Plan of Lobo MPSA with epithermal lode structures and Exploration Targets

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 298026	(+61) 419 217 090
(+61) 8 9226 5668	(+61)8 9226 5668
E : jon.dugdale@reddmm.com.au	E : matt@birneycorporate.com.au
	____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

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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.

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 2004 JORC 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 Lobo (e.g. SWB - Japanese Tunnel zone, Pica, West Drift, Ulupong). The Company will continue exploration with the objective of increasing the size and grade of the Mineral Resources at Batangas and complete a scoping study to demonstrate the potential viability of a gold mining and processing project.

Other gold opportunities will be reviewed on a continuous basis.

Competent Person Statement

The information in this report relating to Exploration Results and Exploration Targets 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 2012 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.

The information in this report 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 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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APPENDIX 1: SAMPLING TECHNIQUES AND DATA

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of samplingand AssayingMeasures taken to ensuresample representivity and theappropriate calibration of anymeasurement tools or systemsused.Aspects of the determination ofmineralisation that areMaterial to the Public Report.	Trenches (Costeans) through colluvialcover excavated to bedrock have beensampled at the base of the trench incontinuous cut channels with samplesaggregated over measured 0.5m to 1.0mintervals.Trenching samples obtained from cutchannels at 0.5m to 1.0m intervals weighingless than 3kg were transported to IntertekLaboratories in Manila, the Philippines, forfire assay.At least 2kgsample was pulverised and a50 gramcharge fire assayed with AAS finishfor Gold (Au) and a range of 37 elements viaMultiple determination by ICP-OES(following four acid digest(HCl/HNO3/HClO4/HF) with volumetricfinish)assay including Silver (Ag), Copper(Cu), Lead (Pb) and Zinc (Zn).
Drillingtechniques	Drill type and details	No new drilling reported this release.
Drill samplerecovery	Method of recording and assessingcore and chip sample recoveries andresults assessed.Measures taken to maximise samplerecovery and ensure representativenature of the samples.Whether a relationship existsbetween sample recovery and gradeand whether sample bias may haveoccurred due to preferentialloss/gain of fine/coarse material.	No new drilling reported this release.
Logging	Whether core and chip samples havebeen geologically and geotechnicallylogged to a level of detail to supportappropriate Mineral Resourceestimation, mining studies andmetallurgical studies.Whether logging is qualitative orquantitative in nature. Core (or	Logging of geology, alteration andgeotechnical aspects have been recorded inTrenches to requirements for diamond coredrilling.Trenches (Costeans) have beenphotographed.
	costean, channel, etc) photography.The total length and percentage ofthe relevant intersections logged.	The entire interval trenched to bedrock hasbeen logged.
Sub-sampling	If core, whether cut or sawn andwhether quarter, half or all core	No new drilling reported this release.
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Criteria	JORC Code explanation	Commentary
techniques andsamplepreparation	taken.If non-core, whether riffled, tubesampled, rotary split, etc andwhether sampled wet or dry.For all sample types, the nature,quality and appropriateness of thesample preparation technique.Quality control procedures adoptedfor all sub-sampling stages tomaximise representivity of samples.Measures taken to ensure that thesampling is representative of the insitu material collected, including forinstance results for fieldduplicate/second-half sampling.Whether sample sizes areappropriate to the grain size of thematerial being sampled.	Non core Trench (Costean) channel samplesentire sample aggregated, not riffled orsplit.Aggregated channel sampling along thewalls of the Trench. Entire 2kg samplepulverised at Laboratory prior to fire assay.This is an appropriate sample preparationtechnique that minimises bias.Channel sampling orthogonalto dip andstrike of the lode provides continuoussample with even weights that maximisesrepresentivity.Field duplicates have been regularlysampled.Sample sizes at >2kg are well in excess ofrequirements appropriate to the grain sizeof gold that has been shown bymineragraphy to be generally less than 50micron.
Quality of assaydata andlaboratory tests	The nature, quality andappropriateness of the assaying andlaboratory procedures used andwhether the technique is consideredpartial or total.For geophysical tools,spectrometers, handheld XRFinstruments, etc, the parametersused in determining the analysisincluding instrument make andmodel, reading times, calibrationsfactors applied and their derivation,etc.Nature of quality control proceduresadopted (eg standards, blanks,duplicates, external laboratorychecks) and whether acceptablelevels of accuracy (ie lack of bias)and precision have been established.	Fire assay is appropriate for the nature ofthe gold mineralisation being assayed.No geophysical tools used in generatingexploration results.Registered standards have been insertedevery 20 samples.Levels of accuracy and precision (detectionlimit) for gold is + or minus 0.005 ppm gold,which is well in excess of the precisionrequired for the level of assays reported.
Verification ofsampling andassaying	The verification of significantintersections by either independentor alternative company personnel.The use of twinned holes.Documentation of primary data,data entry procedures, data	No new drilling reported this release.No new drilling reported this release.Primary data is received in spreadsheetform and electronically transferred to the

