RED MOUNTAIN MINING LIMITED — Capital/Financing Update 2020

May 28, 2020

Proposed issue of securities

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Announcement Summary

Entity name

RED MOUNTAIN MINING LIMITED

Announcement Type

New announcement

Date of this announcement

Friday May 29, 2020

The Proposed issue is:

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An offer of securities under a securities purchase plan A placement or other type of issue

Total number of +securities proposed to be issued for an offer of securities under a securities purchase plan

		Maximum Number of
ASX +Security Code	+Security Description	+securities to be issued
n/a	Quoted Options	37,500,000
RMX	ORDINARY FULLY PAID	75,000,000

+Record date

Thursday May 28, 2020

Offer closing date

Thursday June 25, 2020

+Issue date

Friday July 3, 2020

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +Security Code	+Security Description	+securities to be issued
n/a	Quoted Options	37,000,000
RMX	ORDINARY FULLY PAID	60,000,000

Proposed +issue date

Tuesday June 2, 2020

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Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

RED MOUNTAIN MINING LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ABN

Registration Number

40119658106

1.3 ASX issuer code

RMX

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Friday May 29, 2020

1.6 The Proposed issue is:

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An offer of +securities under a +securities purchase plan A placement or other type of issue

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Part 4 - Details of proposed offer under securities purchase plan

Part 4A - Conditions

4A.1 - Are any of the following approvals required for the offer of +securities under the +securities purchase plan issue to be unconditional? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity No

Part 4B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +Security Code and Description

RMX : ORDINARY FULLY PAID Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +Security Code and Description

RMX : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued 75,000,000

Minimum Number of +securities Maximum Number of proposed to be offered to each +securities proposed to be individual +security holder offered to each individual +security holder 500,000 3,750,000

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Minimum subscription $ Maximum subscription $ amount proposed to be offered amount proposed to be offered to each individual security to each individual security holder holder AUD 2,000 AUD 15,000 Purpose of the issue SPP Offer price details for retail security holders Issue Currency Offer Price per +security Estimated or Actual? Actual AUD - Australian Dollar AUD 0.00400 Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes Oversubscription & Scale back details May a scale back be applied to this event? Yes Provide the scale back details TBA (if required)

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued ISIN Code (if Issuer is a foreign company and +securities are non CDIs) RMXOI Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1? Will the entity be seeking quotation of the 'new' class of +securities on ASX? ASX +Security Code New class-code to be confirmed +Security Description Quoted Options Yes No

Details of attaching +securities proposed to be issued ISIN Code (if Issuer is a foreign company and +securities are non CDIs) RMXOI Have you received confirmation from ASX that the terms of the proposed +securities are appropriate and equitable under listing rule 6.1? Will the entity be seeking quotation of the 'new' class of +securities on ASX? ASX +Security Code New class-code to be confirmed +Security Description Quoted Options Yes No

New class-code to be confirmed

Quoted Options

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+Security Type

Options

Offer ratio (ratio of attaching securities at which the new +securities will be	Offer ratio (ratio of attaching securities at which the new +securities will be
issued)
The quantity of attaching +securities	For a given quantity of the
to be issued	new +securities issued
1	2
What will be done with fractional	Maximum Number of +securities
entitlements?	proposed to be issued
Fractions of 0.5 or more rounded up	37,500,000
Offer price details for retail security holders
Issue Currency	Offer Price per +security
AUD - Australian Dollar	AUD 0.00000
Estimated or Actual?
Actual
Oversubscription & Scale back
details
May a scale back be applied to this
event?
Yes
Provide the scale back details As per SPP
Will all the +securities issued in this	class rank equally in all respects from
their issue date?
Yes

Options details

+Security Currency AUD - Australian Dollar Exercise Price Expiry date AUD 0.0080 Saturday July 3, 2021 Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option

RMX : ORDINARY FULLY PAID

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Please provide any further information relating to the principal terms of the +securities

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Part 4C - Timetable

4C.1 Date of announcement of +security purchase plan Friday May 29, 2020

4C.2 +Record date

Thursday May 28, 2020

4C.3 Date on which offer documents will be made available to investors

Thursday June 4, 2020

4C.4 Offer open date Thursday June 4, 2020

4C.5 Offer closing date

Thursday June 25, 2020

4C.6 Announcement of results

Tuesday June 30, 2020

4C.7 +Issue date

Friday July 3, 2020

Part 4D - Listing Rule requirements

• 4D.1 Does the offer under the +securities purchase plan meet the requirements of listing rule 7.2 exception 5 that: the number of +securities to be issued is not greater than 30% of the number of fully paid +ordinary securities already on issue; and

the issue price of the +securities is at least 80% of the +volume weighted average market price for +securities in that +class, calculated over the last 5 days on which sales in the +securities were recorded, either before the day on which the issue was announced or before the day on which the issue was made?

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• Yes

Part 4E - Fees and expenses

4E.1 Will there be a lead manager or broker to the proposed offer? Yes

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4E.1a Who is the lead manager/broker?

Xcel Capital Pty Ltd

4E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker? 6% of amount raised 4E.2 Is the proposed offer to be underwritten? No 4E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

4E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer

Part 4F - Further Information 4F.1 Will the entity be changing its dividend/distribution policy if the proposed offer is successful? No 4F.2 Countries in which the entity has security holders who will not be eligible to accept the proposed offer Australia and New Zealand 4F.3 URL on the entity's website where investors can download information about the proposed offer https://www.redmountainmining.com.au/

4F.4 Any other information the entity wishes to provide about the proposed offer Any shortfall SPP shares will be issued under the Company's remaining 15% placement capacity

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? Yes

Details of +securities proposed to be issued

ASX +Security Code and Description

RMX : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

60,000,000

Purpose of the issue

placement

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.00400

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

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Oversubscription & Scale back details

May a scale back be applied to this event? No

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

RMXOI
Have you received confirmation from ASX that the terms	Will the entity be seeking quotation of the 'new' class of
of the proposed +securities are appropriate and	+securities on ASX?
equitable under listing rule 6.1?	Yes
No
ASX +Security Code	+Security Description
New class-code to be confirmed	Quoted Options
+Security Type
Options
Maximum Number of +securities proposed to be issued
37,000,000
Offer price details for retail security holders
In what currency is the cash consideration being paid?	What is the issue price per +security?
AUD - Australian Dollar
	AUD

Oversubscription & Scale back details

May a scale back be applied to this event? No

Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

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Options details

+Security Currency

AUD - Australian Dollar

Exercise Price

AUD 0.0080

Expiry date

Saturday July 3, 2021

Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option

RMX : ORDINARY FULLY PAID

Please provide any further information relating to the principal terms of the +securities

Part 7C - Timetable

7C.1 Proposed +issue date

Tuesday June 2, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

up to 74,500,000 quoted options (30,000,000 placement options, up to 37,500,000 SPP Options and 7,000,000 broker options)

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? Yes

7D.1c ( i ) How many +securities are proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

60,000,000 placement shares

7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

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7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker?

Xcel Capital Pty Ltd

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

6% of amount raised. $10k management fee 7m quoted options (exercisable $0.008,expiring 1 year from the date of issue)

7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

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