RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2017

Sep 5, 2017

==> picture [595 x 81] intentionally omitted <==

ASX : RMX Company Directors ASX ANNOUNCEMENT Jeremy King RED MOUNTAIN MINING LTD Lincoln Ho Robert Parton RED MOUNTAIN MINING LTD Company Secretary 6 September 2017 Shannon Coates

COMPANY UPDATE

• RMX to proceed with earn-in to acquire up to 90% of Mokabe-Kasari Cobalt Copper project located in world famous DRC Copper belt

• Due diligence finalised, including site visit by CSA Global – grades up to 0.5% Cobalt

• Phase 1 exploration to commence immediately and to target high-grade Cobalt zones

• Improved Earn-in terms completed

• Placement to fund work programme together with assessment of additional opportunities completed

Red Mountain Mining Limited ( the Company , Red Mountain or RMX ) is pleased to advise that it will proceed with phase 1 of exploration to earn into the Mokabe-Kasari Cobalt-Copper project in the DRC.

Director Jeremy King commented:

“The final stages of due diligence on Mokabe-Kasari have taken longer than we would have liked. Nevertheless, this delay has provided the opportunity to re-negotiate the economics of our staged deal and we view this as a good outcome for shareholders. We will now move to immediately implement a work programme with the focus on the encouraging Cobalt grades that have been identified within the tenure package.”

Update on Mokabe-Kasari Project

The Mokabe-Kasari Cobalt Copper Project is located in the Congolese part of the prolific Central African Copper belt. It comprises artisanal licenses covering approximately 116km2. For further detail on the region and nearby Cobalt and copper mines and previous sample work, see the Company’s ASX announcements dated 21 March 2017 and 22 May 2017.

Recently, RMX’s technical advisor, CSA Global Pty Ltd, conducted a short reconnaissance site visit to the Project and carried out validation ground-work across the tenure package to ensure there existed the opportunity for sufficient scale, to assess geologic prospectivity as well as to scope future exploration work. Additional samples were also taken which included Cobalt grades of up to 0.5%. See Figure 1 for the full table of such sampling results. The Board has been encouraged by the final due diligence results, and is looking forward to commencing phase 1 exploration.

==> picture [595 x 40] intentionally omitted <==

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

Improved Commercial Terms

Following ongoing negotiations with the introducing party, CoCu Pty Ltd, commercial terms have been revised and RMX may earn up to 90% of the Mokabe Kasari Cobalt-Copper Project via:

1. The issue of 14 million shares in RMX (7.5 million of which will be subject to 12 months escrow) These shares will be issued pursuant to the Company’s existing placement capacity pursuant to Listing Rule 7.1;

2. Payment of A$70,000 on commencement of phase 1 exploration;

3. Payment of A$75,000 90 days after phase 1 exploration commencement provided that RMX notifies CoCu that it wishes to continue with the Project; and

4. Payment of US$100,000 on issue of Mining Licence (or equivalent) over Project area or portion thereof.

Capital Management

RMX further advises that it has received firm commitments from professional and sophisticated investors to raise $735,000 (before costs) via the issue of 66,818,182 new fully paid ordinary shares at an issue price of $0.011 (1.1 cent) per share ( Placement ), which represents a 25% discount to the 15 day trading VWAP to 1 September 2017. The Placement will be issued pursuant to the Company’s existing placement capacity, with 23,898,101 shares to be issued pursuant to Listing Rule 7.1 and 42,920,081 shares to be issued pursuant to Listing Rule 7.1A.

Xcel Capital will act as Lead Manager to the Placement.

The Company shall utilise funds raised towards earn-in exploration activities at the Mokabe-Kasari CobaltCopper Project, ongoing identification and due diligence on additional asset and project opportunities, general working capital and cost of the offer.

New Asset Opportunities

Following successful completion of the capital raising RMX is well funded to complete phase 1 of exploration on Mokabe-Kasari as well as potentially acquiring complementary assets. The Board continues to regularly review new opportunities in the new energy metals, base metals and gold sector.

For and on behalf of the Board.

Shannon Coates, Company Secretary

-Ends-

==> picture [595 x 43] intentionally omitted <==

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

Competent Person Statement

Information in this report that relates to Exploration results has been compiled from historic data by Mr. Simon Dorling, who is a member of the Australian Institute of Geoscientists. Mr. Dorling is a consultant to RMX, and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Dorling consents to the inclusion of the data in the form and context in which it appears.