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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

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Criteria	JORC Code explanation	Commentary
	verification, data storage (physicaland electronic) protocols.Discuss any adjustment to assaydata.	company database and output inspreadsheet form. Data is verified andcompared with standard assays usingestablished company protocols.No adjustments have been made to assaydata.
Location of datapoints	Accuracy and quality of surveys usedto locate drill holes (collar anddown-hole surveys), trenches, mineworkings and other locations usedin Mineral Resource estimation.Specification of the grid system used.Quality and adequacy oftopographic control.	Trenches (Costeans) accurately surveyedusing Nikon Total Station DTM-332surveyequipment.Trench (Costean) locations surveyed inUTMWGS84 51N grid, converted to localLobo grid.Topographic surveys were done using theTotal Station. Control stations were set byan independent surveyor (McDonaldConsultant, Inc.) using2 DGPS (one as abase station for correcting diurnalvariations) and a total station for wherethey could not survey with GPS under thickcover. Thesewere tied to knowngovernment control stations.
Data spacing anddistribution	Data spacing for reporting ofExploration Results.Whether the data spacing anddistribution is sufficient to establishthe degree of geological and gradecontinuity appropriate for theMineral Resource and Ore Reserveestimation procedure(s) andclassifications applied.Whether sample compositing hasbeen applied.	Trenches (Costeans) excavated every 5m to10m along the strike of identifiedmineralisation. Channel sampling every0.5m to 1.0m in some cases duplicated oneither wall of the 1m wide Trench.Data spacing sufficient to establish thedegree of geological and grade continuityappropriate for the Mineral Resource andOre Reserve estimation procedure(s)Sample have not been composited.
Orientation ofdata in relation togeologicalstructure	Whether the orientation of samplingachieves unbiased sampling ofpossible structures and the extent towhich this is known, considering thedeposit type.If the relationship between thedrilling orientation and theorientation of key mineralisedstructures is considered to haveintroduced a sampling bias, thisshould be assessed and reported ifmaterial.	Sampling conducted in Trenches (Costeans)established orthogonal to theinterestedstrike and dip of the mapped mineralisedstructures.No sampling bias interpreted.

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

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Criteria	JORC Code explanation	Commentary
Sample security	The measures taken to ensuresample security.	Samples secured by senior personnel onsite and transported directly by companyvehicle to Intertek Laboratories, Manila, thePhilippines.
Audits or reviews	The results of any audits or reviewsof sampling techniques and data.	Internal reviews regularly completed butnoexternal audits carried out to date.

