RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2015

Jan 6, 2015

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7 January 2015

Dear Shareholder

Notice to Overseas Shareholders of Rights Issue

We write to you as the registered holder of Red Mountain Mining Limited (ACN 119 568 106) ( Red Mountain or Company ) shares as at today’s date. As announced on 23 December 2014 and 6 January 2015, the Directors of Red Mountain have resolved to offer a pro-rata nonrenounceable rights issue of up to approximately 224,061,991 fully paid ordinary shares ( New Shares ), on the basis of one New Share for every four Shares held on the Record Date at an issue price of $0.004 (0.4c) per New Share, with one free attaching listed option exercisable at $0.012 (1.2c) each on or before 31 March 2016 ( RMXO ) and one free attaching option exercisable at $0.006 (0.6c) each on or before 30 June 2016 ( New 0.6c Option ) for every two New Shares subscribed for (together, New Options ) under the Prospectus to raise approximately $896,248 before costs ( Rights Issue or Offer ). New Shares will rank equally with all fully paid ordinary shares in the capital of the Company ( Shares ) already on issue. The Company intends to apply for quotation of the New Shares and New Options but notes that quotation of the New 0.6c Options will be subject to satisfaction of the ASX Listing Rules requirement (particularly in regards to spread).

The funds raised from the Rights Issue are intended to be used for:

• a) selective exploration of near surface, high grade targets at Lobo;

• b) general working capital; and

• c) payment of the costs of the Rights Issue process.

Participation in the Rights Issue is available to Red Mountain shareholders registered on the record date at 5:00pm on 13 January 2015 ( Record Date ) and whose registered address is in Australia or New Zealand ( Eligible Shareholders ).

The Rights Issue is being made pursuant to a prospectus which was lodged with the Australian Securities and Investments Commission and the ASX on 6 January 2015 ( Prospectus ). The Prospectus is available at the Company’s website: www.redmm.com.au or on the ASX website (company announcements section, ASX code: RMX) at www.asx.com.au.

Following completion of the Offer, the Company will have issued approximately 224,061,991 New Shares and 112,030,995 RMXO and 112,030,995 New 0.6c Options, resulting in total Shares on issue of approximately 1,120,309,957 and total options to acquire Shares on issue of approximately 493,831,319.

Ineligible shareholders

In accordance with the Listing Rules of the Australian Securities Exchange, the Company has considered the number of shareholders with registered addresses outside of Australia and New Zealand and the size and value of the shareholdings held by those shareholders. Taking into consideration the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to shareholders with registered addresses outside of Australia and New Zealand, the Company has formed the view that it is unreasonable to extend the Offer to those shareholders ( Ineligible Shareholders ).

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

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Accordingly, Red Mountain will not be sending you a copy of the Prospectus as Red Mountain is unable to extend to you the opportunity to participate in the Rights Issue.

If you have any queries in relation to the Rights Issue, please do not hesitate to contact Shannon Coates, the Company Secretary on (08) 9226 5668.

Yours faithfully Shannon Coates Company Secretary

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