Figure 1: Sample Results from CSA Global site visit:

Sample_No	East	North	RL	Cu%	Co%	Sample Type
S099011	416386	8898468	1222	0.6	<0.01	vertical channel sample,0.8m
S099012	416385	8898461	1215	0.0	<0.01	vertical channel sample,1.3m
S099013	421402	8898199	1141	0.0	0.5	gravel; sample from 7-9m
S099014	421549	8898296	1137	0.0	0.3	black coated transported material,1-2m
S099015	421446	8898296	1137	<0.01	<0.01	gravel; rockpebbles with black staining
S099016	421830	8906524	1307	0.0	<0.01	rock chip,
S099017	421811	8906663	1325	0.9	<0.01	vertical channel sample 0.4m
S099018	421933	8906617	1323	1.0	<0.01	vertical channel sample 0.4m
S099019	419981	8908218	1503	<0.01	<0.01	rock chip,
S099020	418976	8905286	1353	0.6	<0.01	rock chip,
S099021	416935	8902925	1325	2.0	<0.01	rock chip, lifted Co-plant up and found stratiform mineralisation
S099022	421977	8897850	1132	<0.01	0.0
S099023	421446	8898296	1137	0.0	0.3	duplicate-homogenised and split sample of S099014
S099024	416386	8898468	1222	0.7	<0.01	duplicate-homogenised and split sample of S099011
S099025	416086	8896999	1175	0.7	<0.01	vertical Channel sample
S099026	416091	8896932	1174	0.1	<0.01	vertical Channel sample

==> picture [595 x 43] intentionally omitted <==

==> picture [595 x 81] intentionally omitted <==

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels,	•	Near surface mineralisation is extracted from the property by
	random chips, or specific specialised industry standard	artisanal	miners. A small number of selected rock chip samples were taken
	measurement tools appropriate to the minerals under	by the current owners from piles of extracted artisanal material and
	investigation, such as down hole gamma sondes, or handheld	outcrop.
	XRF instruments, etc). These examples should not be taken as	•	The rock chip samples were all submitted a to SGS Minerals RDC
	limiting the broad meaning of sampling.	SARL, 760 Avenue De 30 Juin in Lubumbashi where they were analysed by
	• Include reference to measures taken to ensure	MULTI-ACID 3/4 DIGESTION) AAS42S - Four acid digest (DIG42S), 0.4g-
	sample representivity and the appropriate calibration of any	100ml, Ore grade; AAS22S - Three acid digest, 0.4g-100ml, Ore grade.
	measurement tools or systems used.	•	Photographic evidence, geological descriptions and geological
	• Aspects of the determination of mineralisation that	context suggest that the samples reflect the nature and style of
	are Material to the Public Report.	mineralisation exploited by artisanal miners.
	• In cases where ‘industry standard’ work has been
	done this would be relatively simple (eg ‘reverse circulation
	drilling was used to obtain 1 m samples from which 3 kg was
	pulverised to produce a 30 g charge for fire assay’). In other
	cases more explanation may be required, such as where
	there is coarse gold that has inherent sampling problems.
	Unusual commodities or mineralisation types (eg submarine
	nodules)maywarrant disclosure of detailed information.
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole	Not applicable to this announcement as no drilling has occurred.
	hammer, rotary air blast, auger, Bangka, sonic, etc) and
	details (eg core diameter, triple or standard tube, depth of
	diamond tails, face-sampling bit or other type, whether core
	is oriented and if so,bywhat method,etc).
Drill sample recovery	• Method of recording and assessing core and chip	Not applicable to this announcement as no drilling has occurred.
	sample recoveries and results assessed.
	• Measures taken to maximise sample recovery and
	ensure representative nature of the samples.

