RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2015

Sep 1, 2015

ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD (ASX: RMX) 2 SEPTEMBER 2015

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RED MOUNTAIN TO FARM-OUT NON-CORE BATANGAS EXPLORATION PERMITS

• Letter of Intent signed by Korean company to farm in to Exploration Permits at Batangas

• Farm in partner to spend up to $2m searching for large porphyry copper-gold systems

Perth, Western Australia: Red Mountain Mining Limited ( ASX:RMX ) is pleased to announce that a Letter of Intent ( LOI ) to farm out a non-core but highly prospective tenement package at the Batangas has been signed by Red Mountain’s 100% owned Philippines subsidiary MRL Gold Inc. ( MRL Gold ) and Korean private company JIWON Resource Corp. ( JIWON ).

Under the terms of the LOI, JIWON will fund exploration and other related activities on the El Paso Exploration Permit 009 ( El Paso EP ) to earn up to 75% through expenditure of USD 2 million over a maximum 3 year period. Other Exploration Permits ( EP’s ) within the designated Joint Venture Area ( JV Area ), see Figure 1, can be added to the JV.

The EP’s to be farmed out fall outside the planned Batangas Gold Project development area, which is in the final stages of permitting and completion of the Definitive Feasibility Study.

The material terms of the LOI are as follows:

• i) JIWON are required to meet a minimum funding commitment of USD 400,000 within one (1) year of the later of signing the LOI, or the renewal of the El Paso EP ( Commencement Date ).

• ii) JIWON will earn 51% of the EL Paso EP (or other EP’s as nominated within the JV area of influence) through expenditure of an additional USD 600,000 (total USD 1 million) within a further 1 year, no more than 2 years from the Commencement Date.

• iii) Provided JIWON have met the minimum funding commitment (USD 400,000), JIWON may form a contributing joint venture with Red Mountain’s MRL Gold based on their respective interests. JIWON may continue to earn an additional 24% (total 75%) of the EL Paso EP (or other EP’s as nominated within the JV Area), through additional expenditure of USD 1 million (total USD 2 million), over an additional 1 year but no more than a total of 3 years from the Commencement Date, to fund exploration and other related activities.

• iv) Upon earning 75%, JIWON will form a contributing 75%:25% joint venture with Red Mountain to fund continued exploration and other related activities with MRL Gold. Normal dilution provisions will apply.

Previous exploration for porphyry copper-gold systems on the EL Paso EP produced significant drilling intersections of copper mineralisation including EPDD-001, 42.2m @ 0.50% Cu from 6m including 10.5m @ 0.95% Cu (Mindoro Resources Ltd, TSXV release, 1 February 2010). Extensive mapping, soil geochemical sampling and geophysics - induced Polarisation (IP) and magnetics, have defined new targets for further drilling. These targets will be the focus of the initial JIWON drilling program.

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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

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Red Mountain Managing Director Jon Dugdale said: “This joint venture LOI provides a second exciting exploration opportunity for the company, with JIWON targeting large copper-gold systems within our exploration permits, at no initial cost to Red Mountain.”

“Our primary focus will remain on advancing the Batangas Gold Project to development and production, as well as drill testing new targets such as Tamarind, but it’s great to have a second string to our bow in an area that we have always considered to be highly prospective.”

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Figure 1: Batangas Tenements, including Joint Venture Area the subject of the LOI

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 CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office 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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About Red Mountain Mining Limited and the Batangas Gold Project

Red Mountain Mining (ASX: RMX) is a gold exploration and development 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 exploration and mining methods and improving efficiencies to gain significant exploration and production upside.

The Company holds a 100% direct and indirect contractual right interest in tenements in the Philippines that contain significant gold resources. Total Mineral Resources at Batangas include Indicated Resources of 2.97 million tonnes @ 2.4 g/t Au, 227,000oz Au and Inferred Resources of 3.22 million tonnes @ 2.1 g/t Au, 218,000oz Au for a total of 6.19 million tonnes at 2.2 g/t Au, 444,000oz Au (ASX announcement 30 June 2014, JORC 2012). The Company is continuing exploration with the objective of upgrading mineral resources at Batangas.

The Company announced an agreement (the Agreement) with London backed, BVI registered, Bluebird Merchant Ventures Ltd (Bluebird) on 23 December 2014. The Agreement includes a two stage funding arrangement totalling US$5.5 million (~A$7.4 million), earning Bluebird up to 50% of the current wholly owned subsidiary, Red Mountain Mining Singapore Ltd (RMMS), which is the holder of the Philippines based Batangas Gold Project assets.

Stage 1 funding under the Agreement with Bluebird will allow the Company to complete a Definitive Feasibility Study (DFS) on the project, with initial results confirming low capital and operating costs and recovery of over 100,000 ounces of gold during the initial 5 years of a 10 year production plan (ASX announcement 20 November 2014 and updated 23 January 2015).

Final mine environmental and development permitting submissions have been endorsed by the Local Barangay Councils and are now proceeding towards the final stages of approval by the Philippines Government (ASX announcement 20 May 2015).

The Company is on the lookout for other advanced gold development and exploration opportunities, which will be reviewed on a continuous basis.

Cautionary Statement

The production targets referred to in this announcement were first released to ASX on 20 November 2014 and updated on 23 January 2015. They are preliminary and there is no certainty that the production targets or the forecast financial information derived from the production targets, will be realised. All material assumptions underpinning production targets or forecast financial information derived from production targets continue to apply and have not materially changed.

Competent Person Statement

The historic information in this report relating to Mineral Resources and post 1 December 2013 Exploration Results 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

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ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS 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

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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. The Company confirms that the form and context in which the information is presented has not been materially modified and it is not aware of any new information or data that materially affects the information included in the relevant market announcements, as detailed in the body of this announcement. All material assumptions and technical parameters underpinning the Mineral Resource estimates continue to apply and have not materially changed.

The new Exploration Results and historic information in this report relating to pre December 2013 Exploration Results is also based on information compiled by Mr Jon Dugdale who 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 takes responsibility for and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This announcement contains certain forward looking statements. These forward-looking statements are not historical facts but rather are based on Red Mountain Mining’s current expectations, estimates and projections about the industry in which Red Mountain Mining operates, and beliefs and assumptions regarding Red Mountain Mining’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” “potential” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Red Mountain Mining, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Red Mountain Mining cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Red Mountain Mining only as of the date of this presentation. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Red Mountain Mining will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.

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ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS 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