RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2015

Feb 10, 2015

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

RIGHTS ISSUE FUNDS RECEIVED AND NEW SECURITIES ISSUED

• Rights Issue raises $446,000, representing 50% take-up of new securities offered
• Committed and liquidated US dollar funding to take the Company to development

Perth, Western Australia: Red Mountain Mining Limited (ASX:RMX) is pleased to announce that in addition to its recent $245,000 capital raising (announced 23 December 2014), the Company has raised a further $445,922 (before costs) through the issue of 111,480,599 new shares, at an issue price of $0.004 (0.4 cent) per share (New Shares); with 55,740,285 free attaching new options, exercisable at $0.006 (0.6 cent) each on or before 30 June 2016 (New RMXOD Options) and 55,740,285 free attaching new options, exercisable at $0.012 (1.2 cent) each on or before 31 March 2016 (New RMXO Options), pursuant to its recent pro-rata non-renounceable Rights Issue, the Prospectus for which was lodged with ASIC and released on ASX on 6 January 2015 (Rights Issue). Both the RMXO and RMXOD Options classes are now listed and tradeable on the ASX.

The Company can also advise it is now able to access US$254,000 (~A$328,000) previously held in the Company's Wholly Foreign Owned Entity (WFOE) account in China, residual from previous operations in that country. This additional liquidated cash, combined with the capital raising and Rights Issue funding, aggregates to a A$1 million cash injection to Red Mountain Mining Limited.

In addition, activities have commenced under the strategic funding partnership with Bluebird Merchant Ventures (BMVL), which includes committed Stage 1 funding of US$1 million (~A$1.3 million) that is expected to fund final permitting, completion of the Definitive Feasibility Study (DFS) and selective drilling of high grade targets for potential early mining. Following completion of the DFS and final permitting, Stage 2 funding of US$4.5 million (~A$5.8 million) is expected to part fund the development of the Batangas Gold Project. The material terms of the Agreement are summarised in the ASX announcements on 16 December 2014 and 23 December 2014.

The Company has commenced seeking debt financing for the remainder of the capital requirement for development of the Batanags Gold Project, which is expected to total approximately US$15 million (A$19 million) (ASX announcements 20 November 2014 and 23 January 2015).

Red Mountain Mining Managing Director Jon Dugdale said, "Red Mountain is turning the corner. We have now received or arranged funding that we are confident can take the Company through to development and continue exploration of our high-grade gold targets."

As announced previously, the Directors reserve the right to place any shortfall under the Rights Issue within three (3) months of the extended closing date of 3 February 2015 (Shortfall). To facilitate this, the Company has today executed a mandate with BBY Limited (BBY) pursuant to which BBY has been engaged to provide certain marketing and capital raising services, including managing the placement of the Shortfall arising from the Rights Issue on an exclusive basis, through which the Company will seek to raise up to a further $450,000, before costs (Mandate). In part consideration for the services to be provided pursuant to the Mandate, and subject to Shareholder approval if required, the Company will issue BBY and/or its nominees 30,662,500 New RMXOD Options plus a further three (3) New RMXOD Options for every four (4) new Shortfall Shares issued. The Mandate contains other commercial terms standard for an agreement of this nature.

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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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 the total 10 year production plan (ASX announcement 20 November 2014 and updated 23 January 2015).

Final mine development and environmental 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.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street

ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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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.

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.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street

ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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