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

Criteria	JORC Code explanation	Commentary	Commentary
	• Whether a relationship exists between sample
	recovery and grade and whether sample bias may have
	occurred due to preferential loss/gain of fine/coarse
	material.
Logging	• Whether core and chip samples have been	Not applicable to this announcement as no drilling has occurred.
	geologically and geotechnically logged to a level of detail to
	support appropriate Mineral Resource estimation, mining
	studies and metallurgical studies.
	• Whether logging is qualitative or quantitative in
	nature. Core (or costean, channel, etc) photography.
	• The total length and percentage of the relevant
	intersections logged.
Sub-sampling	• If core, whether cut or sawn and whether quarter,	Not applicable to this announcement as no drilling has occurred.
techniques and sample	half or all core taken.
preparation	• If non-core, whether riffled, tube sampled, rotary
	split, etc and whether sampled wet or dry.
	• For all sample types, the nature, quality and
	appropriateness of the sample preparation technique.
	• Quality control procedures adopted for all sub-
	sampling stages to maximise representivity of samples.
	• Measures taken to ensure that the sampling is
	representative of the in situ material collected, including for
	instance results for field duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain
	size of the material beingsampled.
Quality of assay data	• The nature, quality and appropriateness of the	•	SGS Laboratories (Lubumbashi) was used for all analysis work
and laboratory tests	assaying and laboratory procedures used and whether the	carried out on the rock chip samples. The laboratory techniques below are
	technique is considered partial or total.	for	all samples submitted to SGS and are considered appropriate for the
	• For geophysical tools, spectrometers, handheld XRF	style of mineralisation defined at the prospect:
	instruments, etc, the parameters used in determining the	•	Samples were analysed using MULTI-ACID 3/4 DIGESTION) AAS42S -
	analysis including instrument make and model, reading times,		Four acid digest (DIG42S), 0.4g-100ml, Ore grade; AAS22S - Three acid
	calibrations factors applied and their derivation, etc.		digest, 0.4g-100ml, Ore grade.
	• Nature of quality control procedures adopted (eg
	standards, blanks, duplicates, external laboratory checks) and
	whether acceptable levels of accuracy (ie lack of bias) and

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

Criteria	JORC Code explanation	Commentary
	precision have been established.
Verification of sampling	• The verification of significant intersections by either	• Two twin samples were prepared by splitting two samples from
and assaying	independent or alternative company personnel.	two different location. The results for both copper and cobalt came back
	• The use of twinned holes.	within reasonable variance.
	• Documentation of primary data, data entry
	procedures, data verification, data storage (physical and
	electronic) protocols.
	• Discuss anyadjustment to assaydata.
Location of data points	• Accuracy and quality of surveys used to locate drill	• Sample locations have UTM (WGS84) coordinates. Grid system
	holes (collar and down-hole surveys), trenches, mine	used is UTM (WGS84) Zone 35S.
	workings and other locations used in Mineral Resource
	estimation.
	• Specification of the grid system used.
	• Qualityand adequacyof topographic control.
Data spacing and	• Data spacing for reporting of Exploration Results.	• The sample data provided in this report were randomly selected
distribution	• Whether the data spacing and distribution is	samples to test the mineralisation observed in outcrop in relation to the
	sufficient to establish the degree of geological and grade	geological stratigraphic setting. The data is insufficient to be conclusive
	continuity appropriate for the Mineral Resource and Ore	about grade continuity of mineralisation over large distances but its style
	Reserve estimation procedure(s) and classifications applied.	strongly suggests lateral continuity.
	• Whether sample compositinghas been applied.
Orientation of data in	• Whether the orientation of sampling achieves	Not applicable to this announcement as no drilling has occurred.
relation to geological	unbiased sampling of possible structures and the extent to
structure	which this is known, considering the deposit type.
	• If the relationship between the drilling orientation
	and the orientation of key mineralised structures is
	considered to have introduced a sampling bias, this should be
	assessed and reported if material.
Sample security	• The measures taken to ensure sample security.	• CSA delivered the samples directly at SGS.
Audits or reviews	• The results of any audits or reviews of sampling	• The company has engaged consulting group CSA Global (AUS) to
	techniques and data.	conduct a site visit and evaluate and comment on the validity,
		prospectively and geological context of the licence area and to undertake
		check sampling. CSA collected multiple samples which are reported in this
		release and are in the process of compiling their findings and
		recommendations