APPENDIX 2: REPORTING OF EXPLORATION RESULTS

Criteria	JORC Code explanation	Commentary
Mineral tenementand land tenurestatus	Type, reference name/number,location and ownershipincluding agreements ormaterial issues with thirdparties such as joint ventures,partnerships, overridingroyalties, native title interests,historical sites, wilderness ornational park andenvironmental settings.The security of the tenure heldat the time of reporting alongwith any known impediments toobtaining a licence to operate inthe area.	The Batangas Gold Project comprises 2Mineral Production Sharing Agreements(MPSA's), 8 Exploration Permits (EP's) andfour Exploration Permit Applications(EPA's).Red MountainMining Ltd has a 100%interest in Philippines subsidiary MRL GoldInc. which in turn has a 100% direct andcontractual right interest in the Batangasgold Project tenements.The Lobo and Archangel MPSA's contain allidentified (JORC 2004) resources.Declaration of Mining Feasibility andEnvironmental Compliance Certificate willbe required to be approved by thePhilippines Mines and Geosciences Bureauof the Department of Energy and NaturalResources of the Philippines Governmentbefore the company hasa licence tooperate
Exploration done byother parties	Acknowledgment and appraisalof exploration by other parties.	Previous exploration was conducted byMindoro Resources Ltd including extensivedrilling, surface geochemistry, geophysics,mapping and mineral resource estimationto JORC 2004 and NI 43-101 standards.
Geology	Deposit type, geological settingand style of mineralisation.	The gold mineralisation that is the target ofthe exploration program is porphyryrelated epithermal gold mineralizationhosted by intermediate to felsic volcanicrocks and intrusions.Two styles of intermediate sulphidationepithermal gold mineralisation identified –i) andesite hosted stockwork mineralisationat e.g. Archangel MPSA and Quartz-BariteSulphide vein/lode style mineralization ate.g. the Lobo MPSA.
Drill hole	A summary of all information	See Table 1, Trenching (Costean) locations,
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Criteria	JORC Code explanation	Commentary
Information	material to the understanding ofthe exploration results includinga tabulation of the followinginformation for all Material drillholes:oeasting and northing of thedrill hole collaroelevation or RL (ReducedLevel –elevation above sealevel in metres) of the drillhole collarodip and azimuth of the holeodown hole length andinterception depthohole length.	RL, dip and azimuth, length.Trenching (Costean) data only, no newdrilling information reported in thisrelease.
Data aggregationmethods	In reporting Exploration Results,weighting averaging techniques,maximum and/or minimumgrade truncations (eg cutting ofhigh grades) and cut-off gradesare usually Material and shouldbe stated.	Exploration results from Trench (Costean)sampling have been weighted by interval.No high-grade cuts have been applied asmaximum grade (60.2 g/t Au) isapproximately less than five times the meangrade.Lower cut-off grade of 1 g/t Au has beenapplied.
	Where aggregate interceptsincorporate short lengths ofhigh grade results and longerlengths of low grade results, theprocedure used for suchaggregation should be statedand some typical examples ofsuch aggregations should beshown in detail.	Aggregate Trenchingintercepts do notincorporate longer lengths of low graderesults.
	The assumptions used for anyreporting of metal equivalentvalues should be clearly stated.	No metal equivalent reported.
Relationshipbetweenmineralisationwidths and interceptlengths	These relationships areparticularly important in thereportingof Exploration Results.If the geometry of themineralisation with respect tothe drill hole angle is known, itsnature should be reported.If it is not known and only thedown hole lengths are reported,there should be a clearstatement to this effect (eg'down hole length, true widthnot known').	Trenches (Costeans) have been excavatedand sampled as close to orthogonal to thestrike and dip of the lode structures aspossible and, as such, the intersectionlengths are a close approximation of truewidth.

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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS 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

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Criteria	JORC Code explanation	Commentary
Diagrams	Appropriate maps and sections(with scales) and tabulations ofintercepts should be included forany significant discovery beingreported These should include,but not be limited to a plan viewof drill hole collar locations andappropriate sectional views.	See Figures 1 to 3and Table 1.
Balanced reporting	Where comprehensive reportingof all Exploration Results is notpracticable, representativereporting of both low and highgrades and/or widths should bepracticed to avoid misleadingreporting of Exploration Results.	All Trench exploration results reported
Other substantiveexploration data	Other exploration data, ifmeaningful and material, shouldbe reported including (but notlimited to): geologicalobservations; geophysicalsurvey results; geochemicalsurvey results; bulk samples –size and method of treatment;metallurgical test results; bulkdensity, groundwater,geotechnical and rockcharacteristics; potentialdeleterious or contaminatingsubstances.	Mineragraphy on Trench 7 samplesindicates that gold is "free" and associatedwith sulphide minerals indicating that thereis no significant supergene enrichment(Plate 1).
Further work	The nature and scale of plannedfurther work (eg tests for lateralextensions or depth extensionsor large-scale step-out drilling).Diagrams clearly highlightingthe areas of possible extensions,including the main geologicalinterpretations and futuredrilling areas, provided thisinformation is not commerciallysensitive.	Further Trenching then drilling required todefine mineral resources.See Figures 1 to 3

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