RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2019

Oct 1, 2019

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ASX : RMX Company Directors Jeremy King Lincoln Ho Robert Parton Company Secretary Mauro Piccini

ASX ANNOUNCEMENT RED MOUNTAIN MINING LTD 2 October 2019

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

Red Mountain Mining Limited (ASX: RMX or “the Company”) confirms that further to the ASX Announcement released 1 October 2019, in relation to the Placement, the Company has issued 69,000,000 fully paid ordinary shares at $0.005 per share ( Placement Shares ). The Company issued 1,705,516 Placement Shares under its placement capacity under Listing Rule 7.1, and 67,294,484 Placement Shares under its placement capacity under Listing Rule 7.1A.

The Company provides the following information as required under ASX Listing Rule 3.10.5A in respect of the shares issued under the Company’s 10% Placement Capacity under Listing Rule 7.1A:

• a) The dilutive effect of the Placement under LR 7.1A on existing shareholders is as follows:

Number of shares on issue prior to the Placement of Shares under LR 7.1A: 778,036,775

Dilution as a result of issue under LR 7.1A of 67,294,484 shares	7.96%
Dilution as a result of issue under LR 7.1 of 1,705,516 shares	0.22%
Total Dilution	8.18%

b) The 67,294,484 shares issued under Listing Rule 7.1A were issued to sophisticated and professional investors as it was considered to be the most efficient mechanism for raising funds at the time. 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 is 6% (plus GST) of funds raised under the total Placement plus a management fee of $25,000 (plus GST).

For and on behalf of the Board,

Mauro Piccini, Company Secretary

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