RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2015

Mar 10, 2015

ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD (ASX:RMX) 11 MARCH 2015

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RIGHTS ISSUE COMPLETED - HEAVILY OVERSUBSCRIBED

• Rights Issue completed through heavily oversubscribed $450,000 shortfall placement

• Excess demand partially met through additional placement of $210,000

Perth, Western Australia: Red Mountain Mining Limited ( ASX: RMX ) is pleased to announce that following very strong investor interest, the Company today completed its pro-rata non-renounceable rights issue ( Rights Issue ), that has already raised $445,992 from existing shareholders (announced 11 February 2015), by placing Rights Issue shortfall to investors to raise a further $450,000 (total $895,992 ), before costs.

The additional $450,000 was raised through the issue of Rights Issue shortfall of 112,500,000 Shares at an issue price of $0.004 per new Share; 56,250,000 free attaching new options with an exercise price of $0.006 and an expiry date of 30 June 2016 ( RMXOD Options ) and 56,250,000 free attaching new options with an exercise price of $0.012 and an expiry date of 31 March 2016 ( RMXO Options ). The Prospectus for the Rights Issue was lodged with ASIC and the ASX on 6 January 2015.

The Rights Issue shortfall was heavily over-subscribed and in order to partially meet the excessively strong demand from investors, the Company has also today completed a placement to sophisticated and professional investors to raise an additional $210,000 (total with Rights Issue shortfall $660,000 ), before costs, through the issue of a further 52,500,000 new Shares, 26,250,000 free attaching RMXOD Options and 26,250,000 free attaching RMXO Options on the same terms as the Rights Issue ( Placement ). The 52,500,000 Placement Shares were issued pursuant to shareholder pre-approval on 15 December 2014 and the 52,500,000 Placement Options were issued pursuant to the Company’s existing 15% annual placement capacity.

In total the Company has raised just over $1.1 million from the Rights Issue and subsequent Placement, a very pleasing result given current market conditions.

The Company intends to use the funds raised for additional exploration of high grade gold targets at the Batangas gold Project in the Philippines, progressing the Company’s Definitive Feasibility Study and general working capital, including costs of the Rights Issue and Placement.

Red Mountain Managing Director Jon Dugdale said: “We are now attracting significant new shareholders to our register, who are looking to capitalise on the near term, high margin, production opportunity that Red Mountain can offer. Whilst we did accept an additional placement, we have had to scale back investors significantly and we see this as a vote of confidence in the Company’s strategy to complete the DFS and permitting to allow development of the high-grade gold resources at Batangas.”

“In conjunction with the Bluebird financing partnership agreement, the Company is now set to deliver these key milestones to development, and re-start exploration of our high grade gold targets.”

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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

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An Appendix 3B for the abovementioned securities and secondary trading notice for the Placement Shares and Options will follow. BBY Limited ( BBY ) was engaged to manage the Placement and, subject to Shareholder approval if required, the Company will issue BBY and/or its nominees 37,500,000 new RMXOD Options in part consideration for these services.

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

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, 227,000 oz 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 objectives of upgrading mineral resources at Batangas.

The Company announced Agreement with London backed, BVI registered, BMVL on 23 December 2014 which includes a two stage funding arrangement totalling US$5.5 million (~A$6.7 million), earning BMVL up to 50% of the currently wholly owned subsidiary, Red Mountain Mining Singapore Ltd, which is the holder of the Philippines based Batangas Gold Project assets.

Funding under the Agreement with BMVL will allow the Company to complete a 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 production (ASX announcement 20 November 2014 and updated 23 January 2015).

Final mine development permitting submissions have been lodged with the Philippines Government (ASX announcement 3 April 2014) and are proceeding towards approval.

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

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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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 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. 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.

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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