RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2015

Jan 21, 2015

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22 January 2015

Dear Shareholder,

REPLACEMENT PROSPECTUS FOR PRO-RATA NON-RENOUNCEABLE RIGHTS ISSUE

The Company lodged a Prospectus for its pro-rata, non-renounceable Rights Issue with ASIC and the ASX on 6 January 2015. As announced to ASX on 20 January 2015, the Closing Date for the Rights Issue has been extended to 3 February 2015 .

Due to an administrative error, the version of the Prospectus that was mailed to you in hard copy on 16 January 2015 was incorrect. The correct version of the Prospectus was lodged with ASIC and released on the ASX on 6 January 2015 and is enclosed. Please disregard the previous version of the Prospectus you received by mail. If you have not already submitted an application to take up your rights, please use the enclosed Entitlement and Acceptance form to take up your rights before the extended Closing Date of 3 February 2015.

If you have already submitted an application to take up your rights on the basis of the incorrect version of the Prospectus mailed to you, and wish to withdraw, or have any further queries, please contact the Company (Sarah Lyons) on +61 8 9322 1587 prior to the Closing Date of 3 February 2015.

New shares are offered under the Rights Issue on a one for four basis at an issue price of $0.004 (0.4c) per share ( New Shares ). The New Shares will be offered together with one free attaching Listed Option exercisable at $0.012 (1.2c) on or before 31 March 2016 ( RMXO ) and one free attaching Option exercisable at $0.006 ( 0.6c Option ) on or before 30 June 2016 for every two New Shares subscribed for under the Rights Issue. Subject to a minimum of 50 individual shareholders taking up their entitlement, the new 0.6c Options will be listed on the ASX.

The timetable for the closing and completion of the Rights Issue is now as follows:

New Date	Event/s
3 February2015	Rights Issue Closes
4 February 2015	Trading on deferred settlement basis
6 February 2015	Notify ASX of under subscriptions
10 February 2015	Issue date
11 February 2015	Normal trading resumes and despatch date

The Directors of Red Mountain Mining Limited recommend the Rights Issue and encourage all eligible shareholders to participate in the capital raising. Eligible shareholders may also apply for additional new shares above their entitlement. The Directors reserve the right to place any shortfall under the Rights Issue within three (3) months of the Closing Date of 3 February 2015.

Yours sincerely,

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Neil Warburton Chairman

Red Mountain Mining Ltd ACN 119 568 106 Unit 1, No. 2 Richardson Street, West Perth, Western Australia, 6005. PO Box 1928, West Perth, W.A. 6872 T: +61 (08) 9226 5668 F: +61 (08) 9486 8616 E: info@redmm.com.au W: www.redmm.com.au