RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2017

Sep 5, 2017

==> picture [595 x 85] intentionally omitted <==

ASX : RMX

Company Directors Jeremy King Lincoln Ho Robert Parton Company Secretary Shannon Coates

ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD

6 September 2017

DISCLOSURE UNDER ASX LISTING RULE 7.1A.4(B) AND 3.10.5A

In relation to the Placement advised in the Appendix 3B released to the ASX today, and in accordance with ASX Listing Rules 7.1A.4(b) and 3.10.5A the Company makes the following disclosures in respect of the Placement:

• (a) The Company issued 42,920,081 of the 61,818,182 Placement shares under Listing Rule 7.1A. The securities issued resulted in the following dilution to existing holders of ordinary securities:

  • Number of fully paid ordinary shares on issue prior to the Placement of securities under LR 7.1A was 430,534,138.

  • Number of fully paid ordinary shares on issue following this issue of securities under LR 7.1A was 473,454,219.

  • Percentage of voting dilution due to the portion of the Placement shares that are issued under LR 7.1A following the issue is 9.06%, with the total dilution due to the Placement being 13.06%.

• (b) The Company issued shares as a placement to sophisticated and professional investors as this was considered to be the most expedient mechanism for raising funds in a timely manner. The Company is grateful for the support of its long-term shareholders.

• (c) No underwriting agreements were entered into with respect to the Placement.

• (d) Commission payable was 6% of funds raised under the Placement plus a management fee of $32,115 in relation to the portion issued under Listing Rule 7.1A, with no broker options or equity.

For and on behalf of the Board,

Shannon Coates, Company Secretary

==> picture [593 x 53] intentionally omitted <==