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

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral tenement and	•	Type, reference name/number, location and	• The proposed project area is currently covered under artisanal
land tenure status	ownership including agreements or material issues with third		exploitation licences ZEA: 556, 557, 558, 559, 560 , 561, 562 and 563, ZEA
	parties such as joint ventures, partnerships, overriding		727 to 733 and 735-738. The exploitation licenses are in the name of
	royalties, native title interests, Historical sites, wilderness or		Comiko Sarl.
	national park and environmental settings.
	•	The security of the tenure held at the time of
	reporting along with any known impediments to obtaining a
	license to operate in the area.
Exploration done by	•	Acknowledgment and appraisal of exploration by	• Not applicable to this announcement as no recorded exploration
other parties	other	parties.	has been carried out by other parties.
Geology	•	Deposit type, geological setting and style of	• The mineralisation in the project area is considered a typical
	mineralisation.		example of a deeply weathered, sediment-hosted copper deposit typical
			for the Congolese part of the Central African Copper Belt. Primary
			sulphide mineralisation is oxidised and re-distributed during weathering
			in ex-dolomitic siltstones and sandstones. The host rocks are weakly
			deformed and occur as tabular strata near the margin of the Lufilian Fold
			Belt.
			• Mineralisation appears to be preferentially hosted in sandy
			facies of interbedded shallow-marine sedimentary rocks of the
			Kundelungu Group of rocks.
			• Mineralisation is exclusively secondary, and is mostly
			stratabound. The principle copper oxide mineral is malachite, with minor
			amounts of azurite and chrysocolla and chalcocite. Cobalt occurs as
			heterogenite.
Drill hole Information	•	A summary of all information material to the	Not applicable to this announcement as no drilling has occurred.
	understanding of the exploration results including a tabulation
	of the following information for all Material drill holes:
	o	easting and northing of the drill hole collar
	o	elevation or RL (Reduced Level – elevation above sea
	level in metres) of the drill hole collar
	o	dip and azimuth of the hole

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

Criteria	JORC Code explanation	Commentary	Commentary
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the
	basis that the information is not Material and this exclusion
	does not detract from the understanding of the report, the
	Competent Person should clearlyexplain whythis is the case.
Data aggregation	• In reporting Exploration Results, weighting averaging	Not applicable to this announcement as no drilling has occurred.
methods	techniques, maximum and/or minimum grade truncations (eg
	cutting of high grades) and cut-off grades are usually Material
	and should be stated.
	• Where aggregate intercepts incorporate short lengths
	of high grade results and longer lengths of low grade results,
	the procedure used for such aggregation should be stated and
	some typical examples of such aggregations should be shown
	in detail.
	• The assumptions used for any reporting of metal
	equivalent values should be clearlystated.
Relationship between	• These relationships are particularly important in the	•	The samples represent grab samples or represent an equivalent
mineralisation widths	reporting of Exploration Results.	of channel samples with a specified sample length as specified in the
and intercept lengths	• If the geometry of the mineralisation with respect to	sample Table 1. The samples have been collected with the intent to be
	the drill hole angle is known, its nature should be reported.	representative of the location sampled.
	• If it is not known and only the down hole lengths are
	reported, there should be a clear statement to this effect (e.g.
	‘down hole length,true width not known’).
Diagrams	• Appropriate maps and sections (with scales) and	•	A map of the sample location has been provided in this release.
	tabulations of intercepts should be included for any significant
	discovery being reported These should include, but not be
	limited to a plan view of drill hole collar locations and
	appropriate sectional views.
Balanced reporting	• Where comprehensive reporting of all Exploration	•	See Table 1.
	Results is not practicable, representative reporting of both low
	and high grades and/or widths should be practiced to avoid
	misleading reporting of Exploration Results.

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

Criteria	JORC Code explanation	Commentary
Other substantive	• Other exploration data, if meaningful and material,	• The project area is located on the fringe of the Lufilian Arc in an
exploration data	should be reported including (but not limited to): geological	area of less intense deformed Katanga Basin sediments, near the basin
	observations; geophysical survey results; geochemical survey	margin. The area has not seen the same level of historic exploration as
	results; bulk samples – size and method of treatment;	other parts of Katanga. However colonial geological maps show several
	metallurgical test results; bulk density, groundwater,	copper occurrences in the region.
	geotechnical and rock characteristics; potential deleterious or
	contaminatingsubstances.
Further work	• The nature and scale of planned further work (eg tests	• The Company and its technical advisors believe the area
	for lateral extensions or depth extensions or large-scale step-	warrants further reconnaissance work and systematic exploration
	out drilling).	targeting. The Company plans to undertake a reconnaissance site visit
	• Diagrams clearly highlighting the areas of possible	and subsequent work plans.
	extensions, including the main geological interpretations and
	future drilling areas, provided this information is not
	commerciallysensitive.